Property Sales a “First Step” Towards New Goodyear HQ

A number of properties belonging to Goodyear Tire & Rubber in its hometown of Akron Ohio have been sold to Industrial Realty Group (IRG). These sales, comments Goodyear, represent a first step toward finalising plans for developing a new headquarters in Akron. The tyre major has signed a multi-year lease agreement with IRG and, as part of this agreement, will remain in its existing buildings until its new headquarters located adjacent to the company’s Akron Technical Center is completed.

“Goodyear is pleased to take this important step and to continue the considerable progress achieved to date on the headquarters development,” said Laura Thompson, Goodyear’s vice president of business development. “We appreciate the efforts of the City of Akron, Summit County and the Summit County Port Authority and value their support.”

“IRG is very happy to have reached this milestone with the Riverwalk project,” commented Stuart Lichter, president of IRG. “We are anxious to continue our efforts on finalising the other parts of the project once funding can be arranged.”

A number of long-lead projects related to the development have already begun and will be moving forward. These include associated roadway construction projects and the relocation of a major sewer line that runs through the development area. An out-of-service power plant located near Goodyear’s Technical Center is also scheduled to be removed.

Goodyear will record a non-cash, after-tax charge of between $40 million and $45 million in the second quarter of 2009 in connection with the property sales.