Cleveland Foundation acquires Midtown land for new HQ

The Cleveland Foundation has taken title to and recorded a
deed for land on which it will build its 50,500-square-foot
headquarters (shown in orange) on the northeast corner of
Euclid Avenue and East 66th Street (Cleveland Foundation).
CLICK IMAGES TO ENLARGE THEM

Despite a cloud of legal action hanging over it, titles to two Midtown properties were transferred last week to the Cleveland Foundation for its proposed new headquarters.

A 50,500-square-foot HQ is proposed to be the first phase of a civic and mixed-use district along both sides of Euclid Avenue and on both sides of East 66th Street led by the foundation.

The Cleveland Foundation said it is leading multiple partners and investors in a direct real estate development approach to bolstering Midtown to enhance the vibrancy of Cleveland’s neighborhoods and public spaces.

The foundation said it considers the creation of a new civic and mixed-use district in Midtown to be essential to that mission. Relocation of its offices from Playhouse Square to Midtown will help further that mission, it contends.

Design, construction and relocation activities of its new HQ are expected to take up to three years. Transfer of the properties to the Cleveland Foundation will enable it to begin development of its new headquarters "as soon as outstanding contingencies are promptly resolved," as written in public statements issued by the foundation in recent months.

Presumably, those unresolved contingencies refer to the ongoing litigation. Cleveland Foundation Media Relations Officer Alan Ashby didn't return a phone call seeking comment prior to publication of this article.

Midtown Cleveland Inc. Executive Director Jeffrey Epstein said he could not comment on the foundation's HQ project, or the timelines of what comes next for it.

Two non-contiguous parcels totaling 1.364 acres along the east side of East 66th Street between Euclid and Chester avenues were transferred Nov. 25 to an affiliate of the Cleveland Foundation for $600,305, according to the Cuyahoga County Recorders' office.

Rendering of what the proposed headquarters of the Cleveland
Foundation could look like. At right is the Dunham Tavern Mu-
seum property including the large amount of urban greenspace
that will remain after the HQ is built (Cleveland Foundation).

East 66th Street LLC was incorporated on May 15, 2019 by Cleveland Foundation President Ronald Richard, Ohio Secretary of State records show.

The property was acquired from the Dunham Tavern Museum. Dunham Tavern, built in 1824 as a farmhouse and stagecoach inn, is the longest surviving structure in Cuyahoga County still located at its original site.

A limited warranty deed was also filed with the Cuyahoga County Recorder's office on Nov. 25. It has East 66th Street LLC's tax mailing address listed at Midtown Cleveland Inc., 5000 Euclid Ave., Suite 100.

The deed includes a number of property usage restrictions, including limiting any development built on the two parcels to no more than four stories in height. It also precludes pornography businesses, strip clubs, massage parlors, head shops, fast food businesses, houses of worship, disco/nightclubs, warehouses, single-use retailers of 25,000+ square feet, drive-through lanes and any operations associated with cannabis.

A third parcel measuring 0.4 acres was acquired by the Cleveland-Cuyahoga County Port Authority in February 20, 2019. It sits between the two parcels the foundation acquired. The port authority has a long-standing, formal partnership with Lassi LLC -- Midtown Cleveland Inc.'s real estate arm.

As seller, Dunham Tavern Museum, an Ohio non-profit corporation, originally reached a purchase agreement on March 18 with Lassi Enterprises.

According to the deed documents, the purchase agreement was assigned by Lassi Enterprises to East 66th Street LLC on Aug. 8. The agreement was then amended on Aug. 26 to acknowledge the assignment from Lassi Enterprises to East 66th Street LLC.

Looking north up East 66th Street from Euclid Avenue, the
Cleveland Foundation's proposed civic center will restore
some of the lost density of this once-vibrant urban neigh-
borhood, including a new property acquisition by the
foundation on Euclid just east of East 55th Street and
the railroad tracks (Cleveland Foundation).

But several Dunham Tavern Museum members had already filed suit on May 30, alleging that the museum corporation and two of its board members were acting in a manner that conflicted with the interests of the museum by selling the properties.

The lawsuit was dismissed on July 24 by Cuyahoga County Common Pleas Judge Nancy Margaret Russo.

The plaintiffs filed a notice to appeal the ruling on Aug. 16 and, as appellants, they have until Dec. 7 to file reply briefs to the appellee's brief that was filed Nov. 27, according to the Eighth District Court of Appeals' docket.

In addition to the Cleveland Foundation headquarters on the east side of East 66th, a partnership of investors will pursue the development of a 100,000-square-foot Center For Innovation on the west side of East 66th, north of Euclid Avenue.

Furthermore, in August, the foundation also acquired from the Greater Cleveland Regional Transit Authority 2.38 acres of land on Euclid Avenue just east of East 55th and the railroad tracks for the development of a mixed-use project. Like the Center For Innovation, the foundation will lead a partnership of investors to develop it.

"The foundation doesn't develop real estate," Epstein said. "Aside from their headquarters, their partners will develop the real estate. We'll work with them to decide what is the right mix of uses for the (Euclid Avenue) site" across from the new University Hospitals Rainbow Health Center.

Lassi and the port authority have acquired multiple properties throughout Midtown. They have razed and cleared any structures on those properties and are making the cleaned-up parcels available for redevelopment.

END

More crews working at Sherwin-Williams' favored HQ site, but...

A contractor for the City of Cleveland's Division of Water
Pollution Control was working in and near the area where
Sherwin-Williams reportedly favors building its new head-
quarters plus research and development facilities. But were
the two related? (KJP) CLICK IMAGES TO ENLARGE

For the fourth straight week, work crews were laboring amid the 7.93 acres of parking lots owned by the Jacobs and Weston groups in downtown Cleveland's Warehouse District. This is the site that sources say is Sherwin-Williams' (SHW) favored site for building its massive new headquarters plus research and development (HQ+R&D) facilities.

