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Ford Batavia Plant Closing Has Big Economic Impact


Last Update: 6/14/2008 1:52 pm

Reported by: Tom McKee
Photographed by: Scott Wegener
Web produced by: Neil Relyea

An era came to an end in Clermont County Friday as Ford wound up 28-years of producing transmissions at its Batavia Township plant.

The economic impact will be felt by a wide range of businesses, schools and governments.

"It’s kind of sad because there’s a lot of family and friends out there that aren’t going to have a job," said Susan Cahall, who worked at the Batavia plant for 15-years.

At its peak in the 1980s more than 2,600 people worked at the sprawling facility on Front Wheel Drive.

Shutting down production reduced that to 500, whose job now is to close the plant for good.

"It’s just going to be a big hole in this community," added Bob Holland, a Ford retiree who was with the company for 43.3-years.

For years Mike Arnold counted on Ford workers stopping by his Boar’s Head Bait & Carryout shop in Batavia Township on the way to or from work.

"It’s not only going to hurt our business," Arnold said. "It will be an impact on everybody."

Arnold added he believes losing jobs and production in the global economy has got to be tempered a bit.

"The people of the United States need to step forward and take our country back," he said from behind his cash register. "We go around and help all these other countries, but what do we get out of it?"

At Suburban Lanes, just a stone’s throw from the Ford plant, a number of employees quietly sat at the lounge bar nursing drinks.

Others played pool. Out back a group was playing horseshoes.

The bowling alley was a regular stop for workers during the company’s full production days.

However, that number fell as employment levels dropped.

William Hyden bought the place a year ago and says the closing will have a small impact on his operation.

"It affects only our bar business, not the bowling side of the business," Hyden said.

Leaders of the 2,100 student Batavia Local School District have planned for the closing for some time by not adding new programs and services.

The district expects to get $132,000 less in real property taxes this year.

Since the district’s salary schedule was based on an operating Ford plant, upcoming talks with employee unions may mean smaller raises.

"It may not be as good or as great as in the past because the dollars aren’t going to be there to provide for that," said Treasurer Michael Ashmore, who added the district may end up not replacing teachers or staff members who retire.

It could have been worse.

Ford tried to reduce the value of the plant from $39 million to $10 million, which would have produced a more significant tax revenue drop for Batavia Schools.

A mediator decided the value should be $28 million for three years. What happens after that isn’t known.

Also, changes in Ohio’s personal property tax structure could affect the district’s finances in the years ahead.

"Because of the way schools are funded we have two options," said Ashmore. "We can cut spending or go to the voters to ask for more money."

"Probably, realistically, it’s going to be a combination of the two of those," Ashmore added. "We’re going to have to reduce our expenditures and at some point we will be on the ballot for an operating levy."

Voters will soon be asked to approve a bond issue to replace the Elementary and Middle Schools in Batavia with new buildings near the high school on Front Wheel Drive in Batavia Township.

Batavia Township officials have said the Ford closing will likely mean a loss of about $75,000 in tax revenue.

Clermont County will see tax collections decrease as well.

However, Commissioner Bob Proud said it won’t be that significant.

"It’s not enough that it’s really going to put a big dent in the county," Proud said. "The township and the schools are going to hurt more."

Clermont County has been working with Ford to try and find a buyer for the 2.4 million square-feet facility.

Workers losing their jobs have been helped with a job transition center that was set up inside the plant – a rare occurrence.

"It’s not how much we are going to suffer financially," said Proud.

"We’re focusing on the employees who are going to be out of a job and their families," said Proud. "Those are the ones who are going to be suffering more."

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