Report to Council 2021

Department of Economic Development Report to Council 2021

Taps & Tails is opening in 2021, converting this structure on Train Avenue in Cleveland into an active play space for dogs and dog owners in Cleveland. Despite the pandemic , entrepreneurship and small business development remains strong in Cleveland.

Department of Economic Development

CLEVELAND CITYWIDE DEVELOPMENT CORPORATION

All loans over $50,000 go through a rigorous underwriting review by the Cleveland Citywide Development Corporation (CCDC). CCDC includes bankers, local community members, business representatives, and appointed officials. The loans first are reviewed by the Loan Committee and then go for final review by the Board of Trustees. Below is the roster as of 12/31/20.

BOARD OF TRUSTEES Frank G. Jackson, Mayor Juan Hernandez, Business Growth Director City of Cleveland Growth Capital Anthony Brancatelli, Councilman Ward 12 J. Stefan Holmes, Sr. Vice President Cleveland City Council First National Bank Dr. Melissa Burrows, Director Dale R. Lenzer, VP SBA Product Specialist Cleveland-Office of Equal Opportunity Huntington National Bank Roger A. Carney, CPA N. Michael Obi, C.E.O. Community Housing Solutions Spectrum Global Freddy L. Collier Jr., Director Patricia Ramsey, VP Comm. & Econ. Dev. Cleveland-Planning Commission Fifth Third Bank David Ebersole, Director Michiel Wackers, Interim Director Cleveland-Department of Econ. Development Cleveland-Dept. of Community Development Luke D. Elsass, Vice President Natoya Walker Minor, Chief of Public Affairs First National Bank City of Cleveland Colleen Gilson, VP of CDC Advancement Henry West, Retired Banker Cleveland Neighborhood Progress, Inc.

Zulma Zabala, CEO East End Neighborhood House

LOAN REVIEW COMMITTEE Anthony Brancatelli, Councilman Ward 12 Dale R. Lenzer, VP SBA Product Specialist Cleveland City Council The Huntington National Bank Roger A. Carney, CPA Daniel O’Malia, Relationship Mgr. Community Housing Solutions Fifth Third Bank Peter Constantino Leonard E. Olsavsky, Vice President Constantino CFO Consulting, LLC U. S. Bank David Ebersole, Director Shawn Ondrejko, Senior Vice President Cleveland-Department of Economic Development Wells Fargo Bank

Michael Gruss, Assistant Vice President Dean Razek, Assistant VP Bellwether Enterprise Real Estate Capital First National Bank

Randy Horst, Sr. Vice President Derek Reed, Vice President PNC Bank KeyBank

Jeffrey T. Verespej, Executive Director Old Brooklyn CDC

2020 Report to City Council Page 2

Department of Economic Development

ECONOMIC DEVELOPMENT PROGRAMMING

Vacant Property Initiative The Vacant Property Initiative helps overcome barriers in the full reuse of abandoned, idled or underutilized commercial and industrial properties within the City of Cleveland. Eligible activities are property acquisition, environmental site assessments, site clear- ance and demolition, “as is” and “as completed” property appraisals, new construction, and renovation.

The program provides forgivable loans up to $180,000, tied to job creation and investment. Loans are made over a five-year term, with forgiveness available at the end of the loan term if job creation goals are met.

Job Creation Incentive Grant The Job Creation Incentive Program (JCIP) is utilized to attract or retain businesses in the City of Cleveland. The program provides a valuable tool for attracting growing and expanding companies to Cleveland. The grant amount paid is based on actual new payroll and income tax generated to the City of Cleveland, which is verified annually.

Economic Development Loans Economic Development Loans funded with Federal Economic Development Administra- tion Title IX funds is designed to assist small-medium businesses who are creating or retaining jobs and looking to expand in the City of Cleveland. The Program offers long term, fixed rate financing for the a variety of purposes. Loans can be used for acquisition of furniture, fixtures, machinery and/or equipment, as well as for working capital.

Tech Delta Program The Tech Delta Program is designed to supply financial assistance to assist with the modernization of space to attract leading-edge companies to grow in Cleveland. Many companies experience much higher build-out costs or rental rates due to specific techno- logical needs for their operations. The Department of Economic Development can offer grants up to $50,000 to financially support upgrades, and in turn, make it financially feasible to expand operations or to lower rents. Therefore, companies with expenses associated with tech and lab buildout beyond standard “white-box” space are ideal candi- dates for the program.

Neighborhood Retail Assistance Program The Neighborhood Retail Assistance Program provides low-interest, patient existing and start-up small businesses and entrepreneurs. Many traditional lenders cannot provide financing to locally-owned, non-chain restaurants and retail in our neighborhoods. At the same time, strong retail corridors increase the “walkability” of neighborhoods adding vitality by providing street level goods and services ultimately improving quality of life.