But in the days leading up to Thanksgiving, crews were doing something different than before. In past weeks, they drilled holes in the parking lots to remove soil and ground water samples for lab analysis.

This past week, they were closing lanes to traffic on Superior Avenue, Frankfort Avenue, West 2nd Street, West 3rd Street and West 9th Street to improve water lines as well as to cut and remove patches of pavement over laterals. It prompted texts and e-mails from downtown residents and workers to NEOtrans, wondering if this was related to SHW's HQ+R&D.

The answer is that it probably was not. Why?

The first, most obvious explanation is that the company (DRS Enterprises of Garfield Heights) doing the work isn't known for inspections and surveys. Their specialty is construction.

And the equipment that DRS used was construction equipment -- a diamond-toothed pavement saw and a vacuum excavator with an 800-gallon tank, perfect for handling mud and other spoils from excavating and horizontal directional drilling. One of DRS's specialties is horizontal drilling.

Then, the area in which they worked extended beyond the Jacobs/Weston lots. They started working right in the middle of the lots, at West 3rd Street and Frankfort Avenue. Crews fed hundreds of feet of plastic tubing into the sewers at West 3rd, over to West 2nd. Then they moved west to Superior and West 9th.

By the way, DRS crews who were working on site were asked what they were doing. They either pretended not to hear the question or they simply replied "Sewer repairs."

SHW reportedly favors putting its HQ+R&D facilities on the
Jacobs and Weston groups-owned parking lots west of Public
Square in downtown Cleveland (Google).

These sewers do need attention. This area was Cleveland's first central business district so these sewers are some of the oldest in the city, dating back nearly 200 years. In older sewers, the storm and sanitary flows are combined in the same pipe.

It should also be noted that the Northeast Ohio Regional Sewer District (NEORSD) is under a 2010 consent decree from the Environmental Protection Agency to significantly reduce combined (storm and sanitary) sewer overflows into Lake Erie within 25 years. Their $2.5 billion effort to achieve this is called Project Clean Lake.

One of the projects to reduce the overflows is the Superior Stones Canal project. Using micro-tunneling, it features a new gravity sewer starting from a section of Superior Avenue between West 6th and West 9th to the expanded NEORSD pumping station at Settlers Landing on the Cuyahoga River. These improvements were completed in October 2018.

The contractor overseeing the work to increase the capacity of the sewers in the Flats and Warehouse District was Independence Excavating Inc., one of the many firms under the umbrella of the DiGeronimo Companies.

DiGeronimo also is developing the former Veterans Administration hospital site, called Valor Acres, in Brecksville. SHW's reportedly asked the DiGeronimo family to compete for the new R&D facility at minimum and possibly for the new HQ as well.

Unknowingly, the DiGeronimo family aided SHW's favored HQ+R&D site in the Warehouse District by expanding the capacity of NEORSD's storm and sanitary sewers in that area. Such is life.

DRS's work crews on Nov. 27 moved over to Superior Avenue, between West 6th and West 9th -- the same area that was the terminus of the Superior Stones Canal project. That's extending to more than a block away from the Jacobs/Weston lots.

A clue that this week's sewer work probably wasn't related
to the SHW HQ+R&D project is because it extended farther
west along Superior Avenue to West 9th Street (KJP).

But, upstream from that project, the storm water collectors and sanitary sewer mains and laterals weren't touched by NEORSD last year. They are the responsibility of the City of Cleveland's Division of Water Pollution Control (WPC).

Jennifer Elting, NEORSD's senior public information specialist, checked with construction supervisors who said that they had no crews, contractors or sub-contractors working in that area. When sent pictures of the work being done, the supervisors said the work likely involved re-lining of the city's high-pressure water lines in the area.

WPC officials were not available for comment Nov. 29. On its Web site and Twitter feed, WPC didn't report any work occurring in that area.

WPC's sewers and water lines were in place when dozens more buildings stood on the Jacobs/Weston lots where only parking lots remain today. Only a handful of buildings have stood here in the past 50 years, however.

Less has been demanded of the sanitary sewers in the immediate area in recent decades, although the parking lots do create significant storm water runoff for NEORSD. There aren't as many users of the city's sanitary and potable water lines compared to the pre-World War II era.

SHW's HQ+R&D, accommodating up to 6,000 employees, will put significant demands on the sanitary and water lines the Warehouse District. But Ward 3 Councilman Kerry McCormack wasn't aware of any linkages between the apparent re-lining of the water pipe and SHW.

The reasons there likely aren't any linkages are that SHW hasn't formally announced its location for its new SHW HQ+R&D facilities. And the city usually programs and budgets its sewer and water line improvement projects at least one year or more in advance.

Sewer crews began their work this past week in the middle
of the Jacobs/Weston lots, at West 3rd Street and Frankfort
Avenue in the Warehouse District (Pete Marek).

But the city has wanted those parking lots developed for many years, so keeping its storm, sanitary and water lines in an active condition and in a state of good repair is important.

Although SHW hasn't publicly announced its HQ+R&D site yet, several actions strongly suggest  SHW is moving in the direction of building on the Jacobs/Weston lots. A title agency, reportedly on behalf of SHW, has filed disclosure permits with the city in November prior to buying the Weston lots.

That confirms reports from three high-level sources who say that SHW secured purchase agreements with the Jacobs and Weston groups in March for acquiring their Warehouse District properties. The sources said SHW then began looking to see if other sites in downtown Cleveland and Brecksville could offer a better location and financial deal for its 1.8-million-square-foot HQ+R&D.

