levin presentation: economic development policy class
TRANSCRIPT
Development and Distressed Cities
Cleveland State UniversityNovember 5, 2012
A Presentation to the Levin School of
Urban Affairs
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
Vacant and Abandoned
Brownfields
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”
Stripped by ScrappersNeighborhood safety issue
At risk for explosion or fire
Illegal Dumping
Adds to Cost of land assembly
Neighborhood Health & Safety Issue
Dumped overnight outside a construction site
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)
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
Are They Mutually Exclusive?
OPPORTUNITY
GROWTH
Did Cleveland’s growth spurt of the early 90’s fizzle due to a failure in addressing poverty?
Regions may not need to address poverty to get their economies growing, but is it necessary to keep their economies growing?
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)
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
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
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
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
Colleges and Universities
29 colleges and universities nourish talent pool175,000 students26,000 BA/BS degrees awarded annually
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
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)
Plain Dealer Sunday July 10, 2011
Despite the Recession….
Cluster Based Strategy
Paints and Coatings Health Technologies Automotive Banking and Finance Food Processing Information and Technology Electric and Lighting Logistics and Distribution
Health Tech Corridor
Midtown Technology Center
Post Incubator Space for Health Technology Cluster
• 128,000 sf• LEED• Built on
spec• Health Line• No private
financing• 300+ jobs• Only
15,000 sf unleased
Midtown Tech Center II7000 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
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
Steel Warehouse
Almost 100 Jobs to date
$16.1 Million original project; expanded once since 2010 to a second building
Manufacturing Clusters
Miceli’s DairyPhase I Ricotta facility•50 new jobs•$20 m investment
Phase IIMozzarella & Provolone facility•100 new jobs•$35 m investment
Food Processing Cluster
Pierre’s Ice Cream 6200 Euclid Avenue
$8.9 million expansionRetained 42 jobsFood Processing Cluster
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
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
668 Euclid Apartments
236 Residential Apartments
66,000 sq ft Retail/Office
Underground parking with plaza above
Restoration of original historic façade
Completely rented within 30 days of opening- 400 person waiting list!
Uptown - Mixed Use•$44.5 m in University Circle
•66,000 sf retail
•102 Apartments
•Creates a “college town” area
•CWRU enrollment is up
Evergreen Cooperative Laundry
• 29 Jobs Created• 90 % Minority• 62 % Formerly
Incarcerated• Green &
Sustainable Laundry Operation
• Workers are worker-owners
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
