Work began today for Baricelli Inn Apartments in Little Italy

Work began today on the 44-unit Baricelli Inn Apartments on
Cornell Road in Little Italy, starting with demolition of two
aging apartment houses with construction work to follow
immediately thereafter (LDA Architects).
CLICK IMAGES TO ENLARGE THEM

Demolition and site preparation work got underway earlier today to clear the way for the 44-unit Baricelli Inn Apartments in Cleveland's Little Italy neighborhood. The project has traveled a long road to get to this point but is finally moving forward.

A pair of three-story rental homes at 2189 and 2193 Cornell Road were being razed, work that should take only a matter of hours. Also part of a parking lot was being removed, so technically construction is underway for the luxury apartments being developed by M. Panzica Development owned by Michael Panzica and City Six Development owned by Brad Nosan.

The $17 million, three-story project features 19 one-bedroom apartments, 20 two-bedroom units and five three-bedroom apartments along with an underground parking garage, according to public records.

The development helps address a shortage of quality housing for college students and young professionals wanting a short walk, bike or bus ride to classes and employers in University Circle, Ohio's fourth-largest employment district. And it also provides housing for families wanting to stay in the neighborhood.

Panzica previously told NEOtrans that he has made numerous concessions to neighbors who opposed the project's density and scale. Any further reductions in the number of revenue-producing units would have made the project no longer financially viable. Originally the project was to have 60 apartments and four stories.

The small scale of the apartment building is evident in this
view, looking northerly on Cornell Road. The historic
Washington Place Bistro & Inn is at the right. It will
be taller than the new apartments (LDA Architects).

Now the new building will be shorter than the neighboring Washington Place Bistro & Inn that closed last month due to its imminent sale to Panzica and the proprietor's expiring lease. It is also less dense than several new Little Italy developments like the six-story Mayfield Station Apartments or five-story La Collina Apartments, both on Mayfield Road.

Some opponents of the project are owners of aging houses being leased as multi-unit apartments to students at nearby Case Western Reserve University. They reportedly didn't like the competition from an apartment building offering high-quality finishes and modern features.

The apartment project got its name from previous uses and owners of the Washington Place Bistro & Inn next door. From 1985-2010, the inn was called the Baricelli Inn, which included a fine-dining restaurant and seven rooms for overnight lodging. It has been owned by members of the Minnillo family since 1982 when it was converted from a residence to an inn.

The Minnillo family bought the 1896-built stone mansion from Jean-Pierre Baricelli. He was the son of Dr. Giovanni Baricelli, a prominent local physician, and his wife Orfea Baricelli, a professor of literature and philosophy at Western Reserve University, according to La Gazzetta Italiana. They acquired the house in the early 20th century from Dutch architect John Grant who designed, built and lived in the home.

Panzica is acquiring the inn and its parking lots from Minnillo Family Partners, LLC. The two homes that were just demolished next door to the inn have purchase agreements between Panzica and the prior owners Mike Iammarino Investment Properties LLC and Carmen J. Petrello, according to public records.

The new Baricelli Inn Apartments will have many amenities
for residents including a partially covered private patio
along with underground parking (LDA Architects).

Five parcels are being acquired. Panzica had no comment about the status of the sale transactions or when they might close. The purchase agreements allow for the demolition of the two houses and construction work to proceed. Panzica also had no comment about his intended use of the inn.

The Baricelli Inn Apartments' general contractor is Fiorilli Construction Inc. of Medina. Designer of the new apartment complex is LDA Architects, Inc. of Cleveland. Principal financing was secured in May from the Cleveland-Cuyahoga County Port Authority.

University Circle Inc. President Chris Ronayne who also is a port authority board member tweeted congratulations to the developers after the authority approved financing for the project on May 14.

"Work goes on in #CLE. Infill, walkable, neighborhood redevelopment from M. Panzica & City Six Development," he tweeted.

"Thanks to (the) Port of Cleveland board for approving bond financing for yet a another well-conceived Cleveland project today," responded port authority President & CEO Will Friedman. "(It) feels good amidst C19 (Covid-19) backdrop to make progress on (real estate) projects."

END

Moving I-90 an option in new ODOT & Metroparks lakefront plans

Looking west along Interstate 90 and the Lake Erie shoreline,
this view shows how Gordon Park was sliced in two by the
highway to get around the Lake Shore Power Station, still
standing in this pre-2017 scene. A desire to reunite the
park, enhance lakefront recreation and protect I-90
from Lake Erie's waves are the subject of two
plans that are now underway (Google).
CLICK IMAGES TO ENLARGE

Sliced in half by a freeway nearly 70 years ago, Cleveland's Gordon Park and its surrounding area were recently dubbed by east-side real estate developers as a potential "Edgewater East." It could be that and more depending on the results of two separate but related planning efforts that got underway last week.

The first is a multi-agency effort led by the Cleveland Metroparks called the Cleveland Harbor Eastern Embayment Resilience Study (CHEERS). Its goal is to accommodate dredge disposal, create additional aquatic and terrestrial habitat, protect existing highway infrastructure and enhance the lakeshore from near the east end of Burke Lakefront Airport to Dike 14 at Gordon Park as a dynamic community asset.