No other sites were pursued by SHW but the Fortune 500 company listened to offers from other property owners and communities in other parts of Ohio and in other states. SHW continues to listen but city sources said SHW could make its HQ+R&D decision in December.

Throughout November, workers from several different companies have conducted geotechnical and groundwater analysis on the Jacobs and Weston lots. That is the kind of work that is done before significant structures are designed and built. Sources said facilities and construction management contractors requested the analyses on behalf of SHW.

Seeing the sewer/water workers in the same area in the past week rightfully generated curiosity as to whether it was in response to SHW's HQ+R&D project. This was one case in the past month where it probably wasn't. But it, along with the Superior Stones Canal project last year, supports future development on the scale of SHW's proposed HQ+R&D facilities.

END

Seeds & Sprouts IV - Early intel on real estate projects

This is the fourth edition of Seeds & Sprouts - Early intelligence on Cleveland-area real estate projects. Because these projects are very early in their process of development or just a long-range plan, a lot can and probably will change their final shape, use and outcome.

Millennia Companies expects to start in early 2020 the $40
million renovation and conversion of 75 Public Square into
119 apartments over two commercial spaces (Millennia).
CLICK IMAGES TO ENLARGE THEM

75 Public Square housing conversion is near

Two weeks ago, NEOtrans was the first to report on a planned $73.6 million rehabilitation of the "new" headquarters of the Cleveland Electric Illuminating Co. (CEI), 55 Public Square. Now it's the old CEI headquarters' turn -- 75 Public Square.

Renamed as Public Square North, the 15-story building is near to seeing rehab work start. Millennia Companies plans a $40 million rehabilitation and conversion of the 1915-built office building into 119 apartments.

Cleveland Construction Inc. was hired as the construction manager and bids were issued recently for interior demolition work of the 150,000-square-foot building. That suggests that workers will be on site in early 2020.

Located on the northwest corner of Public Square, the building also features two commercial spaces for lease on the ground floor -- one measuring 1,200 square feet and the other 3,000 square feet. A newsstand and restaurant have operated in those spaces at various times in the past.

Because Millennia also owns Key Tower, located on the northeast corner of Public Square, residents of Public Square North will be able to use facilities at Key Tower. That includes the new fitness center Vedas Fitness and Key Tower's underground parking, according to promotional materials.

Lincoln Partners LLC has acquired more than 1 acre of land
at the intersection of Scranton Road and Willey Avenue for a
mixed-use project of housing and commercial (MyPlace).

The Lincoln in Tremont gets a new developer

Good locations for development don't lie fallow. Scranton Place LLC first proposed a six-story condominium development on the southwest corner of Scranton Road and Willey Avenue. Four years later, the project is back but with with a new property owner and developer.

Through an affiliate named Lincoln Partners LLC, Sustainable Community Associates (SCA) bought Scranton Place's 0.7-acre parcel in 2017 and added three parcels totaling 0.33 acres earlier this year to have a 1-acre plot.

Two of the three parcels were acquired from the Cleveland Animal Protective League and the third, on Brevier Avenue, was acquired from the Cuyahoga County Land Reutilization Corp. An alley through the site called West 18th Place was vacated.

The site is just east of the Fairmount Creamery apartments on Willey that SCA developed in 2014 and north of the Wagner Awning apartments and The Tappan, both developed by SCA at Scranton and Auburn Avenue.

Plans for The Lincoln are under review by the City Planning Commission. Josh Rosen, a principal at SCA, said that more project details will be revealed soon. But at this time, the goal is to construct approximately 83 housing units with parking below ground and a roughly 6,000-square-foot, street-facing commercial space, he said.

The project is named The Lincoln because it is a couple of blocks west of Tremont's Lincoln Park. Willey-Kenilworth Avenue is one of two main streets that connects Tremont with Ohio City. And Scranton Road is a main route between Tremont, Clark-Metro and downtown, via the soon-to-be-developed Scranton Peninsula along the Cuyahoga River.

This probably isn't what most Clevelanders think of Hough
after the last 60 years that the neighborhood endured. But as
University Circle keeps growing, development is spreading
west and north into Hough. The East 90th Apartments on
 Chester Avenue is one of many developments planned
 or underway in the Hough neighborhood (CPC).

Boomtown UC is spilling over into Hough

Multiple, large-scale developments are planned or underway in the once vibrant and densely populated Hough neighborhood that succumbed to white flight, race riots, despair and widespread abandonment.

New housing, parks and businesses built over the past 30 years have stabilized Hough compared to its darkest days. It's enough that real estate investors now see it as a place for spin-off development from booming University Circle, Cleveland Clinic and Case Western Reserve University to spread.

Among the developments are Signet Real Estate Group's Axis at Ansel, a $35 million, five-story, 163-unit apartment building under construction at Hough and Ansel avenues. It is next to the 10-story Kingsbury Apartments that was gutted by vandals but is structurally sound and for sale.

Recently announced was the East 90th Street apartments, a multi-phase, 461,093-square-foot development on Chester Avenue sought by the Inspiron Group. The developer is currently working farther west near Cleveland State University, converting to residential two 1950s-era office buildings on Euclid Avenue on both sides of East 30th Street.

At East 90th, Inspiron will raze multiple vacant apartment buildings that it considers too costly to renovate. In their place will rise four new buildings totaling about 400 housing units. This site was where a developer recently proposed a mixed-use development called Core 90, but abandoned the project. It is two blocks west of the Finch Group's large Innova development.

