Health-Tech Corridor to see a busier 2021

Looking west from University Circle and the Cleveland Clinic
Foundation's Main Campus toward Downtown Cleveland via
the Health-Tech Corridor. Not only are new jobs pouring into
the corridor, so are thousands of new housing units to create
a 15-minute city where basic needs -- job, housing, shop-
ping and entertainment -- can be had within a 15-minute
walk or bicycle ride. It offers a healthier response to job
growth than adding parking decks (Cleveland Clinic).
CLICK IMAGES TO ENLARGE THEM

On most days, Jeff Epstein is a very busy man. Not only is he executive director of the community development corporation MidTown Cleveland Inc., he also heads up the Health-Tech Corridor.

The Health-Tech Corridor is a decade-old collaboration between MidTown Cleveland, BioEnterprise, The Cleveland Foundation and the City of Cleveland. It works to attract and grow health technology businesses to the corridor linking Downtown and University Circle.

So how busy is Epstein?

"I've been slammed," he says. But he's not complaining with how busy things have gotten, nor with how busy they could get in 2021. That's the point of the effort -- to attract investment into the corridor. And it's not just about jobs, but housing and career development.

Although COVID-19 has much of the nation and its economy feeling ill, the same cannot be said for Cleveland's Health-Tech Corridor. Here, business expansions and residential developments are picking up the pace, with numerous high-profile groundbreakings expected in 2021, Epstein notes.

The driver isn't just the ever-growing behemoth Cleveland Clinic. It's also emerging biotech firms like Athersys and Abeona fueling the growth in jobs and thus the demand for more housing -- including workforce and market-rate.

Cleveland Clinic hopes to start construction on its new
Nuerological Institute (at left) on Euclid Avenue. This
view is looking east from East 96th Street (CCF).

Developers of several projects are reporting that their projects in this area are advancing more quickly than any project with which they've recently been involved. They say that financing has been far less of a challenge. Some of that is due to the Health-Tech Corridor being included in an Opportunity Zone, making projects located here eligible for deferred federal tax burdens on their capital gains.

For decades, civic leaders wanted the benefits from booming University Circle-area employers to spread into the surrounding neighborhoods. Instead, only massive parking decks were built so that workers could leapfrog Cleveland's neighborhoods to/from the suburbs each day and never set foot on a city sidewalk.

That's now changing and in a big way. There's the development of Uptown, new construction and renovations in Little Italy, the widespread investment throughout Glenville and now, the construction of the high-rise apartment building One University Circle, with more high rises to come.

Adding housing, neighborhood retail, restaurants and other services within walking or biking distance of jobs is the concept behind the 15-Minute City. Not only does it enhance physical health among its residents, build a stronger sense of community and reduce environmental impact, it also boosts long-troubled urban neighborhoods -- notably those surrounding the major employers of University Circle. It is Ohio's fourth-largest employment district.

There's several previously unreported projects in the area that are just now coming out into the public eye. Several more remain undefined publicly, but are in the hands of developers who have track records of getting things done.

Arpi Development LLC wants to build apartments on East
93rd and East 90th streets to provide housing to the grow-
ing number of Health-Tech Corridor workers (GLSD).

Yes, the Cleveland Clinic is the elephant in the room. And when the pandemic is in the rearview mirror, the Clinic's Office of Construction staff expects to start work on more than 500,000 square feet of new facilities -- a new, 400,000-square-foot neurological center and an expansion of the Cole Eye Institute measuring more than 100,000 square feet. Both projects are along and south of Euclid Avenue, between East 96th and East 105th streets.

Although the construction work has been postponed to next year due to the pandemic, Clinic officials said that "rapidly growing" patient and research needs are the motivations behind adding more facilities. That could also include future construction south of Chester Avenue between East 89th and East 90th streets, where the Clinic recently acquired more land and demolished several structures.

These actions by the 40,000-employee health system have attracted the attention of real estate developers. In response, they have acquired properties and demolished century-old walk-up apartment buildings north of Chester in the East 90s.

"Every time they (the Clinic) add more buildings, they're adding more jobs," said a member of a development team working to add housing in the East 90s but who was not authorized to speak publicly.

"There's a lack of market-rate and workforce housing in the area near the Clinic and Uptown. That's set to change," he added. "Our goal is to help Cleveland Clinic staff and other people who work in the area find affordable places to live in a safe, walkable neighborhood."

About 160 apartments are planned by Arpi Development
LLC on East 90th and 93rd streets (GLSD).

Projects on the north side of the Clinic's Main Campus include the East 90th Street Apartments by the Inspirion Group of Cleveland and the Arpi Apartments by Arpi Development LLC, also of Cleveland. Both projects' designs received preliminary approval by City Planning Commission Dec. 18.

They followed the Finch Group's Innova development, formerly called Upper Chester. It features 247 apartments, a 161-room Residence Inn and ground-floor retailers like a Community Walgreen's Pharmacy, Penn Station East Coast Subs, Phuel Cafe, Celebrate Nutritional Supplements, Fluffy Duck Cafe, Urban Kitchen and Kinder Care Learning Centers.

The new Case Western Reserve Health Education Dental Clinic pushed development a little farther west along Chester. The new Arpi Apartments will push a fresh apearance another block farther. Geis Companies is the general contractor and architect of the apartments.

According to plans submitted to the city, Apri's first phase at 1865 E. 93rd St. would offer 42 units of mostly studio and one-bedroom apartments with a small number of two-bedroom units. All units in the four-story building will have patios or balconies. A 30-space parking lot is planned behind the building. Three vacant residences are proposed to be demolished to make way for this project.

Behind it, on East 90th, Apri Development proposes a second phase that could offer 118 apartments divided among three new buildings with parking behind them. Five residences are proposed to be demolished. Three of them, all built in 2007, are vacant and in the city's land bank.

The Inspirion Group Ltd.'s development phasing plan along
East 90th Street north of Chester Avenue (LDA).

Across East 90th, The Inspirion Group Ltd. proposes phases one and two of its apartment development. Two additional phases could be built on both sides of East 90th, closer to Chester. But Inspirion doesn't have site control of the properties right next to Chester so their development won't have a street presence on the busy thoroughfare like Innova's.

In the first phase, Inspirion proposes a 98,846-square-foot building with 131 apartments with a mix of micro, studio, one-bedroom and two-bedroom units. Phase two would have 90 units in a 62,745-square-foot building, according to plans submitted to the city. There is no detail yet for the later phases nor any tentative start date yet for any of the phases.

A little farther west, there is a start date for the Chester75 development. Famico Foundation's Director of Real Estate Development Khrys Shefton said a Summer 2021 groundbreaking is being pursued. Famicos, a nonprofit community development corporation, is the project's developer.

Chester75, located on the northwest corner of Chester Avenue and East 75th Street, won approval last April from the city's design review committee. It is proposed to offer 11 studios, 37 one-bedroom units, three two-bedroom units, two live-work units, three townhouses and one "hoteling" unit. It will feature modern amenities such as Amazon delivery lockers, WiFi and lots of electrical outlets in each unit.

