City of Cleveland Department of Economic Development: Report to Council 2013


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This yearly publication is presented by the City of Cleveland Department of Economic Development to the Cleveland City Council. It highlights projects and achievements of note that were completed by the Department in the previous calendar year.

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City of Cleveland Department of Economic Development: Report to Council 2013

  1. 1. Report to Council2013Department ofEconomic DevelopmentCalfee Building Historic Renovation
  2. 2. 2013 Report to City Council Page 2Department of Economic DevelopmentCLEVELAND CITYWIDE DEVELOPMENT CORPORATIONAll 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 andincludes bankers, local community members, business representatives and appointed officials. Theloans first are reviewed by the Loan Committee and then go for final review by the Board of Trustees.BOARD OF TRUSTEESFrank Jackson, MayorCity of ClevelandTracey A. Nichols, DirectorCity of Cleveland,-Economic Development.Anthony Brancatelli, CouncilmanCleveland City CouncilPatricia Ramsey, Vice PresidentUS BankRobert Brown, DirectorCity of Cleveland, City PlanningWilliam J. Reidy, Retired PartnerCoopers & Lybrand Corp.John P. Colm, Executive DirectorWire-NetDaryl Rush, DirectorCity of Cleveland, Community DevelopmentLuke D. Elsass, Vice PresidentTri-State Capital BankThomas Stone, Executive DirectorMt. Pleasant Now Development Corp.Colleen Gilson, DirectorCleveland Neighborhood DevelopmentCorporationAnthony R. Thornton, Assistant DirectorCity of Cleveland, Economic DevelopmentStefan J. Holmes, Sr. Vice PresidentFirst Merit BankNatoya Walker, DirectorCity of Cleveland, Office of Equal Oppor-tunityRandy Horst, Vice PresidentPNC BankHenry West, RetiredBankerGerald Meyer, Senior DirectorCommunity MemberLOAN REVIEW COMMITTEEAnthony Brancatelli, Councilman,Cleveland City CouncilRandy Horst, Vice PresidentPNC BankAnita R. Brindza, Executive DirectorCudell ImprovementDale R. LenzerKey BankLuke D. Elsass, Vice PresidentTri-State Capital BankGerald MeyerCommunity MemberKirby V. Freeman, Business Service AdvisorCuyahoga County Community CollegeLeonard E. Olsavsky, Vice PresidentU.S. BankWesley Gillespie, Sr. Vice PresidentFirst Merit BankAnthony Thornton, Assistant DirectorCity of Cleveland
  3. 3. 2013 Report to City CouncilDepartment of Economic DevelopmentRTA Trolley Project—Expanded ServiceRTA expanded their free trolley service to take ad-vantage of the opening of the Horseshoe Casino and toimprove connectivity to the Science Center, Rock &Roll Hall of Fame and the lakefront. The project alsoconnects available parking at the Science Center,Burke Lakefront and the Municipal Parking lot to theunderserved areas of the NineTwelve District. The es-timated cost to expand the operations over a 3-year pe-riod is $3.6 million. TheCity of Cleveland provideda grant in the amount of $100,000 as a pledge towards the$720,000 local match that needed to be raised to expand thetrolley routes and to extend the hours of operations. The ex-panded service includes 3 new routes including the C Linewhich operates from 7:00 p.m. to 11:00 p.m. Monday throughFriday and from 11:00 a.m. to 11:00 p.m. on Saturday andSunday. The L Line operates from 11:00 a.m. to 6:00 p.m. onSaturday and Sunday. The NineTwelve Line operates duringmorning and evening rush hours Monday through Friday.Burten Bell Carr, Inc – Urban Agriculture ZoneBurten 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 partnerin 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 increaseits 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 currentfacility. 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 CarrInc. received a UDAG Repayments grantfrom the City to help with acquisition anddemolition costs. This project is expectedto create 3 full time jobs over the next 3years. This project is helping to catalyzethe second phase of this project which willinclude a new greenhouse and lead to$770,000 of new investment.SUCCESS STORIES
  4. 4. 2013 Report to City Council Page 4Department of Economic DevelopmentSUCCESS STORIESJay LoftsThe 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 servedas a hotel, apartment building, and apost 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 millionproject will provide 8 “loft-style” apart-ments and 14,000 square feet of ground floor retail space. The City of Cleveland willprovide a $720,000 loan based on the creation of 25 full time jobs.Britton-GallagherBritton-Gallagher and Associates is an independent insurance brokerage firm withthree offices in Ohio. The firmwas established in 1942 and hasbecome one of the largest pri-vately owned insurance agen-cies in Northeast Ohio. As thefirm 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 expertisehas enabled Britton-Gallagherto develop and provide insurance services unavailable in the common marketplace.Britton-Gallagher decided to move its operation to Downtown Cleveland, along with its60 jobs. The City of Cleveland assisted with a Central Business District grant worth upto $405,000 over a five year period.CustomPakCustomPAK a 3rd generation family owned busi-ness since 1922, purchased the former Cloroxbuilding at 13501 Enterprise as a second locationto provide the company closer access to key sup-pliers. CustomPak is your total source for clean-ing, maintenance and protective products for theHome, Auto, Industrial and Institutional marketsand a preeminent leader in contract formulating,blending and packaging. The City offered a$180,000 Vacant Property Initiative loan to assistwith the acquisition. The project will create a minimum of 30 full time equivalent jobs.