A $125,000 grant was recently awarded to the Metroparks by the National Fish and Wildlife Foundation (NFWF) to cover nearly half of the $251,000 cost of the CHEERS plan. The Metroparks, Ohio Department of Transportation (ODOT), Cleveland-Cuyahoga County Port Authority, Ohio Department of Natural Resources (ODNR) Office of Coastal Management and City of Cleveland each pledged $25,200 as their matching shares.

The Northeast Ohio Areawide Coordinating Agency (NOACA) and Cuyahoga County Soil and Water have agreed to participate in the project. Additionally, Doan Brook Watershed Partners and the Trust for Public Land are non-profit organizations that will contribute expertise to the CHEERS plan.

"We just officially kicked off the project on Tuesday (May 26) and are preparing for community outreach next month (June)," said Metroparks Chief Planning and Design Officer Sean McDermott.

The Cleveland Metroparks' the Cleveland Harbor Eastern
Embayment Resilience Study will address the area as
shown in this graphic (Cleveland Metroparks).

He noted that the Metroparks has hired WRT Design, which specializes in recreational and adaptive re-use plans, to be its CHEERS project consultant.

The second project development plan, also engaging several public entities, is being led by ODOT. It will consider alternatives, impacts and benefits involving the protection, reinforcement or realignment of the right of way of Interstate 90 in the same area as the CHEERS plan.

ODOT's plan is being driven by an increasingly pressing problem -- damage being done to I-90's infrastructure by its proximity to Lake Erie. This situation is most critical on the section that was built around FirstEnergy's Lake Shore Power Station. The transcontinental highway averages 160,000-plus vehicles a day on this section yet is separated from the inland sea's pounding waves by only a skinny bike path.

That section took a beating from 20-foot-high waves during Superstorm Sandy in the fall of 2012, and it continues to be slammed by storms whose damage is made worse by record high lake water levels in recent years. Due to climate change, water levels are forecast to potentially rise higher.

"ODOT has had issues with wave action splashing onto I-90," said Brent Kovacs, ODOT District 12 Public Information Officer. "One of ODOT’s goals of the CHEERS study is to lessen this wave action."

Twenty-foot-high waves slammed Lake Erie's shoreline and,
a few feet away, Interstate 90 on Oct. 30, 2012 during Super-
storm Sandy. In the background is FirstEnergy's Lake Shore
Power Station and the reason why I-90 had to be routed so
close to Lake Erie. That power station was demolished in
2017, prompting the Ohio Department of Transportation
to consider moving the highway away from the lake's re-
cord high water levels and damaging waves (WKSU).

That may have been aided by FirstEnergy's removal of its Lake Shore Power Station which was built in 1911 and closed in 2015. The coal-powered electricity generating plant was razed in 2017 and most of the plant's land was transferred to FirstEnergy spin-off Energy Harbor earlier this year, said Tricia Ingraham, a FirstEnergy spokeswoman. With the power plant gone, there's no longer a reason for the highway to be routed so close to the sometimes angry lake.

That doesn't automatically mean that I-90 will be moved. The highway could be protected from the lake by filling and expanding the shoreline with deposits from never-ending dredging of the Cleveland harbor and Cuyahoga River to maintain sufficient draft for big ships. Or both options could be used to spare I-90 from Lake Erie's wrath.

"This is something that we have started to look into but is different from the CHEERS study," ODOT's Kovacs said. "The project team is very respectful of the National Fish and Wildlife Foundation grant application and award."

But the only option that protects the highway from Lake Erie and reunites the two halves of Gordon Park is to move the highway.

"We have proposed moving I-90 south to reconnect Gordon Park," said Dick Clough, executive board chair of the Green Ribbon Coalition, Inc. "It makes sense. The freeway swung north to go around the Lake Shore Power Station. Now that it's gone, the freeway could be relocated."

The nonprofit advocacy group Green Ribbon Coalition Inc.'s
suggestion for moving Interstate 90 away from Lake Erie, re-
uniting the two halves of Gordon Park and opening up land
near the lakefront but south of I-90 for development. Note
the elevations that are shown on the map (Green Ribbon).

Under a number of scenarios proposed by the coalition, the highway would be realigned over the land where the power station stood. In addition to pollutants left by the coal-fired power plant, there are water intake canals and concrete-lined wastewater ponds. However FirstEnergy undertook environmental remediation of the site after the power station was razed.

Clough said the site preparation costs don't lend to private redevelopment of the power station land. But the land south of a relocated highway, especially as you get closer to East 55th, does. That land is elevated above the highway, providing great views of an expanded Gordon Park and the lake -- much like what Battery Park, The Edison and other developments offer south of Edgewater Park.

"That makes for awesome development potential," Clough said.

Kovacs said it was too early in the planning process to know if ODOT would acquire the former power plant site. That was echoed by Ingraham at FirstEnergy which still owns a small parcel of land just north of the CSX Transportation Inc. railroad and on the west side of East 72nd Street for an electrical substation plus support buildings. She emphasized that FirstEnergy would not sell that property because the substation is an essential component of the power grid.

