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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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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