  5. 5. 2013 Report to City Council Page 5Department of Economic DevelopmentSUCCESS STORIES6555 CarnegieThe third phase of the Midtown Tech Park campus, 6555 Carnegie, will add 66,000square feet of high quality office space to the heart of the Health Tech Corridor. Whileconstruction 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 Administrationloan to help finance the project. The project will create upwards of 80 jobs in the City ofCleveland.BEFOREAFTERThe AgoraA symbol of Cleveland’s rock and roll roots, the historic Agora complex will add 56,000square 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 $180,000forgivable 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 6Department of Economic DevelopmentSUCCESS STORIESManitowoc/Cleveland RangeCleveland Range, located at Amsterdam and St. Clair, was acquired by Manitowoc whoneeded to determine whether to close their Cleveland facility or their Ft. Wayne, Indianafacility. Whichever City was selected would also be the home of the new headquarters forthe 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 acquireland, 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 newfacility. Workers at the Cleveland Plant worked to increase plant efficiency. Manitowocselected the Cleveland facility. Construction on the plant and the new headquartersbuilding should begin this spring, 2013.Health Tech CorridorThe 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 remediatedand received their NFA (No Further Action) Letter and are being marketed with greatinterest. The Transit Oriented Development Project has attracted national attention, asevidenced by the number of tours of the project we are asked to lead and the requests forthe City to attend conferences and discuss the projects successes.NINETWELVE DistrictThe NINETWELVE District was oncethe Hub of Downtown, but had reached ahigh 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 toevolve 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 percentover the last two years to 81.6 percent.Much of this growth is concentrated in theNineTwelve District. Several companies, in-cluding corporate headquarters, have located here over the past year including AmTrustFinancial Services, BrandMuscle, Britton Gallagher, NorthCoast Media, Alexander MannSolutions, Urban Code, Inc. and Quez Media Marketing. These companies are bringingover 1,700 jobs. They are joined by major downtown employers like Oswald Companies,Osborn Engineering and Grant Thornton recommitting to the NineTwelve District andadding new jobs. New restaurants include Cowell & Hubbard and Winks at the Galleria.
  7. 7. 2013 Report to City Council Page 7Department of Economic DevelopmentSMALL BUSINESS INITIATIVESGrow America FundThe City has provided another $200,000 for the National Development Council’s GrowAmerica Fund (GAF). GAF provides financing to growing small businesses throughoutthe country and promises to leverage at least 5 times the original capital. GAF operatesas a community development lender to support the creation of jobs and the expansion ofeligible small businesses in underserved areas, particularly minority and women-ownedbusinesses. The financing provided is partially guaranteed by the U.S. Small BusinessAdministration. 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 withlower 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 manufacturesbins which are used to collect donated clothing. The clothing is then cleaned and sortedand 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 andU.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. Afterseveral meetings, ECDI agreed to open an office in Cleveland to provide micro-lendingand technical assistance to both Cleveland-based small businesses and those throughoutNortheast Ohio. The group, including Cleveland Foundation, Cuyahoga County localbanks 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 thatwould not be eligible for traditional bank funding. A portion of the funding ($50,000) isspecifically 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 haveresulted in $516,500 in loans to Cleveland based businesses, the retention of 6 jobs andcreation of an anticipated 35 jobs in the City.