"This is attempting to drive development further into the neighborhoods," Shefton said. "We call it a workforce building but it's in support of further development in Hough that's not so adjacent to the institutions in and near University Circle."

Schematic designs for The Inspirion Group Ltd.'s first phase
of the East 90th Apartments were approved last week by the
City Planning Commission (LDA).

Apartment rents are skyrocketing in fast-growing University Circle. A 2019 report by Rent.com showed University Circle led the way in Cleveland with a 44 percent increase in rents. There, a one-bedroom apartment's rent now averages $1,853.

Rent pressures in University Circle spilled over into neighboring Hough, long a national symbol of urban decay, where average rents went up last year 7.74 percent to an average of $1,415 for a one-bedroom apartment, according to Rent.com.

"This building (Chester75) will be presented at an affordable price point with rents starting at $1,100 per month," Shefton said, or $1.75 per square foot.

A couple of blocks to the south and southeast are two intriguing and potentially significant developments that are just now starting to show up on the grid.

Last week, NEOtrans broke the story that several buildings including a former Euclid Avenue mansion are proposed to be demolished in the 7200 block of Euclid and Carnegie avenues by Signet Real Estate Group of Akron, city Building Department records show. This follows Signet's acquisition of nearly 6 acres of land in October for $2.4 million, according to county records.

Earlier this year, Signet Real Estate Group opened its Axis at
Ansel apartments at the east end of the Hough neighborhood
for students of higher-education institutions in University Circle.
Robust leasing at this development has prompted Signet to
pursue more development in the area (Signet).

Signet, which recently built the $35 million Axis At Ansel apartments in the Hough neighborhood, reportedly plans a primarily residential development starting at the Carnegie end, although some ground-floor commercial uses along Carnegie and Euclid may be considered. Planning for this development is in the very early stages.

Joel Maas, Signet's director of marketing and communications, acknowledged receiving an e-mail from NEOtrans seeking more information about the project but didn't otherwise respond.

Then, over on East 79th Street and north of Carnegie is another interesting, emerging project. An affiliate of LRC Realty of Akron submitted demolition requests last March for a former Sohio gas station at the northeast corner of East 79th and Carnegie as well as for a 110-year-old duplex just north of it.

On Dec. 4, a building permit application was submitted for a 66,180-square-foot building at 2065 E. 79th St. There were few other details about the proposed use of the building or who would develop it. The applicant was Burnham Nationwide Inc. of Chicago, a real estate consultant that expedites building permitting and code consulting for clients.

That's not the only Chicago connection for development activity on the east side of East 79th, north of Carnegie. A stand-alone, suburban-style Bank of America branch is proposed to be built on the site of the former Sohio station and has some high-profile Chicago-based contractors.

The northeast corner of East 79th Street and Carnegie Avenue
is a place of intrigue as an unknown developer, possibly loca-
ted in Chicago, has its eyes focused here (Google).

According to Dodge Reports, the owner's representative is Kent Liker, a project manager at Jones Lang LaSalle's Chicago office. He could not be located for comment. The civil engineer is the Calichi Design Group of Chicago. And the architect is San Francisco starchitect Gensler; their Chicago office is listed.

Bank of America typically uses Chicago-based The Architects Partnership to design its retail branches. Gensler usually only develops large, high-profile projects -- not a tiny, garden-variety bank branch.

An e-mail sent to Robert Abramovich, vice president of development at LRC Realty, was responded to by a Boardman, Ohio-based real estate advisory firm Gary G. O’Nesti & Associates, LLC. The firm typically focuses on medical, retail, office and an emphasis on shopping center development opportunities according to its Linkedin page.

"Please be advised LRC is not involved in that 66,180 SF building at 2065 East 79th you refer to in your email," O'Nesti replied. When asked who is, he did not respond further.

There are many more real estate development projects in active development in the Health-Tech Corridor, ranging from planning to construction. Here is a summary of developments in the corridor, from East 55th Street eastward to just uphill from University Circle:

Twenty development sites are shown in the above map and
described below with links to more information about each.

(1) 5200-5805 Eucld Ave. -- Unidentified development; Berusch Development Partners; no estimate of investment value; Thanks to assembly of 2.6 acres of land by MidTown Cleveland and the Cleveland-Cuyahoga County Port Authority, this reportedly will involve a mixed-use development intended to restore the urban vibrancy of this once-densely developed intersection. This may be a much larger project when included with the next site; no estimated construction start date.

(2) 5508-5510 Euclid -- Unidentified development; No identified developer; no estimate of investment value; Eight contiguous properties totaling 2.38 acres changed hands twice in the past year. First they were sold by the Greater Cleveland Regional Transit Authority in April to Civic Development Partners, an affiliate of the Cleveland Foundation, for a future mixed-use development. They were transferred again Dec. 16, this time to the Cleveland-Cuyahoga County Port Authority to help facilitate future development; no estimated construction start date.

(3) 5601 Carnegie Ave. -- Warner & Swasey redevelopment; Pennrose LLC; $53 million; Redevelopment of this 19th-century factory into 140 senior and workforce housing units, plus 30,000 square feet of office space for job readiness, workforce development and employment training organizations. A small amenity retail component will also be included; no estimated construction start date.

(4) 1778 E. 63rd St. -- MAGNET headquarters; Manufacturing Advocacy and Growth Network; $10 million; Redevelopment of the closed Margaret Ireland Elementary School into MAGNET's new headquarters including new offices, classrooms and labs; project may be completed in early 2022.

Looking north up East 66th Street from Euclid Avenue a few
years from now, one may see the proposed Center for Innovation
at left and new Cleveland Foundation headquarters at right (S9).

(5A) 6545 Euclid -- Center for Innovation; MidTown Cleveland et al; no estimate of investment value; MidTown, Cleveland Foundation and JumpStart Inc. hired Wexford Science & Technology, LLC of Baltimore to be their master developer of the 100,000-square-foot Center for Innovation at the northwest corner of Euclid and East 66th Street as well as the new Cleveland Foundation headquarters across East 66th; no estimated construction start date.

(5B) 6601 Euclid -- Cleveland Foundation headquarters; Cleveland Foundation; $22 million; The new 54,000-square-foot building will allow the foundation to relocate its headquarters from the Hanna Building downtown and help support innovation and quality-of-life programs in the city's neighborhoods; construction is due to start in early 2021.

(6) 2024 E. 70th St. -- The 70; The Sobor Group; about $15 million; A 64-unit, five-story apartment building would be located midway between Euclid and Carnegie avenues amid the new Dealer Tire headquarters and the Midtown Tech Park. Sabor develops real estate in Hungary and the USA (Cleveland and Detroit) including the Euclid Lofts, 3800 Euclid Ave.; no estimated construction start date.

(7) 7128-7144 Simpson Ct. -- One MidTown luxury townhomes; Vazza Real Estate Group; about $1.5 million; Phase two was announced in October after phase one sold out. Townhomes in phase one sold for from $320,00 to $510,000 each. Another 13 townhomes are planned in later phases at Euclid and East 73rd Street; no estimated construction start date.

Construction could begin by Summer 2021 on Chester75
at the northwest corner of East 75th Street and Chester
Avenue in the Hough neighborhood (City Architecture).