2020 Report to City Council Page 3

Department of Economic Development

ECONOMIC DEVELOPMENT PROGRAMMING

Neighborhood Development Program The Neighborhood Development Program provides a tool to assist with predevelopment costs for sites throughout the City. Development within the City often faces challenges from historic industrial or commercial use that new development does not face. The NDP program helps to offset these costs to make new development viable and identify paths forward that can make a project work.

Tax Increment Financing Tax Increment Financing is a tool that can be used to assist with new development. A TIF takes a portion of the new real estate taxes generated by the project and allows them to be redirected back into the project. The City regularly uses a non-school TIF, which keeps the school district’s share of the taxes whole. TIF proceeds can be used to support traditional financing, City financing, or for other resources.

Municipal Small Business Initiative Partnering with U.S. Small Business Administration and Cuyahoga County, this perfor- mance grant allows businesses to reduce their equity in a SBA funded project from the required 25% to 10%. The City provides a grant of 15% (of total project costs) which is funded half by the City and half by the County. The goal of this grant is to leverage financing to benefit small businesses in the creation of jobs and opportunities in the City of Cleveland.

COVID RELIEF PROGRAMS Safe Operations Grant The Safe Operations Grant offers grants up to $10,000 for costs incurred to operate safely during the pandemic. The Safe Operations Grant is to reimburse for costs incurred to operate safely during the pandemic. Eligible costs include PPE, (not PPP) partitions, sin- gle-use menus and other equipment required to operate safely during the pandemic. Costs can be reimbursed as far back as March 2020.

Emergency Working Capital Loan Program The Emergency Working Capital Loan Program can now provide up to $25,000 to small businesses to assist with working capital costs during the pandemic. The program does not require repayments to begin until January 2022 and keeps repayments limited to $15 per month for every $1,000 borrowed. The program helps to fund most costs of operations, such as rent, utilities, business supplies, and other operations costs dating back to March 2020.

2020 Report to City Council Page 4

Department of Economic Development

ECONOMIC DEVELOPMENT PARTNERSHIPS

KIVA is a micro-lending website that enables everyday people to pool small lending contribu- tions to provide financial access to entrepreneurs. With lenders pledging as little as $25 each, businesses are able to raise up to $10,000 toward their project. This platform gives residents the ability to support concepts they’d like to see in their neighborhoods and strengthens the bond between entrepreneurs and their community. At a 0% interest rate and with no additional fees, KIVA is a great first step for borrowers in receiving external funding.

Hebrew Free Loan Association—Start- Up Working Capital Loan Fund The Start-Up Working Capital Loan Fund provides loans up to $5,000 at 0% interest to finance working capital expenses for start-up recipients of the City’s Neighborhood Retail Assistance Program as well as recipients of the City’s SBA Municipal Small Business Ini- tiative Program

Grow Cuyahoga County Fund (GAF) The Grow Cuyahoga County Fund, is a partnership between the City of Cleveland, Cuyahoga County and the Grow America Fund, Inc., a subsidiary of the National Development Council. The partnership works to provide loans to small business that need capital to grow while creating & retaining jobs. The Fund provides loans from $100,000 to $3.4 million at or below market rates with longer loan terms, up to 25 years.

Goldman Sachs 10,000 Small Businesses Goldman Sachs 10,000 small businesses is an educational program that links learning to results for small businesses entrepreneurs. Business owners gain skills in negotiation, marketing, management, and they receive customized growth plans to take their businesses to the next level. In Cleveland, the program is administered through Cuyahoga Community College.

2020 Report to City Council Page 5

Department of Economic Development

MINORITY BUSINESS DEVELOPMENT

CAPITAL ACCESS FUND In 2016, Capital Access Fund (CAF) of Greater Cleveland was launched with the simple long-term goal: to sustain existing and create additional viable minority small businesses that creates jobs for community residents and builds community wealth. The partnership was realized by a collaborative partnership composed of The Urban League of Greater Cleveland, The National Development Council (NDC), The National Urban League Urban Empowerment Fund, Morgan Stanley as well as public and other private local lending partners. The pilot program was capitalized by a credit facility from Morgan Stanly for $2 million which was back by a loan loss reserve totaling $400K. The LLR capital partners included the City of Cleveland ($50K), Cuyahoga County ($50K), National Urban League Urban Empowerment Fund ($100K), NDC ($100K) and Morgan Stanley ($100K). In total for Round I, NDC utilized $764,460 of its own funds as it provided loan capital to minority owned business that did not meet the parameters of the Morgan Stanley funds. Since the program’s inception, the CAF has helped minority businesses at all stages with business development and pre-loan counseling services, properly structured and affordable capital, and post-loan counseling support during the life of the loan.

JUMPSTART Core City Program

JumpStart’s Core City Program provides introductory training and access to mentorship for small business entrepreneurs, with a special focus on minority-owned businesses. Over the past two years, JumpStart has worked with over 400 prospective entrepreneurs to help point them in the right direction.

