New pathogen center heralds start of Innovation District

Joining other research buildings near the intersection
of Cedar Avenue and East 105th Street will be the new
Global Center for Pathogen Research & Human Health.
With construction due to start one year from now, the
new structure will be one of the first tangible results
from the new Cleveland Innovation District (KJP).
CLICK IMAGES TO ENLARGE THEM

Earlier this year, state and local officials announced the launch of the Cleveland Innovation District and the availability of $565 million in public funds to get it rolling.

Not wasting any time, Cleveland Clinic Foundation (CCF) has issued a request for proposals (RFP) to firms to design and build a research campus led by a new Global Center for Pathogen Research & Human Health. The RFP provides a little more clarity on what CCF has in mind for the research campus and pathogens center.

Groundbreaking for the new $500 million, 1,000-employee pathogens center is anticipated in Spring 2022, said Alicia Reale Cooney, CCF's senior manager, corporate communications, in a e-mail sent in response to questions posed by NEOtrans.

"Planning is in early stages but Cleveland Clinic’s Global Center for Pathogen Research & Human Health, part of the Cleveland Innovation District, will include approximately 400,000 square feet of additional research space to be located along Cedar Ave. for the growth of research operations and training and innovations," she said.

Seen at left in this conceptual rendering, Cleveland Clinic's planned
new Neurological Institute will measure about 400,000 square feet.
That's the same size as the proposed new pathogen center. However
no renderings are available yet of the new pathogen center (CCF).

Cooney did not have a cross-street to identify where along Cedar the pathogen center would be located. She added that a more general location would be in the area of "Cedar Avenue near Cleveland Clinic's main campus."

Construction industry sources who spoke on the condition of anonymity said CCF didn’t provide a map or detailed location information in the RFP. But they were told by CCF representatives the clinic wants the pathogen center to connect to their existing research buildings.

That would put it in the vicinity of Cedar and East 105th Street, in the midst of IBM Explorys Solutions, Tomsich Pathology Laboratories, Global Cardiovascular Innovation Center and Brooks Life Sciences' biorepository.

The RFP also didn't specify how the 400,000 square feet of space should be provided -- be it in a horizontal or vertical building.

Looking north up East 105th Street toward the Cedar Avenue inter-
section shows the available land for development that could soon
arrive at this northeast end of the Opportunity Corridor (KJP).

But the scale of the building and the diminishing amount of land near the intersection of Cedar and East 105th suggests a structure similar to that of the new, 400,000-square-foot Neurological Institute at 9606 Euclid Ave. Conceptual renderings show that facility could top out at seven stories.

The pathogen center will also be the first phase of a larger research campus containing multiple smaller buildings with different focuses, sources said. Sizes of the individual buildings are not yet indicated by CCF. They will be determined by the winning design-construction team and based on program needs.

"We can share more information once details are available," Cooney said. "We hope to have more details soon." 

Some of the funding for the new pathogen center will be used to foster new technology companies in the Cleveland Innovation District and/or attract major employers here. The goal is to add 1,000 new jobs at Cleveland Clinic by 2029 and another 7,500 jobs in Ohio by 2034, state officials said in January.

Tucked away on Arthur Avenue, east of East 105th Street, are these
surviving, decaying houses. They are due to be replaced by a new
research campus resulting from the Innovation District announced
in January. New housing is planned west of East 105th (KJP).

Also last winter, CCF reissued requests for proposals for its new Neurological Institute and for nearly doubling the size of its 130,000-square-foot Cole Eye Institute. The added Cole Eye building will be located at 2030 E. 105th St. Both expansions were put on hold during the pandemic.

Additional development is coming to the area of Cedar and East 105th. On 3 acres of land at the southeast corner of that intersection, CCF is partnering with Fairmount Properties to develop up to 300 micro-unit apartments, several dozen townhomes and a 40,000-square-foot Meijer grocery store. Financing for the project is still coming together.

Fairmount is considering a second phase of roughly equal scale on the block immediately west, bounded by Cedar, East 103rd, East 101st Street and Wain. Both phases could rise to about 5-10 stories each, sources said.

END

Detroit-Superior subway deck is on a new path

Redevelopment of the long-closed subway deck of the Detroit-
Superior Veterans Memorial Bridge into a pedestrian and bike
path is gaining momentum. But it continues to have challenges
too as the City of Cleveland is not yet at the table. Also, nearby
stakeholders would like to look at possibly adding parking in a
portion of the former streetcar subway (CUDC).
CLICK IMAGES TO ENLARGE THEM

Transportation officials are seeking to begin formal planning and design work for a multi-purpose pathway on the long-closed streetcar subway deck of the Detroit-Superior Veterans Memorial Bridge. The bridge over the Cuyahoga River valley links downtown Cleveland and the Hingetown section of Ohio City.

Cuyahoga County Public Works Director Michael Dever acknowledged in a recent phone interview the county's desire to start the project which he said might cost about $18 million in 2024 dollars. That year is significant, as it indicates when Dever hopes major construction will be underway on the project.

"Our desire is to convert the underside of the bridge to a pedestrian walkway," Dever said. "In conjunction with the development of Irishtown Bend Park, this will be a great link between Ohio City and Downtown Cleveland."

The path's final design has yet to be undertaken and county funding has yet to be allocated to the bridge project. Dever says the reason is that the assignment of maintenance responsibilities of the proposed pathway remains unresolved.

