national brownfields conference 2013- "corridor answers for transit oriented development of...

City of Cleveland

Brownfield Redevelopment in the Health-Tech Corridor

Brownfields 2013May 17, 2013

Health Tech Corridor

The Health Line

The Health Line

$200,000,000 Investment Downtown (Public Square) to East

Cleveland Re-orientation of Traffic Flow Transit & Pedestrian Friendly Cleveland Clinic & UH - $6M for Naming

Rights

Brownfield Issues

The Health Tech Corridor- Before

Brownfield Corridor

Brownfield Redevelopment Tools

Brownfield Assessment Program• Phase I/Phase II

Brownfield Clean-up• Clean Ohio Program

Land Banking Leveraged Investment

• VPI Program• HUD 108/BEDI• Land Bank Proceeds

Brownfield Issues

- Historical Commercial/Industrial Land UseSoil ImpactsGround Water Impacts

- Asbestos- Vacant Land Foundations, Footers, Fill Material

Development Strategy

New Investment Spurred by BRT Health Line

Strategy

Create Opportunities for Development Leverage Institutional Investment Take Advantage of Strengths & Assets Exploit “Branding” Power of BRT Concentrate on BRT Ridership Build off of Existing Clusters

Project Successes

Pierre’s Ice Cream

75 year central NRSA company in our HEALTH TECH CORRIDOR

Could not get a Bank Loan 35,000 sq ft expansion to retain 50

jobs $6,900,000 HUD 108 $2,136,754 Equity from Company Needed a Waiver for Public Benefit

Midtown Technology Center

150 New Jobs to be created Part of the Health-Tech Corridor Needed a Waiver for Public Benefit HUD 108 Leveraged NMTC No bank financing available- City and

State only 90+% Leased

Midtown Technology Center

128,000 sf post incubator space

New home of Jumpstart, Cleveland Heart Lab and Chamberlain School of Nursing

Midtown Technology Center Bldg 2 - 7000 Euclid

• 48,000 square feet

• Office/ technology

• LEED Building• Free parking• On the Health-

line for easy access to institutions

Midtown Technology Center

• $10,700,000 HUD 108 (EZ)• $ 240,000 City of Cleveland Vacant

Property Forgivable Loan

• $ 4,153,500 New Market Tax Credit Equity • $ 1,600,000 Equity • $16,693,500 Total Project

• Debt reserve funded by HUD 108 for HUD 108 is $321,000

• TIF Debt reserve is estimated at $154,000 per year (cumulative)

Uptown - Mixed UseCase Western’s College Town

Phase I complete

•66,000 sf retail

•102 Apartments

•$44.5 m project cost

•Phase II closing Dec 2012

Conclusions

Use BRT as a Brand Use Brownfield Resources to Create

Developable Sites Bring Institutional & Private Partners to

invest in the area Generate Momentum toward future

development

City of Cleveland Department of Economic Development

Contacts:David EbersoleBrownfield Program Manager(216) 664-2204 Debersole@city.cleveland.oh.us