Between East 59th and East 61st streets, plus Wade Park and White avenues, WRJ Developers, LLC proposes to build six buildings with 12 apartments per building, offering market-rate and subsidized units called Hough Paradigm. The developers also propose work with the city on linking two disconnected sections of Wade Park.

Significant additional residential developments are being considered for the area along and north of Chester to accommodate growing numbers of medical staff, students and neighborhood residents seeking higher quality housing within walking or biking distance of work or school. Keep an eye out for 75 Chester apartments, due to rise on both sides of East 75th Street north of Chester.

END

Sherwin-Williams' HQ on Public Square? Yes. A supertall? Don't count on it.

In May 2008, just as the Great Recession was
knocking, the Jacobs Group and Hines Inc.
proposed a 21-story office building on the
west side of Public Square (Jacobs/Hines).
CLICK IMAGES TO ENLARGE THEM

Public Square is a fascinating mix of old and new, small and tall buildings.

It's oldest building is also the oldest still standing in downtown Cleveland -- the Old Stone Church. It dates from 1855 although its Presbyterian congregation goes back to 1820 when locals still thought of themselves and their land as a part of Connecticut. The church's interior has the appearance of an unpretentious New England town hall.

Back then, the tallest buildings in any East Coast or European city were churches. They spoke to the importance of the church in our communities. The Old Stone Church's steeple stands 250 feet high.

Today, the tallest buildings in our cities are commercial structures. Just across Ontario Street, also on the north side of Public Square, is the tallest building in the state of Ohio and the tallest between Chicago and East Coast -- the 57-story Key Tower. It stands 890 feet tall but the tip of its antenna is 947 feet above Public Square.

On the other side of Public Square are Cleveland's second- and third-tallest towers. Terminal Tower, named for the railroad terminal below it, was the tallest building in the world outside of New York City when it opened in 1928 (Cleveland Union Terminal opened two years later). The ornate 52-story, 708-foot-tall spire makes her the grand dame of Ohio's skyscrapers.

It was challenged for height and certainly for mass when Standard Oil of Ohio (Sohio) opened its headquarters in 1985 at 200 Public Square. That address is the current name of the 46-story, 659-foot-tall building, after BP America swallowed up Sohio in 1986 and steadily reduced its corporate footprint here over 13 years until nothing was left.

The largest building in Cleveland would have been the 1,200-
foot-tall Ameritrust Tower, at left. Two buildings were razed
for it in 1990 on the Jacobs lot on the western side of Public
Square. But Society Bank, for whom Jacobs had just built a
57-story tower on Public Square, merged with Ameritrust
Bank and canceled the project. The other two towers pic-
tured are Terminal Tower and 200 Public Square (Jacobs).

BP's departure continues to fuel a robust cynicism today about Sherwin-Williams' (SHW) future headquarters presence in Cleveland. But there is no indication among many substantive actions taken by SHW during its year-plus-long headquarters-related efforts that it is leaving Cleveland -- aside from a throwaway sentence in a press release that it was considering sites outside Northeast Ohio.

There is every indication that SHW is going to be the next edifice to grace Public Square, by action of adding its HQ to the west side of Cleveland's New England-style commons. Those actions in recent months are numerous.

Consider that SHW has had a purchase contract on the properties, owned by the Jacobs and Weston groups since March. There is no information to suggest that SHW has a purchase agreement with the owners of any other sites, however Bedrock has proposed to build a tower for SHW to lease behind Tower City. But that move would add to SHW's long-term debt rather than to its equity.

Less than a month after SHW and its facilities consultant Welty Building Co. hired construction management firm Gilbane Building Co., geotechnical (soil, water, etc) sampling and surveying work has occurred on the lots every week in November.

A title company on behalf of SHW filed 12 certificates of disclosure with the city for the Weston lot properties, bounded by Superior and St. Clair avenues as well as West 3rd and West 6th streets. The certificates are filed before land is transferred to a potential buyer to get legal use information and to determine if there are any property violations or condemnations.

There's a missing tooth on Public Square, filled only by a
surface parking lot for the last three decades. This is where
SHW proposes to build its new headquarters tower (Google).

SHW won't find any condemnations because the Weston lots have been used as parking lots for decades. And even if SHW did find any property violations during their use as parking lots, the properties would not remain as parking lots anyway. No certificates have been filed as yet for the Jacobs Group-owned lot on Public Square.

However, subcontractors have drilled wells on the Jacobs lot in the past week and removed groundwater samples in coolers for lab analysis. It should be noted that the wells were capped.

That suggests more sampling could be done or, just as likely, the groundwater could be removed over an extended period of time in preparation for excavation work and foundation construction in a little more than a year.

Groundwater removal is less important for the digging of caissons to bedrock 200 feet below the surface than it is for constructing a concrete mat foundation. Caissons are typically dug for towers rising above 400 feet. Mat foundations, or "floating mats," are for shorter towers.

And that sounds like what SHW is doing here. It sounds like they are testing and preparing the 1.17-acre Jacobs lot on Public Square for a mat foundation.

Groundwater survey crews on Nov. 18 retrieved samples
from newly drilled wells in the Jacobs Group-owned lot
on Public Square and placed the samples into coolers for
transport and lab analysis (clevelandskyscrapers.com).

The rest of the site, including the 6.76-acre Weston lots, would feature additional offices, research and development facilities plus parking decks. It could also host some diverse public uses like restaurants, shops (how about a flagship Sherwin-Williams store?), and possibly even a hotel for the thousands of employees visiting for training purposes.