FirstEnergy conducted a site re-use report at the request of the city several years ago when the utility sought approvals to demolish the Lake Shore Power Station. The plant included its 306-foot-tall brick and concrete smokestack and 170-foot-tall boiler house.

Gordon Park was one of the city's most popular parks until
Lake Shore Boulevard was upgraded as the Shoreway and then
incorporated into the federal Interstate system in the 1950s.
Moving the highway south away from the lake would not
only protect the highway from the ravages of Lake Erie's
waves but also restore Gordon Park as the largest park
in the City of Cleveland (Green Ribbon).

Although most of the power station is gone and Energy Harbor now owns most of the former power station's land, there is a small, yet critical and active piece of electrical grid infrastructure remaining on it, too.

Energy Harbor has voltage regulating equipment located immediately west of FirstEnergy's remaining parcel and it was expected to be untouched in all of the power station property re-use options envisioned by FirstEnergy. An Energy Harbor spokesperson could not be located for comment.

The former power station property measures 53 acres. But FirstEnergy's report considered that only 40 acres would be developable due to steep slopes on the site. The remaining high-voltage infrastructure and the land's steep, 40-50 foot drop toward the lake also provides some guidance as to how far south the highway might be rerouted.

On the other hand, the area to the west of the utilities' equipment could be redeveloped with new residential and commercial structures up to 115 feet high (about 11 stories), according to existing zoning. This acknowledges the site's proximity to Burke Lakefront Airport. Federal Aviation Administration regulations restrict building heights to 250 feet between 4,000 and 10,000 feet from the end of a runway and near its flight path, the FirstEnergy report noted.

Potential redevelopment concepts for the former FirstEnergy
Lake Shore Power Station site assuming that Interstate 90 is
moved away from the Lake Erie shoreline (FirstEnergy).

Chris Ronayne, now president of University Circle Inc. and a port authority board member, was Cleveland's planning director two decades ago when he led the formation of the most recent citywide lakefront development masterplan.

"The idea to set back I-90 to the tracks was offered 20 years ago with a concept plan called 'Reclaiming our Lakefront'," he said. "It was a good idea then and an even better idea now. ODOT was not as willing to explore the possibility of it during our subsequent planning work on the Cleveland Waterfront District Plan. But we should channel their enthusiasm and openness to the idea now. The resurgence of Gordon Park at the water's edge, thanks to Metroparks, has increased Clevelanders' appetite for more lakefront parks."

The area to the north of the highway, opened up by a southerly relocation of I-90, could increase Gordon Park's land area from 105 acres to 158 acres -- not including the Cleveland Lakefront Nature Preserve, formerly a dredging disposal site called Dike 14.

The lakefront between Burke and Gordon Park, which is the subject of the CHEERS study, is a mix of marinas leased from the Metroparks which, in turn, leases them from the city. There are also some new residential developments there including the Shoreline Apartments, an adaptive reuse of the Nicholson Terminal, and the new-construction Shoreline Phase II.

But the tallest structure along this portion of the lakefront is another former power station, this one belonging to Cleveland Public Power (CPP). Originally built in 1914 as the Cleveland Municipal Light Plant, it is well-known for its "Song of the Whales" mural that greets I-90 motorists coming into downtown.

The City of Euclid is in the midst of improving its lakefront
with coves, beaches and trails that not only address worsen-
ing erosion but also improve recreation and can stimulate
nearby real estate values and development. Similar efforts
are being considered by the Cleveland Metroparks in its
latest planning project (City of Euclid).

The once-coal-fired, 57,552-square-foot power station is now used as a CPP warehouse and was expanded by 16,500 square feet in 2009. There also is an electrical substation on-site. The city-owned Kirtland Pump Station and Kirtland Park are on the south side of the highway, opposite of the CPP property.

Although CPP officials have made no pronouncements about the future of this site, the Green Ribbon Coalition said they believe that this property's inclusion in the CHEERS plan suggests it could be re-used as a result of it. Typically, public agencies don't presume to include another public agency's property in their land-use plans unless there have at least been some informal conversations beforehand.

The CHEERS plan community outreach focus area extends south to St. Clair Avenue. One of the goals of the study is to improve and increase the number of lakefront access routes for vehicles, pedestrians and bikes from south of I-90 and the CSX railroad. A similar effort to improve and increase access routes from south of the Shoreway and a parallel railroad was undertaken with the Metroparks' Edgewater Park in the 2010s.

"The area north of I-90 is the main focus of the CHEERS study," said Kelly Coffman, senior strategic park planner at the Metroparks. "The area south of I-90 is the community outreach focus area. The partners intend to engage with a wide range of stakeholders and the public, however we're especially interested in hearing from nearby residents about what they'd like to see along Lake Erie and how the partners can improve access to park space."

The CHEERS study is expected to take about a year. There is no timeline yet for the parallel ODOT planning effort. However, the average time it takes for a federally funded, major transportation project to go from idea to ribbon cutting is about 10 years.

