Big Ideas for Small Business: 2013 Report to Cleveland City Council


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Big Ideas for Small Business: 2013 Report to Cleveland City Council

  1. 1. Report to Council 2013 Department of Economic Development Calfee Building Historic Renovation
  2. 2. 2013 Report to City Council Page 2 Department of Economic Development CLEVELAND CITYWIDE DEVELOPMENT CORPORATION All loans over $40,000 go through a rigorous underwriting review by the Cleveland Citywide Develop- ment Corporation (CCDC). CCDC consists of members appointed by the Mayor & City Council and includes bankers, local community members, business representatives and appointed officials. The loans first are reviewed by the Loan Committee and then go for final review by the Board of Trustees. BOARD OF TRUSTEES Frank Jackson, Mayor City of Cleveland Tracey A. Nichols, Director City of Cleveland,-Economic Development. Anthony Brancatelli, Councilman Cleveland City Council Patricia Ramsey, Vice President US Bank Robert Brown, Director City of Cleveland, City Planning William J. Reidy, Retired Partner Coopers & Lybrand Corp. John P. Colm, Executive Director Wire-Net Daryl Rush, Director City of Cleveland, Community Development Luke D. Elsass, Vice President Tri-State Capital Bank Thomas Stone, Executive Director Mt. Pleasant Now Development Corp. Colleen Gilson, Director Cleveland Neighborhood Development Corporation Anthony R. Thornton, Assistant Director City of Cleveland, Economic Development Stefan J. Holmes, Sr. Vice President First Merit Bank Natoya Walker, Director City of Cleveland, Office of Equal Oppor- tunity Randy Horst, Vice President PNC Bank Henry West, Retired Banker Gerald Meyer, Senior Director Community Member LOAN REVIEW COMMITTEE Anthony Brancatelli, Councilman, Cleveland City Council Randy Horst, Vice President PNC Bank Anita R. Brindza, Executive Director Cudell Improvement Dale R. Lenzer Key Bank Luke D. Elsass, Vice President Tri-State Capital Bank Gerald Meyer Community Member Kirby V. Freeman, Business Service Advisor Cuyahoga County Community College Leonard E. Olsavsky, Vice President U.S. Bank Wesley Gillespie, Sr. Vice President First Merit Bank Anthony Thornton, Assistant Director City of Cleveland
  3. 3. 2013 Report to City Council Department of Economic Development RTA Trolley Project—Expanded Service RTA expanded their free trolley service to take ad- vantage of the opening of the Horseshoe Casino and to improve connectivity to the Science Center, Rock & Roll Hall of Fame and the lakefront. The project also connects available parking at the Science Center, Burke Lakefront and the Municipal Parking lot to the underserved areas of the NineTwelve District. The es- timated cost to expand the operations over a 3-year pe- riod is $3.6 million. The City of Cleveland provided a grant in the amount of $100,000 as a pledge towards the $720,000 local match that needed to be raised to expand the trolley routes and to extend the hours of operations. The ex- panded service includes 3 new routes including the C Line which operates from 7:00 p.m. to 11:00 p.m. Monday through Friday and from 11:00 a.m. to 11:00 p.m. on Saturday and Sunday. The L Line operates from 11:00 a.m. to 6:00 p.m. on Saturday and Sunday. The NineTwelve Line operates during morning and evening rush hours Monday through Friday. Burten Bell Carr, Inc – Urban Agriculture Zone Burten Bell Carr, Inc. is collaborating with Rid-All Green Partnership, a minority-owned, not-profit business founded by three local entrepreneurs, and has become a key partner in the vision of the Urban Agricultural Innovation Zone in the Kinsman Neighborhood. Their current facility uses urban agriculture to educate the next generation of Cleveland- ers about sustainable healthy living. Rid-All Green Partnership is seeking to increase its capacity by expanding the space it has to operate. They are proposing to create addi- tional hydroponics and aquaponics stations at the project site across from their current facility. This will allow them to use their existing hoop houses to grow kale, spinach, cel- ery, and broccoli in the winter months, while the new structure will focus on toma- toes which are scarce in the Cleveland dur- ing the winter months. Burten Bell Carr Inc. received a UDAG Repayments grant from the City to help with acquisition and demolition costs. This project is expected to create 3 full time jobs over the next 3 years. This project is helping to catalyze the second phase of this project which will include a new greenhouse and lead to $770,000 of new investment. SUCCESS STORIES
  4. 4. 2013 Report to City Council Page 4 Department of Economic Development SUCCESS STORIES Jay Lofts The Jay Lofts project features the reha- bilitation of a historic building in Cleve- land’s Ohio City neighborhood. Con- structed in 1924, this building has served as a hotel, apartment building, and a post office at various points. The struc- ture will be renovated to restore its his- torical look from the original construc- tion. When complete, this $2.6 million project will provide 8 “loft-style” apart- ments and 14,000 square feet of ground floor retail space. The City of Cleveland will provide a $720,000 loan based on the creation of 25 full time jobs. Britton-Gallagher Britton-Gallagher and Associates is an independent insurance brokerage firm with three offices in Ohio. The firm was established in 1942 and has become one of the largest pri- vately owned insurance agen- cies in Northeast Ohio. As the firm has evolved, Britton- Gallagher has developed exper- tise in various areas of Commer- cial Insurance, Personal Insur- ance, Health Benefits and Fi- nancial Services. This expertise has enabled Britton-Gallagher to develop and provide insurance services unavailable in the common marketplace. Britton-Gallagher decided to move its operation to Downtown Cleveland, along with its 60 jobs. The City of Cleveland assisted with a Central Business District grant worth up to $405,000 over a five year period. CustomPak CustomPAK a 3rd generation family owned busi- ness since 1922, purchased the former Clorox building at 13501 Enterprise as a second location to provide the company closer access to key sup- pliers. CustomPak is your total source for clean- ing, maintenance and protective products for the Home, Auto, Industrial and Institutional markets and a preeminent leader in contract formulating, blending and packaging. The City offered a $180,000 Vacant Property Initiative loan to assist with the acquisition. The project will create a minimum of 30 full time equivalent jobs.