The possibility that SHW won't be constructing a building to challenge the other three skyscrapers on Public Square was revealed by a source close to SHW CEO John Morikis who said that the CEO wasn't interested in an iconic headquarters tower, at least when it comes to height. However, the design could still be quite striking and unique, as one source suggested.

Another source involved in SHW's HQ project indicated that the main tower likely would not exceed 30 stories. There would be lesser, but still large buildings scattered throughout SHW's HQ+R&D setting.

Yet another source said SHW was very excited about the possibility of developing an urban HQ+R&D campus on the Jacobs and Weston lots. An announcement could come next month, city sources said.

Many urbanists lament the 1990 termination of the Ameritrust tower construction project on the Jacobs lot. That project would have put a 60-story tower reaching 1,200 feet above Cleveland.

It seems just as many urbanists cheer that a 21-story office building proposed by Jacobs/Hines tower didn't materialize on the west side of Public Square in the months before the Great Recession began in 2008.

So the work using the newly drilled groundwater wells on the Jacobs lot seems to align with the information from sources that SHW is unlikely to scrape Cleveland's sky. But SHW will offer a substantial physical presence with thousands of new jobs that eradicates the largest single parking crater in downtown crater.

That's a lofty goal that's well within reach of achieving.

END

Report suggests new courthouse tower and jail campus are best options

The 42-year-old Justice Center courthouse and jail has towered
over Lakeside Avenue with a Brutalist shadow. Consultants are
reporting data that shows the center needs 300,000 more square
feet of space, the jail must be replaced to provide humane con-
ditions and that cost savings would result from having new jail
and court facilities (Google). CLICK IMAGES TO ENLARGE

There's a lot more data to be refined and opinions to be weighed, but a preliminary report on Cuyahoga County's Justice Center shows that constructing a new downtown courthouse tower and a multi-acre jail campus outside of downtown might be the most beneficial and, yes, affordable option for the county.

Specific sites were not considered at this early stage, aside from some options that proposed reusing some or all of the existing Justice Center properties and neighboring county-owned land downtown. Detailed cost information also was not yet developed.

The report was presented Nov. 21 by consultants to a steering committee comprised of city and county officials and judges overseeing the Justice Center's possible renovation or replacement. The project's lead consultant is Cleveland-based Project Management Consultants LLC managed by Jeff Appelbaum.

The Justice Center masterplan process is in the programming stage, where program services are matched with their space needs and how best to configure them to meet accepted standards and best practices. The programs are under three general use categories:  courts, detention and sheriff's administration.

Although recommendations could be made next month, no decision involving facility configurations will be made before March. It will be many more months before a site or sites can be considered, Appelbaum said.

Two things became quantifiable in the current stage of planning -- that the Justice Center facility is in very poor condition, it doesn't meet current program standards, and it has a shortage of space for its three general use categories by a total of up to 400,000 square feet. That doesn't include parking, for which the Justice Center is also severely lacking.

The 42-year-old Justice Center's condition can be expressed in the relative value of investment necessary to renovate each building as-is without addressing programmatic needs or shortages. In other words, the higher the percentage, the worse condition that building is in.

• Police administration - 72 percent
• Courts tower - 56 percent 
• Jail I - 47 percent
• Jail II - 23 percent

The police administration building is already the subject of efforts by the city to relocate the Cleveland Police Department headquarters to a large, new facility planned at East 75th Street and the new Opportunity Corridor boulevard.

The 25-story courthouse tower (KJP).

Also falling apart are the 25-story courthouse tower and 10-story Jail I building, both built in 1977. The courthouse, housing the county Common Pleas and Housing courts as well the Cleveland Municipal Court, has a total of 590,419 square feet but needs up to 780,000 square feet including support facilities, Appelbaum said.

If built as a downtown tower, the courthouse would likely reach 30 stories or more -- if parking for about 2,000-2,500 cars adding 700,000 to 900,000 square feet was in a separate structure. If the parking was in the same structure, that tower could be 60 stories tall, assuming average floorplates of at least 25,000 square feet.

Consultants said that a courthouse in the downtown area and in proximity to the legal community is beneficial. A new courthouse tower is presumed to require one to two blocks of downtown land.

Steering committee members and consultants have considered potential downtown sites for the courthouse tower. But there is a lot of a interest among steering committee members in keeping the courthouse at or near its current location, on the south side of Lakeside Avenue and west of Ontario Street.

The most expensive option would be to build and/or rebuild all-new facilities for the courts, detention and sheriff's administration on the existing, tiny, 7-acre site, by shifting uses around. Constructing a new courthouse tower on the current site and a new jail/sheriff campus outside of downtown would be the second-most expensive option.

The least expensive option would be to build a new courthouse tower downtown on land somewhere other than the Justice Center, with a jail/sheriff campus outside of downtown, project planners said.

The new facilities could also be joined by the Eighth District Court of Appeals, Domestic Relations as well as the Probate Court, which are located in the 1912-built county courthouse on the north side of Lakeside at Ontario. But judges and many staff said they prefer to remain in the ornate, historic building.

Mary Eileen Kilbane, administrative judge of the appellate court (she will be succeeded by Judge Eileen T. Gallagher in January) took a vote of the 12 appellate judges said they don't want to move from the historic court building, but they do want to stay involved in the process and have a seat on the Justice Center steering committee.

"Maybe the powers-to-be (say) we will eventually have to join this process of moving" Kilbane said. "Our building is of a historic value and we want to stay there."

The existing courts have offices spread among multiple buildings, some are off-site yet most offices suffer from overcrowding. For example, the Housing Court has no offices at all and is located in cubicles in hallways. It has just one court room.

Design of court spaces invite on-site conflict. Planners noted there is no separation of spaces for opposing parties in the often emotionally charged and contentious domestic relations court where children are assigned custody and property or finances are divvied up.