Brent Kovacs, public information officer at the Ohio Department of Transportation's (ODOT) District 12 office, said ODOT is a partner in the discussions about the subway deck path with the county, city and the Northeast Ohio Areawide Coordinating Agency (NOACA). However, he said there is no timeline yet for moving forward.

The Detroit-Superior bridge is one of Cleveland's most iconic
structures and, thus, one of its most photographed (KJP).

"The project needs to be developed further to determine possible funding," Kovacs said in an e-mail to NEOtrans. "NOACA is working with all parties mentioned above to set up a future meeting for discussion. In general when it comes to the Detroit-Superior bridge, ODOT funding would be for construction and long term maintenance. The city is responsible for routine maintenance."

A source who does not wish to be identified said the planning process has been slowed because Cleveland Public Works Director Michael Cox and other Jackson Administration officials have yet to respond to requests to participate in the project. Cox did not respond to e-mails from NEOtrans seeking comment.

Dever said the county's vision for the pathway is based on a 2013 conceptual study funded by eight partners led by the Northeast Ohio Areawide Coordinating Agency and conducted by a design team led by Kent State University's (KSU) Cleveland Urban Design Collaborative (CUDC).

CUDC's vision was to convert the center axis of the bridge's streetcar subway into the pathway, leaving the south side of the bridge for utilities. The north side of the bridge was to see a mix of uses. Portions would remain unused. Other spans of the 13-span viaduct would feature permanent or temporary art exhibits.

The Detroit-Superior bridge was opened to roadway and rail traffic in 1918. It replaced the 1878-built Superior Viaduct which had a swing span over the Cuyahoga River to let large boats pass. The newer bridge was tall enough so the largest ships could travel below it without affecting road and rail traffic on it. The subway deck was closed to rail traffic in 1954 and has been largely unused ever since.

Conceptual plan from 2013 for reusing the subway deck of the
Detroit-Superior bridge. The basic concept from this report is
being considered today by Cuyahoga County and other trans-
portion planning bodies. But instead of having the pedestrian
and bike pathway run down the middle of the lower deck, it
would instead run along the bridge's south side (CUDC).

The county's vision for reusing it is to put the pathway along the south side of the subway deck where utility lines now run, Dever said. Those utility lines would be removed. The pathway's alignment would allow the northern two-thirds of the bridge's subway deck to remain for other uses. The bridge's center axis is currently used by service vehicles to inspect and make occasional repairs to the roadway deck above.

The subway stations -- one at West 9th Street at the east end of the bridge and the other at West 25th Street at the west end of the bridge -- would remain vacant. The pathway would bypass each station, ramping up and down from the subway deck outside of box-like structures containing the stations in each end of the bridge.

At the west end of the bridge, the path was proposed in the CUDC study to emerge from the south side of the bridge and ramp up to street level next to a derelict building owned by developer and restaurateur Bobby George. He acquired it in 2018 for $248,200 as planning advanced for the adjacent Irishtown Bend Park. Sources said he is apparently asking $7.2 million for the 0.4-acre property.

In the years since the CUDC study was done, the Lakefront Bikeway Connector was built to reach Gordon Square and Edgewater Park. The Detroit-Superior subway path could connect to it via a public space proposed as part of the planned 16-story Bridgeworks tower, 2429 Superior Viaduct, said Tom McNair, executive director of Ohio City Inc. Ohio City Inc. was a collaborator in the CUDC study in 2013. 

"This path is the type of thing that gives pedestrians more choices," he said. "The county has been looking at moving this (subway path) forward for some time. It influenced us to look at things around it. There's lots of projects around it. The big challenge is how to prioritize those projects and integrate those projects with the bridge."

One of many streetcar subway tours over the years was held July 6,
2013 by Cuyahoga County Public Works with the support of the City
of Cleveland and the Ohio Department of Transportation (KJP). 

In the CUDC report, it showed the path at the east end of the bridge would both rise and descend from the subway deck. The rising path would climb to the southwest corner of Superior and Huron Road. The descending path would use switchback ramps to drop to the valley floor and the planned Canal Basin Park where it would connect with the Towpath Trail.

Although the bridge sets on county-owned land, responsibility over maintenance of the bridge rests with the city; much of the funding comes from ODOT. The bridge carries the route designations for State Route 3 and U.S. Routes 6, 20 and 42.

The complex mix of responsibilities for the bridge is reflected in the approvals process for self-guided subway deck tours hosted by the county. The tours, occasionally held on major holiday weekends from Memorial Day to Labor Day, must be approved by both the city and ODOT, Dever said.

There won't be any subway tours this year and not just because of the pandemic. Dever said ODOT is funding major concrete repairs to the underside of the bridge. The repairs are projected to cost $16 million and continue until October.

Ward 3 Councilman Kerry McCormack expressed his support for developing the subway deck. He also has been convening stakeholder meetings on developing Superior Viaduct into a linear park. That could involve moving up to 150 parking spaces from the viaduct to an unidentified parking structure.

A massing image for Bridgeworks when it was proposed as an
18-story building. It was since reduced to 16 stories but conti-
nues to show pedestrian/bike access to the Detroit-Superior
bridge's subway deck and a parking garage (Mass/LDA).

The Bridgeworks development has a 200+ space parking structure included in its plans that were approved by the city's Landmarks Commission in April. But the development is either too expensive as designed or doesn't yet have enough financing to start construction, according to two sources who spoke off the record. Reducing the amount of parking or finding a new, cheaper place to put the parking could make the project feasible. 