END

Seeds & Sprouts VII - Early intel on real estate projects

This is the Seventh 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.

The City of Euclid's shoreline improvement project continues
to advance with eastward expansion to protect more lakefront
properties from erosion and lengthen an all-purpose trail the
city began building several years ago (City of Euclid).

Euclid shoreline improvements continue

Public bidding has commenced for the construction of additional Phase 2 features of the City of Euclid's shoreline improvement project to create a lakefront trail and erosion control along Lake Erie. The project is proving so popular and visionary that Cuyahoga County and other cities want to emulate the project across 30 miles of the entire county's shoreline.

Bids are due to be submitted to the city by June 15 for phase 2 improvements estimated at about $749,999, according to the city. But other elements bring the total cost of this phase to about $5 million. The project will extend the trail and erosion control, including a new beach, 0.25-mile eastward to north of the Harbor Crest Apartments and create a park between the Harbor Crest and Normandy Towers Apartments.

In 2018-19, the city constructed shoreline improvements totaling $13 million including a half-mile of new trail, staircase to the lake and Sims Park Fishing Pier. Previously, the city built the Sims Beach.

Only 5 percent of Euclid's lakefront was publicly accessible before these improvements. That will rise to roughly 30 percent after the improvements. The private properties abutting Lake Erie were suffering from erosion that was worsening as lake levels have reached historic highs in recent years.

So the city offered to provide erosion control in exchange for public access to the lakefront. City funding came from tax-increment financing from the increased property values and resulting increase in tax revenues. Additional funding came from Cuyahoga County Casino Revenue Funds and Federal Emergency Management Agency grants through a pre-disaster mitigation program.

The Detroit Shoreway Community Development Organi-
zation and Marous Brothers Construction Co. are work-
ing on redeveloping the long-closed Pilsener Brewing
Co. into an 39-unit apartment building (CPC).

Pilsener Square housing project advances

The adaptive reuse of the long-closed Pilsener Brewing Co., 6605 Clark Ave., was bolstered by Cleveland's City Planning Commission awarding landmark status to the historic building May 15. However, the project missed the latest opportunity to win a $817,050 competitive New Affordability tax credit from the Ohio Housing Finance Agency.

The landmark designation will position the $8.5 million project to win potentially large historic tax credits from the state and/or federal governments to restore and convert the building into 39 apartments. The brewery was constructed in 1894 and was expanded rapidly with additional structures that are no longer standing. The company which brewed P.O.C. beer and other brands closed in 1984.

Partnering on the development are the Detroit-Shoreway Community Development Organization and Marous Brothers Construction Co. The name "Pilsener" comes from the Czech city of Pilsen, where the light Bohemian lager beer was first made.

The property at 12607 Larchmere Blvd. will continue to look
like this for a little while longer as Berusch Development
Partners looks for a new office tenant for his proposed
20,000-square-foot mixed-use development (Google).

Berusch's Larchmere project delayed

Berusch Development Partners' proposed mixed-use development at 12607 Larchmere Blvd. in Cleveland has hit a pandemic-related snag despite other recent progress, according to development firm President Russell Berusch.

The project's partner and main tenant was to be RDL Architects, a 44-employee Shaker Heights firm that would relocate to 13,000 square feet in the proposed building. The project's total square footage is proposed to be 20,000 square feet which would also include four apartments and a small, ground-floor retail space for an anticipated coffee shop.

Although Berusch didn't identify RDL as his initial tenant, the City Record did identify RDL founder Ron Lloyd as his partner. It also said the site would be redeveloped with "an architecture firm from Shaker Heights. The architecture firm was founded in 1994 and has had some considerable growth over the past few years."

A source close to the situation said that with forced quarantined operations, RDL no longer has a need for more office space to accommodate the firm's growth. The architectural firm will continue to use their current office building at 16102 Chagrin Blvd.

Despite the setback, a chain-of-title agreement and 30-year non-school tax financing arrangement were approved by the City Planning Commission on May 15 to aid the project. Berusch is looking for a new tenant in order to proceed with the project, which first requires demolishing an existing two-story warehouse.

This project is not to be confused with First Interstate Properties Ltd.'s 88-apartment 121 Larchmere development for which construction is just getting underway. The $23 million building will also have 6,500 square feet of office space on the ground floor, facing Larchmere.

Three new stores are coming to Crocker Park with two of them
due to open this fall in the lifestyle center's third phase and
another opening later in the existing part (KJP).

Crocker Park expands with new stores 

Despite the pandemic, several new retailers are coming to the Greater Cleveland market. Sources say bids are due next week for the buildout of two retail tenant spaces involving a total of $2 million worth of construction work at Crocker Park in Westlake.

The two retail spaces are for buy buy BABY, an infant clothing and accessory store, and Cost Plus World Market, a home decor, home entertaining and gift giving shop. Buy buy BABY will occupy 18,363 square feet at 302 Main St. and Cost Plus World Market will be across the street in a 18,380-square-foot space at 313 Main.