  8. 8. 2013 Report to City Council Page 8Department of Economic DevelopmentVACANT PROPERTY INITIATIVEIn the past five (5) years, fifty (50) vacant properties were returned to productive use and over3,500 jobs were to be created in the City of Cleveland due to this important initiative. A VacantBuilding is a blighting influence and discourages investment. Both vacant land and buildingscollect trash, graffiti and are attractive nuisances, eroding value in neighborhoods. Often vacantbuildings are tax delinquent, bringing in no revenues. The properties also are more likely to havepolice 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 growthin our community. As the overall market has improved, the city incentive level was reduced asbanks resumed loan participation levels.Year Borrower WardCityAssistanceTotal ProjectCostJobs to beCreatedJobsRetained2008 9 Loans multi $10,122,500 $58,730,673 2279 752009 16 Loans multi $10,988,750 $111,701,503 420 2572010 St. Vincent Charity Medical Ctr. Parking 5 $130,000 $130,000 6 12002010 Ziska Architecture 3 $50,000 $500,000 5 02010 Zoresco Equipment Company 3 $70,000 $800,000 15 02010 Eaton Bay 17 $70,000 $1,605,000 7 232011 American Sugar Refining 5 135,000 750,000 14 962011 Ariel International LLC 3 $180,000 $255,000 20 42011 BZT Acquisition (Broadvox) 3 $180,000 $4,000,000 60 802011 Electric Cord Set 18 70,000 $906,000 28 02011 Garson Victory Building 5 $720,000 $7,392,450 75 02011 GCCIC-Laird 15 $243,000 $648,000 45 652011 Midtown Acquisition (7000 Euclid) 5 $180,000 $6,477,000 50 02011 Optima 777 (Crown Plaza) 3 $1,000,000 $73,389,741 250 02011 P & M Ohio City (Mitchells) 3 $180,000 $2,225,000 20 02011 Playhouse Square (Dwellworks) 3 180,000 $1,687,529 95 02011 Tyler Village 8 700,000 $5,600,000 20 02011 West 25th Street Lofts 3 $720,000 $4,591,250 20 302011 Providence House 3 $70,000 $1,800,000 20 302012 Thermagon Inc dba Laird Technologies 17 $148,750.00 $367,962.00 20 802012 Hemingway Development (Agora ) 8 $180,000.00 $3,806,466.00 25 152012 CustomPAK 18 $180,000.00 $1,000,000.00 30 02012 Northeast Shores Development Corporation 11 $41,700.00 $65,200.00 3 02012 Northeast Shores Development Corporation 11 $52,230.00 $69,850.00 10 0Total- 50 loans $26,591,930 $288,498,624 3,537 1,955
  9. 9. 2013 Report to City Council Page 9Department of Economic Development2012 LOANS /GRANTS UNDER $250,000Under Ordinance 697-08, the Department of Economic Development may enter into loanor grant agreements for financial assistance for projects up to $250,000 with the approvalof the Cleveland Citywide Development Corporation, the Mayor and the Councilperson inwhose ward the project is located. Annually, the Department must report these loans toCity Council. Below are the loans for 2012.Program Client NameLoan/GrantAmountTotal ProjectCostJobs to beCreatedJobsRetainedEDA Binkowsky-Dougherty Distribution, LLC $200,000.00 $600,000.00 7 7UDAG Bravo Wellness $240,595.00 $962,380.00 125 0UDAG Burten Bell Carr Development, Inc. $29,000.00 $35,000.00 3 0UDAG Burten Bell Carr Development, Inc. $50,000.00 $542,740.00 4 0EDA CardioInsight Technologies, Inc. $200,000.00 $600,000.00 6 18UDAG Cleveland Rotary Centennial Celebration, LLC $50,000.00 $50,000.00 0 0UDAG Collinwood & Nottingham Villages Devt Corp. $125,000.00 $125,000.00 0 0VPI CustomPAK $180,000.00 $1,000,000.00 30 0StYardTIF Detroit Shoreway Community Development Org $8,310.24 $12,310.24 0 0UDAG Downtown Cleveland Alliance $100,000.00 $720,000.00 0 0UDAG Gerald DeBose $23,500.00 $23,500.00 5 0VPI Hemingway Development $180,000.00 $3,806,466.00 25 15EDA ICON Technology Solutions Inc. $78,200.00 $237,000.00 5 5UDAG Koinonia Properties, LLC $50,000.00 $237,394.00 4 0UDAG Michael Sivo $1,000.00 $2,000.00 0 0VPI Northeast Shores Development Corporation $41,700.00 $65,200.00 3 0VPI Northeast Shores Development Corporation $52,230.00 $69,850.00 10 0StYardTIF Ohio City, Incorporated $8,000.00 $8,000.00 0 0EDA Ohio Cooperative Solar Inc. $200,000.00 $600,000.00 8 17StYardTIF Old Brooklyn Community Devt Corporation $8,000.00 $8,000.00 0 0StYardTIF Old Brooklyn Community Devt Corporation $25,000.00 $25,444.80 0 0StYardTIF Old Brooklyn Community Devt Corporation $6,000.00 $6,000.00 0 0UDAG Robert Linkous $2,050.00 $4,100.00 0 0StYardTIF Slavic Village Development $32,000.00 $32,000.00 0 0UDAG Terrence Tarantino $10,000.00 $20,000.00 20 0VPI Thermagon Inc dba Laird Technologies $148,750.00 $367,962.00 20 80StYardTIF Tremont West Development Corporation $20,000.00 $20,000.00 0 0StYardTIF Tremont West Development Corporation $64,680.00 $64,680.00 0 0UDAG Vincent P. Vasko Jr. d.b.a. Vinnys Beverage $10,000.00 $53,000.00 1 1Totals $2,144,015.24 $10,298,027.04 276 143
