pd article jarboe 11.15.10
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Lisa DeJong, The PD
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The Penton Media Building, right, is reflected in the side of thebuilding at 45 Erieview on the left. The Erieview building, at EastNinth Street and La keside Avenue , is only 64 percent occupied.It is one of se veral office buildings hit with high vacancy in anarea that some downtown advocates a re trying to redefine a sthe NineTwelve District.
Downtown advocates aim to rebrand, remake Cleveland's financial
district
Published: Sunday, November 14, 2010, 11:00 AM Updated: Sunday, November 14, 2010, 11:57 AM
Michelle Jarboe, The Plain Dealer
CLEVELAND, Ohio -- While developers plot a
casino on Public Square, patrons fill
restaurants on East Fourth Street and club-
goers flood the Warehouse District,
Cleveland's one-time financial district sitsquiet.
Office towers around East Ninth Street that
once teemed with bankers and lawyers are
plagued with high vacancy rates and the
impending loss of major tenants.
Now, a group of downtown advocates is
trying to remake the area with hopes that a
clear plan, better parks, revived reta il and
access to cheaper parking will attract new
businesses and position the district for
redevelopment as the economy improves.
Proponents, who are calling the area the "NineTwelve District," see distress around East Ninth as a rare
chance to transform the central business district. Driven by a 16-member committee representing the city of
Cleveland, the design community, real estate companies and business groups, the NineTwelve effort ismining for opportunities in the rocky landscape along East Ninth and East 12th streets, from Euclid Avenue
to Lake Erie.
Out of 7.4 million square feet of office space in the district, 2 million square feet is empty -- the equivalent o
more than three-and-a-half 52-storied Terminal Towers.
With a handful of large tenants set to move, 800,000 additional square feet could open up by 2013,
bringing vacancy to roughly five Terminal Towers worth of space.
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Lisa DeJong, The PD
A vacant building at 1015 Euclid Ave. is p art of the JohnHartness Brown Building complex , a stretch of dilapidatedhistoric properties on the north side o f Euclid Avenue. ACleveland Heights inves tor purchased the buildings in 2006 withplans for a redevelopment project that never materialized.
early participant in NineTwelve. "There are a
lot of negative examples of cities that have
lost their downtown core, and it's hurt the
whole region. Obviously, Detroit's one.
When the downtown core revitalizes, it
helps everyone else."
The committee focused on both sides of
Ninth Street and the west side of 12th, from
Euclid Avenue to Willard Park. Notably, the
district omits the south side of Euclid and the
Ameritrust Tower, which would make the
collective vacancy even more daunting.
The East Ohio Building, at 1717 E. Ninth St., is empty. The KeyBank Center, at 800 Superior Ave., could be
largely vacant by 2012. KeyBank and law firm Calfee, Halter & Grisw old are moving out. Early this year,
the property's owner handed off the keys to its lender.
Huntington is scheduled to move in late 2011. Ernst & Young and Tucker Ellis are waiting for the de layed
Flats East Bank project, whose developers still hope to close on their financing this year. Eaton plans to
leave Superior Avenue in late 2012.
Despite the departures, some property owners are committing to the district. PNC has filled space in its
downtown tower by shifting jobs from other properties. And Optima Ventures, a deep-pocketed investor,
has purchased three properties on East Ninth: One Cleveland Center, the Huntington Building and thePenton Media Building.
Flanked by Playhouse Square and development spilling eastward from East Fourth, the district is
surrounded by activity. East Ninth remains a major artery, with the Rock and Roll Hall of Fame and Museum
to the north and access to Interstates 90 and 77 to the south. And some of the troubled buildings would
qualify for tax credits related to historic preservation and investment in low-income areas, making them
potential targets for redevelopment.
"In most real estate, you hear 'Location, location, location,'" said Kevin Piunno, U.S. leasing director forOptima. "We've got the location. Now it's a matter of reinventing it a little bit, polishing it up and marketing
it."