A third store, a women's fashion retailer Dry Goods, will be bid separately at a later time. It will be located at 87 Main, between Athleta and Hanna Andersson. The other two stores are part of the third phase of development of Crocker Park, a lifestyle center that opened in 2004 as a partnership of Stark Enterprises and the Carney family.

Parker's Downtown restaurant
in the Schofield Building will
open with a new theme, menu,
name at the end of June (KJP).

Parker's restaurant will reopen as Bett's

Following a renovation that has been under way during the pandemic, Parker's Downtown will reopen under the name "Bett's" and with a new concept at the end of this month, according to the building's owner CRM Companies.

Although the menu and brand is not yet publicly available, the new restaurant hasn't changed ownership. It will continue to be owned by James and Victoria Mowbray. Parker's was a 120-seat restaurant which served the public as well as customers of the Kimpton Schofield Hotel at the corner of Euclid Avenue and East 9th Street in downtown Cleveland.

The restaurant is being named after the wife of Levi Schofield, the architect and designer of the 14-story Schofield Building that was built in 1902 and thoroughly renovated in 2016. Although her name was Elizabeth, he affectionately called her Bett. She was a homemaker who provided joy and food to her family, according to CRM.

Plans are still progressing for adding a Citizens Bank branch to the corner space at Euclid and East 9th which has never had anything more than seasonal retailers occupying it. The work was apparently delayed by the pandemic.

END

Dream Hotel tower at Masonic Temple in Midtown planned

A 202-room Dream Hotel is proposed to rise next to and be
connected with the 2,300-seat Masonic Temple on Euclid
Avenue at East 36th Street in Cleveland's Midtown dis-
trict. Construction is due to start in early 2021 on the
proposed mixed-use development project (Bialosky).
CLICK IMAGES TO ENLARGE THEM

One thing's for certain -- the Coronavirus pandemic hasn't slowed the rapid spread of plans for high-rise towers in Cleveland.

The latest is a proposed 19-story, $60 million Dream Hotel proposed to rise alongside the Masonic Temple, 3615 Euclid Ave. The project was announced today by investor Beaty Capital Group of Fort Smith, AR.

Beaty Capital bought the 99-year-old temple in 2017 and renovated it last year for $8 million with another $10 million in renovations planned. The same firm bought and renovated several other Masonic halls nationwide.

Proposed is a 207-room lifestyle hotel that will include restaurants, nightlife venues, a fitness center and 100,000 square feet of meeting and event space. The project, called TempleLive, will also include a 400-space parking deck. Hotel guests will also be able to access the renovated 2,300-seat theater in the adjoining Masonic Temple.

This view is looking west towards downtown Cleveland, with
the Masonic Temple on the other side of the new tower (Bialosky).

The mixed-use development is proposed to rise starting in early 2021 on a 0.9-acre property on the east flank of the Masonic Temple. The property is currently a parking lot and owned by an affiliate of Beaty Capital, Templelive Cleveland LLC. The same affiliate owns the temple property. Beaty Capital acquired both parcels for $725,000, county records show.

"Today’s announcement is a testament to the strength of our brands and growing confidence in the travel industry despite these unprecedented times," Dream Hotel Group CEO Jay Stein said in a written statement.

“Cleveland is the birthplace of rock and roll, and much like the Dream Hotels brand, it is a city marked by a youthful, vibrant energy, creative spirit and burgeoning arts and culture scene that many aren’t yet aware of," he added. "Together, with partners Beaty Capital Group, our goal is to deliver an experience-driven property that surpasses expectations, blending great food and beverage, creative programming, entertainment and world-class hospitality, in the heart of Midtown Cleveland."

"It is exciting to look beyond this recent period of anxiety and uncertainty to bring such an iconic project to Midtown Cleveland, “ said Lance Beaty, president of Beaty Capital Group.

Location of the existing Masonic Temple and proposed site
of the Dream Hotel and TempleLive development (Google).

“As you could imagine the project has been delayed by recent events, but we feel that it’s important for the city of Cleveland, the live music and performing arts, the hospitality industry, and the country as a whole to regain confidence and move forward with our lives. We believe this announcement today is an exciting and positive step in that direction," Beaty said.

"They've been working on it for a while," said Jeff Epstein, executive director of MidTown Cleveland Inc. "When they purchased the (Masonic Temple) building, they talked about a hotel as being a component. My understanding is that, the fact that this is going to be next to a large performance venue was a big pull. The (Dream) Hotels themselves are destinations."

Interestingly, this is the second time a high-rise tower was proposed next to the Masonic Temple. The first time was shortly after the temple was built. Then, a 23-story Masonic Memorial office tower was proposed to be built between the front of the temple and Euclid Avenue. Like most developments in all cities, that tower never came to pass.

Except for the 22-story Wilson Apartments built in 1969 at East 55th Street and Chester Avenue, no high-rises have been built in Midtown. There are a number of underutilized properties nearby, which lends one to wonder if this hotel project could foster some spin-off developments.

