Cleaning up KBI

PERKINS TWP. — Across generations, the prominent property — whether known as Delphi, KBI or New Departure — employed thousands of locals. Though, since 2017, one of Erie County's largest employers from generations past has remained eerily empty. But a renewed effort, overseen by some driven local officials, aims to evolve and then activate a former bearings factory. Two Erie County organizations, its economic development corporation and port authority, recently announced the 129-acre site at 2509 Hayes Ave. (Ohio 4) near Sandusky High School received $6 million in state brownfield remediation funds. The money came from Ohio's Department of Development. Such funds cover costs to evaluate and then clean up problematic and/or potentially industrial contaminated properties, referred to as "brownfields." "The $6 million will not cover all the expense but was a major catalyst in allowing the private owners to move forward aggressively in getting this site ready for redevelopment," said Nico Samaniego, the corporation's business development coordinator. "The remaining amount will be the responsibility of the private owners." That private cost isn't known. The site's owner is 2509 Hayes LLC with its point person being Stu Mills. It's possible there might not be any pressing issues at this site. In a general and historical sense, however, factories do negatively impact the environment through air pollutant emissions, toxic waste disposal and water contamination, according to Green Tumble, a website profiling and promoting sustainability. Plus they're major offenders when it comes to greenhouse gas emissions. Before a new industry can operate from this site, Samaniego said, "The work is needed and important because it is a required first step for the site to be redevelopment." Several aspects, such as when remediation work could occur and what businesses/industries are potentially interested in operating from this site, are yet to be determined. The Erie County Development Corp. and the Port Authority both are equipped to aid with industrial development, attracting and retaining business and industry here. Sounding off Those involved in the recent deal spoke about reinvigorating this vacant site: "This grant is a significant step in repositioning the site into the economic driver it formerly was. By investing in redevelopment and improvement of this site, we have set the stage for additional development and the potential for a new catalyst for economic growth in the region." — Abbey Bemis, Erie County Economic Development Corp. executive director, Erie County Port Authority representative "Perkins Township is very appreciative of the recent announcement by Governor DeWine that 2509 Hayes Avenue has been awarded a brownfield grant that will make this large, fully-serviced industrial property more attractive for redevelopment. Such redevelopment will return this property to productive use and will generate employment opportunities for our residents and residents of neighboring communities. Perkins Township has continued to support the redevelopment of this significant property since the former KBI operation ceased, and our joint efforts with the Erie County Economic Development Corp. to foster new industrial development on this property will hopefully come to fruition through the securing of such important grant funding." — Gary Boyle, Perkins Township administrator History lesson In spring 2016, Kyklos Bearing International, or KBI, announced it would cease operations on Dec. 31 of that year, sending about 300 people into the job market. The bearings plant at Perkins and Hayes avenues is rooted in the very start of the U.S. automotive industry. KBI opened as New Departure Bearings, a name that dates back to 1888. New Departure Bell was founded by brothers Albert and Edward Rockwell of Bristol, Connecticut. They formed the company to manufacture a new type of electric doorbell they'd invented. In 1900, the company received a trial order for 120 bearings from the Old Motor Works, the largest automotive manufacturer of the time. But it was more than six decades before New Departure moved to Sandusky, and war factored into the decision. During World War II, New Departure manufactured bearings for the war effort. "Why Sandusky was chosen as the spot for this development is an interesting story in itself. It is sufficient to say that the natural advantages of the city, its shoreline location, its ample supply of water, its east-west transportation facilities and other factors were the determining considerations," an article in the Register Star Journal dated Jan. 30, 1945, states. In addition, the new location in Sandusky lessened vulnerability to enemy attacks. The new bearings plant would be safer in Ohio, a harder target for enemy aircraft to reach, than the plants on the East Coast. New Departure in Sandusky opened June 14, 1947, covering 14 acres under a single roof. That same year, the United Auto Workers organized hourly employees, and the first union contract was negotiated and became effective in August 1948. After the war, the plant continued to operate and fully focused on making parts for automobiles, and it prospered considering: • In 1965, General Motors combined New Departure with Hyatt Roller Bearing division to form New Departure Hyatt Bearing Division in Sandusky. The company also brought 450 new families to Sandusky beginning in 1965 as workers transferred from plants in New Jersey and Connecticut. • In 1973, New Departure employed 2,839 people. • In 1974, the plant directly contributed $64 million into the local economy via payroll and local purchases, according to local newspaper articles. • In 1975, stable employment continued with 2,900 people working at the plant. • From the mid-1970s into the 1980s, considered the golden era of this operation, the plant employed about 5,000 people. It was considered the area's largest employer. It happened again in 1989 when New Departure started a process of transferring 112 employees from Bristol to Sandusky when the factory consolidated a spindle-bearing operation. "Some of the workers called Sandusky 'the frontier' because of its lack of shopping and other amenities. They thought it was treeless, wind-swept, flat," one New Departure executive told the Register at the time. The end of bearings manufacturing in Sandusky almost happened in 1986, when New Departure-Hyatt made the decision to leave the commercial ball bearings business, the industry it virtually invented in the 1900s, according to reports published at the time. GM merged Delco Moraine and New Departure-Hyatt into Delco Moraine. The restructuring and changes to survive continued when, in 1995, GM named the division Delphi Automotive. Delphi declared bankruptcy and was purchased by KBI, a subsidiary of HHI Group Holdings Inc. in 2008. Many locals expressed the feeling that the beginning of the end occurred with a judge's 2008 order in the Delphi bankruptcy proceeding. The judge required General Motors to subsidize KBI payroll until 2015. The subsidy meant KBI could not actively seek other contracts for years. Employees and union representatives have said KBI could not be competitive with overseas manufacturers they accused of "dumping" bearings into the U.S. market.