(8) 1914 E. 75th. St. -- Chester75; Famicos Foundation; nearly $15 million; Designs were approved in 2020 for a 57-unit residential building measuring 56,700 square feet on the current site of the Kingdom Hall on the northwest corner of Chester Avenue and East 75th Street; construction could start in Summer 2021.

(9) 7200 block of Euclid and Carnegie -- Unidentified development; Signet Real Estate Group; no estimate of investment value; Signet acquired nearly 6 acres of land in October for $2.4 million and has submitted applications to demolish several structures on its property for a mostly residential mixed-use development; no estimated construction start date.

(10) 7911 Carnegie/2065 E. 79th St. -- Unidentified development; no identified developer; no estimate of investment value; A Bank of America branch is proposed to be built at the northeast corner of Carnegie and East 79th with a new 66,180-square-foot building of unknown purpose is proposed to be constructed just north of it; no estimated construction start date.

(11) 1832-1886 E. 90th St. -- East 90th Apartments; The Inspirion Group Ltd.; up to $40 million for the first two phases; In its first phase, Inspirion proposes a 98,846-square-foot building with 131 apartments and, in the second phase, 90 units in a 62,745-square-foot building are proposed; no estimated construction start date.

(12)  1865 E. 93rd St. -- Arpi Apartments; Arpi Development LLC; no estimate of investment value; Arpi Development and Geis Companies plans to construct a 42-unit, 39,584-square-foot apartment building as the first phase of a two-phase development. Later phases could see another 118 apartments in three buildings added on East 90th; construction could start by mid-2021.

(13) 9606 Euclid -- Neurological Institute -- Cleveland Clinic Foundation; no estimate of investment value; Proposed is a new, larger Neurological Institute measuring 400,000 square feet to replace older facilities immediately west on the Cleveland Clinic's Main Campus; start date is estimated to occur sometime in 2022.

(14) 9900 Cedar Ave. -- BioRepository; Cleveland Clinic Foundation; $11.3 million; In partnership with Brooks Automation and Geis Companies, Cleveland Clinic Foundation is building a new, 21,000-square-foot facility to bank and distribute human biospecimens to the scientific community for research; project to be completed in 2021.

(15) 10300 Cedar -- Mixed-use development; Fairmount Properties; no estimate of investment value; Proposed in the first phase are up to 300 micro-unit apartments, several dozen townhouses and several hundred parking spaces next to or above a 40,000-square-foot Meijer grocery store; start date is estimated to be sometime in 2021.

The $40 million 600 Block development in downtown Lansing
opened this year with a hotel and apartments above a 37,000-
square-foot urban format Meijer grocery store called Capital
City Market. A similar concept with residences above a new
Meijer store is proposed on Cedar Avenue (Gillespie Group).

(16) 2258 E. 105th St. -- Innovation Square; Fairfax Renaissance; $12.75 million; Proposed in the first phase are 85 apartments, nearly half of which will be affordable. Among all three phases, Innovation Square will have about 223 apartments; a spring groundbreaking date is anticipated.

(17) 2137 E. 107 St. -- Unidentified development; unidentified developer; no estimate of investment value; Multi-story apartment building with possible ground-floor commercial uses however programming is going through substantial revision. The project could expand onto land south along East 107th and/or east along Carnegie as parcels are availble for sale; no estimated construction start date.

(18) 2030 E. 105th St. -- Cole Eye Institute expansion; Cleveland Clinic Foundation; no estimate of investment value; To accommodate significantly rising patient visits and procedures, the existing 130,000-square-foot facility will be expanded by more than 100,000 square feet and the 2000-built structure will be renovated; start date is estimated to occur sometime in 2022.

(19) 10553 Euclid & 10600 Chester -- Circle Square; Midwest Development Partners et al; $300 million among all phases; In their first phase, Midwest Development Partners, White Oak Realty Partners and Cleveland Public Library are developing the 11-story Library Lofts atop a new MLK Branch Library as well as a 24-story apartment tower over ground-floor commercial spaces; groundbreaking date is anticipated in the second quarter of 2021.

The largest real estate development in the Health-Tech Cor-
ridor is City Square which would essentially build a new
downtown area for University Circle (Bialosky).

(20) 1855 Ansel Rd. -- Maltz Performing Arts Center expansion; Case Western Reserve University; $74 million; The expansion at Temple-Tifereth Israel will feature a 250-seat theater, a 100-seat studio theater, costume and scene shops, office, and a lobby with entrances off East 105th and Ansel.

Additional development on the hill and up the hill from University Circle are happening and are directly related to the Health-Tech Corridor's growth but are not included in the above list. The largest is the $80 million The Ascent at Top of The Hill in Cleveland Heights. Integrity's 58-unit dormitory project across Euclid Heights Boulevard from The Ascent.

Case Western Reserve University's $72 million South Village expansion was put on hold during the pandemic. Premier Development Partners' residential development on the site of the Cleveland Clinic's Fairhill Facility, 11203 Fairhill Rd., is underway. Construction is also underway on the new 44-unit Baricelli Inn Apartments in Little Italy with proposed residences on the old Woodhill Supply site between Coltman Road and East 123rd Street in early planning.

END

Euclid Avenue mansion may be razed for new development

In 1935, a couple years shy of its 50th birthday, the Allen-
Sullivan mansion undertook its most significant transfor-
mation -- into a fraternal hall for the Sons of Italy. Now
133 years old, the mansion was acquired by a real estate
developer and may be demolished soon for a significant
mixed-use development (ClevelandHistorical.org).

UPDATED DEC. 16, 2020

One of the last surviving Euclid Avenue mansions is facing possible demolition to make way for a significant mixed-use real estate development by a national developer. It is one of several real estate developments popping up in the area.

Known by historians as the Allen-Sullivan House and more recently as The Colosseum, the 1887-built house at 7218 Euclid became the subject of a demolition permit application submitted to the city of Cleveland today.

The application was submitted by C&J Contractors of Cleveland on behalf of Signet Real Estate Group, according to public records from the city's Building Department. A demolition permit request was also submitted to the city for a neighboring car repair shop at 7224 Euclid. Signet's principal offices are located in Akron and Jacksonville, FL.

Signet acquired the mansion and nearly 6 acres of land in the 7200 block between Euclid and Carnegie avenues on Oct. 1 for $2.4 million, according to Cuyahoga County records. Six acres is a very large development site for an urban area. For reference, the property on which the Rocket Mortgage Fieldhouse (home of the Cleveland Cavaliers) sets is just under 7 acres.

Shown in a red outline is the nearly 6 acres of land in the 7200
block of Euclid and Carnegie avenues that was acquired by the
Signet Real Estate Group for a development. The Allen-Sul-
livan mansion is near the top-center of the property (Google).

Although Signet's development plans are still at an early stage, the firm is reportedly seeking to develop primarily residential uses with some commercial space along Euclid and/or Carnegie, according to a source who spoke off the record because he was not authorized to speak publicly about the project.