  5. 5. 2013 Report to City Council Page 5 Department of Economic Development SUCCESS STORIES 6555 Carnegie The third phase of the Midtown Tech Park campus, 6555 Carnegie, will add 66,000 square feet of high quality office space to the heart of the Health Tech Corridor. While construction has just begun, the entire first floor has already been leased to Radio One, one of the nation’s largest minority owned radio broadcasting companies. The City pro- vided a $4,000,000 HUD 108 loan and a $500,000 Economic Development Administration loan to help finance the project. The project will create upwards of 80 jobs in the City of Cleveland. BEFORE AFTER The Agora A symbol of Cleveland’s rock and roll roots, the historic Agora complex will add 56,000 square feet of renovated space to the Health Tech Corridor while retaining and revitaliz- ing the music venue from which its fame originates. The City has provided a $180,000 forgivable loan for the project and renovations are well underway on the office space. Two of the floors are already fully renovated and leased to small startup technology com- panies. The Agora renovation will retain 15 jobs and create at least 25 new jobs. MODEL SUITE FINISHED INTERIOR SPACE
  6. 6. 2013 Report to City Council Page 6 Department of Economic Development SUCCESS STORIES Manitowoc/Cleveland Range Cleveland Range, located at Amsterdam and St. Clair, was acquired by Manitowoc who needed to determine whether to close their Cleveland facility or their Ft. Wayne, Indiana facility. Whichever City was selected would also be the home of the new headquarters for the division. The Cleveland facility had 260 jobs and if selected would add 120 new jobs. City Economic Development staff worked with multiple departments city-wide to acquire land, repair streets, work with local businesses to repair code violations and demolish va- cant buildings nearby. The City, State and County provided incentives to land the new facility. Workers at the Cleveland Plant worked to increase plant efficiency. Manitowoc selected the Cleveland facility. Construction on the plant and the new headquarters building should begin this spring, 2013. Health Tech Corridor The Health Tech Corridor continues to grow and attract businesses. In the past 3 years, the City assisted with over 334,000 square feet of newly constructed or renovated space. Completed buildings are fully leased and 6555Carnegie, or Midtown Tech Park III is un- der construction and is already 40% leased. Over 17 acres of land have been remediated and received their NFA (No Further Action) Letter and are being marketed with great interest. The Transit Oriented Development Project has attracted national attention, as evidenced by the number of tours of the project we are asked to lead and the requests for the City to attend conferences and discuss the projects successes. NINETWELVE District The NINETWELVE District was once the Hub of Downtown, but had reached a high vacancy over the past decade. A public- private partnership came together to re- brand the area and work to plan for it’s re- newal. Downtown Cleveland’s office, resi- dential and retail market continues to evolve with signs of great progress and posi- tive momentum. According to CBRE’s Mar- ketview Report, Downtown Cleveland’s of- fice occupancy rate has increased 4.9 percent over the last two years to 81.6 percent. Much of this growth is concentrated in the NineTwelve District. Several companies, in- cluding corporate headquarters, have located here over the past year including AmTrust Financial Services, BrandMuscle, Britton Gallagher, NorthCoast Media, Alexander Mann Solutions, Urban Code, Inc. and Quez Media Marketing. These companies are bringing over 1,700 jobs. They are joined by major downtown employers like Oswald Companies, Osborn Engineering and Grant Thornton recommitting to the NineTwelve District and adding new jobs. New restaurants include Cowell & Hubbard and Winks at the Galleria.
  7. 7. 2013 Report to City Council Page 7 Department of Economic Development SMALL BUSINESS INITIATIVES Grow America Fund The City has provided another $200,000 for the National Development Council’s Grow America Fund (GAF). GAF provides financing to growing small businesses throughout the country and promises to leverage at least 5 times the original capital. GAF operates as a community development lender to support the creation of jobs and the expansion of eligible small businesses in underserved areas, particularly minority and women-owned businesses. The financing provided is partially guaranteed by the U.S. Small Business Administration. The National Development Council has a loan officer located in our re- gion as a result of the City and County’s investment. Because NDC is a non-profit organ- ization and not a bank, their motivation is not profit. Therefore they provide loans with lower interest rates, longer terms, and lower down payments. The City partnered with Cuyahoga County to provide funding in 2009 and the City pro- vided $200,000 at that time as well. That funding lead to 9 loans totaling $4,331,600. These loans helped to retain and create 233 jobs. Ohio Mills Corporation was one of the assisted companies. The company manufactures bins which are used to collect donated clothing. The clothing is then cleaned and sorted and sold in bulk to national and international customers. They received a loan of $358,000 to refinance their existing debt and $275,000 towards the purchase of their ex- isting leased building. The business will retain 83 jobs and add an additional 12 jobs. Economic and Community Development Institute (ECDI) The Economic and Community Development Institute ("ECDI") is a U.S. Small Business Administration and U.S. Treasury designated CDFI micro-lender current- ly based in Columbus, Ohio. After a locally commis- sioned study revealed a large gap in funding for start-up and existing small businesses, the group, led by the Cleveland Foundation, sought an experienced micro-lender. After several meetings, ECDI agreed to open an office in Cleveland to provide micro-lending and technical assistance to both Cleveland-based small businesses and those throughout Northeast Ohio. The group, including Cleveland Foundation, Cuyahoga County local banks and the City of Cleveland provided operational and loan funds to the organization. The City is providing $200,000 to ECDI to structure microloans to small businesses that would not be eligible for traditional bank funding. A portion of the funding ($50,000) is specifically geared toward immigrant and refugee business. The City’s funding will lev- erage more than $4 for every dollar the City has committed. ECDI’s lending efforts have resulted in $516,500 in loans to Cleveland based businesses, the retention of 6 jobs and creation of an anticipated 35 jobs in the City.