The significant amount of new space needed virtually
guarantees new construction to at least some extent,
as well as doubling the amount of parking available
for the courthouse tower as well as for the jail and
sheriff's administrative office (PMC).

And then there is the jail. There appears to be unanimous support on the steering committee for replacing the jails with a new facility rather than rebuilding the old structures.

The Jail I building dates from 1977. It is the scene of overcrowding and conflicts between prisoners and staff. The state standard for jails is to have 48-bed housing units. Jail I has 23- to 24-bed housing units. It is operationally inefficient and lacks sufficient space for recreation, health care, program spaces and services. The jail's physical condition is poor, planners report.

Although the 11-story Jail II, built in 1995, is in better condition and meets state standards on inmate housing, it also has many design deficiencies. Between the two jail structures, there is 335,620 square feet of space. It would need to expand by about 265,000 square feet to relieve overcrowding and provide safer, more efficient movement of prisoners.

But that could be reduced by 65,000 square feet or more by implementing countywide central booking and offering mental health diversion programs. Although a location for the mental health diversion program hasn't been determined.

Lastly, the sheriff's administrative offices total 54,198 square feet but need nearly 90,000 square feet to address crowding and provide efficient movement and adequate on-site storage, planners said.

Consultants noted several preferences and issues about renovating or replacing the Justice Center, be it on the existing, tiny 7-acre site or elsewhere downtown or outside of downtown. Reusing the existing site means a far longer time to occupancy for each of the three general use categories than other options, which also means higher expense than new construction off-site.

Reusing the existing site makes more serious the issue of construction inflation, which planners termed as "cost escalation." Construction costs are escalating at 4-6 percent per year, so they also compound. Construction costs rising at 4 percent would therefore rise by 23 percent over five years. Also, reusing the existing site limits design efficiency and construction schedules.

Planners noted that a downtown jail is problematic because a jail discourages nearby development and a mid- to high-rise jail means higher construction costs. Low-rise, modular construction is up to 25 percent less expensive and can easily be expanded, whereas a high-rise building cannot. Most modern jails are set on anywhere from 16.5 acres of land in Philadelphia to 44 acres in Lexington, KY.

Having the jail and courthouse physically connected is considered an advantage but not a significant one. For example, Philadelphia moves about 600 prisoners 20 minutes back and forth between its jail and courthouse per day. Cleveland/Cuyahoga County would move about 200 prisoners per day.

These are the four primary structures at the existing Justice
Center campus, with north to the left (Cuyahoga County).

Operating cost increases involving prisoner moves are small because staff is moving prisoners anyway. It's the cost of vehicles that make the difference, possibly raising jail operating costs by about 2 percent.

In Philadelphia, the cost of moving prisoners was offset by operational savings from having a new building. Video hearings can reduce the needs and costs for some transports as could the locating of an arraignment holding facility inside a new, downtown courthouse, steering committee members said.

The availability of sufficient parking, either new or shared with existing parking facilities, was a major factor in all sites -- especially downtown. Transit accessibility is a major factor as well for all potential sites.

Here are some alternatives being considered (see the illustrations at the end):

New jail & courthouse on urban site (high rise)
Acquire new urban site
2-3 city blocks or more measuring 18-27 acres to construct:
• New courthouse
• New support offices
• New jail
• New parking structure

New jail & courthouse on campus site (low- to mid-rise)
Acquire new campus site of 20-30 acres to construct:
• New courthouse
• New support offices
• New jail
• New surface parking

A new courthouse on an urban site (mid- to high-rise) with a new jail on a campus site (low-rise) could have these features...

Jail - Acquire new campus site of 15-20 acres to construct:
• New jail
• New surface parking
• Disposition of existing site

Courthouse - Acquire new urban site of 1-2 city blocks to construct:
• New courthouse
• New support offices
• New parking structure
• Disposition of existing site

Objective criteria for weighing alternatives:
• Construction cost
• Project cost – soft costs, fees, land acquisition, off-site infrastructure, escalation, financing, contingencies, etc.
• Embodied costs for future expansion (potentially wasted dollars)
• Time to “relief” jail conditions
• Time to critical milestones, including completion
• Annual operational costs
• 30-year operational costs
• 30-year cost of ownership

For more details, see the Cuyahoga County Justice Center project web site. Here are illustrations of the development alternatives (source: PMC; CLICK IMAGES TO ENLARGE THEM):

END

The Outlet Shoppes of Cleveland is back in stock again

Proposed site location of the Outlet Shoppes of Cleveland is
between the Shoreway highway and South Margin Road, just
south of Burke Lakefront Airport in downtown Cleveland.
More infrastructure is needed to support the retail center and
additional development being considered nearby (LoopNet).
CLICK IMAGES TO ENLARGE THEM

With the goal of opening its doors to customers in the spring of 2022, the Outlet Shoppes of Cleveland is the subject of local and national leasing activities now underway. The project, originally proposed several years ago and on the other side of the Shoreway highway, is back and is being pursued aggressively by its national developer.

According to project's backers, they say that "remarkable progress" has been made behind the scenes on developing the 320,000-square-foot retail center. It is proposed to be built on roughly 14 acres of city-owned land between the Shoreway and South Marginal Road, just south of Burke Lakefront Airport.

Developer Horizon Group Properties, based in the Chicago suburb of Rosemont, IL, last week announced that it has retained real estate broker CBRE as the local listing agent for the entertainment as well as the food/beverage leasing at the Outlet Shoppes of Cleveland.

Horizon, which owns and operates eight designer outlet centers across the USA, will handle the national leasing. That includes populating about 60 high-end retail spaces in the shopping center with national names that are identified in its marketing brochure.