The highest potential Core City clients are invited to participate in a 12-week intensive business assistance program with graduates of the program receiving awards ranging from $2,500 - $10,000. Participants commit to meeting weekly, 3-4 hours per meeting, to intensively work through critical aspects of their business’ development. Each partici- pant is also assigned a team of JumpStart mentors, to provide support and technical assistance throughout the 12-week program. JumpStart will host three cohorts of eight businesses. As part of JumpStart’s post program assistance, graduates of the program will also have access to the $500,000 loan fund.

URBAN LEAGUE—UBIZ Program

Organizations across Northeast Ohio have come together to provide financial support to UBIZ Venture Capital, an Urban League of Greater Cleveland affiliate with a primary focus on pre-loan technical assistance and providing growth capital to minority-owned small businesses. The new UBIZ fund has a goal of raising $10 million over the next 12 to 18 months. The UBIZ Fund will launch in 2021.

2020 Report to City Council Page 6

Department of Economic Development

2020 SMALL BUSINESS RELIEF PROGRAMS

Loan Deferral: The Department of Economic Development acted quickly during the pandemic to relieve some of the burden on small businesses by deferring repayments on many of the City’s loan programs to October 2020. As a result of the ongoing pandemic, deferrals were later extended to April 2021. This decision removed an operational burden for many borrowers and freed up additional cash for businesses to invest in operat- ing safely and productively during the pandemic.

Emergency Working Capital Loans: Soon after the pandemic, the Department launched the Emergency Working Capital Loan program. These loans, with deferred and patient repayment terms, were designed to help sustain business through the pandemic. In Fall 2020, the City received an award of additional Revolving Loan Fund resources from the Economic Development Administration, providing further funding for this program.

In 2020, the Department closed 161 loans to small businesses, totaling $1,559,567 in resources available to small business. We are continuing to implement this program and have already begun closing additional loans in 2021.

Winter Operations Support Grant: In November 2020, the Department, responding to stakeholder feedback, implemented a Winter Operations Support Grant program. This program provided up to $5,000 in reimbursement for expenses undertaken by Cleve- land restaurants to operate through the winter in pandemic conditions by investing in items such as tents and heaters for outdoor dining. Applications were due in December and the Department has awarded 77 grants totaling $385,0000.

Recovery Response Fund: Following the civil disturbance of May 30, 2020, the City partnered with Cuyahoga County, the Cleveland Foundation, Greater Cleveland Part- nership, and the Downtown Cleveland Alliance to provide funding to assist small businesses who suffered damages. While insurance was able to cover much of the repair costs, businesses still faced deductibles or non-covered expenses. The partners were able to raise over $1,400,000 to assist over 80 businesses in downtown. The City contributed $406,088 to this effort.

2020 Report to City Council Page 7

Department of Economic Development

LOANS /GRANTS UNDER $250,000

Under Ordinance 90-10 the Department of Economic Development may enter into loan or grant agreements for financial assistance for projects up to $250,000 with the approval of the Cleveland Citywide Development Corporation (CCDC), the Mayor and the Councilperson in whose ward the project is located. The loans are thoroughly vetted by both the Loan Committee and the Board of Trustees of the CCDC, and the grants are reviewed for impact to the community by the CCDC Board of Trustees. Annually, the Department must report these loans and grants to City Council. Below is the activity for 2019.

Borrower Program City Funding Total Project Costs Jobs Created Jobs Retained 2435 Superior Church NDP 40,000 186,000 1 0 75 Public Square VPI 180,000 41,934,260 13 0 ADCOM VPI 180,000 850,000 60 90

Advanced Aesthetics Muni 15,750 145,000 2 0 AHA Pelton NDP 40,000 44,000 4 0 BDO USA JCIP 152,186 152,186 101 30

Bellaire Puritas Dev. Co. ED Grant 16,550 16,550 0 0

Bellaire Puritas Dev. Co. ED Grant 5,000 5,000 0 0

Blanket Mills ED Loan 206,700 881,700 10 0 Cavotta Garden Center NRAP 40,000 45,000 1 0

Cleveland 2030 Ops Grant 50,000 191,772 0 0

Cleveland Cookie Dough NRAP 40,000 100,000 4 0 Cleveland Kitchen VPI 70,000 264,000 35 45 Construction Opportunity Institute of Cleveland NDP 13,500 15,000 1 0

Fathom SEO VPI 180,000 2,867,583 93 0 Fathom SEO JCIP 109,000 109,000 93 0 Film Commission Ops Grant 250,000 712,537 0 0

FIT Technologies Tech Delta 50,000 70,674 5 84 2020 Report to City Council Page 8

Department of Economic Development

Floressa Café NDP 23,000 134,000 2 0

Floressa Café NTI Loan 23,000 134,000 2 0 Friends of the Hist. Variety The- atre NDP 15,000 15,000 1 0

