This presentation discusses development challenges facing distressed cities like Cleveland. Cleveland has struggled with job losses in manufacturing and foreclosures, and now deals with vacant and abandoned properties, illegal dumping, and poverty. However, the presentation outlines Cleveland's efforts to address these issues through a unified strategy of education reform, partnerships, and place-based economic development focused on clusters like health technologies. Anchors like universities and initiatives like green cooperatives aim to create local jobs and opportunity.

1. Cleveland State University
November 5, 2012
Development and
Distressed Cities
A Presentation to
the Levin School of
Urban Affairs

2. Why Distressed?
Cleveland has been hard hit by a number of
factors:
 Manufacturing has lost jobs due to technology,
overseas competition and trade law changes
 Foreclosures were greater due to weak legislation on
sub-prime lending and due to high unemployment
 Excellent transportation network has helped promote
“sprawl” (More infrastructure to support with less
people/money)
 A century and a half of manufacturing has left behind
brownfields
 The cost to build is the same as other cities, but the
rents are lower

3. Vacant and Abandoned

4. Brownfields

5. Vacant & Bought by
Speculators
 Bought sight
unseen
 Increases
land
assembly
costs
 Impossible
to enforce
code on
absentee
landlords-
some in
Europe
 Late night T.V.- “Learn how to Flip Homes”

6. Stripped by Scrappers
Neighborhood
safety issue
At risk for
explosion or fire

7. Illegal Dumping
 Adds to Cost of
land assembly
 Neighborhood
Health & Safety
Issue
Dumped overnight outside
a construction site

8. Large Scale Illegal
Dumping
 No Permit
 No EPA
approval
 Accepted
Dump Truck
after Dump
Truck of C &
D materials
for a fee!
 Bulldozer
was on site
when we
arrived
 Called OEPA
for
emergency
action
(barrels)

9. Issues
 Weak Job Growth
 Widening income inequality
• People cannot get to jobs (moved to suburbs,
cutbacks or non-existent transportation)
 Growing numbers of people in poverty
• Educational Attainment
• Ex-felons return to large cities where services
are located

10. Are They Mutually
Exclusive?
Regions may not need
to address poverty to
get their economies
growing, but is it GROWTH
necessary to keep their
economies growing?
Did Cleveland’s growth
OPPORTUNITY spurt of the early 90’s
fizzle due to a failure in
addressing poverty?

11. Inequality & Poverty as
Growth Killers
 Importing talent is not a sustainable
strategy
 Statistics on high levels of poverty makes
the area less attractive to investors &
businesses making site location decisions
and high skilled workers needed to
support these businesses
 Local resources are tied up in Social
Programs and other economic costs of
poverty (Think 911 calls instead of doctor
visits)

12. The Way Forward
 Issues of Growth and Opportunity MUST
be part of a Unified Strategy
 We can’t wait “until things get better” to
act, because things will get worse
 The Federal Government usually is the
savior for big cities, but with Boomers
aging into social security in high numbers,
and budget woes…..the Feds have cut
their assistance
 Solution: Innovative Practitioners &
Partnerships

13. Importance of Leadership
 Somebody has to have the Vision- What
should we be doing?
 Public, Private and Philanthropic
Partnerships
 Higher Education has a role
 Big Corporations need to step up

14. The Vision
Mayor Jackson has worked with others in the region
and has a vision of education, opportunity and
business growth
• Education Reform
• Community Benefit Agreements
– Voluntary agreement to hire Cleveland residents and
low income Cleveland residents for construction
• Economic Development
– Committed over $250 Million in Funding in over 550
contracts to assist local businesses
– Land Assembly & Brownfield Clean-up
– Post Incubator space to capture businesses coming
out of our 7 incubators

15. Why Cleveland?
 Location and Accessibility
 Workforce
 Funding Opportunities (Venture &
Traditional)
 Tech Transfer History (7 Incubators &
3 Post-Incubator developments)
 Anchor Institutions
 Bright Future- Exciting Upcoming
Projects
 Life in the City

16. Colleges and Universities
29 colleges and
universities nourish
talent pool
175,000 students
26,000 BA/BS degrees
awarded annually