  10. 10. 2013 Report to City Council Page 10Department of Economic DevelopmentSMALL BUSINESS ASSISTANCENEIGHBORHOOD RETAILASSISTANCE PROGRAMColossal CupcakesColossal Cupcakes, astart-up, female-ownedbakery, moved into re-tail space that hadbeen vacant for twoyears at the Colonial Marketplace at 530 Euclid Ave-nue. Colossal Cupcakes’ niche is homemade cupcakeswith creative flavors and designs. The small businesssigned a 3-year lease for 1,507 square feet of vacantspace and has created one full-time and one part-timejob. The business has been a popular addition to LowerEuclid Avenue. They have extended their hours of op-eration due to the success of their business!Whisk LLC d.b.a. Hodge’sWhisk LLC d.b.a. Hodge’s is a great success storyof a food truck operator transforming to a “bricksand 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’shas created over 25 full-time jobs and an annualpayroll of approximately $414,000. The restauranthas been a big supporter of purchasing local fruits,vegetables, meats and herbs from local farmersand serving the items as part of their menu.Loan Recipient WardCityAssistanceTotal ProjectCostJobs To Be JobsRetainedCreatedColossal Cupcakes LLC 3 $16,000 $28,000 1 0Whisk LLC d.b.a. Hodge’s 3 $40,000 $250,000 25 0Vinny’s Beverage 18 $40,000 $53,000 1 2Hattie Larlham Community Living 18 $9,000 $587,987 20 0Mac’s Sports Grill 1 $40,000 $98,000 12 0Alba Market LLC d.b.a. Alba Fresh Market 17 $40,000 $5,000 6 0Toast of Gordon Square Inc. d.b.a. Toast 15 $40,000 $76,700 8 0Total $225,000 1,198,687 73 2
  11. 11. 2013 Report to City Council Page 11Department of Economic DevelopmentSMALL BUSINESS ASSISTANCEVinny’s BeverageVinny’s Beverage is a 25-year old small busi-ness convenience store in the Bellaire PuritasNeighborhood at 13531 Lorain Avenue. Thecompany will make a major investment to re-place the crumbled parking lot while increas-ing landscaping for aesthetic improvementsand reduction of storm water runoff. Projectcosts are estimated at $53,000 and this projectis expected to retain 2 jobs and create 1 newjob over the next 3 years.  Hattie Larlham -Hattie’s Doggy Day Care & BoardingThe Hattie Larlham family of agencies providesvocational and social skill training for adults withdisabilities. The doggy day care is located at18200 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 RoadRapid Transit station. The location near the air-port is convenient to dog owners that need toboard their pets when they are traveling. Twentynew jobs will be created.Mac’s Sports Grill LLCMac’s Sports Grill is a minority-owned café moving into space at 17426 Harvard Avenuein the Lee-Harvard Neighborhood. The business plans to create 12 full time jobs with anestimated payroll of $300,000. The café will serve burgers, sandwiches, with a flavor ofsoul food. Total project costs are $98,000. The City’s Storefront Renovation program isassisting with the project.Alba Fresh MarketAlba Fresh Market is a small neighborhood grocerystore featuring ethnic Albanian and Mediterraneanfoods. The store opened at 3353 West 117th Street inthe Westown Neighborhood. The market offers freshlocally grown produce, deli, meats and hot foods. AlbaFresh Market’s mission is to provide customers withquality grocery items and prepared foods. The storeopened operations in 6,700 square feet of space and iscreating 6 full time jobs with the project. The totalproject costs are $105,000.
  12. 12. 2013 Report to City Council Page 12Department of Economic DevelopmentSMALL BUSINESS ASSISTANCEChamberlain College of NursingChamberlain College of Nursing, a subsidiary ofDeVry Inc., is training Cleveland’s next generationof nurses. Chamberlain College opened in 2012,leasing 30,000 square feet of space at 6700 EuclidAve. (Midtown Tech Park). Their space is a top ofthe line and fully equipped with the most up-to-date teaching tools used by the nursing industry,including a SIMCARE center featuring patientsimulators that react much like a live patientwould. The City provided a Citywide BusinessGrant worth approximately $60,000. ChamberlainCollege will create approximately 50 jobs in the City.ToastToast is a female owned café which will be located at 1365 West 65thStreet. The small business is occupying 2,500 square feet of space inthe 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 projectedpayroll of approximately $142,000. The total costs for this project areapproximately $76,700.Northeast Shores Development CorporationNortheast Shores, the City of Cleveland and asuccessful small business entrepreneur are col-laborating to create a restaurant destination onWaterloo Road. This project looks to build off thestrength of the Beachland Ballroom which at-tracts thousands annually to concerts, by provid-ing locations for visitors to eat before or aftershows at the Beachland. The ambitious plan toestablish new destinations in vacant buildingsrequires parking in the neighborhood. The Cityis providing assistance from the Vacant PropertyInitiative – Local Parking Needs program. The City’s assistance will help to develop twopublic parking lots including one featuring landscaping, “green” elements, artistic designand a bioswale to reduce storm water runoff. The project will support new restaurants &cafes operated by local chefs, and local retail shops.Famicos FoundationThe City provided an NDP grant in the amount of $5,000 to Famicos Foundation to assistwith 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 andis working closely with the City for redevelopment opportunities.