Mike Panzica, part of Bridgeworks development team with Graham Veysey and others, did not comment on the project's finances or the neighborhood's parking situation. He said his team intends to move forward with the plan as approved by the city.

"We intend to demolish the county (engineer's) laboratory building for the parking garage," Panizca said. "Our goal is to break ground (on the tower) later this year."

Bridgeworks is designed to add 170 apartments and 130 hotel rooms, the latter offered by an as-yet unidentified hotel chain. There will also be ground-floor restaurants/cafes and retail, as well as an 11th-floor restaurant.

"Potentially, there's a real opportunity to have (parking) spaces that are used by residents in the evening that can be used during the day for office tenants nearby," McNair said of Bridgeworks' proposed parking deck.

The Detroit-Superior bridge and its subway deck dominate the
view from the Stonebridge Condominiums (KJP).

A neighbor of the Bridgeworks development has been shopping another idea on how to address a worsening parking shortage in the area -- use part of the Detroit-Superior bridge's subway deck.

Terry Coyne, vice chairman of the Cleveland office of real estate broker Newmark Knight Frank, owns an historic, three-story office building at 2401 Superior Viaduct. Its largest tenant, a 102-employee video streaming company called BoxCast, is growing fast.

Coyne said BoxCast needs more parking or the company may move. Even with the planned pathway in place, the Detroit-Superior bridge's subway deck has more than 80,000 square feet of unused space west of the span directly above the Cuyahoga River. If converted to parking, it could accommodate up to 250 parked vehicles.

"I would be happy to pay for access to that space," Coyne said. "It would solve a lot of parking issues."

"After I lived in Spain for two years, I became a big supporter of transit-oriented development," McCormack said. "It's not hard to see this area of the Flats and Ohio City has a serious parking problem. So I'm looking for creative solutions."

Potential uses for the subway deck at the west end of the Detroit-
Superior bridge, in addition to the proposed pedestrian/bicycle
path, could include up to 250 parking spaces (Google/KJP).

According to county records, the bridge's subway deck west of the river span has three sections with different conditions that would have to be addressed before parking could be added to it. The middle section, accessible from the Bridgeworks site, appears to be the most parking-ready. It has a solid floor and fewer columns supporting the overhead roadway deck, allowing more room for cars to maneuver and park.

The section east of it also has fewer support columns but the northern side of the bridge has no solid floor; that floor would have to be added. Each arching bridge span may be strong enough to handle the added floors plus dozens of cars and SUVs. The reason is the bridge was designed to support much more weight than it does now on as many as six streetcar tracks. Only four tracks were actually provided, however.

Two-car trains of streetcars in 1918, like those designed by Cleveland Railway Commissioner Peter Witt, weighed 142,000 pounds without any passengers. That weight is roughly equal to 28 full-size SUVs. And, as designed, six of those trains could be simultaneously traversing any one span of the bridge.

The farthest west section is the old West 25th subway station. Although the western section has a solid floor, cars cannot easily maneuver in there let alone park. There are many support columns that would have to be removed and a new overhead roadway deck added, supported by long-span beams. The sides of the subway station and its street-side access points could be refurbished to their original, 1918 glory.

But converting a significant portion of the former subway deck to parking seems ironic, if not unfortunate, McNair said.

"Tenants are growing and looking for parking space," he acknowledged. "We're really big proponents of alternative modes of transportation and not over-burdening our built environment with cars. We want to engage the community to find solutions."

END

45 Erieview Plaza has a buyer and a plan

Mixed-use is in store for the former headquarters of the
Ohio Bell Telephone Co. on East 9th Street and Lake-
side Avenue in downtown Cleveland. After several
years of sitting empty, the office building property
is being acquired by an out-of-town buyer (KJP).
CLICK IMAGES TO ENLARGE THEM

According to sources who spoke off the record, the former Ohio Bell Telephone headquarters now called 45 Erieview Plaza has a buyer with a plan. While the details of the project are still being developed, it reportedly will be a mixed-use development with 280 residential units, a couple floors of offices and some retail.

The buyer's name was revealed by the sources but asked that it not be publicized for the time being. However, the buyer is from out-of-state, showing the growing interest by outside investors in Cleveland real estate.

News of the purchase is tacitly confirmed by the commercial real estate site LoopNet which hasn't been advertising the property for sale or lease since news broke about the project in January. The sale includes a neighboring 348-space parking garage. There are also 32 parking spaces under the building, located at the southeast corner of Lakeside Avenue and East 9th Street.

Terms of the sale weren't fully disclosed, but the sale price of the property has been going down with each transaction. It was first sold in 1984 by developer Erieview Third Corp. for $61.64 million. Ohio Bell Telephone Co. sold it for $53.17 million in 2007 to MB Cleveland Erieview LLC, county records show.

Wide banks of curving windows would be an attraction to potential
future residents of a converted 45 Erieview Plaza (CBRE).

New York City-based private equity firm Somera Road bought 45 Erieview Plaza, dubbed The Ellipse, for $36 million in 2016. It tried in vain to find a large office user to fill most if not all of the 492,864-square-foot office building.

There are smaller office users moving into downtown Cleveland but none wanted to be the first to occupy a now-completely empty, cavernous building. Somera Road put up the building for auction last summer with a starting bid of $9 million.