The 23-story Masonic Memorial Build-
ing was proposed on the front of the
temple in the 1920s (KJP file).

"I think this will certainly have an impact on other properties," Epstein said. "There's nothing planned that I can share."

An article in Talk Business notes that Daniel MacDonnell and George Qiao with Cushman & Wakefield Global Hospitality represented Beaty Capital in developing the project and construction financing. Cleveland-based Bialosky is the project architect and the general contractor is Cleveland Construction. Bialosky also managed initial stabilization and preservation work on the Masonic Temple in 2018.

The hotel project is the latest of many high-rises proposed in Cleveland. It seems like there's a high-rise revealed or announced every other week, despite the pandemic.

"It's really crazy," Epstein said. "It's great. Plan at the bottom and work your way up."

END

Flats West Bank high-rise plans revealed

Two views of the proposed Superior Viaduct apartment tower
were  among the preliminary designs shown to the Riverfront
District Block Club on May 26. The project won't be voted on
by the block club until its June meeting (Dimit).
CLICK IMAGES TO ENLARGE THEM

UPDATED MAY 27 WITH LINK TO "PLANNING DOCUMENTS"

At a meeting today of the Riverfront District Block Club, developers presented their plans for a high-rise apartment tower near the top of the hill above Flats' West Bank. It is the first of what is likely to be more residential towers announced publicly in the near future for the West Bank.

The development team, led locally by Walton Hills resident Wayne Jatsek of Jatsek Construction Co., presented preliminary plans for a 24-story tower at 2208 Superior Viaduct with about 186 market-rate apartments above six levels of parking totaling roughly 128 spaces, according to planning documents presented by Paul Glowacki of Lakewood-based Dimit Architects.

Proposed data for the building can and probably will change as the plan works its way through the city's design-review process, said Jatsek. That process started today with the input gathered from the block club and by residents living near the proposed tower. NEOtrans broke the story about this development nearly two weeks ago.

But a block club vote won't be taken until next month's meeting, said club President Scott Aylesworth. Glowacki said that means that the earliest it could appear on the docket for the City Planning Commission's Design Review docket is late July. That points to a potential target date for groundbreaking at about 8-12 months from now, Jatsek said.

Paul Glowacki of Dimit Architects presents the conceptual plans
for the 24-story residential tower, proposed to be built at 2208
Superior Viaduct, above the Flats West Bank (KJP).

He would not reveal the identity of the other investors involved in the project but acknowledged at least one of them is from outside Greater Cleveland and is nationally prominent.

"I'm pleased that they see Cleveland as an attractive place to invest," Jatsek said. "We're seeing more national investors show interest in Cleveland."

Although the developers haven't completed their market analysis yet, the developers said they do have preliminary findings from their Cleveland-based consultants. And they said they are encouraged by how fast apartment developments lease out in and near downtown Cleveland at the rents they command.

For that reason, the proposed apartment tower will have many of the same features and amenities as the new towers in downtown, such as The Beacon and The Lumen. Unlike those high-rises, this proposed Superior Viaduct tower is proposed to have balconies for every residential unit.

A preliminary cross-section of the proposed high-rise, with
Superior Viaduct of the left side of this view and Washington
Avenue to the right side (Dimit).

There will be what Glowacki called "an active front" on Superior Viaduct -- a main entrance with a small area for a residential amenity such as a concierge desk, Amazon lockers, bike room and/or dog wash. And while the tower doesn't currently contain any ground-floor retail like a small cafe, it would be considered it even though "it isn't the highest and best use for the developer," said attorney John Christie who identified himself at the meeting as a spokesman for the developers.

Jatsek and his team have a purchase agreement with Daryl Kertesz's Downtown Ventures LLC to acquire the 0.3-acre property and its two-story, 120-year-old building. The property was listed for sale at $1.5 million. The actual purchase price has yet to be disclosed.

The roughly 275,000-square-foot tower's construction cost hasn't been identified yet either but could be $100 million or more, depending on how the building's programming and finishes are ultimately decided in the coming months.

The building height, although still in flux with the market analysis and public input still ongoing, is currently pegged at about 237 feet. The building is relatively skinny, with the residential floorplates limited to 11,000 square feet, plans show.

The white, two-story building in between the two four-story
buildings would be demolished for the proposed high-rise
tower. This view looks east on Washington Avenue (KJP).

The residential floors will be perched atop a parking and entry/service pedestal of 12,800 gross square feet per level. That floor area limits the number of parking spaces to 28 or less per level but revised plans are in the works to increase the amount of parking, Glowacki said.

The maximum building height for the Flats West Bank area per the zoning code was raised to 250 feet by the city a few years to allow and encourage vertical development projects such as this. It's working, based on the sudden arrival of new development projects in the area.

"Lots of projects are getting going due to the city's updated zoning," Glowacki said.

All vehicular access will be via Washington Avenue which is lower in elevation than Superior Viaduct. Superior Viaduct is owned by the city but leased to K&D Group -- developer and owner of the neighboring Stonebridge complex, built in the 2000s.

A map showing the location of 2208 Superior Viaduct in rela-
tion to other currently proposed developments nearby (KJP).