  13. 13. 2013 Report to City Council Page 13Department of Economic Development2012 BUSINESS GRANTSBusiness Grants include the Central Business District Grant, and the smaller CitywideBusiness 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 valueof the incentive is shown below, however the amount paid is based on actual new pay-roll, verified annually.North Coast Media LLCNorth Coast Media LLC is a new start-up business-to-businessmedia company that manages and produces magazines web-sites, e-newsletters, webinars and events across a wide varietyof markets. The company projects 30 new jobs with an estimat-ed payroll of $1.7 million will be created within the first year ofoperations. North Coast Media has leased 8,200 square feet ofoffice space at 1360 E. 9th Street.Quez Media MarketingQuez Media Marketing, Inc. isa 3-year old, Hispanic-ownedand operated marketing company which grew from1,200 sq. ft. to 5,000 sq. ft. at their new location on 1138Prospect Avenue in Downtown Cleveland. The compa-ny’s business model is to provide the highest qualityfull service interactive and integrated marketing, socialmedia and web-based fulfillment to their clients. Thesmall business expects to add 21 employees over thenext 3 years to their current level of 6 employees.Incentive Recipient City AssistanceJobs To BeCreatedJobs RetainedCohen and Company $42,600.00 23 90Comrod, Inc. $7,500.00 5 1Texcel, Inc. $32,689.00 19 0Dak P, Inc. $5,000.00 5 0Total Quality Logistics $31,250.00 75 0Northcoast Media LLC $50,000.00 30 1ICON Technology Solutions Inc. $5,000.00 5 5Bravo Wellness $72,500.00 125 0$246,539.00 282 96
  14. 14. 2013 Report to City Council Page 14Department of Economic DevelopmentBrand MuscleBrandMuscle, a 12-year old growing marketing firm, movedtheir operations to Downtown from Beachwood, OH. Thecompany moved 157 employees to 55,000 sq. ft. of space atthe 1100 Superior Building. The firm signed an 11-yearlease with an option for additional space based upon theirjob growth. BrandMuscle has become a leading expert onlocal marketing performance to help their national clientswith creative tools to market, brand and sell their productsor services locally while driving sales. The company hasgrown from zero employees in 2000 to 157 full-time employ-ees with a $12 million payroll. BrandMuscle anticipatescreating an additional 200 jobs, with an additional payrollof 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 efficientIT consulting for companiesseeking Custom ApplicationDesign and Development, Weband E-Commerce applications, Database Design, Business toBusiness Applications and Mobile Application Design. The com-pany anticipates doubling their current employment of 5 peoplein 2013. They have leased space at the Agora Building located at 5000 Euclid Avenue inthe Midtown Tech Corridor. The City assisted with a $5,000 grant under the CitywideBusiness Grant Program and gap financing for a portion of new office equipment in theamount 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 1995in 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 offilms 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 supportof the Los Angeles office as it generates business in the Cleveland market. Recently thecompany produced a successful play called Sepia Girl which was held at PlayhouseSquare. They have moved into an office at 12800 Shaker Boulevard. The City assistedwith a $5,000 grant for moving related costs from the Citywide Business Grant Programto pay some of the associated cost to move equipment in the Theatrical/Stage Divisionfrom Los Angeles and Vancouver, Canada to Cleveland. Dak P. Inc is anticipating thecreation of 5 jobs over the next three years.2012 BUSINESS GRANTS
  15. 15. 2012 Report to City Council Page 15Department of Economic DevelopmentGARDENING FOR GREENBACKSGrant Recipient Ward City AssistanceDiane Morgan d.b.a. Maggie’s Farm 15 $3,000Needham Gardens LLC 18 $3,000TOTALS $6,000In summer 2012, the City revised the Gardening for Greenbacks Program by increasinggrant amounts up to $5,000 per eligible business. The increase in grant funding is due toa financial grant contribution to the program by CoBank, AgriBank, and Farm CreditMid-America for the next three years. The group has a newly expanded mission to assistcommunities 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 oflife for its residents. The total grant is $135,000, $45,000 per year for three years.Diane Morgan d.b.a. Maggie’s FarmMaggie’s Farm is a female-owned, urban farm on a ¼acre lot. Vegetable, produce and herbs are grownand sold at local farm stands, local conveniencestores, Gordon Square, Fifth Street Arcade andTremont Farmers’ Markets. The owner has operateda market garden in the Stockyards neighborhoodsince 2011 and completed the OSU Extension Mar-ket Gardener Training program in 2012. She hasprevious experience building three community gar-dens and is the founder of NxGen, a nonprofit with amission 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 LLCNeedham Gardens LLC is an urban farm on 1/3 acreof 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 whichare sold at local farm stands, Kamms CornersFarmers’ Market, and Rockport Farmers’ Mar-ket. She has operated a market garden since2011. She completed her certificate of trainingwith the OSU Extension Market Gardener Train-ing Program in 2012. Future plans include ex-panding the market garden to include a smallgreenhouse 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 16Department of Economic Development2012 WORKING CAPITAL LOAN PROGRAMFunded with US Economic Development Administration (EDA) funds, these loans helpedsmall companies who were unable to acquire bank loans, in many cases due to morestringent credit regulations. The program helped companies create and retain jobs.CardioInsightCardioInsight, a Cleveland-based med-ical device company, was founded in2006 to commercialize a breakthroughtechnology designed to improve the di-agnosis and treatment of electrical dis-orders of the heart. CardioInsight iscommercializing a revolutionary non-invasive electrocardiographic mappingplatform. The ECVue system gatherselectrical information about the heartfrom a proprietary, multi-sensor elec-trode "vest" placed on a patient’s bodyand combines it with images from a CTscan to provide 3D maps of the electri-cal activity of the heart. Unlike conventional catheter-based mapping methods, theECVue system is non-invasive and provides a view of the entire heart’s electrical activityin 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-DoughertyBinkowsky-Dougherty Distribution (BDD)is a fourth generation interior and exteriorlumber distributor. BDD has filled ordersfor some of the biggest construction projectsin in Cleveland like the Horseshoe Casinoand the Marriott Hotel. BDD even contrib-uted to the construction of the World TradeCenter in New York City. BDD is buildinga strong reputation in Cleveland and is oneof the only certified female-owned lumberdistributers from Cleveland’s Office ofEqual Opportunity. The City of Clevelandprovided a $200,000 Working Capital loanto assist BDD in increasing its inventory sothe company could take on new clients and expand its business. In return, BinkowskyDougherty Distribution will create a minimum of 7 jobs.