There was an unidentified winning bidder different than the current buyer who had a $14.9 million offer, according to another source familiar with the sale. But the buyer walked away during the due-diligence period prior to taking title. It is not known why the purchase did not go through.

A low sale price will help free up capital for the project's conversion. The capital could include a Transformational Mixed-Use Development (TMUD) tax credit. Based on the TMUD law, the building exceeds the minimum requirements of 15 stories and 350,000 square feet to be eligible. Whether the redevelopment price tag exceeds $50 million -- the minimum investment under TMUD -- remains to be seen.

The ground floor of 45 Erieview Plaza lends itself to potential
restaurant/cafe and neighborhood-oriented retail considering
that the site is farther away from existing downtown residen-
tial areas and the retailers that support them (CBRE).

The target property is an interesting one for several reasons.

First is its relative modernity. All of the obsolete commercial buildings in downtown Cleveland that have been converted to residential and/or hotel over a retail/restaurant ground-floor use were more than 50 years old -- the minimum age to be eligible for state and federal historic tax credits. Many downtown office and department store buildings that were converted were much older than that.

The 45 Erieview Plaza property would offer the youngest office building to be converted to residential or other non-office uses. At 38 years of age, it's too young to be eligible for state historic tax credits. Those credits require buildings to be at least 50 years old.

But it could become eligible for federal historic tax credits now that the surrounding area was declared Feb. 1 by the U.S. Department of the Interior as the Erieview Historic District. That area is bounded by Lakeside, Chester Avenue, East 9th Street and East 12th St.

The views of Lake Erie from 45 Erieview Plaza will be a winning
attraction for any potential future resident (contributed image).

If a building contributes to the character of the surrounding designated area, it can be considered historic. That contribution may come from the architect of 45 Erieview Plaza -- Norman Perttula. He contributed to the urban renewal efforts of the Erieview plan, including with the 1960s- and 1970s-era Park Centre along East 12th between Superior and Chester avenues. Perttula passed away Dec. 27, 2020 at the age of 93.

One of the factors of the building that has discouraged its reuse is its large floorplates - most of the office floors measure about 37,000 square feet. That worked well for Ohio Bell's call center but not for most office users who want floorplates less than 25,000 square feet.

That lends to an interesting question as to how those large floors might lend themselves to residential, since a residential building typically has floorplates smaller than those for office users. That may point to creating an open-air atrium in the center of the building, much like what Bedrock and Geis Companies did with the conversion of the massive May Company department store into apartments.

END

Megaproject program delays may curb $2 billion in development

A new state program to help finance large real estate developments
is taking a long time to launch. Only half of the promised tax credits
will be awarded to create much-needed jobs and housing in Ohio's
 urban centers -- unless lawmakers extend the program (file photo).

** UPDATED MAY 2, 2021 **

After nearly five months since Senate Bill 39 was signed into law by Gov. Mike DeWine, the so-called megaprojects tax credit it authorized still isn't a functioning program. Worse, it won't be functioning before the end of the state's current fiscal year ending June 30, a state official confirmed today.

Unless the program is extended, the delay will leave only two years or just half of the $400 million in authorized credits available for awarding over the program's originally intended four-year lifespan. DeWine signed the Transformational Mixed Use Development (TMUD) tax credit program into law on Dec. 29, 2020.

It will provide $100 million per year in tax credits to large, complex real estate construction or renovation projects, mostly in Ohio's large urban centers, having price tags of $50 million or more. The statute assigns administrative responsibility to the Ohio Tax Credit Authority, part of the Ohio Development Services Agency, to make TMUD credits available, review applications and award the credits according to agency rules.

Nearly five months later, on April 19, the Ohio Development Services Agency posted three pages of draft administrative rules for the TMUD program for the public to review and to submit comments. A public hearing on the proposed rules is scheduled for 9:30 a.m. May 26.

The state's fiscal year, along with the state government's two-year operating budget, or biennium, ends a month later. Todd Walker, chief communications officer for the Ohio Development Services Agency, confirmed the agency would not be able to start awarding TMUD tax credits before June 30.

With fewer obsolete commercial
buildings available for conversion,
more urban core housing will have
to be built new, requiring new finan-
cial resources like the the TMUD
tax credit program (KJP).

"We expect the program will launch in the first quarter of fiscal year 2022," Walker said. He added that the agency "is working diligently to make sure this program will be successful and have a positive impact on Ohio communities."

"We're still working through it," said John Werkman, chief of the Ohio Development Service Agency's Business Services Division during a monthly meeting of the Ohio Tax Credit Authority April 26. "The rules don't cover everything. We're trying to get the program ramped up as quickly as we can."

But Walker noted that the legislature may extend the TMUD program's authorization beyond its current sunset date of June 30, 2023 -- the end of state fiscal year 2023 -- to achieve the originally desired four years of program benefits.

"It is our understanding that the General Assembly is pursuing avenues to carry forward the tax credits allocated to the program for use in future fiscal years," he said.

When asked if unused tax credits from prior fiscal years could be awarded in the present, Walker referred to the statute authorizing the TMUD program.

"The tax credit authority may not preliminarily approve more than $100 million of estimated tax credits in each of fiscal years 2020, 2021, 2022, and 2023," Walker said in quoting the statute. "Meaning, that the approval of the tax credit amounts for projects by the authority is to be made in those fiscal years and limited to $100 million in each of those fiscal years."

