The Virginian-Pilot
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An Atlanta developer said Thursday that he has signed a contract to buy Ford Motor Co.'s shuttered Norfolk pickup-truck assembly plant and plans to use the facility to produce solar energy panels.
Jim Jacoby, who has a track record of large redevelopment projects in Atlanta, said he plans to close on the 2.6 million-square-foot plant in the coming months.
"Hopefully sooner rather than later," Jacoby said.
"It's important for us to get started this year to make use of some of this stimulus," he added, referring to federal programs encouraging green development.
The developer declined to release specific details about the deal, because of a nondisclosure agreement with the Dearborn, Mich.-based automaker. The city of Norfolk values the property around $84 million for tax purposes.
Ford confirmed last week that it was in discussions with the developer after news of Jacoby's intentions was published on an Atlanta-based commercial real estate blog.
"We're looking at other closed automobile plants across the country," Jacoby said. "We're trying to create green jobs. We look to an area where they're receptive to that type of environment. In Norfolk, the stars are really aligned for a great opportunity for energy production."
Aside from solar-panel production, Jacoby said he would consider other types of operations, such as production of equipment used for wind energy.
The plant off Indian River Road sits on 109 acres. It employed about 2,400 workers when Ford announced in April 2006 that the plant would close in June 2007.
The developer is known for an Atlanta project called Atlantic Station - a 138-acre retail, condo and apartment development on the site of a former steel mill. The project took nearly a decade to complete and opened in 2005.
Jacoby's firm has also expanded into green energy sectors, such as an initiative to turn landfill waste into an energy-producing gas.
In June 2008, Jacoby purchased a 122-acre Ford assembly plant next to the Atlanta airport with plans to turn it into a mixed-use development including office, retail and hospitality space, integrating solar panels throughout the development.
The developer was not ready to estimate the number of jobs that the project could create in Norfolk.
"We're always looking at big," Jacoby said. "We're always thinking lets do it as big as we can and my engineers can pull me back. It's a substantial opportunity for us."
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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Solar cell plant
Germany has been a leader in photovoltaic production efforts due to the extremely high fuel prices there and the uncertainty of Russian-provided natural gas. Some very smart business folks have determined this is a good bet. Let's hope the wager doesn't expect German levels of subsidies.
If the debate goes to efficiency, generally accepted analysis indicates power produced via photovoltaic cells is about 6 times as costly as from wind turbines, on average. Only analysis of a specific geographic location would be very helpful.
I truly hope the plant is successful and provides a substantial number of well-paying jobs. Loss of Ford was the loss of one of Tidewater's very best employers.
Tried before?
Wasn't there a solar panel plant on the Peninsula that operated for a few years then shut down for lack of orders? To keep any sizable solar panel plant running, a company would need start up capital and orders to sustain it. It's a great idea, but the big question is whether or not enough people would buy into it. With all the sunshine this area gets during the summer and with the highest bills coming from all the air conditioning units working to keep homes and businesses cool, solar panels could be a very good investment here I would think.
Solar panel technology being abandoned in Germany
A week or two ago, there were a number of articles indicating that Germany was preparing to abandon its advanced solar technology efforts. Only with gov't subsidies and special tax treatment were they able to make any case for the total lifecycle costs of solar. The last gasp seemed to be the hazmat disposal of cells when they reached the end of service life. Surely that's all up to the entrepreneurs to assess. Hopefully we won't be left with a bankrupt Superfund site.
Different countries, different results
I've heard it both ways: that it is doing well in Germany and that it is doing poorly. Relatives of mine in Europe have told me there is a big push to try just about ANYTHING to get away from using oil and even natural gas. If people think the price of gas and heating oil is expensive here, they should see how much the Europeans are paying for it. With how crazy things are with Russia and the supply of natural gas being used as a political football, the people can't rely on that either. All this adds up to western Europeans trying to find any way possible to get away from oil and natural gas.
Here in the U.S., solar panels could work very well in some areas. They would work well here in Hampton Roads for a greater part of the year. In places further south or in the southwest, they could be a major power provider.
Solar an overwhelming success in Germany
Ac1201 couldn't be more off base by implying that solar energy is being abandoned in Germany. Just the opposite has happened. The solar industry has become so successful that government subsidies are being reduced and/or eliminated. Germany (which has more than it's share of cloudy days)accounts for approximately half of the worlds energy that is generated through solar panels. The industry there is very profitable, and it is a great example of what can be achieved in the US as well.
Not true
That's not true. I listen to the financial news daily and when one of the solar CEOs come on the entire discussion is always about what they're doing to get more subsidies verse their competitors. It's all about convincing governments to buy them and finding the cheapest labor possible to make them.
Not True?
Do a little research and look at how well solar is doing in Germany. Quite well, by the way. Are there subsidies? You bet, but the industry is getting more and more independent all the time. As someone posted farther down, what kind of subsidies are we paying to keep the oil flowing? I, for the life of me, can't see why there are so many negative comments about an investor putting an abandoned site back to work!
Sorry
Sorry, I know people like to think there's some magical solution available but there isn't. Not only does it take acres of panels to create a tiny amount of power, it only works at peak for a short time of the day if the weather is good. Power grids cannot operate that way must be able to match instantaneous demand night or day.
The negative comments are because is all about making a buck off stupid politicians handling our money badly. At least if they were building wind generators, they'd be useful for 15% or so of peak demand with appropriate gas and oil backup generators if the weather doesn't cooperate.
New Industry
Let's see, a business that doesn't receive government subsidies... How about the auto industry? No wait. Um, how about the banking industry? That won't work either. How about the housing or construction industry? Still a big no. How about the defense industry? That's a super big no. About the only thing that doesn't get government money is illegal drug dealers. What exactly are you suggesting should go there?
You're kidding?
That was just too silly to comment on.