  8. 8. 2013 Report to City Council Page 8 Department of Economic Development VACANT PROPERTY INITIATIVE In the past five (5) years, fifty (50) vacant properties were returned to productive use and over 3,500 jobs were to be created in the City of Cleveland due to this important initiative. A Vacant Building is a blighting influence and discourages investment. Both vacant land and buildings collect trash, graffiti and are attractive nuisances, eroding value in neighborhoods. Often vacant buildings are tax delinquent, bringing in no revenues. The properties also are more likely to have police and fire calls, using valuable city resources and costing more than the properties bring in, burdening other tax payers. These are true success stories, reversing sprawl and showing growth in our community. As the overall market has improved, the city incentive level was reduced as banks resumed loan participation levels. Year Borrower Ward City Assistance Total Project Cost Jobs to be Created Jobs Retained 2008 9 Loans multi $10,122,500 $58,730,673 2279 75 2009 16 Loans multi $10,988,750 $111,701,503 420 257 2010 St. Vincent Charity Medical Ctr. Parking 5 $130,000 $130,000 6 1200 2010 Ziska Architecture 3 $50,000 $500,000 5 0 2010 Zoresco Equipment Company 3 $70,000 $800,000 15 0 2010 Eaton Bay 17 $70,000 $1,605,000 7 23 2011 American Sugar Refining 5 135,000 750,000 14 96 2011 Ariel International LLC 3 $180,000 $255,000 20 4 2011 BZT Acquisition (Broadvox) 3 $180,000 $4,000,000 60 80 2011 Electric Cord Set 18 70,000 $906,000 28 0 2011 Garson Victory Building 5 $720,000 $7,392,450 75 0 2011 GCCIC-Laird 15 $243,000 $648,000 45 65 2011 Midtown Acquisition (7000 Euclid) 5 $180,000 $6,477,000 50 0 2011 Optima 777 (Crown Plaza) 3 $1,000,000 $73,389,741 250 0 2011 P & M Ohio City (Mitchells) 3 $180,000 $2,225,000 20 0 2011 Playhouse Square (Dwellworks) 3 180,000 $1,687,529 95 0 2011 Tyler Village 8 700,000 $5,600,000 20 0 2011 West 25th Street Lofts 3 $720,000 $4,591,250 20 30 2011 Providence House 3 $70,000 $1,800,000 20 30 2012 Thermagon Inc dba Laird Technologies 17 $148,750.00 $367,962.00 20 80 2012 Hemingway Development (Agora ) 8 $180,000.00 $3,806,466.00 25 15 2012 CustomPAK 18 $180,000.00 $1,000,000.00 30 0 2012 Northeast Shores Development Corporation 11 $41,700.00 $65,200.00 3 0 2012 Northeast Shores Development Corporation 11 $52,230.00 $69,850.00 10 0 Total- 50 loans $26,591,930 $288,498,624 3,537 1,955
  9. 9. 2013 Report to City Council Page 9 Department of Economic Development 2012 LOANS /GRANTS UNDER $250,000 Under Ordinance 697-08, the Department of Economic Development may enter into loan or grant agreements for financial assistance for projects up to $250,000 with the approval of the Cleveland Citywide Development Corporation, the Mayor and the Councilperson in whose ward the project is located. Annually, the Department must report these loans to City Council. Below are the loans for 2012. Program Client Name Loan/Grant Amount Total Project Cost Jobs to be Created Jobs Retained EDA Binkowsky-Dougherty Distribution, LLC $200,000.00 $600,000.00 7 7 UDAG Bravo Wellness $240,595.00 $962,380.00 125 0 UDAG Burten Bell Carr Development, Inc. $29,000.00 $35,000.00 3 0 UDAG Burten Bell Carr Development, Inc. $50,000.00 $542,740.00 4 0 EDA CardioInsight Technologies, Inc. $200,000.00 $600,000.00 6 18 UDAG Cleveland Rotary Centennial Celebration, LLC $50,000.00 $50,000.00 0 0 UDAG Collinwood & Nottingham Villages Devt Corp. $125,000.00 $125,000.00 0 0 VPI CustomPAK $180,000.00 $1,000,000.00 30 0 StYardTIF Detroit Shoreway Community Development Org $8,310.24 $12,310.24 0 0 UDAG Downtown Cleveland Alliance $100,000.00 $720,000.00 0 0 UDAG Gerald DeBose $23,500.00 $23,500.00 5 0 VPI Hemingway Development $180,000.00 $3,806,466.00 25 15 EDA ICON Technology Solutions Inc. $78,200.00 $237,000.00 5 5 UDAG Koinonia Properties, LLC $50,000.00 $237,394.00 4 0 UDAG Michael Sivo $1,000.00 $2,000.00 0 0 VPI Northeast Shores Development Corporation $41,700.00 $65,200.00 3 0 VPI Northeast Shores Development Corporation $52,230.00 $69,850.00 10 0 StYardTIF Ohio City, Incorporated $8,000.00 $8,000.00 0 0 EDA Ohio Cooperative Solar Inc. $200,000.00 $600,000.00 8 17 StYardTIF Old Brooklyn Community Devt Corporation $8,000.00 $8,000.00 0 0 StYardTIF Old Brooklyn Community Devt Corporation $25,000.00 $25,444.80 0 0 StYardTIF Old Brooklyn Community Devt Corporation $6,000.00 $6,000.00 0 0 UDAG Robert Linkous $2,050.00 $4,100.00 0 0 StYardTIF Slavic Village Development $32,000.00 $32,000.00 0 0 UDAG Terrence Tarantino $10,000.00 $20,000.00 20 0 VPI Thermagon Inc dba Laird Technologies $148,750.00 $367,962.00 20 80 StYardTIF Tremont West Development Corporation $20,000.00 $20,000.00 0 0 StYardTIF Tremont West Development Corporation $64,680.00 $64,680.00 0 0 UDAG Vincent P. Vasko Jr. d.b.a. Vinny's Beverage $10,000.00 $53,000.00 1 1 Totals $2,144,015.24 $10,298,027.04 276 143