Not all TMUD-eligible urban core housing projects are located down-
town or in other hot city neighborhoods. Large, difficult restoration
projects like the Richman Brothers factory on East 55th Street
are located in low-income areas. Their reactivation will help
add businesses and jobs in those neighborhoods (LoopNet).

There is a carry-forward provision in the law which, the bill's original sponsor Senator Kirk Schuring (R-29, Canton) said might allow the $100 million in tax credits in FY2020 and the current fiscal year to be awarded after June 30. But Walker disputed that.

"The carry-forward provision you referenced applies to the use of the credit by a person/entity that receives the credit, once a preliminarily approved project is completed, if the credit amount for the person/entity exceeds the applicable tax liability for the period the certificate is issued," Walker said.

Prior to publication of this article, Schuring did not respond to a phone message, a text message and an e-mail seeking further comment, including whether he might seek corrective legislation to change the four-year TMUD program's inaugural fiscal year from 2020 to 2022.

A TMUD credit cannot be claimed until the project, or a portion of a large project that is planned to be completed in phases, is completed. Thus, in any case, state officials said they do not anticipate revenue losses to the Ohio treasury before fiscal year 2022.

Since two years of the program can't be used, up to $2 billion worth of real estate construction or renovation projects in Ohio's cities may not happen. Or they may be scaled down in terms of their size and number of jobs created or they may face delays -- barring the program's extension.

There are dozens of projects just in Greater Cleveland that could tap into the TMUD program to fill in remaining gaps in their mix of construction financing resources, called a capital stack. NEOtrans identified up to 30 such projects, including nuCLEus whose developer Stark Enterprises came up with the idea several years ago for the TMUD program as a way of continuing the momentum of development in downtown Cleveland.

Some major developments need a small amount of public help
to close a financing gap. One of those is the proposed Bridge-
works tower at the northeast corner of the Detroit-Superior
Bridge and West 25th Street in Ohio City (Mass/LDA).

Most new residential inventory that's been added in downtown Cleveland this century was carved out of historic buildings that were considered obsolete for modern commercial uses. State and federal historic tax credits completed their capital stacks to renovate and convert those buildings.

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. The others were a 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.

A third 20+ story residential tower is about to start construction -- the City Club Apartments. It, like The Beacon, could be affordably built only because their developers did not have to build new parking garages for them. 

The Lumen could be afforded because it was built by the nonprofit Playhouse Square Foundation which did not seek a financial return on its investment. And, it got millions of dollars in public subsidies to fund construction of a new garage.

The project that started it all -- nuCLEus. Stark Enterprises
sought the TMUD program to close a financing gap in
its long-planned downtown Cleveland project (Stark).

Yet there remains an unmet demand for downtown housing. The Downtown Cleveland Alliance estimates that demand amounts to 6,800 residential units by 2030 which would equal another 21 Lumen-sized apartment towers to meet that demand.

"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,” said Steve Coven, Stark Enterprises’ vice president of real estate development.

Real estate experts have informed NEOtrans in the past that meeting the demand for urban core housing calls for access to the maximum amount of TMUD credits. This public funding will help investors and builders overcome Greater Cleveland's relatively high construction costs and low rents.

"This is obviously disappointing," said Tim Jackson, director of Integra Realty Resources – Cleveland. "I would hope the legislators are aware of this and carry forward the $200 million. In Cleveland, as well as many Ohio communities, financial feasibility is typically difficult to achieve with our current lease/rent levels. Add in the rise in construction costs and its really a double whammy for Northeast Ohio. These types of mega projects can be a catalyst for surrounding development and really help improve the immediate area."

"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 program) would help complete the equity gap for numerous projects that couldn't previously work."

END

University Heights OKs 30-unit townhouse development

South Taylor Place, featuring 30 townhomes, many with rooftop
decks offering views of University Circle and Downtown Cleve-
land, are on a course to see construction start as early as this July
north of the Cedar-Taylor District in University Heights (Sixmo).
CLICK ON IMAGES TO ENLARGE THEM 

As part of University Heights' initiative to increase the city's population through housing investment, the northwest corner of the city will soon gain a new 30-unit townhouse development. The project, called South Taylor Place, should see construction start in July following the April 15 approval by the city's Architectural Review Board.

Knez Homes will build the market-rate townhouses on 0.7 acres the firm acquired just north of Cedar Road. Knez, one of Northeast Ohio's largest homebuilders, purchased the land in March from the University Heights City Beautiful Corp. for $7,000, according to county records.

The city-chartered community improvement corporation (CIC) was founded in 2018 for the “purpose of advancing, encouraging and promoting the industrial, economic, commercial and civic development of the City of University Heights,” according to its Web site.

Also, the University Heights City Beautiful Corp. is charged with implementing the city's development master plan. Governing the corporation is a board of directors made up of city elected and appointed officials and a resident of University Heights. The board includes Mayor Michael Dylan Brennan who led the initiative after his election in 2017.

Location of South Taylor Place in
relation to the Cedar-Taylor District
in University Heights (Google).

"The city has to go through a competitive bidding process but when you have a CIC you can pick and choose who you want to work with," Brennan said. "I saw Knez developments in Ohio City and Tremont and wanted to see what they could do here. Knez makes a quality home and we wanted the best."