The source said that Signet's primary interest is to first develop the southern part of the site, near Carnegie. The demolition request for the mansion was submitted now because the city apparently has a backlog of permits to process and is taking a long time. So a demolition does not appear imminent as a development concept for the Euclid end hasn't been nailed down, the source said.

Signet typically develops institutional structures such as for hospitals, universities and research centers plus carrying out public-private partnerships involving port facilities, sports stadiums and parking garages. But it also develops student housing for institutions of higher learning.

Its most recent housing project in Cleveland was the Axis at Ansel. Opening this past summer, the $35 million, 163-unit apartment building with more than 1,000 square feet of street-facing retail is located at the corner of Ansel Road and Hough Avenue.

Joel Maas, Signet's director of marketing and communications, acknowledged receiving an e-mail from NEOtrans seeking more information about the project but didn't otherwise respond prior to publication of this article. Jeff Epstein, executive director of MidTown Cleveland, refused to comment about the project or the requested demolition.

Earlier this year, Signet Real Estate Group opened its Axis at
Ansel apartments at the east end of the Hough neighborhood
for students of higher-education institutions in University
Circle. Robust leasing at this development has prompted
Signet to pursue more development in the area (Signet).

According to the two demolition permit applications, the cost to raze the targeted structures and remove their debris is estimated at $120,000. That includes the 14,300-square-foot auditorium/fraternal hall built in 1935 behind the 5,600-square-foot Allen-Sullivan mansion. Cuyahoga County property records rated both structures as being in "very poor" condition.

Kathleen Crowther, president of the Cleveland Restoration Society, told NEOtrans that the Allen-Sullivan mansion isn't a designated Cleveland landmark. So, unfortunately, its demolition will not be reviewed by the Cleveland Landmarks Commission.

"It is sad to lose yet another Euclid Avenue house," she said. "I understand from the city that it was likely eligible as a landmark. However, the property appears to have been severely underutilized for many years now, which would mean deterioration that accelerates with time."

Crowther noted that with the recent establishment of Opportunity Zones and this property's inclusion in one, the mansion has become the target of real estate investors in the past year. Coupled with the growth of nearby University Circle, it was only a matter of time before the neglected mansion fell victim.

"It is not surprising to hear it has changed hands," she added. "It is in our community’s best interest to preserve landmarks when it is economically feasible, which often times it is due to the federal and state tax credits for historic property redevelopment. If a property like this is demolished, we believe that the replacement development should have to provide a higher community value."

The Fisco family operated The Colosseum party center
for 35 years until 1999. It has sat vacant ever since
except for a caretaker who reportedly lived at the
once grand mansion (Bill Blasko).

The house and the fraternal hall have sat unsed for 20 years except for an on-site caretaker, wrote historian Jim Dubelko at ClevelandHistorical.org. The Queen Anne-style house was built in 1887 by railroad industry supplier Richard Allen and his wife Susan. As a widow, Susan Allen sold it in 1898 to Central National Bank founder Jeremiah J. Sullivan.

After the Sullivan family moved out, the mansion served from 1923-31 as an upscale furniture store called The Josephine Shop. In the midst of the Great Depression, the house was sold to the The Grand Lodge of Ohio, Order Sons of Italy in America which converted it in 1935 into an Italian-American fraternal hall. It included adding the auditorium onto the back of the house, Dubelko wrote.

The fraternal organization sold the Allen-Sullivan mansion in 1946 to the American Society of Heating and Ventilating Engineers. It operated offices and a research laboratory on the site until 1961, when the facilities were closed.

Dubelko wrote that it was sold again, this time in 1964 to Mary Fisco whose Italian immigrant husband Benjamin restored the house and auditorium to its appearance when it served as the Italian-American fraternal hall and operated it as The Colosseum Entertainment Center. Seven years after Benjamin Fisco's 1992 death, the Colosseum closed and went through five ownership changes in the next 20 years.

"Given this owner’s desire to sell, and the City of Cleveland’s desire to continue redevelopment of its Midtown Corridor along Euclid Avenue, the future of the Allen-Sullivan house is precarious and it might not avoid demolition without an effort on the part of the city and/or the future developer to save it," Dubelko wrote several years ago.

END

Sherwin-Williams drills toward HQ groundbreaking date

Crews began drilling exploratory wells
down to bedrock this week and continuing
for up to a month to gather more data for the
new 1-million-square-foot Sherwin-Williams'
global headquarters on Downtown Cleveland's
Public Square. This scene was captured Dec.
10 on the former Jacobs Group-owned park-
ing lot, just across Superior Avenue from the
Renaissance Cleveland Hotel (Pete Marek).
CLICK IMAGES TO ENLARGE THEM

A high-ranking member of Sherwin-Williams' headquarters development team informed NEOtrans that the global coatings giant has set its desired date for groundbreaking for the end of 2021 or very early in 2022. The source spoke on the condition of anonymity as the source was not authorized to speak publicly about the project.

While that source was keeping NEOtrans apprised from their end, another reliable source reached out to report that a contractor, Ohio TestBor of Hinckley, had received verbal approval last week from Cleveland's Division of Water Pollution Control to discharge drilling water from exploratory wells into the city's sewers. The wells are for gathering subsurface data for the new SHW HQ's foundations.

An Ohio TestBor representative told city officials that the geotechnical survey company will be drilling multiple 3-inch wells more than 200 feet in depth, hitting sand, clay and finally bedrock. The drilling is expected to continue for up to a month.

The source noted that the Ohio TestBor representative said the drilling and discharge locations will be "a site just west of Public Square." The drilling company representative further identified the site is "a location for a high-rise that is currently a parking lot."

These architects at Pickard Chilton, SHW's HQ designer, are
working through a conceptual massing of a major development
featuring what appears to be a 40- to 45-story tower with a se-
cond building about half as tall. The Instagram photo included
text, saying one of the design firm's associates was leading a
discussion on "Transportation Hubs and Mixed-Use Solutions
as a Strategy for a Polycentric City." Could this be SHW's HQ
tower on Public Square with a secondary building farther west
on Superior Avenue at West 6th Street? (Pickard Chilton)

Sure enough, Ohio TestBor crews began drilling this week on the former Jacobs Group-owned parking lot on the northwest corner of Public Square. It is not yet known if the drilling will be limited to this one parking lot.

For its new, 1-million-square-foot HQ, SHW acquired the 1.17-acre former Jacobs lot along with the 5.63 acres of parking lots in the so-called Superblock formerly owned by the Weston Group. The Superblock is bounded by Superior and St. Clair avenues, plus West 3rd and West 6th streets.

Both the Division of Water Pollution Control and the Northeast Ohio Regional Sewer District require geotechnical drilling companies to sample wastewater from the wells to make sure there are no pollutants before discharging them into the storm sewers. The source said they often find pollutants in wells drilled at sites that have been in use for decades if not centuries.

When those two agencies were contacted, their spokespersons said that no permit application documents were filed and no physical permits were issued. The temporary discharge approvals were granted to Ohio TestBor verbally, a common practice.

In November 2019, three months before SHW announced the
site for its new HQ, geotechnical survey crews first probed the
soil below the former Jacobs and Weston-owned lots (KJP).