  17. 17. 2013 Report to City Council Page 17Department of Economic DevelopmentBROWNFIELD REDEVELOPMENT:Remediation ActivitiesOrlando Bakery -Orlando Baking Company hasbeen operating in the City ofCleveland since 1904. They cur-rently employ over 300 people attheir location on Grand Avenue.Landlocked in their present lo-cation and in need of space forexpansion, Orlando acquired theneighboring former Van Dornsite, a brownfield, for the loca-tion of expanded productionlines 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 isexpected 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 atleast 15 jobs.Warner Swasey Building– The Department conducted a significant asbestos abate-ment at the former Warner Swasey facilityto prepare it for transfer in 2013. Over230,000 square feet of asbestos-containingmaterial (plaster, tiles, and insulation) wasremoved and disposed from July to Decem-ber 2012. USEPA RLF Funding received in2011 was supplemented by additional fund-ing in 2012 to complete the removal project.With asbestos removal complete, the projectdevelopment team is analyzing the struc-ture to prepare for redevelopment activitiesto begin in the coming year.Recipient Program WardCityAssistanceTotal Project CostJobsTo Be Created orRetainedOrlando Baking Co. CORF 5 $1,263,135 $1,693,119 315Warner Swasey Building -Asbestos RemovalCuyahoga Co. ARRA RLFODOD ARRA RLF5$1,127,937$200,000$1,527,937 360Totals $2,591,072 $3,221,056 675
  18. 18. 2013 Report to City Council Page 18Department of Economic DevelopmentBROWNFIELD REDEVELOPMENT:Industrial/Commercial Landbank ProgramCURRENT PORTFOLIOProperty Acres End Use Requirements StatusGreen City Growers 9.85 Food Production—Greenhouse SOLD December 2011—UnderConstruction w/ Production to beginin January 2013Trinity Building 5.6 Incorporate design guidelinesand meet job requirementsNo Further Action Letter—Filed w/OEPA December 2011Asphalt Plant 2.7 Incorporate design guidelinesand meet job requirementsCurrently Marketing the site.Crescent Avenue 10.77 Support Maritime Industry andGreen Space Development.Site environmental data under re-view. Remediation plan being im-plemented. Site under negotiation.Location5800 Diamond Ave.9203 Detroit Ave.West 3rd Ave.3418 Crescent Ave.Warner Swasey 5701 Carnegie Ave 2 Incorporate design guidelinesand meet job requirementsAsbestos Abatement CompletedDecember 2012. Under Option.Ward Bakery 4501 Chester Ave 2.5 Proposed Third District PoliceStation site.BUSTR NFA Resolved—Site Engi-neering nearly complete, Construc-tion expected 2013Coke Plant-CVIC Independence Ave. 54 Incorporate design guidelinesand meet job requirementsSite work is largely complete. RoadInstallation complete. ActivelyMarketing Site.Midland Steel 10615 MadisonAve.22.0 Incorporate green design guide-lines and meet job requirements.OEPA Covenant Not-to-Sue IssuedJuly 2012Former Tops–Superior and Lake-view11905 Superior 6.46 Site of Sav-A-Lot & Forman MillsFuture Site of Advance AutoSOLD August 2011OUTLOT Sold—October 2012E. 57-59th/Chester-EuclidChester Ave. fromE. 57th to E. 61st7.37 Incorporate green design guide-lines and meet job requirementsOEPA Covenant Not-to-Sue IssuedOctober 2012E. 61st & ChesterBlockChester Ave. at E.61st and 63rd St.2.53 Incorporate green design guide-lines and meet job requirementsSITE UNDER OPTIONOEPA Covenant-Not-to-Sue IssuedMay 2012In 2005, the City of Cleveland created the Industrial/Commercial Land Bank as a tool to holdand remediate brownfield sites for redevelopment. ICLB Projects are more time-consumingand can be more expensive than traditional development projects. In 2012, many of the firstprojects 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 Citythrough land sales and tax-generating construction and development. To date, the ICLB hastaken in 125 acres. 16.3 acres were sold, 4.5 are under option and 96 acres are remediatedand being marketed, leaving 13.5 acres to be remediated.