  10. 10. 2013 Report to City Council Page 10 Department of Economic Development SMALL BUSINESS ASSISTANCE NEIGHBORHOOD RETAILASSISTANCE PROGRAM Colossal Cupcakes Colossal Cupcakes, a start-up, female-owned bakery, moved into re- tail space that had been vacant for two years at the Colonial Marketplace at 530 Euclid Ave- nue. Colossal Cupcakes’ niche is homemade cupcakes with creative flavors and designs. The small business signed a 3-year lease for 1,507 square feet of vacant space and has created one full-time and one part-time job. The business has been a popular addition to Lower Euclid Avenue. They have extended their hours of op- eration due to the success of their business! Whisk LLC d.b.a. Hodge’s Whisk LLC d.b.a. Hodge’s is a great success story of a food truck operator transforming to a “bricks and mortar” restaurant which opened early sum- mer 2012 at 668 Euclid Avenue. Chris Hodgson, the owner of Hodge’s Restaurant, leased 4,410 sq. ft. of space while investing over $250,000. Hodge’s has created over 25 full-time jobs and an annual payroll of approximately $414,000. The restaurant has been a big supporter of purchasing local fruits, vegetables, meats and herbs from local farmers and serving the items as part of their menu. Loan Recipient Ward City Assistance Total Project Cost Jobs To Be Jobs Retained Created Colossal Cupcakes LLC 3 $16,000 $28,000 1 0 Whisk LLC d.b.a. Hodge’s 3 $40,000 $250,000 25 0 Vinny’s Beverage 18 $40,000 $53,000 1 2 Hattie Larlham Community Living 18 $9,000 $587,987 20 0 Mac’s Sports Grill 1 $40,000 $98,000 12 0 Alba Market LLC d.b.a. Alba Fresh Market 17 $40,000 $5,000 6 0 Toast of Gordon Square Inc. d.b.a. Toast 15 $40,000 $76,700 8 0 Total $225,000 1,198,687 73 2
  11. 11. 2013 Report to City Council Page 11 Department of Economic Development SMALL BUSINESS ASSISTANCE Vinny’s Beverage Vinny’s Beverage is a 25-year old small busi- ness convenience store in the Bellaire Puritas Neighborhood at 13531 Lorain Avenue. The company will make a major investment to re- place the crumbled parking lot while increas- ing landscaping for aesthetic improvements and reduction of storm water runoff. Project costs are estimated at $53,000 and this project is expected to retain 2 jobs and create 1 new job over the next 3 years.   Hattie Larlham -Hattie’s Doggy Day Care & Boarding The Hattie Larlham family of agencies provides vocational and social skill training for adults with disabilities. The doggy day care is located at 18200 Brookpark Road. The project includes a re- tail boutique store, boarding rooms, and an exer- cise area. The site is in close proximity to Cleve- land Hopkins Airport and the Brookpark Road Rapid Transit station. The location near the air- port is convenient to dog owners that need to board their pets when they are traveling. Twenty new jobs will be created. Mac’s Sports Grill LLC Mac’s Sports Grill is a minority-owned café moving into space at 17426 Harvard Avenue in the Lee-Harvard Neighborhood. The business plans to create 12 full time jobs with an estimated payroll of $300,000. The café will serve burgers, sandwiches, with a flavor of soul food. Total project costs are $98,000. The City’s Storefront Renovation program is assisting with the project. Alba Fresh Market Alba Fresh Market is a small neighborhood grocery store featuring ethnic Albanian and Mediterranean foods. The store opened at 3353 West 117th Street in the Westown Neighborhood. The market offers fresh locally grown produce, deli, meats and hot foods. Alba Fresh Market’s mission is to provide customers with quality grocery items and prepared foods. The store opened operations in 6,700 square feet of space and is creating 6 full time jobs with the project. The total project costs are $105,000.
  12. 12. 2013 Report to City Council Page 12 Department of Economic Development SMALL BUSINESS ASSISTANCE Chamberlain College of Nursing Chamberlain College of Nursing, a subsidiary of DeVry Inc., is training Cleveland’s next generation of nurses. Chamberlain College opened in 2012, leasing 30,000 square feet of space at 6700 Euclid Ave. (Midtown Tech Park). Their space is a top of the line and fully equipped with the most up-to- date teaching tools used by the nursing industry, including a SIMCARE center featuring patient simulators that react much like a live patient would. The City provided a Citywide Business Grant worth approximately $60,000. Chamberlain College will create approximately 50 jobs in the City. Toast Toast is a female owned café which will be located at 1365 West 65th Street. The small business is occupying 2,500 square feet of space in the Detroit-Shoreway Neighborhood and plans to open in early 2013. Toast will specialize in providing locally sourced foods and an exten- sive wine list and will create 8 full time jobs with a total projected payroll of approximately $142,000. The total costs for this project are approximately $76,700. Northeast Shores Development Corporation Northeast Shores, the City of Cleveland and a successful small business entrepreneur are col- laborating to create a restaurant destination on Waterloo Road. This project looks to build off the strength of the Beachland Ballroom which at- tracts thousands annually to concerts, by provid- ing locations for visitors to eat before or after shows at the Beachland. The ambitious plan to establish new destinations in vacant buildings requires parking in the neighborhood. The City is providing assistance from the Vacant Property Initiative – Local Parking Needs program. The City’s assistance will help to develop two public parking lots including one featuring landscaping, “green” elements, artistic design and a bioswale to reduce storm water runoff. The project will support new restaurants & cafes operated by local chefs, and local retail shops. Famicos Foundation The City provided an NDP grant in the amount of $5,000 to Famicos Foundation to assist with pre-development costs for a building located at 12310 Superior Avenue. The build- ing was formerly occupied by Hot Sauce Williams. Famicos has acquired the building and is working closely with the City for redevelopment opportunities.