The news confirms previous reports published at NEOtrans about the size of the HQ building. Drilling down to bedrock indicates that supportive caissons excavated to bedrock will likely be the HQ's foundation. A building in Cleveland that rests on caissons dug to bedrock points to a building taller than 30 stories. Shorter, lighter buildings are typically built on thick concrete pads.

In November and December of 2019, geotechnical crews and sewer repair workers descended upon the parking lots and city streets surrounding the SHW HQ site west of Public Square. It preceded the February announcement that SHW would keep its HQ in downtown Cleveland but its research & development facility would move to suburban Brecksville.

Work done in July suggested that a second large building, although probably not as large as what is apparently planned for the former Jacobs Lot, may be in the offing. Exploratory excavations were dug at the northeast corner of Superior and West 6th.

A member of the SHW development team revealed to NEOtrans in May that SHW's HQ tower will probably be in the 45- to 55-story range. Another report in September from a prospective contractor pointed to a building that might "rival Key Tower" -- the 57-story, 948-foot supertall on the northeast corner pf Public Square.

Exploratory excavations were made in July at
the northeast corner of Superior Avenue and
West 6th Street to learn the location of utilities
and other underground structures buried
more than 200 years ago (Ian Meadows).

Yet another report, this one in early November, came from two sources who saw conceptual renderings of the HQ tower as well as the Brecksville R&D facility. The HQ tower was described as "evocative of an East Coast especially New York-style of architecture" with a height about the size of the 200 Public Square but could be taller based on the angle of the rendering.

But this latest drilling work confirms SHW and its development team are still working through the conceptual design stage -- the earliest step, followed by schematic design and then final design. Exploratory drilling would not be occurring if SHW et al had already determined a conceptual plan about the physical form of its HQ.

SHW in September publicly announced its HQ and research center development team. The construction manager is a new partnership, Welty Gilbane, formed last year by Welty-Testa Builders, LLC of Akron and the Gilbane Building Co., a global firm with offices in Cleveland. Mark G. Anderson Consultants, Inc. of Washington DC is the project manager, responsible for project controls and will be the owner's representative.

Designing the global headquarters is Pickard Chilton Architects, Inc., an international firm known for designing signature buildings. Meanwhile the base building architect for the global headquarters and the design, base and interior architect for the R&D facility is HGA Architects and Engineers, LLC of Minneapolis -- home of Valspar Co. which SHW acquired in 2017. Vocon Partners, LLC of Cleveland is the interior architect for the global headquarters.

END

Ohio lawmakers pass skyline-altering bill

Ohio cities could see more construction cranes adding to
their skylines in the next few years if the Ohio Senate
 and Gov. Mike DeWine concur that a new Transfor-
mational Mixed Use Development tax credit should
 become law by the end of this month. (blogTO).
CLICK IMAGES TO ENLARGE THEM

ARTICLE UPDATED DEC. 9, 2020: Ohio Senate voted 28-2 to concur with the Ohio House of Representatives' changes to Sub. SB39, the Transformational Mixed-Use Developments tax credit. The bill has been forwarded to Gov. Mike DeWine for his signature to become law.

Today, the Ohio House of  Representatives passed legislation for creating a real estate megaprojects tax credit. Substitute House Bill 39 would create $100 million in tax credits per year over four years that encourage insurance companies to invest in Transformational Mixed-Use Developments, or TMUDs.

Members of the Ohio House passed Sub. SB39 by a vote of 84-1. It followed the passage of a similar bill by the Ohio Senate earlier in the 133rd General Assembly's two-year session. The Senate voted 32-1 in July 2019 to support the bill as introduced by State Senator Kirk Schuring (R-29, Canton).

Schuring informed House leaders that he would support a clean version of the House-passed version of his bill. However the bill was amended at the last minute per the request of Rep. Tom Brinkman Jr. (R-27, Mt. Lookout) to restore a tax credit for political campaign contributions. Rep. Mike Skindell (D-13, Lakewood) said the amendment is unrelated to the bill's original purpose and which would restore a tax credit that the Ohio Senate had ended. That means the bill will return to the Senate for a concurrence vote. 

If the Senate passes the amended legislation and even if the governor doesn't sign the bill within 10 days, the bill automatically becomes law. He could also veto it, however unlikely.

The TMUD tax credit is the brainchild of Stark Enterprises and its law firm Thompson Hine LLP that drafted the first version of the legislation three years ago. Stark sought the tax credit to fill a gap in its capital funding for the mixed-use nuCLEus development on East 4th Street, between Huron Road and Prospect Avenue in downtown Cleveland.

But Stark's reward is still a long ways from being of direct benefit to the firm and its development plans that hatched the TMUD tax credit. It could instead be a reward for dozens of known and potential TMUDs throughout the state, including up to 30 projects just in Greater Cleveland with which Stark's project will have to compete.

To qualify for a credit, an urban TMUD project must be within 10 miles of a major city that has a population larger than 100,000 people. The project must be valued at $50 million or more, include a building at least 15 stories high or include 350,000 square feet of space in some combination of office, residential, hotel, retail, structured parking or recreational use.

Stark Enterprises sought the TMUD tax credit to close the
equity gap on its planned nuCLEus development. But it
will allow many other megaprojects in Cleveland and
elsewhere to become a reality (Stark).

Up to $100 million in TMUD tax credits may be awarded per year over four years. The duration is from the start of state fiscal year 2020 that began on July 1, 2019 and ending at the close of state fiscal 2023 on June 30 of that calendar year. By issuing a TMUD tax credit, the Ohio Tax Credit Authority would refund to insurance companies as much as 10 percent of their investment in a TMUD. The credit would be capped at $40 million per project. Most projects would receive far less.

Up to $80 million will be available to urban projects statewide. Another $20 million will be available to projects with buildings only four stories in height and a total size of 75,000 square feet in smaller towns and rural areas that are 10 miles or more from a major city.

Sub. SB39 was passed out of a House committee on Nov. 18.

"This bill has received strong bipartisan support," Rep. Paul Zeltwanger (R-54, Mason), chair of the House's Economic & Workforce Development Committee (E&WD). "The goal is to kick-start our economic recovery. There are guardrails on this to ensure that the benefits will meet or exceed its costs."

"The bill is a great way to drive economic development in our districts," said Rep. Terrence Upchurch (D-10, Cleveland). He also is a member of E&WD Committee.

Skindell, another member of the E&WD Committee, was the lone floor vote against the bill. 

One of the last big office conversions downtown is the
former Huntington Bank Building at 925 Euclid Ave.
Millennia Companies is proposing to convert the 1.36-
million-square-foot building to a mix of uses called
The Centennial. The TMUD tax credit would apply
to renovations and new construction (Millennia).

"SB 39 reduces (tax) revenues from large insurance companies by up to 17 percent annually at a time we are not properly funding food banks, meal delivery for seniors, local governments, primary and secondary education and needs-based assistance for higher education," Skindell said.

Steve Coven, Stark Enterprise’s vice president of real estate development, said tax credits similar to Sub. SB39's have already helped advance the redevelopment of historic buildings which has led to a visible revival in Cleveland’s central business district. But the supply of obsolete commercial buildings available for conversion to residential or mixed uses is running low.

