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Marcal Paper mill destroyed by massive fire will be site of new warehouse
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NEW JERSEY (From news reports) -- Marcal Paper and a real estate developer said they plan to build a multimillion dollar industrial building on the Bergen County site where the paper mill was destroyed in a massive fire three years ago.

The paper company and Crow Holdings Development announced plans to construct a 206,000-square-foot, state-of-the-art distribution facility on a portion of the Marcal property along Market Street in Elmwood Park. The site is located off Route 80, near Exit 61.

The construction phase of the project is expected to generate $34 million in revenue for the county and another $38 million for New Jersey, along with 140 temporary jobs, Crow said in a statement.

Following construction, operations at the new facility will result in an economic impact of about $28 million a year in the state, generate 240 full-time jobs, and result in about $630,000 in new property taxes to the borough, its school district and the county, the statements said.

The historic paper mill went up in flames about 5 p.m. on Jan. 30, 2019. Fueled by whipping winds, the plant quickly turned into an inferno - even as firefighters from 50 companies worked to extinguish the blaze.

The blaze, which began in the northeastern-most building on the property where large rolls of paper were stored, destroyed 31 of 36 buildings.

The plant employed about 500 workers. About 200 people were on the premises when the blaze began and everyone got out safely, officials said.

Hundreds of people were out of work following the fire, and a job fair was held at Bergen County Community College to help workers find new employment.

It was reported the new facility will cost $90 million to $100 million and take up to 18 months to build. Crow Holdings said it had acquired the 11.87-acre site from Marcal and received site plan approval from Elmwood Park.

An affiliate of Atlas Holdings, the majority shareholder of Marcal, will invest in the project with Crow Holdings, the real estate developer said.

"We recognize and appreciate the history of this site, and we look forward to bringing new economic activity to such a highly visible, prime location," Clark Machemer, Crow Holdings Development's senior managing director for the Northeast, said in a statement.

Elmwood Park Mayor Robert Colletti called Marcal "a fixture in our community for nearly a century."

"(The property) was home to an iconic business that has created careers for thousands and economic impact that is widely felt," Colletti said in a statement.

Colletti said the borough has been working closely with Crow Holdings with its development plans. The ground breaking for the project is scheduled for this summer.

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EARLIER NEWS RELEASE

Marcal Paper, a leading manufacturer of recycled and eco-friendly bath, towel, and tissue products, and Crow Holdings Development, a leading real estate development company, today announced plans for the revitalization of a portion of the Marcal Property along Market Street in Elmwood Park.

Crow Holdings Development's industrial team has acquired the prime, 11.87-acre property in Elmwood Park from Marcal with plans to break ground this summer on a 206,000-square-foot, state-of-the-art modern industrial building. The proposed project has received Site Plan approval from the Borough of Elmwood Park, and the team has incorporated significant design input from the Borough. An affiliate of Atlas Holdings, the majority shareholder of Marcal, will also be investing in the project, alongside Crow Holdings Development. The investment demonstrates Atlas' continued commitment to the region and enthusiasm for the planned revitalization of this iconic location.

The redevelopment project is expected to generate a significant economic stimulus to the local and state economies. The impacts include:

  • The construction phase of the project is projected to result in a $34 million impact for Bergen County and $38 million economic impact for the State of New Jersey, along with 140 direct temporary jobs.
  • Ongoing operations of the facility following construction is expected to produce an estimated $28 million annually in economic impact in New Jersey and support 240 full-time equivalent jobs, and approximately $630,000 in new property taxes to the Borough of Elmwood Park, Borough of Elmwood Park School District, and Bergen County.

"Marcal is thrilled that Crow Holdings Development will be transforming this parcel of land into a new gem for our Borough, our county and our state. The property to be revitalized sits vacant today, and thus is not benefitting Elmwood Park or Bergen County in any way. Via this partnership with the Borough and Crow Holdings Development, we have taken the necessary step to change that," said Rob Baron, president and chief executive officer of Marcal Paper.

"Crow Holdings Development is rooted in the spirit of partnership, and we have been proud to work closely with Marcal, the community, and so many stakeholders to help redevelop this iconic site," said Clark Machemer, Crow Holdings Development's senior managing director for the Northeast region. "We recognize and appreciate the history of this site, and we look forward to bringing new economic activity to such a highly visible, prime location."

"The planned development for the unused Marcal parcel should be a win across the board. The greater Elmwood Park community could see economic growth, the protection of existing jobs, and the creation of new jobs," stated U.S. Rep. Bill Pascrell, Jr. "We were all shaken by the tragic fire at Marcal and the fact that the company has been able to reopen at all is so welcomed. I am pleased to have engaged closely with the Borough, Marcal, and our neighbors and workers to make sure that we delivered another positive result for our entire community."

"The Marcal property has been a fixture in our community for nearly a century, home to an iconic business that has created careers for thousands and economic impact that is widely felt. They've come through a lot, and we've been pleased to partner with them. This new project is the next chapter in that partnership, allowing a part of their site destroyed by the fire in 2019 to be reimagined and redeveloped in a way that will benefit Elmwood Park in significant ways. We thank the company for seeking our input and making sure it was part of the plan for this exciting project," said Elmwood Park Mayor Robert Colletti.

Located in Northern New Jersey, one of the country's most land-constrained markets for industrial development, the Elmwood Park property will bring the region much-needed logistics space in a prime location just off Exit 61 off Interstate 80. With the unprecedented demand for distribution centers in recent years, industrial vacancies have consistently hovered near zero, as occupiers have absorbed new developments as quickly as they have been built. The building on the property will be 206,826 square feet.

Crow Holdings Development has tapped Rob Kossar, David Knee, Chris Hile, Ignatius Armenia, and Ryan Milanaik of Jones Lang LaSalle to lease the space.

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