Economy Issues Putting Squeeze on Goodyear HQ Plans

The Cleveland Plain Dealer is reporting that Goodyear’s plans for an all-new headquarters complex is pressing ahead, but at a far slower pace than planned, victimized by the concurrent downturn in credit and automotive markets. Akron Developer Stuart Lichter, who plans to buy Goodyear’s current headquarters facilities and convert them to retail and office space while building an new headquarters complex for the tyre maker, is being hamstrung by “an unprecedented meltdown of the credit markets,” according to the newspaper. Lichter told the newspaper that the city of Akron and county officials are working on bridge financing to make up shortfalls and keep the project moving forward. There was nothing to indicate that the deal might fall apart. “Anyone who’s shocked that this developer can’t get financing has been asleep for the last six months to a year,” Akron Mayor Don Plusquellic was quoted as saying.

The Plain Dealer said that the Summit County Port Authority “hopes to issue bonds by June 1, making Lichter’s purchase possible without the aid of banks or other private sources. Lichter would personally guarantee the bonds, with Akron and Summit County backing him up. He would repay the debt, with interest, using rent from Goodyear, which will lease back its buildings after the property sale. After three years, Lichter would pay off the remaining debt or refinance using other money sources.” (Tire Review/Akron)