The plans received some modest push back from residents of the 11-story Stonebridge condominium building across the street, complaining they would lose their views of Lake Erie. Some of those in attendance at the block club meeting were concerned about traffic and parking.

Another resident said he moved to the still-new luxury condo tower because of the gritty industrial nature of the West Bank and said it would be ruined by living next door to a "Miami high-rise -- it just doesn't fit."

"We're going to meet and work it out," said Ward 3 Councilman Kerry McCormack who was in attendance at the block club meeting. "We're more than happy to have these conversations."

Aylesworth, a Stonebridge resident, said he welcomed this development because it would add to the vibrancy of Flats West Bank. After Stonebridge was built, much of the building boom of the 2010s that occurred in the rest of the Flats, Ohio City and downtown had eluded the West Bank -- until now.

END

Plan to boost "Edgewater East" arrives in shipping containers

A 70-unit apartment development is proposed to rise on East
72nd Street south of Gordon Park. The housing is proposed to
be built from recycled shipping containers by WRJ Developers
and Container Homes USA, both of Cleveland (A&A).
CLICK IMAGES TO ENLARGE THEM

Proximity to the Great Lakes has long been a real estate selling point. For much of Cleveland's history however, access to Lake Erie centered on industrial development. But in the post-industrial era, being close to the lake means attracting investment in recreational and residential uses.

That's what the principals of WRJ Developers LLC are trying to do with their proposed development called ArkiTainer on 72nd. This would be the first apartment buildings in Cleveland built from repurposed shipping containers. WRJ is the first initials of the firm's managing members -- Willie Levy, Richard Singleton and Jermaine Brooks.

Located on the east side of East 72nd Street, between Gordon Park and St. Clair Avenue, the $13.8 million, 70-unit residential development would replace several abandoned apartment blocks and vacant lots with three, four-story buildings totaling 51,200 square feet. The developers are trying to brand the area "Edgewater East," referring to Edgewater Park and the booming, neighboring residential development on the city's near-west side.

Fifty of the units would be priced as affordable housing with the rest market-rate. Through WRJ Investment Fund, LLC, the developers have acquired four parcels and have options on three others, 887-915 E. 72nd, totaling about 1 acre, according to plans posted at OpportunityCLE.com.

Proposed site of ArkiTainer on 72nd, located in
Glenville (MyPlaceCleveland.com)

The development site is located in the Glenville-Rockefeller Park Innovation District -- a designated Opportunity Zone. It is home to the 30-acre Shoreway Commerce Park, formerly the truck assembly plant for White Motors, redeveloped by First Interstate Properties a decade ago. Also, Michael Cantrell's New Creation Builders earlier this year bought 2.6 acres of land just north of WRJ's development site.

"We are seeking Opportunity Zone Equity and private equity investors to raise 25 percent equity for project financing," WRJ Developers said in a written statement. "WRJ Investment Fund, LLC is prepared to accommodate all Opportunity Zone investors."

ArkiTainer on 72nd is proposed to be a mix of 50 one-bedroom, one-bath apartments and 20 two-bedroom, two-bath and in two or three connected shipping containers, respectively. Each two-bedroom apartment also has an office that might be used alternatively as a bedroom for a small child.

The one-bedroom units would measure about 640 square feet while the two-bedroom units would measure about 960 square feet. All units are proposed to have either decks or balconies, plans show.

An example of a four-story apartment building in London
that was built from shipping containers (InvisiblePeople.tv).

The container-based housing would be developed by Cleveland-based Container Homes USA, according to WRJ Development's plans.

"I'll be doing the development," said Derrick Childs, director of construction and design at Container Homes USA. "We got it approved with the city. This is what we specialize in. They (WRJ Development) were referred to us. They came to us asking about a multi-family development."

This would be Container Homes USA's first multi-family housing development in Cleveland, Childs said. But the firm has a lot of experience in building single-family homes from containers, selling them for under $100,000.

"We have 52 units going in off of East 93rd, 13 units in Ohio City and Tremont, we're doing a shipping container restaurant and an Air B&B unit in Fairview Park," Childs added.

One- and two-bedroom apartment options that would be built
from two and three containers, respectively (A&A).

He said their single-family homes are fully insulated, climate-controlled, energy efficient, mold- and termite-proof, have marine-grade exterior paint, tankless water systems, premium bath layouts, custom kitchen cabinets, quartz or granite countertops and are expandable.

"These homes are the future," he said. "They're green and affordable and they have high-quality finishes."

Container Homes USA also is manufacturing at its mechanical shop at Miles Avenue and East 143rd Street prototype Smart Disinfecting Systems for lease during the Coronavirus pandemic. Childs said the firm can mass produce thousands of them for use at the entrances to sports stadiums and other large venues.

In addition to Opportunity Zone funding, WRJ Developers said it will seek a 15-year tax abatement for the construction of the multi-family ArkiTainer on 72nd, and Enterprise Zone tax abatement for the creation of a building management company that will permanently employ five people. There is no target date as yet for site clearance and construction.