Although conceptual site plans and renderings were included in the brochure, more detailed plans for The Outlet Shoppes at Cleveland will be revealed soon, and will feature architectural design from Adams and Associates Architecture.

A conceptual site plan for the Outlet Shoppes of Cleveland,
proposed by Horizon Group Properties and CBRE (Loopnet).

“The Greater Cleveland market is dynamic with over 3.8 million people in a 60-mile radius, and downtown Cleveland is growing both in terms of residents and tourists, which are all critical elements for a successful outlet shopping center” said Gary Skoien, president and CEO of Horizon Group Properties, in a written statement.

“Combining HGP’s leasing team, which has vast experience working with quality national outlet tenants, and CBRE’s expertise in entertainment, food and beverage will result in highly appealing stores, restaurants, bars and family gaming venues in a unique setting," Skoien added.

For CBRE, Joseph Khouri will lead the entertainment leasing along with Vince Mingo, while industry veteran Stephen Taylor will lead the food/beverage leasing. Nearly 90,000 square feet in the two-level structure is proposed to be for restaurants and entertainment, including a rooftop bar and
recreation area.

Horizon’s efforts haves focused on the outlet industry, comprised primarily of national retailers. Much of Horizon's leasing activities have been behind the scenes. However, they reportedly have presented the Outlet Shoppes of Cleveland project at multiple International Council of  Shopping Centers events and have had numerous site visits in Cleveland, Khouri said in a Nov. 19 e-mail.

How the Outlet Shoppes of Cleveland could look from the
Shoreway. Among the entertainment options considered for
the retail center are a cinema, sports-themed restaurant or a
gamer-themed cafe (LoopNet).

"Because there is limited outlet presence in the metropolitan area, there is limited brand name retail in downtown and the distance to competing retail is so great, the response from outlet tenants has been extremely positive," Khouri wrote.

The nearest outlet retailers to the geographic center of Cleveland are the Aurora Farms Premium Outlets (a 39-minute, 31.6-mile direct drive east of Public Square in light traffic) and the Ohio Station Outlets in Lodi (a 48-minute, 46.7-mile direct drive south from Public Square).

"We are currently negotiating lease terms with prospective tenants but we never release tenant names at this stage in the process," Khouri added. "Names being used currently are representative of some of the brands we typically expect in our centers but are for illustrative purposes only."

Construction costs are not yet available, however typical per-square-foot costs for building indoor retail centers suggest the Outlet Shoppes at Cleveland could be at least a $100 million investment.

That doesn't include infrastructure. A Cleveland city official who spoke off the record said the cost of adding or adjusting infrastructure to support the retail center would be in the "millions of dollars -- which is why nothing has happened there."

The western end of the Outlet Shoppes of Cleveland, facing
toward downtown and North Coast Harbor, may offer indoor
and outdoor food and entertainment venues (LoopNet).

Those costs include adding sanitary sewers, constructing sidewalks to the nearby South Harbor terminal station of the light-rail Blue/Green Lines from Shaker Heights, and possibly realigning South Marginal Road.

Also, site control has apparently yet to be resolved. The lakefront land is owned by the city. Neither Horizon or CBRE representatives were prepared to discuss the site control situation. According to municipal law, the City of Cleveland cannot sell lakefront land without a public vote.

"Horizon continues to work with the City of Cleveland on land entitlements, utilities and other infrastructure for the site and additional capacity to stimulate development of the lake shore for other uses," Khouri said.

END

Sherwin-Williams' new HQ+R&D = 6,000 jobs for downtown Cleveland

City Planning Commission approved this banner for the side
of the current Sherwin-Williams headquarters in 2016. Soon,
SHW's land will be along the north side of Superior Avenue
and will accommodate its new headquarters, research facili-
ties and 6,000 jobs from throughout the world (CPC).
CLICK IMAGES TO ENLARGE THEM

Sherwin-Williams' (SHW) top executives are urging department heads to consolidate as many activities and jobs as possible from around the world into its new headquarters and research facilities.

The end result of that directive is that SHW's global headquarters plus research and development (HQ+R&D) center could add 2,500 jobs, bringing the total for the entire campus to 6,000 employees, according to sources who spoke off the record and provided internal company data.

As reported here at NEOtrans in recent days and weeks, SHW plans to build its HQ+R&D on the west side of Public Square in downtown Cleveland. SHW has begun the process of buying land currently owned by the Jacobs and Weston groups. Barring a startling change of direction, it means downtown Cleveland will be the beneficiary of thousands of new and relocated jobs.

SHW already has about 3,500 jobs downtown, spread among SHW's HQ at 101 W. Prospect Ave., the neighboring Skylight Office Tower, and the John G. Breen Technology Center, 601 Canal Rd.

The job projections are coming into focus as SHW's facility programming rapidly progresses. Programming is an early phase of the building planning process. For office buildings, departmental managers are queried about their current and projected staffing, space needs and patterns of use for the coming years.

From those numbers, architects begin to assemble blocks of space to be shaped and molded according to a variety of factors, ranging from the available land to the personal preferences of C-suite executives.

That process is well underway for SHW and its architect Vocon Partners LLC which is designing the interiors of the coatings giant's new global HQ+R&D facilities. It is likely another architect will be brought in to design the exteriors of those facilities, sources said.

The additional jobs for downtown Cleveland are based on the departmental feedback SHW executives and Vocon architects received by their deadline last week.