  13. 13. 2013 Report to City Council Page 13 Department of Economic Development 2012 BUSINESS GRANTS Business Grants include the Central Business District Grant, and the smaller Citywide Business Grant, Technology Business Grant and Green Technology Business Grant. These grants are utilized to attract or retain businesses. The program provides a valua- ble tool to compete with similar products in suburban communities. Total expected value of the incentive is shown below, however the amount paid is based on actual new pay- roll, verified annually. North Coast Media LLC North Coast Media LLC is a new start-up business-to-business media company that manages and produces magazines web- sites, e-newsletters, webinars and events across a wide variety of markets. The company projects 30 new jobs with an estimat- ed payroll of $1.7 million will be created within the first year of operations. North Coast Media has leased 8,200 square feet of office space at 1360 E. 9th Street. Quez Media Marketing Quez Media Marketing, Inc. is a 3-year old, Hispanic-owned and operated marketing company which grew from 1,200 sq. ft. to 5,000 sq. ft. at their new location on 1138 Prospect Avenue in Downtown Cleveland. The compa- ny’s business model is to provide the highest quality full service interactive and integrated marketing, social media and web-based fulfillment to their clients. The small business expects to add 21 employees over the next 3 years to their current level of 6 employees. Incentive Recipient City Assistance Jobs To Be Created Jobs Retained Cohen and Company $42,600.00 23 90 Comrod, Inc. $7,500.00 5 1 Texcel, Inc. $32,689.00 19 0 Dak P, Inc. $5,000.00 5 0 Total Quality Logistics $31,250.00 75 0 Northcoast Media LLC $50,000.00 30 1 ICON Technology Solutions Inc. $5,000.00 5 5 Bravo Wellness $72,500.00 125 0 $246,539.00 282 96
  14. 14. 2013 Report to City Council Page 14 Department of Economic Development Brand Muscle BrandMuscle, a 12-year old growing marketing firm, moved their operations to Downtown from Beachwood, OH. The company moved 157 employees to 55,000 sq. ft. of space at the 1100 Superior Building. The firm signed an 11-year lease with an option for additional space based upon their job growth. BrandMuscle has become a leading expert on local marketing performance to help their national clients with creative tools to market, brand and sell their products or services locally while driving sales. The company has grown from zero employees in 2000 to 157 full-time employ- ees with a $12 million payroll. BrandMuscle anticipates creating an additional 200 jobs, with an additional payroll of approximately $17.5 million over the next 5 years. ICON Technology Solutions, Inc. ICON Technology Solutions, Inc. (“ICON”) began as a home- based start-up in 2003.. The 9- year old company has estab- lished a well trusted reputa- tion for providing cost efficient IT consulting for companies seeking Custom Application Design and Development, Web and E-Commerce applications, Database Design, Business to Business Applications and Mobile Application Design. The com- pany anticipates doubling their current employment of 5 people in 2013. They have leased space at the Agora Building located at 5000 Euclid Avenue in the Midtown Tech Corridor. The City assisted with a $5,000 grant under the Citywide Business Grant Program and gap financing for a portion of new office equipment in the amount of $78,200. Total project costs are estimated at $237,000. Dak P Inc. Dakota P. Productions, Inc., a minority and female-owned company, was founded in 1995 in Los Angeles, CA. There are several other locations in the United Sates and one Van- couver BC, Canada. The company is engaged in the development and distribution of films and stage productions produced from scripts that are purchased by the company. The current division had sales of $430,000 in 2011 and will continue to have the support of the Los Angeles office as it generates business in the Cleveland market. Recently the company produced a successful play called Sepia Girl which was held at Playhouse Square. They have moved into an office at 12800 Shaker Boulevard. The City assisted with a $5,000 grant for moving related costs from the Citywide Business Grant Program to pay some of the associated cost to move equipment in the Theatrical/Stage Division from Los Angeles and Vancouver, Canada to Cleveland. Dak P. Inc is anticipating the creation of 5 jobs over the next three years. 2012 BUSINESS GRANTS
  15. 15. 2012 Report to City Council Page 15 Department of Economic Development GARDENING FOR GREENBACKS Grant Recipient Ward City Assistance Diane Morgan d.b.a. Maggie’s Farm 15 $3,000 Needham Gardens LLC 18 $3,000 TOTALS $6,000 In summer 2012, the City revised the Gardening for Greenbacks Program by increasing grant amounts up to $5,000 per eligible business. The increase in grant funding is due to a financial grant contribution to the program by CoBank, AgriBank, and Farm Credit Mid-America for the next three years. The group has a newly expanded mission to assist communities that have a proven track record of supporting a local food initiative by cre- ating jobs, eliminating food deserts, providing healthy food while improving the quality of life for its residents. The total grant is $135,000, $45,000 per year for three years. Diane Morgan d.b.a. Maggie’s Farm Maggie’s Farm is a female-owned, urban farm on a ¼ acre lot. Vegetable, produce and herbs are grown and sold at local farm stands, local convenience stores, Gordon Square, Fifth Street Arcade and Tremont Farmers’ Markets. The owner has operated a market garden in the Stockyards neighborhood since 2011 and completed the OSU Extension Mar- ket Gardener Training program in 2012. She has previous experience building three community gar- dens and is the founder of NxGen, a nonprofit with a mission of preserving land while growing fresh food. Total project costs are approximately $3,200. In addi- tion to herself, one new job was created. Needham Gardens LLC Needham Gardens LLC is an urban farm on 1/3 acre of land at 12021 Kirton Avenue in the Bellaire-Puritas Neighborhood. The urban farm, owned and operated by Virginia Needham, pri- marily grows herbs and annual vegetables which are sold at local farm stands, Kamms Corners Farmers’ Market, and Rockport Farmers’ Mar- ket. She has operated a market garden since 2011. She completed her certificate of training with the OSU Extension Market Gardener Train- ing Program in 2012. Future plans include ex- panding the market garden to include a small greenhouse and converting a garage to a hen- house and storage shed. Total project cost is $5,850. 2012 GARDENING FOR GREENBACKS