Hidebrandt Building NDP 35,000 36,000 1 0

Jascore 2, LLC NRAP 50,000 2,570,000 5 0

Lily's Floral NRAP 40,000 50,000 3 0

Lily's Floral SY TIF 5,000 50,000 3 0

Luna Bakery Muni 35,500 355,000 5 0

Metro West CDC NTI Grant 250,000 250,000 0 0

Nature's Beauty Tree Service NDP 40,000 55,496 1 0

Neighborgreen NRAP 50,000 146,000 3 0

NORA ED Grant 200,000 1,160,000 8 10

Obasi LLC ED Grant 50,000 96,085 2 0

OnShift Tech Delta 50,000 256,875 204 212

Paran Management NDP 40,000 44,500 1 0

Primetime Enterprises JCIP 16,385 16,385 16 0

Rudy's Mini Mart NDP 10,000 50,000 1 2 Sauce the City NRAP 10,000 17,000 3 0

Sauce the City SY TIF 5,000 17,000 3 0

Sports Commission Ops Grant 250,000 2,260,550 0 0 Taps & Tails Muni 30,000 225,000 4 0 Taps & Tails NRAP 20,000 225,000 4 0

Tiger Pistol Tech Delta 19,710 33,900 49 0 Tiger Pistol JCIP 92,722 92,722 49 0 Urban League Ops Grant 250,000 250,000 0 0 TOTAL $3,249,003 $57,130,775 793 473

2020 Report to City Council Page 9

Department of Economic Development

SUCCESS STORIES:

Sherwin Williams The Sherwin-Williams Company was founded in Cleveland in 1866. It is a global leader in the manufacture, distribution, and sale of paints, coating and related products. In September 2019, the Company announced that it was conducting a nationwide search for a new location for its global headquarter operations, currently located at the Landmark Office Tower. The search was covered nationally, with prominent coverage in Dallas and Atlanta marking those cities as potential locations. The new global headquarters will be a modern facility designed to meet the Company’s long-term future growth needs.

The City, working with many state and local partners worked together on an incentive package that will secure the company’s future in Cleveland with the construction of a new HQ building on Public Square in the heart of downtown. As a result, Sherwin Wil- liams will employ close to 3,500 jobs in downtown when they finish the construction of their new building by the mid-2020s.

Cross Country Mortgage

Cross Country Mortgage was founded sixteen years ago by Ron Leonhardt and has quickly grown to be one of the nation’s largest home mortgage lenders. The CCM team identified property on Superior Avenue in Cleve- land and has spent the last several years negotiating and acquiring different piec- es of property to consolidate the property. With the property acquired, they plan to create a multi-phased, mixed -use campus that will fea- ture the company’s new headquarters as well as a housing development.

The project will involve the historic rehabilitation of multiple buildings as well as new construction. CCM proposes to invest approximately $37,500,000 in the development of its headquarters and an additional $18,000,000 in a multi-family development around the project site. This project will lead to the location of 700 jobs in the heart of the City within five years of the project being completed.

2020 Report to City Council Page 10

Department of Economic Development

SUCCESS STORIES:

Fairfax Grocery Project:

Fairfax Renaissance Development Corp. and the Cleveland Clinic have been working for years to attract a full-service grocery on a site located on E. 105th Street and Cedar Ave- nue. The Clinic has partnered with Fairmount Properties to serve as lead developer and has worked to attract a leading-brand grocer to develop a 40-50,000 SF store as the main anchor tenant, with roughly 130,000 SF of apartment units. Many of the units will be micro-units targeted towards University Circle medical students, hospital workers, and similar staff. The City is providing a $9,000,000 HUD 108 Loan to assist with the project, in addition to a Non-School TIF.

Centennial Millenia Properties purchased the former Huntington Building from an out-of-region company in 2018. The building, originally the Union Trust Building has 1.3 million square feet, almost all of which is currently vacant and in need of rehabilitation. When completed in 1924, this historic property was the second largest building in the world in terms of square footage, with more than 30 acres (12 hectares) of floorspace. It was home to the world’s largest bank lobby of the era, which today remains among the largest in the world. The lobby features enormous marble Corinthian columns, barrel vaulted ceilings, and colorful murals.

Millenia is proposing to renovate the building predomi- nantly for housing. They are proposing to attack the project in two phases, totaling nearly $450,000,000 in total development. Currently, they are in the process of constructing the capital stack for Phase I of the project. Phase I will include renovation of the core & shell, retail (approx. 30,000 SF), and a small amount of boutique office space (approx. 95,000SF) and 480 units of one- or two -bedroom affordable/workforce housing. The future second phase will add an additional 380 units of housing, similarly priced. The City has agreed to provide a $15,000,000 HUD 108 Loan as well as a non-school TIF to support the project.