Construction of the new housing will help address a shortage of available, for-sale homes in Greater Cleveland and especially in the Heights area, near fast-growing University Circle. In fact, being just three miles from University Circle is one of the reasons why Knez sought to develop this property.

"The proximity of that land to everything is pretty incredible," said Bo Knez, President/CEO and founder of Knez Homes. "It's real close to all of the amenities in the Heights."

"We're trying to diversify the housing offerings in University Heights," Brennan added. "There's a lot of demand for housing in our community. One of the things I love about this city is you're 10 minutes away from the medical and institutional centers of University Circle."

Site plan for South Taylor Place (Sixmo).

The immediate area has a mix of greenspace and a walkable commercial district. The townhouse development will have a pocket park, walkway and pet area on its north side, set on land just over the city limits in Cleveland Heights.

That strip of greenspace will be added above newly rebuilt gas and sewer infrastructure along another greenspace for the neighboring Deborah S. Delisle Educational Options Center. That facility is part of the Cleveland Heights-University Heights City School District.

The Heights is known for its walkable commercial districts clustered around major intersections. The Cedar-Taylor District is no different, with the 1997-built University Corners shopping center being one of the newest and most car-centric. Other buildings at Cedar-Taylor are approaching 100 years old, with some having apartments over storefronts.

A mix of shops and restaurants near the planned South Taylor Place townhomes include Cafe Tandoor, Anytime Fitness, Jamerican Kitchen, Family Dollar, International Food grocer, Pizzabogo, Sherwin Williams Paint Store, Irv's Sandwich Shop, Mister Brisket, Foodhisattva and more.

Courtyard in the planned South Taylor Place development (Sixmo).

Knez says that construction on the townhouses should be complete by this time next year. South Taylor Place represents an investment of about $12 million by Knez Homes in the community.

Each townhouse will measure about 3,000 square feet, including a two-car attached garage. Townhouses will have 15 years of tax abatement and be fee-simple, in other words, no condominiums. List prices are expected to be in the mid-300s, Knez said.

The tax abatement doesn't apply to land, the property is now in private hands and the land will be developed. Thus, Brennan expects it to generate $20,000 in property taxes per year to the school district. And if it falls short, the city will make up the difference with income taxes generated by residents living in the new townhomes.

"The ARB (Architectural Review Board) was the last step before a building permit can be issued," Knez added. "There's still some minor tweaks to be done but we'll be pretty much ready to go in 90 days."

Westward view of South Taylor Place from the intersection of
Wynn Road and Washington Boulevard (Sixmo).

As part of development agreements approved by the University Heights City Beautiful Corp., Knez is also adding "in-fill" homes on a handful of vacant parcels throughout the city. These are mostly mature neighborhoods, filled with single-family homes that were built 60-100 years ago.

Some older homes that weren't well maintained or suffered fire damage got demolished. Nothing replaced them, leaving a few "missing teeth" along neighborhood streets. Over the past decade, University Heights' population has dipped by about 500 residents to 13,000, Census estimates show.

"This (South Taylor Place townhomes) and the in-fill of vacant, unused parcels with single-family homes is part of the mayor's progressive plan to add residents," Knez said.

"One of things I did when I became mayor was to not leave opportunities on the table," Brennan said. "The previous administration shied away from infill (housing) but I've embraced it. The city government took the view that development happened to it rather than embracing it. We haven't had a major housing development since the 1970s."

South Taylor Place will add more pedestrian activity to the Cedar-
Taylor District which features many restaurants, shops and other
businesses, some of which are seen along the bottom of this
eastward-looking view from South Taylor Road (Sixmo).

Most of the property on which South Taylor Place is planned was previously the home of the congregation Oer Chodosh Anshe Sfard, an Orthodox Jewish synagogue founded in 1894 in Cleveland by a group of Ukrainian Jewish immigrants. The synagogue was demolished shortly before the land was transferred to the city in 1999, county records show.

Other properties around the Cedar-Taylor District are finding new uses. Among those is the long-closed KFC restaurant, 2115 S. Taylor, which the city declared as a blight and threatened to demolish at the owner's expense.

That property was acquired in December 2019 by Taylor Raymont LLC, part of the family of companies founded by Donna Cheung Hom who passed away in January. The Hom family continues to develop, own and operate Chinese restaurants including Ho Wah in Beachwood, King Wah in Rocky River plus Li Wah and Asia Plaza in Cleveland's Asiatown neighborhood.

Brennan also said there is a buyer for the closed Midas car repair shop, 13483 Cedar, but he could not reveal it yet. He said the new user will not operate it as a car servicing business but the buyer intends to use the 0.46 acres of land as it is currently zoned, which is a local retail district.

END

CBIZ is latest biz seeking suburb-to-downtown move

CBIZ, Inc. is seeking to make a move from its existing offices in
Independence to downtown Cleveland but hasn't found a suitable
office building yet. But the first has to make a move by March 1
according to two real estate brokerage sources (Bing).
CLICK IMAGES TO ENLARGE THEM

A growing employer is seeking to move from the suburbs to downtown Cleveland and has less than a year to do it. CBIZ, Inc., founded in 1987, has grown to 4,800 employees in more than 100 offices nationwide with more than 200 of them at their headquarters in 6050 Oak Tree Blvd. in Independence.

The firm has to move by March 1, 2022, so the firm isn't a candidate for a proposed new office building like the 25-story building in nuCLEus or any other office towers in consideration. And, for that matter, CBIZ cannot consider moving to renovated office space planned in several existing buildings about to go under the knife like 925 Euclid, 55 Public Square or the Rockefeller Building.