  16. 16. 2013 Report to City Council Page 16 Department of Economic Development 2012 WORKING CAPITAL LOAN PROGRAM Funded with US Economic Development Administration (EDA) funds, these loans helped small companies who were unable to acquire bank loans, in many cases due to more stringent credit regulations. The program helped companies create and retain jobs. CardioInsight CardioInsight, a Cleveland-based med- ical device company, was founded in 2006 to commercialize a breakthrough technology designed to improve the di- agnosis and treatment of electrical dis- orders of the heart. CardioInsight is commercializing a revolutionary non- invasive electrocardiographic mapping platform. The ECVue system gathers electrical information about the heart from a proprietary, multi-sensor elec- trode "vest" placed on a patient’s body and combines it with images from a CT scan to provide 3D maps of the electri- cal activity of the heart. Unlike conventional catheter-based mapping methods, the ECVue system is non-invasive and provides a view of the entire heart’s electrical activity in a single beat, enabling electrophysiologists to better guide treatments to localize ar- rhythmias, or optimize the placement and settings of CRT devices, such as pacemakers. The City of Cleveland has provided a $200,000 Working Capital loan to assist CardioIn- sight in launching its product and continuing to expand here in Cleveland. CardioIn- sight is expected to create 6 additional jobs. Binkowsky-Dougherty Binkowsky-Dougherty Distribution (BDD) is a fourth generation interior and exterior lumber distributor. BDD has filled orders for some of the biggest construction projects in in Cleveland like the Horseshoe Casino and the Marriott Hotel. BDD even contrib- uted to the construction of the World Trade Center in New York City. BDD is building a strong reputation in Cleveland and is one of the only certified female-owned lumber distributers from Cleveland’s Office of Equal Opportunity. The City of Cleveland provided a $200,000 Working Capital loan to assist BDD in increasing its inventory so the company could take on new clients and expand its business. In return, Binkowsky Dougherty Distribution will create a minimum of 7 jobs.
  17. 17. 2013 Report to City Council Page 17 Department of Economic Development BROWNFIELD REDEVELOPMENT: Remediation Activities Orlando Bakery - Orlando Baking Company has been operating in the City of Cleveland since 1904. They cur- rently employ over 300 people at their location on Grand Avenue. Landlocked in their present lo- cation and in need of space for expansion, Orlando acquired the neighboring former Van Dorn site, a brownfield, for the loca- tion of expanded production lines and a new freezer facility. The City sought funding from the Clean Ohio Revitaliza- tion Fund to assist with the demolition and remediation of the property. The clean-up is expected to take place in 2013 and 2014, with the expansion to break ground in late 2014. The expansion will allow Orlando to expand operations at their existing site, creating at least 15 jobs. Warner Swasey Building– The Department conducted a significant asbestos abate- ment at the former Warner Swasey facility to prepare it for transfer in 2013. Over 230,000 square feet of asbestos-containing material (plaster, tiles, and insulation) was removed and disposed from July to Decem- ber 2012. USEPA RLF Funding received in 2011 was supplemented by additional fund- ing in 2012 to complete the removal project. With asbestos removal complete, the project development team is analyzing the struc- ture to prepare for redevelopment activities to begin in the coming year. Recipient Program Ward City Assistance Total Project Cost Jobs To Be Created or Retained Orlando Baking Co. CORF 5 $1,263,135 $1,693,119 315 Warner Swasey Building - Asbestos Removal Cuyahoga Co. ARRA RLF ODOD ARRA RLF 5 $1,127,937 $200,000 $1,527,937 360 Totals $2,591,072 $3,221,056 675
  18. 18. 2013 Report to City Council Page 18 Department of Economic Development BROWNFIELD REDEVELOPMENT: Industrial/Commercial Landbank Program CURRENT PORTFOLIO Property Acres End Use Requirements Status Green City Growers 9.85 Food Production—Greenhouse SOLD December 2011—Under Construction w/ Production to begin in January 2013 Trinity Building 5.6 Incorporate design guidelines and meet job requirements No Further Action Letter—Filed w/ OEPA December 2011 Asphalt Plant 2.7 Incorporate design guidelines and meet job requirements Currently Marketing the site. Crescent Avenue 10.77 Support Maritime Industry and Green Space Development. Site environmental data under re- view. Remediation plan being im- plemented. Site under negotiation. Location 5800 Diamond Ave. 9203 Detroit Ave. West 3rd Ave. 3418 Crescent Ave. Warner Swasey 5701 Carnegie Ave 2 Incorporate design guidelines and meet job requirements Asbestos Abatement Completed December 2012. Under Option. Ward Bakery 4501 Chester Ave 2.5 Proposed Third District Police Station site. BUSTR NFA Resolved—Site Engi- neering nearly complete, Construc- tion expected 2013 Coke Plant-CVIC Independence Ave. 54 Incorporate design guidelines and meet job requirements Site work is largely complete. Road Installation complete. Actively Marketing Site. Midland Steel 10615 Madison Ave. 22.0 Incorporate green design guide- lines and meet job requirements. OEPA Covenant Not-to-Sue Issued July 2012 Former Tops– Superior and Lake- view 11905 Superior 6.46 Site of Sav-A-Lot & Forman Mills Future Site of Advance Auto SOLD August 2011 OUTLOT Sold—October 2012 E. 57-59th/Chester- Euclid Chester Ave. from E. 57th to E. 61st 7.37 Incorporate green design guide- lines and meet job requirements OEPA Covenant Not-to-Sue Issued October 2012 E. 61st & Chester Block Chester Ave. at E. 61st and 63rd St. 2.53 Incorporate green design guide- lines and meet job requirements SITE UNDER OPTION OEPA Covenant-Not-to-Sue Issued May 2012 In 2005, the City of Cleveland created the Industrial/Commercial Land Bank as a tool to hold and remediate brownfield sites for redevelopment. ICLB Projects are more time-consuming and can be more expensive than traditional development projects. In 2012, many of the first projects taken on by the ICLB program were administratively approved for redevelopment. In 2013, the Department of Economic Development expects to contract with a real estate pro- fessional to aggressively market these properties and bring additional revenues into the City through land sales and tax-generating construction and development. To date, the ICLB has taken in 125 acres. 16.3 acres were sold, 4.5 are under option and 96 acres are remediated and being marketed, leaving 13.5 acres to be remediated.
