Big Ideas for Small Business: OEO Notice to Bidders
Levin Presentation: Economic Development Policy Class
1. Cleveland State University
November 5, 2012
Development and
Distressed Cities
A Presentation to
the Levin School of
Urban Affairs
2. Why Distressed?
Cleveland has been hard hit by a number of
factors:
Manufacturing has lost jobs due to technology,
overseas competition and trade law changes
Foreclosures were greater due to weak legislation on
sub-prime lending and due to high unemployment
Excellent transportation network has helped promote
“sprawl” (More infrastructure to support with less
people/money)
A century and a half of manufacturing has left behind
brownfields
The cost to build is the same as other cities, but the
rents are lower
5. Vacant & Bought by
Speculators
Bought sight
unseen
Increases
land
assembly
costs
Impossible
to enforce
code on
absentee
landlords-
some in
Europe
Late night T.V.- “Learn how to Flip Homes”
7. Illegal Dumping
Adds to Cost of
land assembly
Neighborhood
Health & Safety
Issue
Dumped overnight outside
a construction site
8. Large Scale Illegal
Dumping
No Permit
No EPA
approval
Accepted
Dump Truck
after Dump
Truck of C &
D materials
for a fee!
Bulldozer
was on site
when we
arrived
Called OEPA
for
emergency
action
(barrels)
9. Issues
Weak Job Growth
Widening income inequality
• People cannot get to jobs (moved to suburbs,
cutbacks or non-existent transportation)
Growing numbers of people in poverty
• Educational Attainment
• Ex-felons return to large cities where services
are located
10. Are They Mutually
Exclusive?
Regions may not need
to address poverty to
get their economies
growing, but is it GROWTH
necessary to keep their
economies growing?
Did Cleveland’s growth
OPPORTUNITY spurt of the early 90’s
fizzle due to a failure in
addressing poverty?
11. Inequality & Poverty as
Growth Killers
Importing talent is not a sustainable
strategy
Statistics on high levels of poverty makes
the area less attractive to investors &
businesses making site location decisions
and high skilled workers needed to
support these businesses
Local resources are tied up in Social
Programs and other economic costs of
poverty (Think 911 calls instead of doctor
visits)
12. The Way Forward
Issues of Growth and Opportunity MUST
be part of a Unified Strategy
We can’t wait “until things get better” to
act, because things will get worse
The Federal Government usually is the
savior for big cities, but with Boomers
aging into social security in high numbers,
and budget woes…..the Feds have cut
their assistance
Solution: Innovative Practitioners &
Partnerships
13. Importance of Leadership
Somebody has to have the Vision- What
should we be doing?
Public, Private and Philanthropic
Partnerships
Higher Education has a role
Big Corporations need to step up
14. The Vision
Mayor Jackson has worked with others in the region
and has a vision of education, opportunity and
business growth
• Education Reform
• Community Benefit Agreements
– Voluntary agreement to hire Cleveland residents and
low income Cleveland residents for construction
• Economic Development
– Committed over $250 Million in Funding in over 550
contracts to assist local businesses
– Land Assembly & Brownfield Clean-up
– Post Incubator space to capture businesses coming
out of our 7 incubators
15. Why Cleveland?
Location and Accessibility
Workforce
Funding Opportunities (Venture &
Traditional)
Tech Transfer History (7 Incubators &
3 Post-Incubator developments)
Anchor Institutions
Bright Future- Exciting Upcoming
Projects
Life in the City
16. Colleges and Universities
29 colleges and
universities nourish
talent pool
175,000 students
26,000 BA/BS degrees
awarded annually
17. Anchor Institutions
Anchor institutions are large economic drivers
that remain constant in our community.
Many businesses seek to co-locate with these
institutions
Cleveland Anchor Institutions:
• Case Western Reserve University
• Cuyahoga Community College
• University Hospitals
• Cleveland Clinic
• NASA
• St. Vincent’s Hospital
• Metro Hospitals
• Cleveland State University
18. Incubators &
Post Incubator Space
BioEnterprise
Global Cardiovascular Innovation Center
JumpStart
Cleveland Clinic Innovations
MAGNET Innovation Center
NorTech
Goldstein, Caldwell & Assoc. Business Incubator
Baker Building
Midtown Technology Center (Completion
September 2011)
7000 Euclid (Completion Fall 2011)
20. Cluster Based Strategy
Paints and Coatings
Health Technologies
Automotive
Banking and Finance
Food Processing
Information and Technology
Electric and Lighting
Logistics and Distribution
22. Midtown Technology Center
• 128,000 sf
• LEED
• Built on
spec
• Health Line
• No private
financing
• 300+ jobs
• Only
15,000 sf
unleased
Post Incubator Space for Health Technology Cluster
23. Midtown Tech Center II
7000 Euclid
• 48,000 square
feet
• Office/technology
• LEED Building
• Free parking
• On the Health-line
for easy access to
institutions
• Fully leased
Post Incubator Space for Health Technology Cluster
24. Cuyahoga Valley
Industrial Center
•Largest assembled
site in Cleveland
•Located along
Route 77
•60 acres
•Beneficial Re-use
Project
•Space for up to
700,000 sf
•Manufacturing
Clusters
25. Steel Warehouse
Almost 100 Jobs to date
$16.1 Million original project; expanded once
since 2010 to a second building
Manufacturing Clusters
26. Miceli’s Dairy
Phase I
Ricotta facility
•50 new jobs
•$20 m
investment
Phase II
Mozzarella &
Provolone
facility
•100 new jobs
•$35 m
investment
Food Processing Cluster
27. Pierre’s Ice Cream
6200 Euclid Avenue
$8.9 million expansion
Retained 42 jobs
Food Processing Cluster
28. Flats East Bank
•$272 million project
•500,000 SF Office
Tower with 3 major
anchors
•150 Room Boutique
Hotel
•Health & Fitness
Center
•Several New
Restaurants & Bars
•545 Space Public
Garage, 400 Surface
Spaces & Transit
•1,200 foot Public
Boardwalk
•14 Acre Public Park
Banking and Finance Cluster & Place Based
29. Place Based Economic
Development
Works to attract residents, businesses to a
local community by creating amenities
City focus is on locations where we can
“build from strength” & therefore we
concentrate investment to create better
outcomes
Investments generally create “local
economy jobs”
Cooperatives anchor jobs and opportunity
in the community
30. 668 Euclid Apartments
236 Residential
Apartments
66,000 sq ft
Retail/Office
Underground
parking with plaza
above
Restoration of Completely rented within
original historic 30 days of opening- 400
person waiting list!
façade
31. Uptown - Mixed Use
•$44.5 m in
University
Circle
•66,000 sf
retail
•102
Apartments
•Creates a
“college town”
area
•CWRU
enrollment is
up
32. Evergreen Cooperative
Laundry
• 29 Jobs Created
• 90 % Minority
• 62 % Formerly
Incarcerated
• Green &
Sustainable
Laundry Operation
• Workers are
worker-owners
33. Green City Growers
Cooperative
6 acre greenhouse
Will grow lettuces
and basil
42 new FTE
employees to be
created
Employees will
become worker-
owners
Largest customers
are local institutions
34. City of Cleveland
Tracey Nichols
Director
Dept. of Economic Development
(216) 664-3611
tnichols2@city.cleveland.oh.us