Since 1995, 31 residential developments in downtown Cleveland 10 stories or taller were completed and only five of those involved new construction -- Crittenden Court Apartments, Pinnacle Condominiums, The Avenue District Apartments, The Beacon apartments and The Lumen apartments.

And, since 2006, seven 20+ story residential developments opened in downtown Cleveland. Only two of those involved new construction -- The Beacon and Lumen. All of the others were the result of rehabilitating historic commercial buildings, the remaining supply of which is becoming constrained and/or involving much more expensive renovation projects like The Centennial at 925 Euclid Ave.

"This (historic tax credit) program has encouraged our urban areas to preserve their historic buildings, which is what gave our cities their character, and now we need to complement that character with a program that will allow our cities to set the stage for their futures,” Coven added.

"There seems to be so many projects in Cleveland that are so close to the finish line financially," said Zak Baris, president of Comprehensive Zoning Services, a real estate due-diligence firm. "This (TMUD tax credit) would help complete the equity gap for numerous projects that couldn't previously work. In the projects I've worked on, a lot of life (insurance) companies are invested in the deals. They essentially act as banks. They cover the debt."

A massive expansion of Flats East Bank with up to 2,000
housing units, plus co-working and retail/restaurant
spaces could benefit from the TMUD tax credit (HSB).

"There's a reason some of these projects haven't moved forward and it's not for a lack of desire," said Michael Panzica, principal at M. Panzica Development. "Large-scale projects come at a premium. This is another tool in the toolbox. It would be a tremendous asset. The way it (the bill) is written, I think it's well-structured. It doesn't come as a loss to the taxpayer."

Sub. SB39 would allow investor life insurance companies like Allstate, New York Life, Nationwide, Mutual of Omaha, Lincoln Financial and others to receive a TMUD tax credit as large as $40 million only after the developments they support create economic impacts that exceed that of the tax credit. 

Panzica said he couldn't discuss any projects he's involved with that might benefit from the TMUD tax credit, however.

"We're certainly keeping an eye on it," Panizica said. 

"SB39, along with other tax credit programs, help bridge the financing gaps for feasibility in slower-growth communities throughout Ohio," said Tim Jackson, managing director at Integra Realty Resources, a firm based in Denver but with offices in Cleveland, Columbus and Cincinnati. "Coupled with other incentive programs, this potentially helps spur additional investment in these locations."

"The strength of our downtown core neighborhood is incredibly important to the overall economic health of our city," said Cleveland City Councilman Kerry McCormack whose Ward 3 includes development hot spots like downtown, Ohio City and Tremont.

"From the tax base downtown generates that serves the entire city, to being a catalyst of innovation and economic development, we have to continue to be bullish about investment downtown. If Sub. SB 39 spurs thousands of temporary and permanent jobs, then it will be a success for Cleveland. Besides, It would be nice to see the state government finally do something positive for cities," McCormack said.

END

Seeds & Sprouts XIII - Early intel on real estate projects

This is the Thirteenth 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.

Two office buildings seen in this view, North Point Tower in
the foreground and Fifth Third Center in the background at
right, are gaining as tenants two financial institutions
that are new to Greater Cleveland market (Google).
CLICK IMAGES TO ENLARGE THEM

Two financial firms establish first local offices

Building permit applications were filed in recent weeks with the City of Cleveland for two financial institutions seeking their first offices in the Greater Cleveland market. The financial institutions want to locate new offices in two separate downtown Cleveland buildings owned by the Hertz Group of Woodland Hills, CA. HSB Architects + Engineers of Cleveland submitted both permit applications.

According to a Nov. 17 letter from Building & Housing Examiner Glen Murray, the city approved a building permit to Provenzale Construction Co. of Cleveland on behalf of Peoples United Bank of Bridgeport, CT, to locate what appears to be a lending office in 2,907 square feet of space on the 15th floor of the 19-story North Point Building, 1001 Lakeside Ave. The building code allows Peoples United Bank's Cleveland planned office space to have a maximum occupancy of 29 people.

Provenzale will demolish the existing interior and renovate the office space for $141,895, the Nov. 24-issued permit shows. The North Point Building was built in two phases. The five-story portion of the building was built in 1984 and the 19-story portion was built in 1989, county records show.

Peoples United Bank, a full-service banking enteprise founded in 1842 has more than 400 offices, retail branches and teller machines throughout New England but nothing in Ohio until now. Steven Bodakowski, first vice president of corporate communications of Peoples United Bank, said in a Nov. 12 e-mail he was not aware of the company's expansion to Cleveland. He didn't respond to a Dec. 4 follow-up e-mail.

Then, on Nov. 30, HSB filed a permit application on behalf of White Oak Global Advisors of San Francisco to establish a 2,888-square-foot office on the 26th floor of Fifth Third Center, 600 Superior Ave. That square footage allows a maximum occupancy of 28 people under Cleveland's building code. An e-mail sent to White Oak's Web site seeking more information wasn't returned prior to publication.

The requested building permit proposes minor interior alterations including for plumbing, heating-ventilating-cooling, electrical and fire protection systems estimated at $40,000. Fifth Third Center was built in 1991 as Bank One Center. The 27-story building with its decorative crown and spires is 446 feet tall and the sixth-tallest building in Cleveland.

According to its Web site, White Oak Global Advisors was founded in 2007. It is an investment advisor and private credit firm that provides lending and other financial assistance to small and middle market businesses. White Oak has offices worldwide including USA locations in New York, Chicago, Los Angeles, Denver, Atlanta, Charlotte, Boca Raton, FL and Bethesda, MD.

The proposed floorplan for a new family dentistry clinic
in Cleveland's Ohio City neighborhood is the subject
of a newly requested building permit to convert a
former video store into the clinic (anonymous).

MetroHealth seeks appointment for dentistry clinic

MetroHealth System's nonprofit development arm, CCH Development Corp., has requested a permit to renovate a former Hollywood Video store at 3701 Lorain Ave. in the Ohio City neighborhood into a family dentistry clinic.

The permit application was filed Nov. 17 by Perspectus Architecture LLC of Cleveland on behalf of CCH for its property at 3701 Lorain Ave. The 7,665-square-foot building was constructed in 1998 as a Rite Aid, set at the southwest corner of Lorain and Fulton Road, next to the Tinnerman Lofts rehab project and near to other developments. Value of the renovation and interior buildout was not listed on the application.

Interior demolition work could start by spring on the new dentistry clinic. Through an affiliate, CCH acquired the property in 2017 for $1.175 million. The clinic could eventually employ up to 20 dentists, technicians, assistants and office staff. When it was a video store, the parking lot had 41 spaces. The store closed in 2009 during the depths of Great Recession.

Signet Real Estate Group is a development partner on the project, planning documents show. A family dental clinic located in a populous neighborhood and on two busy bus lines is welcomed by Ward 3 City Councilman Kerry McCormack.

"It means a lot," he said. "That site is a long-time controversial site. It is the former site of the controversial McDonald's development. Now it will be a great community asset. It's a long-storied site with a happy ending. The community is happy about an amenity for all residents going in."

