The Observation Deck

In the recent edition of Crain's Cleveland Business, there is an article about the State of Ohio's Enterprise Zones, and who is getting assistance and who isn't.

Mayor Michael P. Summers is quoted in the story saying...

"I'm disappointed that this Lakewood Hospital redevelopment project, estimated to be $70 million to $90 million, didn't make it on the economic development radar of the state," said Lakewood Mayor Mike Summers. "I understand how it might have happened, but it's a big project in an inner-ring suburb; those don't happen very often. Everyone is interested in Amazon and big shiny stuff, but this was fundamental, and it's a 21st century transformational opportunity."

Read the entire story here: http://www.crainscleveland.com/article/ ... -officials

Which means, that Carnegie and the City of Lakewood were counting on State money to help with the development of the site? As of right not it is unclear, if the Lakewood Hospital site not getting state funds will slow down or even cancel the planned development.

In this day and age developers like to have places fully funded and/or 70% filled before even breaking ground on a project.

Did the City of Lakewood trade in our cash cows for a handful of magic beans, in an area now hit by drought?

Also in this edition of Crain;s is a story on the slowdown in rental units in Cleveland, and other sties around the area being passed over for other projects in other counties.

Stay tuned!

The Crains article is unclear.

Was the census tract where the hospital is located submitted to the state for consideration and then left out of the final award or was it never submitted as a site needing these state funds?

Who was responsible for submitting potential tracts yo the state?

The most astonishing part of the Hospital debacle is the lack of planning on the part of the Mayor and his team. The closest they came to an actual plan was the “plan” for a recreation center on the Hospital site.

Is it just now beginning to dawn on them that:

We live in a County with a declining population.

We live in a region with a declining population.

We live in a region where the apartment market has been overbuilt.

We are live in a time when there is a decline in demand for office space.

We live in a time when the retail store market is collapsing.

We live in a place where the restaurant and bar business is overbuilt.

The only growth industry in this region is the medical industry; which happens to be the industry they drove out of town.

Good grief.

Is there anyone on Council willing to ask the State Attorney General to investigate the Hospital deal?

Is there anyone on Council willing to demand the records be released?

P.S. Mr. Mayor, a taxpayer subsidized condominium project is not "transformational", it's delusional.

Bill Call wrote:The most astonishing part of the Hospital debacle is the lack of planning on the part of the Mayor and his team. The closest they came to an actual plan was the “plan” for a recreation center on the Hospital site.Is it just now beginning to dawn on them that:We live in a County with a declining population.We live in a region with a declining population.We live in a region where the apartment market has been overbuilt.We are live in a time when there is a decline in demand for office space.We live in a time when the retail store market is collapsing.We live in a place where the restaurant and bar business is overbuilt. The only growth industry in this region is the medical industry; which happens to be the industry they drove out of town.

Exactly.

Here is a link to the DSA website related to the selection of Ohio census tracks for inclusion in the State's recommendation to the federal government for opportunity zones under the new tax law.

There is also an interactive map at this web-page that is very interesting.

https://www.development.ohio.gov/bs/bs_censustracts.htm

From an earlier article in Crain's, it appears that there was a county-wide submission that did include Lakewood census tracks. Over 800 tracks were submitted statewide to the DSA; 320 were selected by the State for inclusion in its submission to the U.S. Treasury Department.

Lakewood did not make the cut, evidently.

"DSA" is what was formerly known as the Ohio Department of Economic Development.

Jim O'Bryan wrote:

In the recent edition of Crain's Cleveland Business, there is an article about the State of Ohio's Enterprise Zones, and who is getting assistance and who isn't.

Mayor Michael P. Summers is quoted in the story saying...

"I'm disappointed that this Lakewood Hospital redevelopment project, estimated to be $70 million to $90 million, didn't make it on the economic development radar of the state," said Lakewood Mayor Mike Summers. "I understand how it might have happened, but it's a big project in an inner-ring suburb; those don't happen very often. Everyone is interested in Amazon and big shiny stuff, but this was fundamental, and it's a 21st century transformational opportunity."

Read the entire story here: http://www.crainscleveland.com/article/ ... -officials

Which means, that Carnegie and the City of Lakewood were counting on State money to help with the development of the site? As of right not it is unclear, if the Lakewood Hospital site not getting state funds will slow down or even cancel the planned development.

In this day and age developers like to have places fully funded and/or 70% filled before even breaking ground on a project.

Did the City of Lakewood trade in our cash cows for a handful of magic beans, in an area now hit by drought?

Also in this edition of Crain;s is a story on the slowdown in rental units in Cleveland, and other sties around the area being passed over for other projects in other counties.

Stay tuned!

A point of clarification.