  19. 19. 2013 Report to City Council Page 19 Department of Economic Development BROWNFIELD REDEVELOPMENT: Site Assessment Program The City utilized the USEPA funded Northcoast Brownfield Coalition funding in partner- ship with the County and Port Authority, the City’s own assessment dollars and received one Clean Ohio Assistance Fund grants. The funding environment was extremely chal- lenging with the Clean Ohio program on hold for most of the year and reduced signifi- cantly in scale. The City and its partners in the Northcoast Brownfield Coalition contin- ue to seek additional funding from U.S. EPA through the competitive grant program to bring additional funding to the community and attempt to fill the gap created by reduced Clean Ohio availability. Fifteen (15) sites were assessed. Midland Steel The City acquired the former Midland Steel Complex in 2006. Formerly a major manu- facturer of car and truck frames, Midland’s business declined substantially in the early 2000s and closed in 2003. The City was able to secure a Clean Ohio grant to supplement the City’s funds for site remediation and undertook demolition and remediation activities from 2007 through 2012, encountering several unforeseen site conditions along the way. Through Cuyahoga County, a USEPA RLF Stimulus Grant was secured in 2011 to com- plete the abandonment of a gas well and the completion of the site remedy. The site has secured a No Further Action Letter and a Covenant Not to Sue from Ohio EPA and is ready to market. Several developers have already indicated interest in the 21-acre indus- trial development site, one of the largest sites with rail access in the City. Project Program Ward City Assistance Jobs To Be Created Jobs Retained Marquette Site Assess-LB 8 $25,793 34 0 Deluxe Bumper Site Assess-LB 5 $23,943 0 120 Juvenile Justice Center Assess-LB 5 $34,288 N/A N/A Garrett Square Phase II Assess-Coalition 9 $31,936 15 0 1200 W. 76th St. Assess-Coalition 15 $35,000 3 0 Oberlin Bldg. Co. Assess-Coalition 15 $35,000 0 4 Detroit Shoreway—1265 W. 65th St. Assess-Coalition 15 $26,807 30 0 Detroit Shoreway—5700 Detroit Assess-Coalition 15 $41,437 N/A N/A National Freezer Assess-Coalition 5 $41,500 10 5 Intesa Lot 45 Assess-Coalition 9 $33,560 500 0 4971 Woodland Ave. Assess-Coalition 5 $8,500 5 0 Euclid 115 Apartments Assess-Coalition 9 $6,000 3 0 Fifth Church of Christ NDP 16 $21,830 20 0 Garrett Square—Phase II NDP 9 $20,000 15* 0 Fortuna Development Site COAF 3 $298,480 20 0 Total $684,072 640 129 BROWNFIELD REDEVELOPMENT: Success Stories
  20. 20. 2013 Report to City Council Page 20 Department of Economic Development GRANT FUNDING RECEIVED 2 0 1 2 1 5 3 13 11 11 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Number of Grants /Pass Through Loans by Year Grant & Pass Through Loan Funding Received Grant Name Funding Source Ward Year Awarded Amount Fortuna Construction Clean Ohio Assistance Fund 3 2012 $298,480 Orlando Baking Co. Expansion Clean Ohio Revitalization Fund 5 2012 $1,263,135 Walworth Avenue Extension Ohio Roadwork Development (629) 15 2012 $500,000 Warner Swasey—Supplemental EPA RLF (Through County) 5 2012 $672,974 Victory Building Ohio Job Ready Sites Program 5 2012 $1,000,000 Gardening for Greenbacks CoBank Citywide 2012 $135,000 Mayor’s Youth Education Program Private Donors Citywide 2012 $16,000 HOST Internship Cleveland Foundation Citywide 2012 $6,500 Living Cities Operations Living Cities Citywide 2012 $135,000 Living Cities—Website/Portal Living Cities Citywide 2012 $40,000 SC2 Fellow German Marshall Fund Citywide 2012 $15,000 TOTAL $4,082,089
  21. 21. 2013 Report to City Council Page 21 Department of Economic Development BROWNFIELD REDEVELOPMENT: Success Stories Shops At Garrett Square The City sold the former Tops at Lakeview and Superior to CenterMark Development in 2011. In Spring 2012, the renewed Shops At Garrett Square opened, bringing groceries and retail to the Glenville neighborhood with a Sav-A-Lot and Forman Mills store. The stores combine to employ 77 Cleveland residents, many of whom are residents of the neighborhood. In 2012, the City worked with CenterMark on the sale of an outlot on the southern portion of the property, which will be developed with an Advance Auto and with the due diligence toward the acquisition of a neighboring property, which will be the sub- ject of additional retail development in 2013. Cuyahoga Valley Industrial Center Beginning in 2009, the City, in partnership with the Greater Cleveland Community Improve- ment Corporation, embarked on the conversion of a rolling, contaminat- ed former coke oven site into the largest development-ready site in Cleveland. The project included an unusual beneficial re-use of dredge material and slag. In 2012, the pro- ject neared completion with the fi- nal grading of the site and the con- struction of the supporting infra- structure necessary to market the property in 2013. The completion of this project has resulted in almost 60 acres of available industrial property, capable of siting up to 750,000 square feet of development, on a brownfield site that few believed would ever be redeveloped. The site is a major strategic asset for Cleveland that few cities in the re- gion can offer. Artist rendering