Before McCormack became a councilman, there also was a proposal to develop permanent supportive housing on the property. But he said he is very supportive of such developments. McCormack noted that the clinic's site plan will also remove the curb cut on Lorain and support the city's long-planned $11 million Lorain Avenue streetscape.

One of eight multi-family units proposed to be built from repur-
posed shipping containers on East 73rd Street in Cleveland's
St. Clair-Superior neighborhood (Architecture Office).

Container homes sought near ArkiTainer apartments

At the urging of community officials, Cleveland-based WRJ Developers is seeking to build up to 19 units housing divided among five duplexes and three triplexes on eight vacant city land bank lots. The lots are located on East 73rd Street north of St. Clair Avenue in Cleveland's St. Clair-Superior neighborhood.

WRJ Developers and its designer, Architecture Office LLC of Cleveland, won schematic approval from the City Planning Commission on Dec. 4 for their planned housing called ArkiTainer on 73rd. Before the commission can grant final approval, setbacks in the designs must be modified slightly to meet the city's zoning code.

The duplexes and triplexes are planned one street over from WRJ Developers' planned ArkiTainer on 72nd, a four-story, 64-unit apartment building built from repurposed shipping containers to be located at 877-903 E. 72nd St. The proposed apartment building won final approval from Planning Commission in September. NEOtrans broke the story about ArkiTainer on 72nd last May.

Pending acquisition of the land bank properties, WRJ Developers Principal Jermaine Brooks said their firm's goal is to start construction of the eight-structure ArkiTainer on 73rd housing in Spring 2021. Construction is expected to take about five months.

Both the ArkiTainer on 72nd apartment building and ArkiTainer on 73rd duplexes and triplexes will each be the first such housing in Ohio repurposed from shipping containers, said Charlie Townsend, Ward 10 community business and engagement manager at the Famicos Foundation.

Adam Rosekelly of Architecture Office described the development as "relatively low-income housing." Rents were not disclosed. He noted that the exterior colors will differ on each of the eight units and the structures will not exceed the height of the existing homes along the street. 

"One of the things that we are looking to do particularly as reinvestment happens in neighborhoods on the East Side is to introduce a new type of a product and create housing choice and housing options," said City Planning Commission Director Freddy Collier. "When we think about this new type of construction, what better area to do it in than one that has that transition from commercial to residential fabric that has gaps to be filled in?"

Collier also said that WRJ Developers is one of the few minority-owned real estate development firms he has encountered in his 20 years as an employee of the City Planning Commission. He said he is happy to work with them.

"We're looking to seek true opportunity, to create access, to help to rebuild and reinvest in our neighborhoods by all people," Collier said. 

END

University Circle's tallest may see groundbreaking by Spring 2021

Proposed to be the tallest building in University Circle, 10600
Chester would rise 24 stories and about 250 feet. Final designs
for the new tower were swiftly approved today by Cleveland's
City Planning Commission as were financial incentives for the
first-phase, multi-structure Circle Square project (FitzGerald).
CLICK IMAGES TO ENLARGE THEM

Plans for what would be the tallest building in Cleveland's University Circle received final approval today from the City Planning Commission. The swift and unanimous approval of The Artisan, 10600 Chester Ave. in the new Circle Square district allows the development consortium led by Midwest Development Partners to apply for a building permit from the city.

The plans were submitted to the commission only for the residential building and its parking garage at this time, however. Review of other planning elements, namely the ground-floor retail treatments, signage and the streetscape plans, were put off until a future date.

As proposed, the 24-story Artisan will top at about 250 feet tall. It would surpass the nearby, 20-story, 234-foot-tall One University Circle residential tower that was completed in 2018 at 10730 Euclid Ave. It is currently the tallest building in University Circle, often called Cleveland's second downtown.

The reason for the commission's swift approval is because the development consortium wants The Artisan's construction to coincide with that of the neighboring Library Lofts, featuring the new MLK Branch of the Cleveland Public Library on its ground floor. To do so will require 10600 Chester to play catch-up to Library Lofts' hoped-for March 2021 groundbreaking.

"This (approval) gets them a building permit and shovels in the ground," said City Planning Commission Chair David Bowen. He applauded the design team of Chicago-based FitzGerald Associates Architects and Bialosky Cleveland for their work, calling The Artisan a "beautiful building."

The 24-story The Artisan tower will provide a commanding
view of the city and Lake Erie. It is one of many 20-plus-story
residential towers built or under way in Cleveland (FitzGerald).

"It's really excellent," concurred Planning Commission member Lillian Kuri. "I think since we saw this last, the refinement and detailing can be an extraordinary addition."

On Sept. 4, the commission gave schematic approval of a less detailed, or schematic design for The Artisan. At that same meeting, commission members gave final approval to the detailed designs for Library Lofts -- an 11-story, mixed-income apartment building with 207 units atop the 24,650-square-foot MLK Branch.

Plans submitted to the city show The Artisan would measure 306,200 square feet. It would offer 298 market-rate apartments and 287 parking spaces over 14,005 square feet of ground-floor retail. Another 24,600 square feet of ground-floor retail will be below two other parking structures offering 488 more parking spaces. In total, there will be 775 spaces among all parking structures in this phase.

"I love you guys because you treated the (The Artisan parking) garage with dignity,"said Planning Commission member August Fluker, who lives across the street from a Cleveland Clinic parking garage from which car headlights shine into his home.

"That has been the bane of my existence where I live, across from the Clinic," said Fluker in commending Circle Square's architectural team for its proposed use of perforated metal panels on the garage's exterior that are intended to diffuse car headlights while still allowing air to circulate through the garage.

Site plan for 10600 Chester and its relationship to other
buildings and uses proposed for Circle Square (FitzGerald).

Library Lofts, The Artisan and the associated parking facilities will be the first phase of new construction at Circle Square. Midwest Development Partners of Cleveland will construct Library Lofts and much of the parking while White Oaks Realty Partners of Chicago will build The Artisan.

Combined, the first phase represents a $186 million investment, city documents show. Planning Commission also approved and forwarded to City Council for final passage a tax increment financing agreement with the developers of Circle Square. It will provide them with $4.5 million to support construction of the first phase.

"Because this is an in-fill district, we're in-fillng each building in a way that allows the existing neighborhood services (at the MLK Branch library) to maintain continuous operation during construction," said Sean O'Gorman Jr., associate principal at FitzGerald. "You see the result of doing it this way, (that) we're able to achieve a more dense and vibrant city center whose functions of each building support one another."

Future phases include a roughly 250,000-square-foot apartment tower with nearly 300 units over a 200-space garage and 10,700 square feet of neighborhood retail. Also, a 170,000-square-foot office tower with about 550 parking spaces and nearly 20,000 square feet of ground-floor retail or restaurant is planned.

There may soon be a new "tallest" in University Circle, as 10600
Chester is proposed to eclipse the reigning champion, One Uni-
versity Circle, by about 15 feet. Multiple buildings of 10 stories
or more exist or are planned in/near Circle Square (Bialosky).

