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

Financing TOD: Partnering with the Private Sector and Anchor Institutions

Institute for Transportation & Development Policy-

TOD South AfricaOctober 2013

Cleveland’s BRT

Awarded 2004

Started in 2005

Opened 2008

Cost $200 million

Named the “Healthline” by Cleveland Clinic (Naming Rights)

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

“Rail Like” Characteristics

Higher Travel Speeds• Exclusive Right-of-way• Traffic Signal Priortization

Level Boarding “Stations” Off Board Fare Collections Real-Time Information

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

The Health Tech Corridor- Before

The Problem Statement

We have 2 Major Employment Areas that are strong and thriving- surrounded by weaker areasHow 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?

The Health Tech Corridor

University Circle

Institutions in the

foreground and

Downtown in the

background

Health Tech Corridor- Anchors

Who do we bring to the table?

Colleges and Universities

Chambers Hospitals Incubators Community

Dev’t Corps State & Local

Gov’ts Business

Organizations

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)

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

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 AuthorityCost: $120,000

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

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

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

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

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

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

New Investment Spurred by BRT Health Line

Pierre’s Expansion

6200 Euclid Avenue- Expansion of an Ice Cream Making Company already in the corridor

Build on what you have….

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

Midtown Technology Center

128,000 sf post incubator space

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

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

Opinions Change…..

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

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

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

City of Cleveland

Tracey NicholsDirector Dept. of Economic Development(216) 664-3611tnichols2@city.cleveland.oh.us