This is what 3.5 million square feet of new development in
Weston's Superblock would look like, based on a discontinued
Weston plan. Sherwin-Williams is planning 1.8 million square
feet of offices and research facilities plus perhaps 500,000 to 1
million square feet of structured parking. The street in the mid-
dle of this east-looking massing is Frankfort Avenue (Weston).

Five years ago, SHW outgrew its HQ of the last 89 years. So SHW has spread its Cuyahoga County workforce among a half-dozen facilities. Plus there are hundreds of jobs in other cities that SHW reportedly would like to have at its HQ but can't due to lack of space.

In Cuyahoga County, in addition to the SHW jobs downtown, the Fortune 500 company also has more than 250 employees at a 151,830-square-foot office/flex space located at 4770-4780 Hinckley Industrial Parkway in Cleveland.

It also has several hundred employees at its 388,766-square-foot Automotive Finishes Corp. global headquarters, research and development facility and training center, located at 4440 Warrensville Center Rd., Warrensville Hts. About 100 employees are office workers and might move downtown.

The office employment doesn't tell the full story either, because part of the spatial needs involves employees visiting from offices, laboratories and stores located around the world for training.

SHW's HQ will have a lot more of those visitors, especially as training of vice presidents, salespeople, information technology, human resources and other on-the-job development will all be consolidated downtown, sources said.

There is a lot to consolidate. SHW rents offices and classroom spaces at Baldwin-Wallace University in Berea and Case Western Reserve University in Cleveland's University Circle area for training activities.

SHW's new training center will also be downtown, likely resulting in the reduction of activities at its 24,150-square-foot Strongsville Training Center, 11350 Alameda Dr. where as many as 300 employees are based. A model store and small training staff will likely remain.

According to data acquired by NEOtrans, the number of people visiting SHW's seminars and three-day-long training classes would fill more than 100 hotel rooms every weeknight for an entire year. And that number will grow as SHW grows.

Looking west from Public Square along Superior Avenue in
2014, the Jacobs lot in the right-foreground and the Weston
Superblock beyond is nearly 8 acres of parking lots in the
heart of downtown Cleveland. Purchase contracts, geo-
technical surveys and Certificates of Disclosure for
SHW's HQ+R&D have finally put those desolate
parking lots in serious danger (Google).

Currently, most visitors stay in hotels off Interstate 71 in Middleburg Heights. Those hotel occupants will follow the training center downtown. By staying at downtown hotels, more trainees might be encouraged to stay an extra night to attend a sporting event, enjoy a Playhouse Square show or visit a museum or two.

Another activity to be consolidated downtown is research. The 140,293-square-foot Breen Center is so cramped that it could not accept any of Valspar's R&D workers from Minneapolis after SHW acquired its northern rival in 2017.

Valspar's 170,000-square-foot facility is equally cramped. It has roughly 400 workers, meaning that both facilities have 425 square feet of space per research worker. According to sources, the new R&D facility in downtown Cleveland will measure 350,000 square feet, or about 500 square feet per research worker.

The office component for SHW's HQ is estimated at 1.45 million square feet, sources say. The projected total cost of SHW's HQ+R&D facilities could be upwards of $1 billion.

SHW's efforts took a substantive step forward on Oct. 8 when it and Welty Building Co., SHW's facilities consultant, chose Gilbane Building Co. as its construction management firm for the new HQ+R&D.

Those HQ+R&D facilities are slated to be built on 7.93 acres of land owned by the Jacobs Group and the Weston Group to the west of downtown Cleveland's Public Square. SHW continues to advance its due diligence on those properties. They have been used as parking lots for decades.

The due diligence includes contracting out for geotechnical surveying of soil samples in recent weeks. Surveying work began in the 6.76 acres of Weston lots Nov. 2 and continued for several days.

Survey wells were drilled into the Jacobs
lot on Public Square in the past week and
then capped so that crews could return on
a recurring basis to check groundwater
levels and possibly remove water from
the ground over many months prior to
excavation and construction (KJP).

During the week of Nov. 11, survey crews moved over to the Jacobs lot where they drilled wells to monitor groundwater for an extended period of time and/or possibly to remove it prior to excavation for the foundations of a headquarters tower.

Five years ago, SHW hired AECOM to conduct geotechnical surveys of the Jacobs lot when it considered building a 1-million-square-foot headquarters here. SHW already knows a lot about the soil conditions far below the Jacobs lot.

Plans for the HQ tower were shelved in 2016 when SHW turned its resources toward acquiring Valspar. SHW's growth accelerated after acquiring Valspar, making the new HQ+R&D an even more critical need.

SHW's due diligence advanced further last week. NEOtrans was advised days in advance by a source that SHW would begin filing Certificates of Disclosure with the city of Cleveland. Such certificates are submitted by persons or corporations seeking to buy land. The filings serve as requests to the city for disclosures about the properties' histories.

Sure enough, starting on Nov. 15, a title company began filing Certificates of Disclosure with the city for parcels in the Weston lots. The filings provided a public corroboration of high-level sources who said SHW came to the conclusion that the Jacobs and Weston lots were the best location for its HQ+R&D after considering a dozen alternatives in Greater Cleveland.

No sites outside of Greater Cleveland were pursued by SHW and Welty, the sources said. In fact, SHW/Welty approached only one property owner outside of downtown Cleveland -- the DiGeronimo Co. which owns the former VA Hospital site in Brecksville. Even then, SHW considered it only for the R&D facility, not the HQ.

NEOtrans began reporting on SHW's pursuit of a new HQ+R&D facility on Oct. 31, 2018, more than ten months before SHW finally acknowledged it publicly. SHW announced it was pursuing a new HQ+R&D on Sept. 12.

Two city sources said SHW may announce the site for its new HQ+R&D facilities as early as next month.

END