Colorado Avenue Industrial Park sees potential development in Lorain

LORAIN — The Colorado Avenue Industrial Park has an interested buyer. On the city's east side bordering the Black River, the city owns almost 200 acres of property developed to create an industrial parkway along River Industrial Park Road, which is normally blocked with large concrete barricades. Often the site of cleanups in the summer, it could soon be home to a cold food storage. Tom Brown, executive director of the Lorain Port Authority, said the deal is something he and the city have been working on for quite some time. The developer, Karis Capital, is making a roughly $35 million investment into the property. It is interested in buying several parcels and is willing to commit to creating 100 jobs with a payroll in excess of $4 million — meaning an income tax revenue for the city of about $105,000. Councilwoman Beth Henley, D-Ward 1, said it was probably the best thing that has happened in her ward in a quarter-century. Known often as the "road to nowhere," she hoped the development would spur further investment in the city. Legislation passed Monday evening that allows the law department and others to continue negotiations leading up to a contract for the property. The price shifts based on the number of acres purchased: the initial 15 will be sold for not less than $12,500 per acre. The developer will have the right to purchase up to an additional 20 acres for not less than $20,000 per acre, and no less than $25,000 per acre for the next 55 acres within three years of the original 15-acre purchase or by December 2023. If a contract is signed, about $137,5000 of the payment is nonrefundable, Building, Housing and Planning director Max Upton explained. The proceeds from the sale will be treated as revenue for the city's Community Development Block Grant program. The original work to develop the land was paid for from at least four different revenue streams, he explained. A portion of the proceeds will have to be used to retire a state debt of $360,000 he said. Rey Carrion, D-Ward 6, who worked in the city's community development department when the Industrial Park was initially built, said it was meant to bring in this type of tenant. The cold storage facility proposed by Karis Capital could served as an anchor business to bring similar industries into the area. "The fact that you have a group in here that is willing to take the entire site, that is fantastic," he said. Upton said after the meeting he hopes to have a purchase agreement finalized in the immediate future. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.