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.

1. Financing TOD:
Partnering with the
Private Sector and
Anchor Institutions
Institute for Transportation &
Development Policy-
TOD South Africa
October 2013

2. Cleveland’s BRT
 Awarded
2004
 Started in
2005
 Opened
2008
 Cost $200
million
Named the “Healthline” by
Cleveland Clinic (Naming Rights)

3. 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

4. “Rail Like” Characteristics
 Higher Travel Speeds
• Exclusive Right-of-way
• Traffic Signal Priortization
 Level Boarding “Stations”
 Off Board Fare Collections
 Real-Time Information

5. 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

6. The Health Tech Corridor-
Before

7. The Problem Statement
We have 2 Major Employment Areas that
are strong and thriving- surrounded by
weaker areas
How 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?

8. The Health Tech Corridor
University
Circle
Institutions
in the
foreground
and
Downtown
in the
background

9. Health Tech Corridor-
Anchors

10. Who do we bring to the
table?
 Colleges and
Universities
 Chambers
 Hospitals
 Incubators
 Community
Dev’t Corps
 State & Local
Gov’ts
 Business
Organizations

11. 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)

12. 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

13. 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
Authority
Cost: $120,000

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. New Investment Spurred
by BRT Health Line

21. Pierre’s Expansion
6200 Euclid Avenue- Expansion of an Ice
Cream Making Company already in the corridor
Build on what you have….

22. Uptown - Mixed Use
Case Western’s College Town
Phase I
complete
•66,000 sf
retail
•102
Apartments
•$44.5 m
project cost
•Phase II
closing Dec
2012

23. Midtown Technology Center
128,000 sf post
incubator space
New home of
Jumpstart,
Cleveland Heart
Lab and
Chamberlain
School of
Nursing

24. 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

25. Opinions Change…..

26. 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

27. 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

28. 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

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