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greater cleveland development
GREATER CLEVELAND DEVELOPMENT Presentation to The Association of Public and Land-grant Universities and The Coalition of Urban Serving Universities– June 15, 2015 Greater Cleveland Partnership About the Greater Cleveland Partnership • Regional Chamber of Commerce • Focused on growing Greater Cleveland’s economy • One of the largest private chambers in the nation • 15,000 members • Covering 8 counties • Real Estate Affiliate – Cleveland Development Advisors Greater Cleveland Development • In Greater Cleveland, nearly $20 billion of real estate and infrastructure development has recently been completed or is underway since 2010. • Of that amount, more than $3 billion is occurring along or within blocks of our waterfront – both Lake Erie and the Cuyahoga River. Downtown Cleveland’s Catalytic Investments RECENTLY-COMPLETED CATALYTIC PROJECTS HORSESHOE CASINO, PHASE 1 Completed - $450 million GLOBAL CENTER FOR HEALTH INNOVATION & CONVENTION CENTER Completed - $465 million $1.2 BILLION INVESTED FLATS EAST BANK, PHASE 1 Completed - $275 million Downtown Cleveland’s Catalytic Investments MAJOR HOSPITALITY PROJECTS DRURY PLAZA HOTEL FLATS ALOFT HOTEL Construction – 180 rooms Completed – 140 rooms CONVENTION CENTER HILTON Construction – 600 rooms 1,600 WESTIN HOTEL Completed – 481 rooms METROPOLITAN AT THE 9 Completed – 156 rooms NEW HOTEL ROOMS Downtown Cleveland’s Catalytic Investments MAJOR RESIDENTIAL PROJECTS Courtesy of Dimit Architects Courtesy of FS Architecture FLATS EAST BANK, PHASE 2 Construction – 200 units 1750 EUCLID Planned – 217 units 2,700 PLANNED UNITS 95% OCCUPANCY OR RESIDENCES AT 1717 RESIDENCES AT THE HANNA HIGHER Construction FOUR YEARS Completed – 102 units 223 units THE 9 Completed 184 units Downtown Cleveland’s Catalytic Investments PUBLIC SPACE PROJECTS PLAYHOUSE SQUARE DISTICT IMPROVEMENTS PERK PARK AT CHESTER COMMONS E. 12TH STREET E. 4TH STREET Downtown Cleveland’s Catalytic Investments THE NEXT CATALYTIC DEVELOPMENTS… PUBLIC SQUARE RENOVATION $32 million DOWNTOWN LAKEFRONT PLAN LAKEFRONT PEDESTRIAN BRIDGE $25 million NUCLEUS MIXED USE DEVELOPMENT $380-400 million CLEVELAND CASINO PHASE 2 Downtown Cleveland’s Catalytic Investments Cleveland State University… Euclid Commons $66 million Center for Innovations in Health Professions $45 million College of Education $36 million Student Center $44 million The Langston $45 million Downtown Cleveland’s Catalytic Investments Middough Building Renovations $41.7 Million Downtown Cleveland’s Catalytic Investments Middough Building Activities Theatre Rehearsals CSU Fine Arts Programs Dance Studios Art Classes Downtown Cleveland’s Catalytic Investments Financial Structure • $30 Million Bond Issuance - Huntington National Bank, Trustee. Proceeds to Playhouse Square Affiliate (PHS) – Affiliate lends $26.9 million to project Middough Building (commercial) Source Bond Proceeds / Affiliate Entity Loans New Market Tax Credit Investment Equity Historic Tax Credit Equity – Parker Hannifin Owner Equity / HNB Trustee Loan / Income / Other Total Amount $ 26,947,000 7,763,000 3,267,000 3,562,000 $ 41,539,000 Percentage 65% 19% 8% 8% 100% Downtown Cleveland’s Catalytic Investments Playhouse Square $30 million bond NMTC Flowchart NMTC Equity Investors $11.7 million Tax Credits @ $0.77 $9M NMTC Equity 3 Investment Funds = $30 million Capital $30M Equity Playhouse Square Affiliate $29M Loans @3.5% Bond Trustee Loan Project: 1901 East 13th, LLC 3 CDE’s Allocations = $30 Million x 39% Credit = $11.7 million NMTC Historic Tax Credit: Parker Hannifin 3 Sub-CDE’s: 5/3, NEODF & CDA $553K Loan $41.6M Total Deferred Developer Fee $800K Construction Period Income Downtown Cleveland’s Catalytic Investments Project Uses Middough Building (commercial) Use Acquisition of Building – Middough Hard Costs - Construction Soft Costs, Fees and Financing Developer Fee Reserves Total Amount $19,700,000 Percentage 47% $13,951,956 $4,553,346 $2,500,000 $833,698 $ 41,539,000 33% 12% 6% 2% 100% Major project feasibility aspect was the sale / lease back to Middough rent paid by Middough as anchor tenant makes overall project feasible and makes space affordable to Cleveland Playhouse Downtown Cleveland’s Catalytic Investments Unique Aspects of Transaction • Cleveland State University (CSU) vacated Theatre and Arts buildings on North Campus and moved to Middough making way for 300+ unit Langston student apartment project. • 1901 East 13th, LLC (fka Middough Building) is owned by Playhouse Square and Master Leased to CSU . • CSU Sub-Leases space to Middough (174,000 SF) and Cleveland Playhouse (42,500 SF). • Intent is for CSU to eventually take ownership of the building. Downtown Cleveland’s Catalytic Investments Major Impacts • Key component to CSU commitment to build a 24-hour downtown neighborhood and contribute to the revitalization of Cleveland • Unprecedented coordinated efforts between three of Cleveland’s most important institutions: CSU, Playhouse Square and Cleveland Playhouse • LEED Silver Environmental Certification • Hundreds of students located in Playhouse Square • Expansion of Cleveland Playhouse programming – effecting Cleveland youth development Contact Information Yvette Ittu Executive Vice President, Finance & Operations Greater Cleveland Partnership (216) 592-2363 [email protected] Steve Luca Managing Vice President Cleveland Development Advisors (216) 592-2245 [email protected]