2020 Report to City Council Page 11

Department of Economic Development

VACANT PROPERTY INITIATIVE

Jobs to be Jobs Year Borrower City Assistance Total Project Cost Created Retained

2008 9 Loans $10,122,500 $58,730,673 2,279 75

2009 16 Loans $9,970,000 $112,946,629 306 173

2010 4 Loans $340,000 $2,565,000 18 1,224

2011 12 Loans $3,795,000 $103,993,970 672 268

2012 7 Loans $1,023,275 $20,278,656 218 95

2013 20 Loans $2,780,000 $131,699,610 465 136

2014 7 Loans $845,000 $256,368,276 439 48

2015 16 Loans $3,055,000 $24,642,933 347 141

2016 10 Loans $2,040,000 $121,927,682 434 566

2017 8 Loans $976,000 $29,011,588 252 39

2018 6 Loans $1,055,000 $6,173,359 286 344

2019 4 Loans $610,000 $11,589,754 69 5

2020 12607 Larchmere $430,000 $5,394,545 44 0

2020 75 Public Square $180,000 $41,934,260 13 0

2020 ADCOM $180,000 $850,000 60 90

2020 Cleveland Kitchen $70,000 $264,000 35 45

2020 Lincoln Building $360,000 $24,000,000 30 0

2020 Fathom SEO $180,000 $2,867,583 93 0

$37,961,775 $955,238,518 6,060 3,259

2020 Report to City Council Page 12

Department of Economic Development

VACANT PROPERTY INITIATIVE

Cleveland Kitchen Co. Cleveland Kitchen Co., formerly known as Cleveland Kraut was established in 2014. The owners started the company by working flea markets, farmers markets and pop ups selling their Sauerkraut product. As they have grown, they have supported farmers across Ohio, purchas- ing their raw materials locally. Fermented products are one of the fastest growing markets in the food business as there is a great national attention in the health benefits of fermented foods. Cleveland Kitchen uses raw fermented vegetables that contain enzymes and probiotics which have numerous health benefits. The company is now the second largest fermented cabbage manufacturer in the United States and is sold in forty-nine states with potential to further expand geographically. Cleveland Kitchen is currently located in the Cleveland Central Food Hub at 7501 Carne- gie Avenue. They have experienced significant sales growth and need to a recently vacat- ed space. The project will result in the creation of 35 jobs in addition to the 45 jobs already in place. The City provided a $70,000 VPI Loan to assist with the project.

Lincoln Building Sustainable Community Associates’ next project is the Lincoln Building, a new $24M building located across the street from the recently restored, Fairmont Creamery Build- ing. The Lincoln, a proposed 4-story building on the southwest corner of Scranton Road and Wiley Avenue, will contain 83 residential apartments and 6500 SF of commercial/ office space on the ground floor. Approximately 25% of the residential units will be targeted towards “workforce housing”. As it has done in the past, SCA will work with emerging entrepreneurs and established neighborhood businesses to fill the commercial/ office space. 30 full -time jobs are expected once complete. The City assisted the project with a $360,000 partially-forgivable loan and a non-school TIF

2020 Report to City Council Page 13

Department of Economic Development

SMALL BUSINESS ASSISTANCE : Neighborhood Retail

City Total Project Jobs to be Jobs Loan Recipient Assistance Cost Created Retained

Cavotta Garden Center 40,000 45,000 1 0

Cleveland Cookie Dough 40,000 100,000 4 0

Jascore 2, LLC 50,000 2,570,000 5 0

Lily's Floral 40,000 50,000 3 0

Neighborgreen 50,000 146,000 3 0

Sauce the City 10,000 17,000 3 0

Taps & Tails 20,000 225,000 4 0

Total $250,000 $3,153,000 23 0

JaScore 2, LLC The City of Cleveland is providing a loan of $50,000 under the Neighborhood Retail Assistance Program to redevelop an under-utilized, two-story building located at 1572 E. 66th Street in the Hough Neighborhood. The ownership group intends to open an ice cream parlor and retail space in support of the Baseball Heritage Museum and nearby League Park.

The project will lead to the creation of five jobs and help redevelop a currently vacant building.

2020 Report to City Council Page 14

Department of Economic Development

SMALL BUSINESS ASSISTANCE

Neighborgreen Taner Construction Group plans to use a vacant building located at 2451 Woodhill Road as their new headquarters as well as a retail location for repurposed wood products created from materials used from their various construction sites. The retail component of the business will be known as Neighborgreen. The owner, Thurmond Gissentaner be- lieves that the location represents an opportunity to introduce people to the construction industry. He visions employing residents from the neighborhood housing projects as an opportunity to receive meaningful employment and to learn skills that they can leverage into a long-term career. To assist with this project, the Department is providing a $50,000 NRAP Loan. The project will result in the creation of three new jobs.

