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ITDP South Africa- Financing TOD: Partnering with the Private Sector and Anchor Institutions


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City of Cleveland Department of Economic Development Director Tracey A. Nichols delivered this presentation for the Institute for Transportation and Development Policy Summits in Johannesburg and Cape Town, South Africa.

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ITDP South Africa- Financing TOD: Partnering with the Private Sector and Anchor Institutions

  1. 1. Financing TOD: Partnering with the Private Sector and Anchor Institutions Institute for Transportation & Development Policy- TOD South Africa October 2013
  2. 2. Cleveland’s BRT  Awarded 2004  Started in 2005  Opened 2008  Cost $200 million Named the “Healthline” by Cleveland Clinic (Naming Rights)
  3. 3. The Healthline  9.38 miles  36 stations  Travel time from 40 to 28 minutes  Pedestrian Friendly with bike lanes  Landscape/hardscape treatment • 1,500 trees with irrigation • Plantings in center island planters along medians  Integrated/stand alone public art
  4. 4. “Rail Like” Characteristics  Higher Travel Speeds • Exclusive Right-of-way • Traffic Signal Priortization  Level Boarding “Stations”  Off Board Fare Collections  Real-Time Information
  5. 5. A Closer look along Cleveland’s TOD Downtown and University Circle are at either end. Within 3 blocks of the transit line we have: Health Care & Health Technology Incubators Lots of Vacant land- including Brownfields, Vacant multi-story brick obsolete warehouses Two Universities and a Community College From 2.8 million riders in ‘08 to over 4.5 million in 2011
  6. 6. The Health Tech Corridor- Before
  7. 7. The Problem Statement We have 2 Major Employment Areas that are strong and thriving- surrounded by weaker areas How do we connect the two areas and connect residents to employment? Once we have the transit connection, how do we EXPAND these strong areas, attracting new businesses? How can we keep incubated businesses in the City after they graduate so we can capture their growth?
  8. 8. The Health Tech Corridor University Circle Institutions in the foreground and Downtown in the background
  9. 9. Health Tech Corridor- Anchors
  10. 10. Who do we bring to the table?  Colleges and Universities  Chambers  Hospitals  Incubators  Community Dev’t Corps  State & Local Gov’ts  Business Organizations
  11. 11. But- While you are Working on New Partners..  Get Busy! Land Values along transit generally increase  Example: A 6.2 acre used car lot bought in 1984 for $35,000  Transit announcement: 2005 $75,000  Transit opens: 2008- speculator $110,000  Developer acquires for larger project $276,000  Land Value 2012 $1.08 million (for 6.2 acres per County appraiser)
  12. 12. At First….  It’s a SMALL Group  Not Everyone joins the party  Not everyone believes BRT will be successful  Not everyone believes that Transit Oriented Development Can Happen in the “Corridor”  Hmmm- we need some data from someone who people will believe
  13. 13. The Study In 2010, several organizations funded MidTown Cleveland to hire Angelou Economics to develop an economic development strategy for the Cleveland Health Technology Corridor. Funders: Midtown, Inc; Cleveland Foundation, City of Cleveland, Port Authority Cost: $120,000
  14. 14. Some of the Goals  Promote the HTC and Greater Cleveland’s position as a leading biomedical center.  Create a single point of contact for the corridor  Develop real estate options to meet industry requirements in every stage of growth  Leverage existing and create new development financing options  Strengthening the connections between the HTC and the Port’s International Trade District  Ensure that the region is attracting, retaining, and producing individuals with the skills needed to meet future health and technology needs
  15. 15. Now We Have a Plan  The initial partners were already working  Supporting existing businesses  Brownfield Assessments  Brownfield Clean-up  We have a big announcement on the plan  CDC’s Annual Meeting  Q & A with Crain’s Cleveland Business  Press Releases and News Coverage  Next: Selling it to more funders/partners  Planning & Zoning  Code enforcement  Land Acquisition
  16. 16. Next Steps  More Partners join the table  Health Tech Corridor meetings are more formal and more regular  Working off the “Plan” • There’s a workforce piece • There’s an education piece • There’s a marketing piece • There’s a staffing piece • There’s a funding piece  How will we pay for these items? • The State, Anchor Partners, Foundations, re-align existing resources
  17. 17. Happy Accidents  Both the Health Tech Corridor (HTC) and The Greater University Circle Initiative (GUCI) apply for Living Cities funding  Several partners staff both initiatives (GUCI and HTC have similar geographies)  Cross population- new members for both efforts  Now we are creating jobs AND working to improve the economic well-being of the surrounding neighborhoods
  18. 18. Can the Corridor Support Differing Initiatives?  Maintaining the partnership takes work  Not everyone has the same vision- many private agendas  Example- Permanent Supportive Housing on the Corridor • Midtown Cleveland, Inc. against • Businesses against • Developers against • Non-Profit community believes it is crucial  Even Senior Housing was opposed
  19. 19. Success Brings More Partners  Celebrate the successes  Tour people through your project- help them see “what’s next”  Engage the business community- even if they are across town  Use your partners to bring the press to the table- editorial board?  Once people see the project succeeding, they are interested in participating – even the naysayers
  20. 20. New Investment Spurred by BRT Health Line
  21. 21. Pierre’s Expansion 6200 Euclid Avenue- Expansion of an Ice Cream Making Company already in the corridor Build on what you have….
  22. 22. Uptown - Mixed Use Case Western’s College Town Phase I complete •66,000 sf retail •102 Apartments •$44.5 m project cost •Phase II closing Dec 2012
  23. 23. Midtown Technology Center 128,000 sf post incubator space New home of Jumpstart, Cleveland Heart Lab and Chamberlain School of Nursing
  24. 24. 7000 Euclid • 48,000 square feet • Office/technology • LEED Building • Free parking • On the Health-line for easy access to institutions • University Hospitals and Veterans Administration have taken space
  25. 25. Opinions Change…..
  26. 26. HEALTH TECH CORRIDOR ASSESTS  50,000 employed at health care and educational campuses  50,000 students enrolled in corridor educational institutions  10 million sq. ft. of health care and educational space  80 biomedical companies  45 technology companies  $450 million in annual research
  27. 27. Non-Bank Funding in the Corridor • Over $77 million City financing since 2008 • $800,000 development grant from The Cleveland Foundation • $3.75 million in grants from the Ohio DOD • $200M in State Third Frontier funding • Federal funding totals: $31.6 million HUD 108, $1.8 million Other HUD, $3 million BEDI, $1.7 million EPA, $500,000 EDA
  28. 28. New Medical Schools  Case Western Reserve University Medical School and the Cleveland Clinic Lerner College of Medicine: • New construction to be built on Cleveland Clinic’s campus  Cleveland State/NEOMED Partnership • CSU Constructing $45 Million Health Innovation Center • Target Opening 2015  DeVry’s Chamberlin College of Nursing: • Located in heart of the Corridor at Midtown Tech Park • Grand opening October 2013
  29. 29. City of Cleveland Tracey Nichols Director Dept. of Economic Development (216) 664-3611