  19. 19. 2013 Report to City Council Page 19Department of Economic DevelopmentBROWNFIELD REDEVELOPMENT:Site Assessment ProgramThe 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 receivedone 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 tobring additional funding to the community and attempt to fill the gap created by reducedClean Ohio availability. Fifteen (15) sites were assessed.Midland SteelThe 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 early2000s and closed in 2003. The City was able to secure a Clean Ohio grant to supplementthe City’s funds for site remediation and undertook demolition and remediation activitiesfrom 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 hassecured a No Further Action Letter and a Covenant Not to Sue from Ohio EPA and isready 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 AssistanceJobs To BeCreatedJobsRetainedMarquette Site Assess-LB 8 $25,793 34 0Deluxe Bumper Site Assess-LB 5 $23,943 0 120Juvenile Justice Center Assess-LB 5 $34,288 N/A N/AGarrett Square Phase II Assess-Coalition 9 $31,936 15 01200 W. 76th St. Assess-Coalition 15 $35,000 3 0Oberlin Bldg. Co. Assess-Coalition 15 $35,000 0 4Detroit Shoreway—1265 W. 65th St. Assess-Coalition 15 $26,807 30 0Detroit Shoreway—5700 Detroit Assess-Coalition 15 $41,437 N/A N/ANational Freezer Assess-Coalition 5 $41,500 10 5Intesa Lot 45 Assess-Coalition 9 $33,560 500 04971 Woodland Ave. Assess-Coalition 5 $8,500 5 0Euclid 115 Apartments Assess-Coalition 9 $6,000 3 0Fifth Church of Christ NDP 16 $21,830 20 0Garrett Square—Phase II NDP 9 $20,000 15* 0Fortuna Development Site COAF 3 $298,480 20 0Total $684,072 640 129BROWNFIELD REDEVELOPMENT:Success Stories
  20. 20. 2013 Report to City Council Page 20Department of Economic DevelopmentGRANT FUNDING RECEIVED2 0 1 2 1 5 3 13 1111$-$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,0002003 2004 2005 2006 2007 2008 2009 2010 2011 2012Number of Grants /Pass Through Loans by YearGrant & Pass Through Loan Funding ReceivedGrant Name Funding Source WardYearAwardedAmountFortuna Construction Clean Ohio Assistance Fund 3 2012 $298,480Orlando Baking Co. Expansion Clean Ohio Revitalization Fund 5 2012 $1,263,135Walworth Avenue Extension Ohio Roadwork Development (629) 15 2012 $500,000Warner Swasey—Supplemental EPA RLF (Through County) 5 2012 $672,974Victory Building Ohio Job Ready Sites Program 5 2012 $1,000,000Gardening for Greenbacks CoBank Citywide 2012 $135,000Mayor’s Youth Education Program Private Donors Citywide 2012 $16,000HOST Internship Cleveland Foundation Citywide 2012 $6,500Living Cities Operations Living Cities Citywide 2012 $135,000Living Cities—Website/Portal Living Cities Citywide 2012 $40,000SC2 Fellow German Marshall Fund Citywide 2012 $15,000TOTAL $4,082,089
  21. 21. 2013 Report to City Council Page 21Department of Economic DevelopmentBROWNFIELD REDEVELOPMENT:Success StoriesShops At Garrett SquareThe City sold the former Tops at Lakeview and Superior to CenterMark Development in2011. In Spring 2012, the renewed Shops At Garrett Square opened, bringing groceriesand retail to the Glenville neighborhood with a Sav-A-Lot and Forman Mills store. Thestores combine to employ 77 Cleveland residents, many of whom are residents of theneighborhood. In 2012, the City worked with CenterMark on the sale of an outlot on thesouthern portion of the property, which will be developed with an Advance Auto and withthe due diligence toward the acquisition of a neighboring property, which will be the sub-ject of additional retail development in 2013.Cuyahoga Valley IndustrialCenterBeginning in 2009, the City, inpartnership with the GreaterCleveland Community Improve-ment Corporation, embarked on theconversion of a rolling, contaminat-ed former coke oven site into thelargest development-ready site inCleveland. The project included anunusual beneficial re-use of dredgematerial 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 hasresulted in almost 60 acres of available industrial property, capable of siting up to750,000 square feet of development, on a brownfield site that few believed would ever beredeveloped. 