That's the word from two real estate brokers who spoke off the record because they did not want to compromise future business deals. Allegro Real Estate Brokers & Advisors was hired by CBIZ to help it find a new home. Locally, Adam Gimbel, an Allegro principal, is handling the search.

But CBIZ, which provides accounting, tax, insurance and human resource services to businesses is seeking 50,000 to 60,000 square feet in a downtown office location. It also wants building naming rights for wherever it lands, the sources said. CBIZ is the sole company name on its current building.

The source also noted that MAI Capital Management, LLC will be taking over CBIZ's space at Park Center in Independence after CBIZ leaves. MAI is currently located at 1360 E. 9th St., Suite 1100, downtown. But a trading of spaces wasn't in the cards for CBIZ.

The office currently occupied by CBIZ will be taken over by
MAI Capital Management next year. Where CBIZ will land
in downtown Cleveland has yet to be determined (Google).

The brokers with whom NEOtrans spoke said CBIZ representatives did not like MAI's space nor did they like other existing office spaces they visited downtown. There is an East 9th office location being considered but the sources did not wish to identify it at this time.

If CBIZ lands downtown, it will be the latest of many such moves. The offices and studios of iHeart Media Cleveland recently announced it will move more than 100 employees from Independence to 668 Euclid Ave.

FM Global, a Providence, RI-based commercial property insurer, will soon be relocating more than 100 employees from the Great Northern Corporate Center in North Olmsted to the North Point Tower, 1001 Lakeside Ave., in downtown Cleveland.

Fathom marketing recently moved its 100 employees from 8200 Sweet Valley Drive in Valley View to a renovated space at Stonebridge Plaza, 2020 Center Street in the Flats. Also moving from the suburbs to an historic building downtown was Goldwater Bank N.A. Mortgage Division, which left 23500 Mercantile Road in Beachwood for the Utica Building, 2217 E. 9th. Goldwater has 46 employees here and has plans to more than double that.

And the biggest suburb-to-downtown move is the upcoming shift of CrossCountry Mortgage, LLC and its 500 headquarters employees with hundreds more hires expected after its new offices opens.

As part of its search, CBIZ is reportedly looking at sites along East
9th Street in downtown Cleveland -- a prestigious address for many
financial and business development firms (Google).

The fast-growing firm has begun renovating for $40 million the former Tap Packaging (previously The Chilcote Co.) complex in the 2100 block of Superior Ave. CrossCountry is currently located at 6850 Miller Rd. in Brecksville.

In addition to offices, their new location will feature ground-floor retail/restaurants along Superior and a 40-unit apartment building fashioned from a structure at 2110 Superior. Apartments will be offered first to CrossCountry employees who may wish to work from home part of the time.

Many are also watching Moen Inc. USA, which might also make a move downtown. Among its options, Moen reportedly is considering an expansion of its existing headquarters at Interstate 480 and Great Northern Blvd. in North Olmsted or build a new HQ to replace its 27-year-old, 141,221-square-foot office building.

Moen, now with more than 600 HQ employees, has outgrown its 1993 HQ building and has since expanded into leased offices on the other side of I-480 along Country Club Boulevard. With growth continuing, all site options are on the table including a move out of Greater Cleveland.

END

Rockefeller garage demolition opens door for major development

A significant new development site was created today by the
Cleveland Landmarks Commission when it authorized the
demolition of an obsolete parking garage next to the new
Sherwin-Williams headquarters property (Google).
CLICK IMAGES TO ENLARGE THEM

Shortly before Cleveland Landmarks Commission approved the renovation of the neglected 116-year-old Rockefeller Building, it unanimously allowed the demolition of the century-old garage behind it. The potentially dynamic combination of those two actions received only a brief mention during today's commission hearing.

The result was that the Landmarks Commission just created a highly marketable and major development site.

NEOtrans broke the story last August about a partnership taking title to the Rockefeller Building property. The partnership of Realty Dynamics Equity Partners, LLC of Akron, OH and Wolfe Investments, LLC of Plano, TX. acquired the 17-story office building, the five-level parking garage and the 1.84 acres on which they both set for $13.35 million.

The 261,264-square-foot, half-leased office building at 614 W. Superior Ave. will be redeveloped with a mix of uses. Floors 5-16 of the Rockefeller Building will be repurposed with 436 apartments including 273 efficiencies. The apartments would measure anywhere from about 273 to 726 square feet each, preliminary plans show.

General contractor Geis Companies will renovate floors 2-4 with offices for existing or new tenants. The ground floor, with entrances off West Superior and West 6th, will have 12,000 to 15,000 square feet of retail, be it shops, barber/salons, restaurants and/or food hall. Geis will also manage the building.

Demolition plan approved today by the Cleveland Landmarks
Commission. Superior Avenue is along the bottom of the image
and West 6th Street is at the right side. The parking garage to be
demolished is near the top-center of the image along Frankfort
Avenue and will create an L-shaped development site (GLSD).

Geis revitalized two other major, historic structures downtown. The May Company department store on Public Square was renovated into apartments over retail and the former Cleveland Trust Rotunda was turned into the Heinen's grocery store. Geis' rehabilitation efforts in both projects received wide praise for their attention to detail in preserving historic features while adding modern technology and features.