Cavotta Garden Center The City is providing a NRAP Loan of $40,000 to assist Cavotta’s Garden Center with the construction costs and equipment purchases associated with the expansion of an urban farm and a female -owned & operated business located at 19603 Not- tingham Road in the Collinwood neighborhood of Ward 10. Cavotta’s has been in business for over 90 years serving the residents of Ward 10 as well as other nearby communities by selling their an- nuals, perennials, fresh fruits and vegetables. As a result of the project, the Garden Center will be able to add one job. Lily’s Floral Lily’s Floral LLC dba Urban Orchid (“Grantee”) is a full-service flower shop and gift boutique. Founded in 2011, Grantee has quickly become one of the premier floral boutiques in Northeast Ohio. Their flagship store is located in the Hingetown neighborhood and they opened a second location in Little Italy in 2014. This year, they moved forward with developing their third location in the Tremont neighborhood on 3154 W. 14th Street. To help them consolidate three storefronts into a larger storefront, the City provided an NRAP Loan of $40,000 and a Steelyard TIF Grant of $5,000. They will employ three people at this site.

2020 Report to City Council Page 15

Department of Economic Development

JOB CREATION INCENTIVE PROGRAM

The Job Creation Incentive Program (JCIP) is utilized to attract or retain businesses in the City of Cleveland. The program provides a valuable tool for attracting growing and expanding companies to Cleveland. The grant amount paid is based on actual new payroll and income tax generated to the City of Cleveland, verified annually.

Jobs Jobs Client Name City Assistance Created Retained

BDO USA 101 30 152,186

Cross-Country Mortgage 750 0 1,150,000

Fathom SEO 93 0 109,000

Primetime Enterprises 16 0 16,385

Sherwin Williams 140 3,148 11,500,000

Tiger Pistol 49 0 92,722

Total 1,149 3,178 $13,020,923

Fathom SEO: Fathom SEO (“Fathom”) is a digital marketing and public relations firm currently that specializes in search engine optimization, social media presence, as well as paid search, display and programmatic strategies. In an effort to expand and attract new young talent, Fathom is considering a move from to a new location at 2020 Center Street, Cleveland, OH 44113 in the Flats (“Project Site”). As a financial incentive to convince and assist Fathom with their potential move to the Project Site, the City of Cleveland provided a Job Creation Incentive Program Grant of up to $109,000.

Tiger Pistol: Tiger Pistol Inc. is a social advertising technology firm based in Aus- tin, Texas. The Company was established in Melbourne, Australia in 2011 and opened an office in Los Angeles in 2015. In 2016, they moved their corporate offices to Austin. The Company has been closely aligned with Facebook since 2013, when they launched their Facebook Marketing Content Automation Platform. The Company have located 4,320 square feet of space in the Bradley Building located at 1220 West 6th Street in Cleve- land . The City is providing the company with a Job Creation Incentive Program Grant of up to $92,722.

2020 Report to City Council Page 16

Department of Economic Development

SBA MUNICIPAL SMALL BUSINESS PROGRAM

Grant Jobs Jobs Year Company Name Amount Project Costs Created Retained 2015 14 Grants $410,683 $4,181,427 20 47 2016 11 Grants $373,000 $6,878,860 16 21

Inspiring Lives Forever, LLC 2017 dba ILF Transportation $42,692 $295,000 2 0 2017 USHA BABU LLC $10,000 $250,000 1 11 2018 Bilsky Properties LLC $21,000 $140,000 3 0 Bent Tree Coffee Roasters, 2019 LLC $24,750 $165,000 1 0 2019 Cent's Pizzeria LLC $10,000 $133,300 3 0 Ik Onkaar Inc. dba Light 2019 Touch Aesthetic Center $38,000 $270,000 2 0 2019 Landmark Assets LLC $47,000 $730,000 3 2 2020 Advanced Aesthetics $15,750 $145,000 2 0 2020 Luna Bakery $35,500 $355,000 5 0 2020 Taps & Tails $30,000 $225,000 4 0

Total $1,058,375 $13,768,587 62 81

Luna Bakery Luna Bakery is opening its third location in the region at 3500 Payne Avenue. Lu- na Bakery plans to bring local homemade European-influenced cuisine to the neighborhood, including handmade crepes, grilled paninis, salads and soups, and other various options for breakfast, lunch and dinner. The pastry selection includes croissants, macarons, cupcakes, decorat- ed sugar cookies, tarts, crepe cake and many seasonal offerings.

To support this project, the City is providing a $35,500 SBA Muni Program Grant to leverage a significant SBA Loan from Huntington Bank. Luna’s project will lead to five jobs created in the City.