  22. 22. 2013 Report to City Council Page 22 Department of Economic Development BROWNFIELD REDEVELOPMENT: Success Stories Midtown—Chester-Euclid Block (57th-61st Street) The Department of Economic Development had significant successes in bringing ICLB projects to completion in 2012. In 2002, the City received a Clean Ohio grant for the Midtown neighborhood block bordered by Euclid Avenue, Chester Avenue, E. 57th Street, and E. 61st Street. The original developer and several additional end-users pulled out of the project and left the City to complete the grant implementation and clean-up of the property. In 2012, the City’s efforts were rewarded with a No Further Action Letter and Covenant Not to Sue under Ohio’s Voluntary Action Program. As a result, the City now owns one of the most attractive development sites in Cleveland. Lo- cated in the heart of the Health-Tech Corridor, the 8+ acre site is expected to draw sig- nificant interest in 2013. Trinity Building The City acquired the Trinity Building site in 2004 through the State Forfeiture process. The property was thoroughly assessed and the decrepit building, a site of several fires, was demolished in 2005 and 2006. After the discovery of unknown contamination and an emergency removal action by USEPA in 2008, the site was released to the City to complete remediation in late 2010. Additional remedial activities were completed in 2011 and the site achieved a No Further Action Letter in 2012. The City is finalizing the Covenant Not to Sue with Ohio EPA and expects to be marketing a clean site in 2013. Located in the heart of the Cudell neighborhood, this formerly blighting influence will be redeveloped as an asset to the community. Industrial Commercial Landbank Properties Fortuna Construction—The 2727 Transport Road site has a long and checkered past. At one time used for chemical manufacturing, the site was not proper- ly managed and operations were eventually shut down by USEPA. Fortuna Construction is a grow- ing, female-owned small business, engaged in hous- ing and excavating throughout the region. Fortuna has begun the exploration of acquiring the Transport Road site as its headquarters. The site’s centralized and industrial location will help save the company time and money in its services. With the assistance of Fortuna’s environmental counsel, the Department and Fortuna secured a Clean Ohio Assistance Fund grant to thoroughly assess the site and develop a plan for remediation. The assessment work was nearly completed by the end of 2012 and Fortuna has begun exploring options to fund the remediation of the site and move forward with their reloca- tion to Cleveland.
  23. 23. 2013 Report to City Council Page 23 Department of Economic Development 2013 BUDGET FUNDING SOURCE BUDGET UDAG REPAYMENTS $4,352,318.43 EDA TITLE IX (WORKING CAPITAL) $808,774.30 BUSINESS GRANTS $329,875.15 NDIF $3,245,091.76 NDP $378,966.68 RAILROAD FUNDS $89,564.67 CORE CITY I $0.00 CORE CITY II $0.00 EMPOWERMENT ZONE 108 $10,419,557.89 EMPOWERMENT ZONE EDI $1,730,494.18 HUD 108 & BEDI Grant $27,125,000.00 N.R.A.P., Food Cart & Gardening for Greenbacks $1,096,991.45 Small Business Revolving Loan Funds (CD Funds) $44,774.65 TOTALS $49,621,409.16 Inside Cleveland Business Plus Awards Department of Economic Development Sweeps the Awards The Department of Economic Development was presented with 4 awards at the Annual Economic Development Awards in June. Eco- nomic Development Agencies, Chambers of Commerce, educational institutions and local communities from 18 counties compete to be the best in a number of categories. The City entered 4 categories and won all four includ- ing Business Expansion (Cleveland Research), Asset Creation (Great Lakes Towing); Public Private Partnership (Midtown Tech Center); Business Expansion and Retention (AmTrust Financial). Director Tracey Nichols with staff holding their awards. From Left to right: David Lukas, Kevin Schmotzer, Liz Forester and Robin Brown. The Plus Awards are the highest recognition in the re- gion for Economic Development.
  24. 24. 2013 Report to City Council Page 24 Department of Economic Development Tracey Nichols, Director 216-664–3611 Anthony Thornton, Assistant Director 216-664–2832 Marilu Acevedo, Administrative Assistant to the Director 216-664–3677 Shaunquitta Walker, Office Manager/Legislation/Prev. Wage 216-664–3644, ECONOMIC DEVELOPMENT & TECHNOLOGY Robin Brown, Project Manager 216-664–3612 David Lukas, Project Coordinator 216-664–3010 Michael Elliott, Project Coordinator 216-664-4470 SMALL BUSINESS Kevin Schmotzer, Executive for Small Business Growth 216-664–3720 Anthony Stella, Project Coordinator 216-664-4363 SPECIAL PROJECTS/BROWNFIELD REDEVELOPMENT David Ebersole, Brownfield Program Manager 216-664–2204 Daniel Budish, Development Officer 216-664-4274 Genna Petrolla, Special Project Coordinator 216-664-3605 Cheng Han Yu, Intern 216-664-2202 FISCAL/ADMINISTRATION Dan Rehor, Fiscal Manager 216-664–3610 Byron Demery, Controller 216-664–2203 Greg Perryman, Assistant Controller 216-664–3672 Trinette Wiggins, Auditor 216-664-3622 Brandon Hoffman, Fiscal Intern 216-664-3621 Ethel Maheu, Administrative Manager 216-664–3676 Alicia Torres, Paralegal 216-664–2406 ClevelandEconomicDevelopmentTeam