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 22Department of Economic DevelopmentBROWNFIELD REDEVELOPMENT:Success StoriesMidtown—Chester-Euclid Block (57th-61st Street)The Department of Economic Development had significant successes in bringing ICLBprojects to completion in 2012. In 2002, the City received a Clean Ohio grant for theMidtown neighborhood block bordered by Euclid Avenue, Chester Avenue, E. 57thStreet, and E. 61st Street. The original developer and several additional end-userspulled out of the project and left the City to complete the grant implementation andclean-up of the property. In 2012, the City’s efforts were rewarded with a No FurtherAction Letter and Covenant Not to Sue under Ohio’s Voluntary Action Program. As aresult, 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 BuildingThe 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 andan emergency removal action by USEPA in 2008, the site was released to the City tocomplete remediation in late 2010. Additional remedial activities were completed in2011 and the site achieved a No Further Action Letter in 2012. The City is finalizingthe Covenant Not to Sue with Ohio EPA and expects to be marketing a clean site in2013. Located in the heart of the Cudell neighborhood, this formerly blighting influencewill be redeveloped as an asset to the community.Industrial Commercial Landbank PropertiesFortuna Construction—The 2727 Transport Roadsite has a long and checkered past. At one time usedfor chemical manufacturing, the site was not proper-ly managed and operations were eventually shutdown by USEPA. Fortuna Construction is a grow-ing, female-owned small business, engaged in hous-ing and excavating throughout the region. Fortunahas begun the exploration of acquiring theTransport Road site as its headquarters. The site’scentralized and industrial location will help savethe company time and money in its services. Withthe assistance of Fortuna’s environmental counsel,the Department and Fortuna secured a Clean OhioAssistance 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 begunexploring 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 23Department of Economic Development2013 BUDGETFUNDING SOURCE BUDGETUDAG REPAYMENTS $4,352,318.43EDA TITLE IX (WORKING CAPITAL) $808,774.30BUSINESS GRANTS $329,875.15NDIF $3,245,091.76NDP $378,966.68RAILROAD FUNDS $89,564.67CORE CITY I $0.00CORE CITY II $0.00EMPOWERMENT ZONE 108 $10,419,557.89EMPOWERMENT ZONE EDI $1,730,494.18HUD 108 & BEDI Grant $27,125,000.00N.R.A.P., Food Cart & Gardening for Greenbacks $1,096,991.45Small Business Revolving Loan Funds (CD Funds) $44,774.65TOTALS $49,621,409.16Inside Cleveland Business Plus AwardsDepartment of Economic DevelopmentSweeps the AwardsThe Department of Economic Developmentwas presented with 4 awards at the AnnualEconomic Development Awards in June. Eco-nomic Development Agencies, Chambers ofCommerce, educational institutions and localcommunities from 18 counties compete to bethe best in a number of categories. The Cityentered 4 categories and won all four includ-ing Business Expansion (Cleveland Research),Asset Creation (Great Lakes Towing); PublicPrivate Partnership (Midtown Tech Center);Business Expansion and Retention (AmTrustFinancial).Director Tracey Nichols with staff holding theirawards. From Left to right: David Lukas, KevinSchmotzer, Liz Forester and Robin Brown. ThePlus Awards are the highest recognition in the re-gion for Economic Development.
  24. 24. 2013 Report to City Council Page 24Department of Economic DevelopmentTracey Nichols, Director216-664–3611 tnichols2@city.cleveland.oh.usAnthony Thornton, Assistant Director216-664–2832 athornton@city.cleveland.oh.usMarilu Acevedo, Administrative Assistant to the Director216-664–3677 macevedo@city.cleveland.oh.usShaunquitta Walker, Office Manager/Legislation/Prev. Wage216-664–3644, swalker3@city.cleveland.oh.usECONOMIC DEVELOPMENT & TECHNOLOGYRobin Brown, Project Manager216-664–3612 robin.brown@city.cleveland.oh.usDavid Lukas, Project Coordinator216-664–3010 dlukas@city.cleveland.oh.usMichael Elliott, Project Coordinator216-664-4470 melliott@city.cleveland.oh.usSMALL BUSINESSKevin Schmotzer, Executive for Small Business Growth216-664–3720 kschmotzer@city.cleveland.oh.usAnthony Stella, Project Coordinator216-664-4363 astella@city.cleveland.oh.usSPECIAL PROJECTS/BROWNFIELD REDEVELOPMENTDavid Ebersole, Brownfield Program Manager216-664–2204 debersole@city.cleveland.oh.usDaniel Budish, Development Officer216-664-4274 dbudish@city.cleveland.oh.usGenna Petrolla, Special Project Coordinator216-664-3605 gpetrolla@city.cleveland.oh.usCheng Han Yu, Intern 216-664-2202 cyu@city.cleveland.oh.usFISCAL/ADMINISTRATIONDan Rehor, Fiscal Manager216-664–3610 drehor@city.cleveland.oh.usByron Demery, Controller 216-664–2203Greg Perryman, Assistant Controller 216-664–3672Trinette Wiggins, Auditor 216-664-3622Brandon Hoffman, Fiscal Intern 216-664-3621Ethel Maheu, Administrative Manager 216-664–3676Alicia Torres, Paralegal 216-664–2406ClevelandEconomicDevelopmentTeam