2020 Report to City Council Page 17

Department of Economic Development

BROWNFIELD REDEVELOPMENT: Industrial/Commercial Land Bank Program

Property Location Acres End Use Requirements Status Former Tops– Site of Save-A-Lot, Forman Mills, SOLD August 2011 Superior and 11905 Superior 6.46 and Advance Auto Parts OUTLOT SOLD—October 2012 Lakeview

Green City Growers 5800 Diamond Food Production—Greenhouse SOLD December 2011 9.85 Incorporate green design Chester Ave. from E. 69th-70th/Chester- guidelines and meet job SOLD December 2016 E. 69th to E. 70th Euclid 2.42 requirements for site of a hotel in Construction to begin 2018. St. HTC Incorporate green design Chester Ave. from E. 59th-63rd/Chester- guidelines and meet job E. 59th to E. 63rd SOLD September 2016 Euclid 7.15 requirements for office, lab and St. research facilities Chester Ave. from E. 55th-59th/Chester- University Hospital’s Rainbow E. 55th to E. 59th SOLD July 2016 Euclid 4.25 Center for Women and Children St. 15 Acres SOLD - ODOT Incorporate design guidelines 6.5 Acres SOLD– Coast to 21.50 and meet job requirements Cuyahoga Valley I-77 & Pershing Coast Equipment Industrial Center Avenue Incorporate design guidelines Multiple developers interested 40.00 and meet job requirements in remainder of site.

Incorporate design guidelines SOLD Empire Paving. Asphalt Plant West 3rd Ave. 2.70 and meet job requirements Construction to begin in 2018.

Groundbreaking held June Trinity Building 9203 Detroit Ave. City of Cleveland Kennel Site 5.60 2017. Third District Police Station Ward Bakery 4501 Chester Ave Third District Police Station 2.50 opened Summer 2015.

Incorporate green design E. 65th-66th/Euclid Euclid Ave. from E. SOLD Construction to begin guidelines and meet job Block 65th to E. 66th St. 1.72 2021. requirements

Incorporate green design 10615 Madison SOLD April 2019. Amazon fa- Midland Steel guidelines and meet job Ave. 22.00 cility under development. requirements.

Incorporate design guidelines Pennrose selected to pursue Warner Swasey 5701 Carnegie Ave 2.00 and meet job requirements redevelopment.

NFA for eastern site accepted by Ohio EPA. GLRI Project in Support Maritime Industry and Crescent Avenue 3418 Crescent Ave. partnership with Port under- 10.77 Green Space Development. way. Property under contract with Great Lakes Towing Co. Barrio Commissary Kitchen 3199 W. 65th St. 3199 W. 65th St. SOLD January 2020 0.81 Expansion Incorporate design guidelines 3241 W. 65th St. 3241 W. 65th St. SOLD January 2020 2.46 and meet job requirements

2020 Report to City Council Page 18

Department of Economic Development

OPPORTUNITY CORRIDOR

In 2020, the Department continued to focus on acquisition and environmental assess- ment efforts in the Opportunity Corridor. JobsOhio funded Phase II Environmental assessments in all superblocks that the City had access. Despite the challenges of COVID- 19, site acquisition continued through our partnerships with Burten Bell Carr and Fair- fax.

Delays in the construction of the Corridor have pushed completion back from the end of 2021 into Spring 2022. Because of the efforts of our partners, we will be in a good posi- tion to take advantage of new development prospects in the Opportunity Corridor in the coming year. In preparation of future development interest, the Department has started to work with the environmental consultants to identify remediation strategies for the project sites.

2020 Report to City Council Page 19

Department of Economic Development

Mayor Frank G. Jackson’s Neighborhood Transformation Initiative

Mayor Frank G. Jackson’s Neighborhood Transformation Initiative Mayor Frank G. Jackson's Neighborhood Transformation Initiative (NTI) is aimed at providing healthy, sustainable and equitable opportunities to build wealth and stabilize historically fringed neighborhoods. Through NTI, the City and its partners are able to offer new tools, programs and resources to build wealth and stabilize neighborhoods. Target neighborhoods include Glenville, Buckeye-Woodland, E. 79th Street corridor, and Clark-Fulton.

In a collaborative effort, the City passed legislation authorizing several programs for NTI. The City has invested $25 million in City bond funds to attract an additional $40 million in bank and philanthropic funding to invest in, and attract additional private investment to neighborhoods that have continued to experience disinvestment since the recession.

GLENVILLE

Senior Home Repair: Forty seniors in the Glenville area were able to participate in the senior home repair program. These repairs provided significant health & safety repairs to local homes in partnership with Community Housing Solutions

Vacant Home Rehab: Famicos Foundation is currently working on the rehabilitation of four homes in the Glenville community. Two are nearing completion and two are sched- uled to being in early 2021.

New Home Construction: Orlean Company has constructed two model homes and is in process on a third. Two homes have been sold to buyers and are in the permitting process to begin in 2021.

Down Payment/Homebuyer Assistance: Begun rollout of homebuyer and down payment assistance program to provide up to $20,000 and homeownership training/assistance for prospective homebuyers.

