Cleveland: University Circle is BOOMING!!! (Euclid: rental, per square foot, living)

[usaf_1832]

More buzz:

New businesses springing up as Uptown project brings new life to University Circle

[homiej]

K&D Group plans to buy, remake East Ohio Building in downtown Cleveland as 223 apartments by 2014 (gallery) | cleveland.com Saw this on le Twitter. Is it up yet?

[costello_musicman]

And now, a full-service grocery store walking distance for residents:

Constantino's Market University Circle opening soon

[Townes Van Zandt]

Originally Posted by homiej

K&D Group plans to buy, remake East Ohio Building in downtown Cleveland as 223 apartments by 2014 (gallery) | cleveland.com Saw this on le Twitter. Is it up yet?

This seems like good news, but like a lot of the people commenting on the article, I'm also put off by the need fox tax subsidies. Michelle Jarboe's explanation didn't satisfy me. Here is her response in the comment section:

Regarding the potential financing for the East Ohio Building redevelopment, almost every big project in Cleveland involves a mix of private and public sources. Those sources range from tax credits, to loans, to tax-increment financing. Without them, it's nearly impossible to make these projects happen. That's just a fact of development in Cleveland -- and many other cities.

Okay, this part I buy. But...

Even though demand for apartments is high, rents in Cleveland are relatively low. That makes it difficult to do a project like this without subsidies, and even harder to pay for new construction.

^^This makes no sense. All other things being equal, low rent should have no effect on the viability of a project if the demand is high enough. And I fully believe that demand is more than high enough for this kind of development. I'm highly skeptical that low rent is why public subsidy is so prevalent in Cleveland development. There is something else at play here..

[Cleveland_Collector]

It makes sense as long as it's a public loan and driven by TIF. Cities can borrow money much easier than developers can as long as an improvement is being made that will, in theory, bring in more tax revenue (like: higher-end living quarters = higher property and income tax). That's the whole philosophy behind a TIF loan. Basically, you take an area or building that generates little revenue (like the East Ohio Building) and have the city secure a TIF loan to aid in the redevelopment. If handled properly, it's a win-win because the interest rate is very low (around 1.5%) and also non-volatile. The only real risk is that the project doesn't generate enough revenue to cover the loan in full.

It's not just a Cleveland thing. It's done all the time, even in places like Chicago and New York City. I'm pretty sure the only states that don't do it are places like Wyoming, Oklahoma, and Arizona.

[costello_musicman]

^^ How is this "University Circle??"

[scarletneon]

Originally Posted by Cleveland_Collector

It makes sense as long as it's a public loan and driven by TIF. Cities can borrow money much easier than developers can as long as an improvement is being made that will, in theory, bring in more tax revenue (like: higher-end living quarters = higher property and income tax). That's the whole philosophy behind a TIF loan. Basically, you take an area or building that generates little revenue (like the East Ohio Building) and have the city secure a TIF loan to aid in the redevelopment. If handled properly, it's a win-win because the interest rate is very low (around 1.5%) and also non-volatile. The only real risk is that the project doesn't generate enough revenue to cover the loan in full.

It's not just a Cleveland thing. It's done all the time, even in places like Chicago and New York City. I'm pretty sure the only states that don't do it are places like Wyoming, Oklahoma, and Arizona.

And TIF funding is Not popular in Chicago by any means, except with developers of course. There is some really shady stuff going on with it there, not sure if its the same way here.

Re: Constantinos in UC - now they don't have to come downtown for sky high groceries

[Cleveland_Collector]

Originally Posted by scarletneon

And TIF funding is Not popular in Chicago by any means, except with developers of course. There is some really shady stuff going on with it there, not sure if its the same way here.

Well, it's still popular. And, yes, it's possible for it to be abused just like anything else (mortgage derivatives, anyone?). The point is, it's a fair method of turning something that is revenue negative into being revenue positive while sharing is some initial cost. Over the long run, the municipality should recoup at least what was financed. There are plenty of examples where TIFs have been beneficial.

Re: Constantinos in UC - now they don't have to come downtown for sky high groceries

The price of convenience in the city. You should know as a Jewel - Osco in the loop isn't exactly a bargain either.

[Cleveland_Collector]

Originally Posted by costello_musicman

^^ How is this "University Circle??"

It's about University Circle's mass-influence on Euclid Avenue, in general.

Also, a lot of what is being done on UC has been kick-started with a TIF.

[scarletneon]

Originally Posted by Cleveland_Collector

Well, it's still popular. And, yes, it's possible for it to be abused just like anything else (mortgage derivatives, anyone?). The point is, it's a fair method of turning something that is revenue negative into being revenue positive while sharing is some initial cost. Over the long run, the municipality should recoup at least what was financed. There are plenty of examples where TIFs have been beneficial.



The price of convenience in the city. You should know as a Jewel - Osco in the loop isn't exactly a bargain either.

wouldn't know - never went to a grocery in the loop. those little mexican produce stores in the neighborhood on the other hand ... i could feed myself for a whole week on 20 bucks