END

New buyer(s) emerge for two Cleveland-area Ford plants

Ford continues to work through a list of potential bidders for
the sale and productive re-use of two of its closed, moth-
balled Cleveland-area factories (fordauthority.com).
CLICK IMAGES TO ENLARGE THEM

After one failed bid to acquire Ford's Brook Park and Walton Hills plants, there is good news pointing to the eventual, productive re-use of both mammoth factories.

Ford Motor Co. last week entered the Ohio Environmental Protection Agency's (EPA) Voluntary Action Program (VAP) for its Brook Park Engine Plant No. 2 that closed nearly 20 years ago, according to a source who was not authorized to speak publicly about the development.

The source also said that Ohio EPA was also notified that Ford would recommence the VAP assessment of its Walton Hills Stamping Plant that closed in 2015. VAP work was halted earlier this year for two reasons -- the Coronavirus crisis and because Ford's first choice to buy both the Brook Park and Walton Hills plants had fallen through.

The latest news points to the likelihood that Ford has a buyer or two for both of these properties. It also strongly suggests that the new buyer(s), like the failed bidder before, would continue to use the properties for the manufacturing of cars or the components of cars. Why?

The VAP process starts when a property owner submits environmental data for Ohio EPA to review and determine if any environmental contamination exists and needs to be cleaned. Afterwards, if the property is found to be clean enough to meet Ohio EPA standards, the property owner would receive a covenant not to sue from the state.

Ford is selling 195 acres of its property in Brook Park, next to
Hopkins International Airport. The sale includes Engine Plant
No. 2 as well as the demolished and cleaned Casting Plant
property next door. Engine Plant No. 1 and the site's power
plant are not part of the sale (CBRE).

This covenant protects the property owner or operator and future owners from being legally responsible to the State of Ohio for further investigation and cleanup. It is important to note this legal protection applies only when the property is used and maintained in the same manner as when the covenant was issued.

In other words -- these are still auto manufacturing plants, albeit vacant, and would remain as auto plants. Furthermore, the source said Ford doesn't intend to demolish the vehicle production-related structures on these properties even though they are both about 65 years old.

The identity of the buyer(s) remains unknown.

"They (Ford) have a comprehensive program for their closed factories," the source said. "They (Ohio EPA) will provide technical assistance to Ford. They've already given some (data and technical assistance) for our Walton Hills plant. They'll provide more on that (plant) later this year."

Two years ago, Ford notified the cities of Brook Park and Walton Hills that it was interested in selling the two sites. Ford's Brook Park property that it put up for sale is larger than Walton Hills' for-sale property (195 acres vs. 111 acres) but the remaining buildings are larger at Walton Hills than at Brook Park (2.1 million square feet vs. 1.7 million square feet).

Crews from Independence Excavating Inc.in 2013 demolish
Ford's Brook Park Casting Plant, followed by environmental
cleanup by subcontractors (National Demolition Association).

Ford had already spent $10 million to demolish structures and remediate environmental conditions at its 1.4-million-square-foot Brook Park Casting Plant in 2013. Contractors used 3 million gallons of water to wash down the entire building superstructure prior to demolition. Then workers cleaned 10 miles of underground sewers nearby. More than 60,000 tons of scrap material was removed from the site and recycled.

Monitoring of any remaining pollution on the site continues to this day, seven years after demolition of the casting plant, according to another source. That source said Ford received 15 bids for either the Brook Park or Walton Hills plants, but most bidders wanted both.

"Ford shortlisted the bidders based on their capacity and intent," the second source said.

NEOtrans has speculated who's on the short list of bidders. Considering the bidders are apparently large manufacturers of cars or car components and likely either a Ford partner or supplier -- not a competitor of Ford, it limits the possibilities.

Those possibilities could include auto parts maker Tenneco which has endured some financial hardships lately, or possibly Ford partners Volkswagen, autonomous vehicle firm Argo AI, or electric vehicle startup Rivian.

Also for sale, possibly to the same buyer as the Brook Park
plant, is Ford's Walton Hills Stamping Plant (CBRE).

Brook Park Mayor Mike Gammella started his work career on a Ford assembly line at age 19 and rose to become president of the UAW Local 1250. He has kept a close eye on the situation at Ford's mothballed Engine Plant No. 2 and the site of the cleared-away casting plant. On March 3, according to meeting minutes, he reported to City Council some recent progress.

"(I) spoke with Ford representatives earlier today and they are going with the second and third bidders for the property," Gammella said. "The primary bidder was unable to get financing."

Two weeks earlier, at another council meeting, he gave more detail about the failed bid that led to Ford considering other bidders.

"That was a mega-deal that concerned Walton Hills as well as Brook Park," Gammella said. "Currently, that company is having financing problems and is supposedly 98 percent complete with the financing but isn't there yet. Ford is very despondent about this and I talk with them on a weekly basis. I thought there would be a deal at the end of 2019 and hoped to have an announcement on Dec. 31 (2019)."

NEOtrans will continue to follow this developing story and share any insights if and when they become available.

END