Glenville CircleNorth: The first mixed-use project opened in 2019. The Finch Group de- veloped a mixed-use building with 63 units of housing (20% affordable) and 13,000 SF of commercial space.

Glenvillage Incubator: Seven businesses opened in the Glenville CircleNorth building in 2019. Despite the challenges of the pandemic, six businesses remain in operation. Four food businesses, a barbershop, and a clothing retailer operate in this space. As part of their participation, the businesses are provided with technical and operational assistance.

Churchill Gateway: NRP Group analyzing the development of a mixed-use development on the site of the former Harry Davis School.

2020 Report to City Council Page 20

Department of Economic Development

Mayor Frank G. Jackson’s Neighborhood Transformation Initiative

BUCKEYE

Senior Home Repair: Working with Community Housing Solutions, we are working on identifying 50 seniors to assist with necessary health and safety home repairs. Three homes have been completed and another dozen are in the review process.

Habitat for Humanity: Habitat is planning on constructing 10 new homes in the Buckeye neighborhood, focusing on Grandview Road. The Habitat homes will be targeted for low- income residents to help build wealth and homeownership. Five homes were completed in 2020.

Buckeye Road Commercial Stabilization: Burten Bell Carr has been engaged in working with the City to identify and acquire critical commercial buildings in order to stabilize Buckeye Road. In the next phase of this program, BBC will lead the stabilization of the structures and assist in positioning them for redevelopment.

TLCI Planning Grant: NOACA and the City are engaged in a comprehensive planning exercise to develop a redevelopment program and strategy for Buckeye Road.

Woodhill UpNext: City, CMHA, and local stakeholders are working to secure a CHOICE Grant from the Federal government to help support the revitalization of the area around Woodhill Homes through a comprehensive approach to housing, commercial, and workforce development.

CLARK-FULTON

Vacant Home Rehabilitation: Metro West CDC launching a program to rehabilitate three homes in the Clark-Fulton area working with local, neighborhood-based contractors. Re- habilitation is expected to begin in 2021.

Blanket Mills: City provided the development group with a loan to support the demolition of a portion of the former Blanket Mills structure. The City is engaged in discus- sions with the Levin Group to complete the capital stack and begin construction in 2021.

Hildebrandt Building: City provided NDP Grant and worked with NEORSD to secure a Green Infrastructure Grant to help with improvements to the roof and parking lot of the building, which serves as a hub for food-based businesses and entrepreneurs.

2020 Report to City Council Page 21

Department of Economic Development

BUDGET

FUNDING SOURCE BUDGET

UDAG REPAYMENTS $4,038,832

EDA TITLE IX (WORKING CAPITAL) $2,001,056

JOB CREATION INCENTIVE PROGRAM $717,690

NDIF $171,842

NDP $178,349

EMPOWERMENT ZONE 108 $6,419,557

EMPOWERMENT ZONE EDI $847,104

N.R.A.P. $ 498,223

Municipal Small Business Initiative (with SBA) $518,249

CARES ACT—EDA Title IX RLF $2,461,323

TOTALS $17,852,225

FEDERAL FUNDING AWARDS

The Department of Economic Development received the following awards from the Fed- eral Government in 2020: · $3,960,000 from the Economic Development Administration through the CARES Act to supplement the City’s Revolving Loan Fund and support small business lending. · $15,000,000 in HUD 108 Funding to support the Centennial Project · $9,000,000 in HUD 108 Funding to support the Fairfax Grocery project

2020 Report to City Council Page 22

Department of Economic Development

David Ebersole, Director 216-664–2204 [email protected] Marilu Acevedo, Administrative Assistant to the Director 216-664–3677 [email protected]

ECONOMIC DEVELOPMENT & TECHNOLOGY Robin Brown, Program Manager 216-664–3612 [email protected] Cassandra Slansky, Development Finance Analyst 216-664-3010 [email protected] Tony Svoboda, Economic Development Specialist 216-664-3684 [email protected]

SMALL BUSINESS Kevin Schmotzer, Executive for Small Business Growth 216-664–3720 [email protected] Stephanie Phillibert, Economic Development Specialist 216-664–3627 [email protected] Charese Robinson, Development Finance Analyst 216-664-4274 [email protected]

SPECIAL PROJECTS/BROWNFIELD REDEVELOPMENT Daniel Kennedy, Economic Development Specialist 216-664-3921 [email protected]

MAYOR’S NEIGHBORHOOD TRANSFORMATION INITIATIVE Briana Butler, Program Manager 216-664-2202 [email protected] Matt Keri, Development Finance Analyst 216-664-3622 [email protected]

FISCAL/ADMINISTRATION Dan Rehor, Fiscal Manager 216-664–3610 Byron Demery, Controller 216-664-2203 Greg Perryman, Assistant Controller 216-664-3672 Marianne Hodges, Auditor 216-664-3682

Cleveland Economic Development Team Development Economic Cleveland

2020 Report to City Council Page 23