Levin Presentation: Economic Development Policy Class

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Levin Presentation: Economic Development Policy Class

  1. 1. Cleveland State University November 5, 2012Development andDistressed Cities A Presentation to the Levin School of Urban Affairs
  2. 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
  3. 3. Vacant and Abandoned
  4. 4. Brownfields
  5. 5. Vacant & Bought bySpeculators 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”
  6. 6. Stripped by ScrappersNeighborhoodsafety issueAt risk forexplosion or fire
  7. 7. Illegal Dumping Adds to Cost of land assembly Neighborhood Health & Safety Issue Dumped overnight outside a construction site
  8. 8. Large Scale IllegalDumping  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. 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. 10. Are They MutuallyExclusive?Regions may not needto address poverty toget their economiesgrowing, but is it GROWTHnecessary to keep theireconomies growing? Did Cleveland’s growth OPPORTUNITY spurt of the early 90’s fizzle due to a failure in addressing poverty?
  11. 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. 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. 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. 14. The VisionMayor Jackson has worked with others in the regionand has a vision of education, opportunity andbusiness 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. 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. 16. Colleges and Universities29 colleges anduniversities nourishtalent pool175,000 students26,000 BA/BS degreesawarded annually
  17. 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. 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)
  19. 19. Despite the Recession….PlainDealerSundayJuly 10,2011
  20. 20. Cluster Based Strategy Paints and Coatings Health Technologies Automotive Banking and Finance Food Processing Information and Technology Electric and Lighting Logistics and Distribution
  21. 21. Health Tech Corridor
  22. 22. Midtown Technology Center • 128,000 sf • LEED • Built on spec • Health Line • No private financing • 300+ jobs • Only 15,000 sf unleasedPost Incubator Space for Health Technology Cluster
  23. 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 leasedPost Incubator Space for Health Technology Cluster
  24. 24. Cuyahoga ValleyIndustrial 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. 25. Steel WarehouseAlmost 100 Jobs to date$16.1 Million original project; expanded oncesince 2010 to a second buildingManufacturing Clusters
  26. 26. Miceli’s Dairy Phase I Ricotta facility •50 new jobs •$20 m investment Phase II Mozzarella & Provolone facility •100 new jobs •$35 m investmentFood Processing Cluster
  27. 27. Pierre’s Ice Cream6200 Euclid Avenue$8.9 million expansionRetained 42 jobsFood Processing Cluster
  28. 28. Flats East Bank•$272 million project•500,000 SF OfficeTower with 3 majoranchors•150 Room BoutiqueHotel•Health & FitnessCenter•Several NewRestaurants & Bars•545 Space PublicGarage, 400 SurfaceSpaces & Transit•1,200 foot PublicBoardwalk•14 Acre Public Park Banking and Finance Cluster & Place Based
  29. 29. Place Based EconomicDevelopment 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. 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. 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. 32. Evergreen Cooperative Laundry• 29 Jobs Created• 90 % Minority• 62 % Formerly Incarcerated• Green & Sustainable Laundry Operation• Workers are worker-owners
  33. 33. Green City GrowersCooperative 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. 34. City of ClevelandTracey NicholsDirectorDept. of Economic Development(216) 664-3611tnichols2@city.cleveland.oh.us

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