In the News

Michael Douglas, The Akron Beacon Journal

Dec. 9--The photographs told the story of the landmark $890 million deal to keep Goodyear in Akron -- at least most of the story.

There, on the front page of Thursday's newspaper, was Bob Keegan, the Goodyear chairman and chief executive officer, shaking hands with Gov. Ted Strickland. Their profiles framed Stuart Lichter of Industrial Realty Group, a few steps removed yet front and center as the project developer.

Travel inside the A section, and another photograph by Phil Masturzo of the Beacon Journal captured a delighted Mayor Don Plusquellic.

Thus, the narrative emerged -- the company and the state, the city and the developer, all coming together in an extraordinary way. The tiremaker got the new global headquarters it needs. The city bolstered its identity beyond the good news about Goodyear staying home. The surrounding investment, involving hotels, office space and retail outlets, advances the image of a place ready to do business, proud of its past yet embracing the future.

Anyone missing from this storyline?

Actually, yes.

Russ Pry, the Summit County executive. The county will play an indispensable role in the project.

Lee Fisher, the lieutenant governor and director of the state Department of Development, explained that each of the players brought a critical element to the table. The state will set the project in motion financially with a generous package of loans, grants and tax relief. Akron, among other things, will conduct the tax increment financing, channeling property tax revenue into improved streets, bridges, sewer and water works.

Fisher stressed -- Lose one of the many moving parts, and the deal collapses. With that in mind, consider what the county will do, starting with taking responsibility for the parking essential to the development. The state will put up $15 million for parking, and the county will repay the loan.

Pry and others noted that a hurdle toward the end of the negotiations involved the familiar matter of "what ifs." What if the project doesn't receive the $15 million that will be sought from the federal government?

Or the $10 million from the state capital budget?

Or money falls short from one of the half-dozen other sources?

All told, the project entails roughly $200 million in public money. The city, the county and Industrial Realty Group wanted to be prepared for a funding shortfall of $50 million. They agreed that each of the three would cover one-third of any revenue gap.

That may not sound like much of a commitment from the county with the presence of Goodyear and 2,900 jobs at stake. A no-brainer?

Yep.

The story features another layer. The city of Akron doesn't have the financial muscle to carry easily enough a larger share of the "what ifs." That sheds light, in part, on the mayor pressing (unsuccessfully) for an increase in the city income tax last spring. He may be at his best orchestrating the many pieces of economic development. Along with creativity, persistence and savvy, he's got to have money.

Plusquellic may have been weakened politically by the thumping of his tax proposal and a closer-than-expected victory in the Democratic Party primary (ensuring his re-election). He found himself at the start of last week responding to the noisy and misguided complaints of Michael Williams and John Conti. The two city council members argued that the city's investment in a downtown project came at the expense of neighborhoods.

Their point has been made many times, and the telling rejoinder remains the same -- Neighborhoods deserve high priority, yet downtown consumes a small fraction of overall capital spending (not to mention the investment returning a dividend to city coffers).

A few days later, Plusquellic was basking in the Goodyear triumph, the company having given Akron until the end of the year to craft a proposal, the city delivering what the company and the moment required. Part of the success story is that Russ Pry had the money, at least a sufficient amount to become the partner the mayor needed. In that way, a larger actor in economic development has been formed, the city and the county working together.

That isn't as readily achieved as many might expect.

Pry plans eventually to move the Department of Job and Family Services to the extended Goodyear development site (another aspect of the county's commitment). He wants to consolidate the department offices, exiting three buildings downtown, making room in the biomedical corridor the mayor has championed for, say, a research institute dedicated to the local strength in orthopedics.

The challenges facing larger cities often are underappreciated. Look at state lawmakers curbing the powers of cities to act. Against such a backdrop the role of Russ Pry gains deeper perspective. He represents all of Summit County. His presence affirms more than the obvious about keeping Goodyear. It points to our shared stake in the health of the city.

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Tags: goodyear, russ pry