Finally, a 160-room hotel is envisioned where the existing MLK Branch Library now stands. The old library won't be demolished until sometime after the new library opens in the Library Lofts building.

"We have to build around the existing MLK library," said Steve Rubin, partner at Midwest Development Partners, at a recent Planning Commission meeting. "It has caused some unique challenges which requires us to build from outside in."

"We're excited about a shovel hitting the ground in 2021," said Chris Ronayne, president of University Circle Inc. "This is good for our construction trades and it's good for continued momentum in a complicated time."

He also noted that the project will force a redesign of nearby streets into more of a grid that will slow cars and eliminate gentle turning lanes that allowed traffic to move faster. The existing "spaghetti junction" of roadways makes that area dangerous for pedestrians.

END

All Aboard Ohio asks Cleveland RTA for Waterfront Line Phase II study

 

The Greater Cleveland Regional Transit Authority's Flats
East Bank Station in Downtown Cleveland (AAO).

Think of the benefits Clevelanders could see by morphing GCRTA’s low-ridership light-rail Waterfront Line from dead-ending in a windswept, out-of-the-way parking lot into a fully functional and convenient Downtown Loop that serves more of downtown Cleveland’s most important destinations.

Imagine a one-seat ride on the Rapid in any weather from the eastern suburbs to Cleveland State University in 30 minutes or less without worrying about parking or traffic.

Or, traveling from your home on the West Side to Tri-C Metro without having to transfer to another transit vehicle or walk 20 minutes from the nearest station.

Or, riding from your apartment on Playhouse Square to Little Italy or the Van Aken District to enjoy dinner with friends and family.

Or, being able to live, get to work, do your day-to-day errands, and socialize all within a short walk of new, fare-free Orange Line trains operating every few minutes on the Downtown Loop, whether you live in an affordable apartment at Sankofa Village or a penthouse condo overlooking Cleveland’s lakefront.

Nearly all of Downtown Cleve-
land would be within a 5-minute
walk of a Rapid rail station with
a Downtown Loop (AAO).

This week, Stu Nicholson, executive director of the nonprofit rail and transit advocacy organization All Aboard Ohio, sent a letter to Greater Cleveland Regional Transit Authority General Manager India Birdsong and the agency’s Board of Directors. In it, he asked GCRTA to consider reviewing options for the future of the Waterfront Line.

These options could include continuing the status quo, abandoning the line, pursuing limited enhancements such as fare-free service or expanding the line such as along the eastern lake shore or, preferably, as a Downtown Loop. These reviews could be included as part of GCRTA’s ongoing Next Gen system planning and 2030 Strategic Planning processes.

“Indeed, this low ridership that began pre-pandemic raises questions about the future viability of this rail infrastructure and service,” Nicholson wrote in his Nov. 30 letter. “We believe those questions should be the subject of a careful review by GCRTA and its downtown stakeholders.”

When the Waterfront Line opened in 1996, it was intended to eventually go someplace beyond the municipal parking lot on the East Shoreway. In 2000, GCRTA concluded a Major Investment Study called Waterfront Line Phase II. 

All Aboard Ohio proposes a Downtown Loop via East 13th
Street and Euclid Avenue while demolishing small city- and
county-owned buildings on Lakeside Avenue (their proper-
ties shown as red boxes) for Downtown Loop rail infrastruc-
ture and transit-supportive development. In 2000, GCRTA
preferred a Downtown Loop via East 17th Street and Pro-
spect Avenue, putting rail stations farther from major em-
ployers and Cleveland State University's campus (AAO).

The study showed that expanding the 2.2-mile Waterfront extension of the Blue and Green lines (Shaker Heights – Tower City) as a Downtown Loop could produce enough ridership at relatively low costs to justify federal construction funds.

In 2000, the Federal Transit Administration looked favorably on transit expansions that had a cost per new rider lower than $20. The Downtown Loop was estimated at a cost per new rider of less than $14.

“That was before Downtown Cleveland increased its residential population by more than 100 percent, saw downtown employers grow with more than $7.25 billion worth of investment, and attracted new corporate offices from the suburbs and other metro areas,” Nicholson said. “And it was well before GCRTA considered replacing its rail fleet with a standard rail car that can travel on any of its five lines, plus future ones.”

GCRTA plans to replace its rail fleet with a standardized
train car that could operate on any rail line, whether it has
high-platforms (like on the Red Line) or low-level platforms
(like on the Blue/Green/Waterfront lines), such as these trains
in use in Calgary, Alberta, Canada (Siemens). That would make
a Downtown Loop accessible from all of GCRTA rail lines (AAO).

There are many reasons why GCRTA should consider expanding the Waterfront Line, possibly as a Downtown Loop:

• Continuing the Waterfront Line as-is cannot endure. It has limited value beyond handling crowds for special events along the downtown waterfronts.
• Abandoning the Waterfront Line will require GCRTA to reimburse the Federal Transit Administration up to $10 million for state-of-good-repair improvements made to the line since 2010.
• Only about one-third of the Central Business District is within a 5-minute walk of an existing GCRTA rail station. A Downtown Loop routed via East 17th could put nearly two-thirds of the CBD within a 5-mile walk. A Downtown Loop routed via East 13th could put up to 90 percent of the CBD within a 5-minute walk.
• In 2000, the Downtown Loop was projected to attract 2.2 million square feet of nonresidential development, nearly 1,000 housing units, $441 million in overall development (in 2000$), nearly 9,000 permanent jobs, $250 million in new payroll and $17.8 million in new local tax revenues per year.
• Those benefits offer the potential for GCRTA to fund the local share of the Downtown Loop from short-term tax-increment financing. The rest could come from the federal government which is likely to become more transit-friendly under the Biden-Harris Administration.
• GCRTA is considering replacing its 35- to 40-year-old rail fleet with standard light-rail trains that can operate on any line in its rail system, including any future line expansions like a Downtown Loop.
• Chicago-based Akara Partners plans a huge expansion of the Flats East Bank community starting early in 2021 with up to 2,000 housing units, tens of thousands of square feet of co-working office spaces and neighborhood-oriented retail.
• Cuyahoga Metropolitan Housing Authority is replacing the obsolete Cedar Extension Estates with the mixed-income, mixed-use Central Choice Neighborhood (Sankofa Village, Cleveland Scholar House) – a large-scale, mixed-use project on 15 acres with nearly 400 apartments and townhouses at full buildout.
• Cleveland State University is about to begin a campus master plan process, focusing on redevelopment of the Wolstein Center site, additional housing and transportation access.
• The Cleveland Metroparks is leading the Cleveland Harbor Eastern Embayment Resilience Study (CHEERS) with a new land use vision for the shoreline east of downtown.
• In 2017, FirstEnergy’s Lake Shore Power Station was demolished, offering lakefront development and recreational opportunities that preceded the city’s last lakefront plan update in 2004 in which the city proposed extending the Waterfront Line to near Bratenahl.

“GCRTA should consider expanding the Waterfront Line, as originally intended, to reach important destinations in and near Downtown Cleveland,” Nicholson said. “Continuing the status quo is the only option GCRTA should not be embrace.”

This is a reprint of an All Aboard Ohio press release available HERE.

END