It’s true - dealing with racial issues would require some pretty strong ideological support.
I think race/class issues could be mostly resolved, given the right conditions, but that the population largely do not believe in the necessary ideological supports required to accomplish this, or for that matter, to supply the necessary political energy for the necessary political policies.
The required measures would border on national separatist levels of energy.
On the other hand, Toledo was not chosen out of serious consideration, but for shtposting purposes due to required level of obscurity, position, etc.
On the third hand, the Great Lakes region has access to bulk long-range shipping.