As I read the Crain's stories and the DSA web-page, it does not appear to me that this involved State of Ohio funding, but instead relates to special federal tax treatment eligibility for private investments from the private sector within certain designated census tracks.

Had Lakewood been designated, this would have benefited more than just the redevelopment of the former hospital site.

Future Investment in Lakewood Impaired By Failed Leadership

We need to view the failure of the City of Lakewood to qualify for participation in the State recommendation related to federal opportunity zones as a serious blow to future investment in our city.

This is not just about the former hospital site. It is about all future investment projects.

It means that future investment in Lakewood will not enjoy certain major tax benefits (capital gains taxation relief or complete abatement) under the new tax code, because our city will not be a designated opportunity zone.

Other communities and census tracks in Northeast Ohio will be within designated opportunity zones.

This means that proposed investment projects in Northeast Ohio may have a logical and financial preference for other communities than Lakewood.

We need to have an understanding of why Lakewood did not make the cut.

This will have a long-term negative affect on our city. The tax code is rarely revised.

This is another crucial lost opportunity for Lakewood.

Promises about a "vibrant economy" made in Lakewood Life ring quite hollow with this dismal news.

Mark Kindt wrote:

This is not just about the former hospital site. It is about all future investment projects.


Other communities and census tracks in Northeast Ohio will be within designated opportunity zones.


We need to have an understanding of why Lakewood did not make the cut.
.

I requested a copy of the City's application.

Opportunity zones are a good example of the zero sum game in Cuyahoga County. The zones don't create new jobs or development they just move it around.

Bill

I’m curious about this, as well. Hope you’ll share what you discover.

I’m wondering if they attempted to secure this taxbreak or not

Why all the concern, those that were in power for the eventual payoff will be rewarded in the end when they are no longer subject to vested interest laws. The City of Lakewood will blindly go forth and subsidize some asinine development project that has legacies of graft and corruption and destine to fail at the cost of an already over tax property owners. It's similar to the school district, the retiring superintendents built a lot of new buildings, but the students level of scholastic achievement in the state is half way down the list and revenues are at the top. Personally, I would have preferred that the student's scholastic level was at the same level of revenue stream to the school district and the buildings remained old. It would be a success to all the students that have to compete in the world of reality without family influence but liberals are only interested in form over education and in the end they won out and the students lost. The City of Lakewood has proven that regardless of the money that you throw at the school district and the city it does not exempt them from mediocrity performance with their primary missions.

Bill Call wrote:
Opportunity zones are a good example of the zero sum game in Cuyahoga County. The zones don't create new jobs or development they just move it around.

We actually hope this might benefit our business and allow us to hire new employees.

Oh, and I'm seeing Ollie's Plaza, aren't you?

but liberals are only interested in form over education and in the end they won out and the students lost.

I don't think it was the liberals doing this fella. It is scared home owners who don't want to see their primary investment lose anymore value. Nothing liberal about it.

Don't worry they put up some corporate coffee or donuts shop in it's place for the snowflakes.

I guess the non-snowflakes weren't supporting local business like they claim they do. Now business people will have to find something that people will buy. Everyone buys coffee and donuts. Snowflakes and jackasses alike.

You think that it was scared conservative home owners concerned with their properties values that demanded new buildings and continuing scholastic meritocracy from the school district for their children? I’m conservative, when we had children in school and were looking for a home 25 years ago, we checked the property taxes, the school district scholastic reputation, locations of the schools and city services. After twenty-five years, three have become a deficit to the value of our property in contrast to all the shiny new school buildings. The school board should have stuck to its primary mission and prioritized educating the children instead of tearing restate.

Incidentally, the shipping container stacked style high density townhouses will not replace the tax revenues lost by an incompetent and inept Democratic leadership that closed a hospital serving 56,000 souls and sold out resident’s healthcare services at the whim of the Cleveland Clinic. The property values on these townhouses will diminish for same reason listed above and are nothing less than tract development construction with little architectural appeal, no green space and limited parking.

You think that it was scared conservative home owners concerned with their properties values that demanded new buildings and continuing scholastic meritocracy from the school district for their children? I’m conservative, when we had children in school and were looking for a home 25 years ago, we checked the property taxes, the school district scholastic reputation, locations of the schools and city services. After twenty-five years, three have become a deficit to the value of our property in contrast to all the shiny new school buildings. The school board should have stuck to its primary mission and prioritized educating the children instead of tearing restate.

Incidentally, the shipping container stacked style high density townhouses will not replace the tax revenues lost by an incompetent and inept Democratic leadership that closed a hospital serving 56,000 souls and sold out resident’s healthcare services at the whim of the Cleveland Clinic. The property values on these townhouses will diminish for same reason listed above and are nothing less than tract development construction with little architectural appeal, no green space and limited parking.