17. Anchor Institutions
 Anchor institutions are large economic drivers
that remain constant in our community.
 Many businesses seek to co-locate with these
institutions
 Cleveland Anchor Institutions:
• Case Western Reserve University
• Cuyahoga Community College
• University Hospitals
• Cleveland Clinic
• NASA
• St. Vincent’s Hospital
• Metro Hospitals
• Cleveland State University

18. Incubators &
Post Incubator Space
 BioEnterprise
 Global Cardiovascular Innovation Center
 JumpStart
 Cleveland Clinic Innovations
 MAGNET Innovation Center
 NorTech
 Goldstein, Caldwell & Assoc. Business Incubator
 Baker Building
 Midtown Technology Center (Completion
September 2011)
 7000 Euclid (Completion Fall 2011)

19. Despite the Recession….
Plain
Dealer
Sunday
July 10,
2011

20. Cluster Based Strategy
 Paints and Coatings
 Health Technologies
 Automotive
 Banking and Finance
 Food Processing
 Information and Technology
 Electric and Lighting
 Logistics and Distribution

21. Health Tech Corridor

22. Midtown Technology Center
• 128,000 sf
• LEED
• Built on
spec
• Health Line
• No private
financing
• 300+ jobs
• Only
15,000 sf
unleased
Post Incubator Space for Health Technology Cluster

23. Midtown Tech Center II
7000 Euclid
• 48,000 square
feet
• Office/technology
• LEED Building
• Free parking
• On the Health-line
for easy access to
institutions
• Fully leased
Post Incubator Space for Health Technology Cluster

24. Cuyahoga Valley
Industrial Center
•Largest assembled
site in Cleveland
•Located along
Route 77
•60 acres
•Beneficial Re-use
Project
•Space for up to
700,000 sf
•Manufacturing
Clusters

25. Steel Warehouse
Almost 100 Jobs to date
$16.1 Million original project; expanded once
since 2010 to a second building
Manufacturing Clusters

26. Miceli’s Dairy
Phase I
Ricotta facility
•50 new jobs
•$20 m
investment
Phase II
Mozzarella &
Provolone
facility
•100 new jobs
•$35 m
investment
Food Processing Cluster

27. Pierre’s Ice Cream
6200 Euclid Avenue
$8.9 million expansion
Retained 42 jobs
Food Processing Cluster

28. Flats East Bank
•$272 million project
•500,000 SF Office
Tower with 3 major
anchors
•150 Room Boutique
Hotel
•Health & Fitness
Center
•Several New
Restaurants & Bars
•545 Space Public
Garage, 400 Surface
Spaces & Transit
•1,200 foot Public
Boardwalk
•14 Acre Public Park
Banking and Finance Cluster & Place Based

29. Place Based Economic
Development
 Works to attract residents, businesses to a
local community by creating amenities
 City focus is on locations where we can
“build from strength” & therefore we
concentrate investment to create better
outcomes
 Investments generally create “local
economy jobs”
 Cooperatives anchor jobs and opportunity
in the community

30. 668 Euclid Apartments
 236 Residential
Apartments
 66,000 sq ft
Retail/Office
 Underground
parking with plaza
above
 Restoration of Completely rented within
original historic 30 days of opening- 400
person waiting list!
façade

31. Uptown - Mixed Use
•$44.5 m in
University
Circle
•66,000 sf
retail
•102
Apartments
•Creates a
“college town”
area
•CWRU
enrollment is
up

32. Evergreen Cooperative
Laundry
• 29 Jobs Created
• 90 % Minority
• 62 % Formerly
Incarcerated
• Green &
Sustainable
Laundry Operation
• Workers are
worker-owners

33. Green City Growers
Cooperative
 6 acre greenhouse
 Will grow lettuces
and basil
 42 new FTE
employees to be
created
 Employees will
become worker-
owners
 Largest customers
are local institutions

34. City of Cleveland
Tracey Nichols
Director
Dept. of Economic Development
(216) 664-3611
tnichols2@city.cleveland.oh.us