Promotions, parks, people and public transit
This year, advertising and public-relations firm Liggett Stashower came up with the NineTwelve District
brand, meant to represent a mixed-use neighborhood rather than a corporate center. This re-branding is
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Liggett
Stashower
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A logo developed tobrand the NineTwelveDistrict in downtownCleveland.
the first of several goals that the Downtown Cleveland Alliance and its partners hope to meet quickly.
Other tasks center on reviving the streets, to bring people back and make potential tenants take a second
look.
The NineTwelve committee has identified 13 small parks, plazas and public spaces in the district and is
talking to ParkWorks and Cleveland Public Art, two non-profit organizations, about ways to make those
areas more attractive. The city of Cleveland already is spending more than $1 million for renovations of Per
Park, at Chester Avenue and East 12th, where two men were shot last year.
Several city programs, including assistance for storefront renovations, could hel
revive small businesses in the district -- and on the streets. Cleveland launched
a food cart program last year, and the city's first food truck has developed a cul
following. Joe Marinucci, chief executive officer of the Downtown Cleveland
Alliance, envisions a handful of food trucks or carts roaming on Ninth Street,
luring workers out of office buildings and attracting lunchtime traffic from other
parts of the city.
But the most important groundwork, at least according to property owners, is
making parking cheaper and more convenient. Downtown buildings, where
tenants typically pay an additional $2 to $4 per square foot for employee
parking, can be a hard sell for companies considering a move from the suburbs. And some of the most-
troubled buildings in the NineTwelve District are the ones with limited access to parking.
Public transportation might be a solution. The NineTwelve committee wants better marketing of the Greater
Cleveland Regional Transit Authority's Commuter Advantage program, a partnership with companies that
lets employees buy monthly passes using pre-tax dollars. Roughly 500 employers and 11,000 employees
currently participate.
And NineTwelve proponents are talking to RTA General Manager Joe Calabrese about launching a free
trolley to provide an efficient connection between offices on East Ninth and cheaper parking, including an
underused municipal lot near the lakefront and garages near Quicken Loans Arena. RTA already runs two
free downtown trolley routes, which serve nearly 5,000 passengers da ily during the week.
Operating an East Ninth trolley route could cost as much as $518,000 a year and would require financial
support, at least in part, from the private sector, Calabrese said.
"We'd love for it to work," he said. "We'd love to do it, but we'd need to find the money."
A shrinking city, a smaller office market
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A group of NineTwelve committee members is studying the costs of the plan and considering potential
funding sources. The first priorities are paying for park improvements, food carts and the expanded trolley
system. But the group also will examine private and public ways to assist with improvements to viable office
buildings and transformation of obsolete ones.
"We're working with a variety of brokers on the different buildings and getting a better idea of what the
highest and best use is for any of these properties," said Tracey Nichols, the city's economic development
director. "We're trying to market the properties and work with developers to see what we can make
happen here."
Some buildings could be split into a mix of uses. Others, with smaller floors, might be attractive candidates
for apartment developers. Such conversions would bring down the supply of available office space to better
meet reduced demand. And with less vacancy downtown, landlords might be in a better position to fill the
remaining offices.
Members of the NineTwelve committee said they are focused on making the area more attractive to growing
companies, particularly those w ith young workers who want to be in an urban environment.
But they point to other parts of the city, including East Fourth and the Warehouse District, to show that
Cleveland does not have to be bound to its past. Dingy storefronts can become acclaimed restaurants. Old
warehouses can become apartments. And a former financial district can continue to be a place for work --
but can become one where people also live, dine, visit and linger.
"I happen to feel, and I know others on this committee feel very strongly, that change is good," said Paul
Westlake, of Westlake Reed Leskosky. "Change often in Cleveland is a symbol of poor hea lth. But I thinkyou have to remember the words of Harry Truman, who said a pessimist is a person who sees an
opportunity as a problem, and an optimist is a person who sees a problem as an opportunity."
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