The spark for this potential $100 million redevelopment is the new 1-million-square-foot global headquarters for Sherwin-Williams (SHW) that will start to rise by year's end across West 6th. The new HQ will bring up to 3,500 employees to this area, the southern part of the Warehouse District.

"Sherwin-Williams is a prime driver for business here," said Conrad Geis, director and managing partner of Geis Companies.

Having that spark to further investment next door was a key factor not only for the Rockefeller Building redevelopment but also for the now expanded development site surrounding it. That's why the demolition of the decayed garage is so critical.

As recently as last year, demolition of the garage seemed unlikely. It was the first structure in downtown Cleveland built as a multi-level parking garage, it's part of the historic Rockefeller Building with all of the history surrounding that, and it's located in a designated historic district.

Some architectural features may be preserved from
the Rockefeller Building's century-old parking garage
for possible re-use in public spaces along West 6th
Street and Frankfort Avenue, serving as a buffer to
parking lots or new high-rise buildings (GLSD).

But Osborn Engineering produced a report at the behest of Geis, showing that the garage doesn't meet building and design standards as a parking garage or for repurposing with human uses such as residential, offices or retail. In fact the garage hasn't been used for parking this century, said Brandon Kline, Geis' director of design development.

The vehicle ramps are too steep and narrow, there's no ventilation system, the stairways do not meet code and the building is in poor condition with major masonry failure and exposed rebar. The split level layout of the structure makes it difficult to convert for a human use, the report said.

Initially, demolition of the garage will create sufficient space for construction staging in the renovation of the Rockefeller Building, Kline said. Then it will provide an interim surface parking lot, landscaped along West 6th and Frankfort Avenue using architectural features that can be salvaged from the garage.

The last thing downtown Cleveland especially the Warehouse District, needs is more surface parking lots, said Thomas Starinsky, associate director of the Historic Warehouse District Development Corp.

"We're thinking about more human activation of our sidewalks and not car activation," he said. 

Kline said the property owner considers the new parking lot to be part of a future development site. Sources familiar with the site say the property owner is already getting inquiries but nothing has been finalized.

View of the Rockefeller Building from Prospect
Avenue and Tower City Center (KJP).

Starinsky reluctantly concurred with the garage's demolition, "knowing this is a development site and hopefully sooner than later that will occur," he said.

"Personally, there's nothing sadder than to be in front of a new building and there's like, pieces of the capitol of the historic building that once stood there that we're supposed to sit on and feel good about it," Starinsky added at today's meeting.

"We're not really thinking about that," he continued. "To the extent that this is practical and cost-effective was the position. It wasn't really any kind of condition (of approval). Related to the historic elements, we do feel strongly about creating an active place for human use along the West 6th edge and the Frankfort edge."

But there's a chance that the new parking lot may never happen, what with the dynamic combination of SHW's new HQ next door, the recent passage of the Transformation Mixed Use Development (TMUD) tax credit and a usable development site created by the garage's demolition.

Developers are already positioning themselves for spin-off momentum from the SHW HQ, starting with the Rockefeller Building's renovation. That could be followed by K&D Group's proposed renovation of 55 Public Square into residential and offices, as well as a new-construction high-rise by Chicago-based Magellan Development Group, north of SHW's new HQ.

Like the Rockefeller Building, renovation of 55 Public Square will reactivate an underused building but without the Rock's Gilded Age architecture. And with its garage soon to be gone, the land surrounding the Rock will have a leg up on the proposed Magellan development site which, at least for now, has to work around two historic buildings that the Warehouse District Development Corp. has shown an interest in protecting.

The Rockefeller Building, its garage behind it and the site's
surroundings including the future Sherwin-Williams HQ
location is shown in this aerial photo (Adam Greene).

The reason for hope in developing next to the Rock is that the demolition of the garage creates an uninterrupted 1.1 acres of open land for development. It is next to what will be the new SHW HQ. And it is in the hands of motivated real estate developers Agostino Pintus of Realty Dynamics Equity Partners and Kenny Wolfe of Wolfe Investments who have a knack of getting things done.

Not having to split up a development around an unmarketable garage removes a huge burden for them. It creates a blank canvas for them to design a mixed-use project that meets the needs of potential commercial tenants seeking to locate across the street from a Fortune 500 company's global headquarters.

In Cleveland, where skepticism is a self-fulfilling prophecy, observers may look to another site to bolster their pessimism. In 2015, Geis acquired 0.3 acres of land at 2173 E. 9th St. on which the New York Spaghetti House stood.

Geis paid $1.5 million for the tiny property and added it to another 0.8 acres the well-heeled developer owned next door, giving it frontage for potential structures on both East 9th and Prospect Avenue. Given the amount of money Geis invested in the property, Kline told Cleveland.com that "We are very motivated to get our own money out of this in the future development."

Sources who spoke off the record said that, if the pandemic hadn't happened, a development plan for the East 9th site would likely have been submitted already. Indeed, Geis reportedly has several irons in the fire here. But any vertical development here or next to the Rockefeller Building may require tapping a TMUD tax credit to make a project's numbers work in this high-construction-cost, low-rent city.

The onus now is on the property owners and development teams associated with both sites to make sure these two properties don't remain as surface parking lots much longer. With Downtown Cleveland running out of obsolete commercial buildings to convert and a robust state incentive for new-construction projects becoming available, the timing couldn't be better for developing those windswept parking lots with vibrant urban uses.

END