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Apartments May Rise at Flats East Bank 20110207-NEWS--1-NAT-CCI-CL_-- 2/4/2011 3:50 PM Page 1 $1.50/FEBRUARY 7 - 13, 2011 INSIDE COULD THIS SPACE ... Banking on the future Apartments Many Northeast Ohio banks in 2010 reported less delinquent debt and set aside less to cover future loan losses. After negotiating the highest levels of debt they’ve may rise at seen in decades, institutions here and nationwide say they believe the worst is over. Read Michelle Park’s story on Page 3. Flats East Bank As project’s construction proceeds, developers mull reviving dormant residential component By STAN BULLARD NASA Glenn [email protected] With construction workers laboring again on the 18-story Ernst & Young Office Tower at the Flats East Bank perplexed Neighborhood project in downtown Cleveland, steps are afoot that ... HOUSE APARTMENTS? further may change the riverfront amid budget district’s skyline. The Wolstein Group of Beach- wood and Fairmount Properties of quandary Cleveland are looking at how to revive the “neighborhood” part of what started out as a $500 million project before tough economic times Federal spending cuts forced developers to split the Flats East Bank into phases. could affect programs Adam Fishman, a Fairmount Properties principal, said last week By CHUCK SODER during an interview that efforts are [email protected] under way to rekindle plans for the- project’s residential component, The green space immediately west of So far, fiscal 2011 is not turning perhaps exclusively as apartments the planned hotel in the above render- out like Ramon Lugo III had hoped. rather than the mix of for-sale con- ing may house apartments rather than NASA Glenn Research Center this dominiums and rental units origi- for-sale condominiums. year had been expecting to get more nally envisioned. money and a leadership role in a The idea is so attractive that devel- INSIDE: Other stakeholders seek new NASA program aimed at devel- oper K&D Group has discussed cre- representation as development oping new technologies for deep ating the apartments with Wolstein proceeds. Page 4 space exploration. But those things Group and Fairmount, according to might not happen because of uncer- its CEO, Doug Price. K&D Group There’s no condo market in Cleve- tainty at the federal level, said Mr. built Stonebridge Apartments and land now.” Lugo, the center’s director. FILE PHOTOS/MARC GOLUB Condominiums in the Flats and the He should know. Mr. Price said Congress hasn’t approved the Development of the Flats East Bank project is under way. The plan originally called Residences at Six Six Eight at that ad- K&D sold just six condos last year at federal budget for fiscal 2011, which for a mix of condos and rental units, but developers, such as Doug Price of K&D dress on Euclid Avenue downtown. Stonebridge Plaza on the west bank began Oct. 1, 2010. That delay has Group — whose Stonebridge residential complex is shown directly above — said “We’ll see where it goes,” Mr. Price of the Flats. However, the company put new programs at NASA and other apartments may be a more lucrative and attractive option for the project. said of the talks. “It can’t be condos. See EAST BANK Page 4 agencies on hold. Plus, a strengthened push to cut federal spending could hurt NASA’s budget, which likely would hurt NASA Glenn, Mr. Lugo said. Any cuts also might hurt NASA Glenn’s Manufacturers adjust as raw materials prices rise chances of keeping its leadership role in the new Exploration Technology sion did — with rising prices for steels and special alloys that are weld go up in recent months. Development and Demonstration Relationships guide steel, plastic resins and other critical machined into precise parts for For instance, the price of copper, program, he said. raw materials. products including medical devices which is used in cables, has risen No decisions about NASA’s budget purchasing decisions “The last time we saw prices rise and military components. 41% in the last five months, said have been made yet. House Repub- like this was back in 2008,” said Companies such as Astro, as well Astro vice president Rich Peterson. licans have said they aim to cut By DAN SHINGLER Terry Brown, purchasing manager as countless other machine shops, And since July, the worldwide aver- spending within many federal agencies [email protected] for Astro Manufacturing and stamping plants and metal fabrica- age price for carbon steel has gone to 2008 levels or lower, though they Design in Willoughby, a custom tors across Northeast Ohio, have from about $732 a metric ton to likely would face opposition in the For area manufacturers, the recovery machine shop and specialty manu- seen the price of just about every- more than $800 today. See NASA Page 6 is beginning the same way the reces- facturer. Mr. Brown mostly buys thing they can cut, bend, shape and See STEEL Page 17 SPECIAL SECTION 06 6 HEALTH CARE NEWSPAPER Northeast Ohio a mecca for patients seeking Entire contents © 2011 71486 01032 quality health care ■ Page 13 by Crain Communications Inc. Vol. 32, No. 6 0 PLUS: HEART HEALTH ■ TEAMING UP ■ & MORE 20110207-NEWS--2-NAT-CCI-CL_-- 2/4/2011 11:18 AM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 7 - 13, 2011 CRAIN’S FAMILYBUSINESS SECTION HEALTHY MARGINS About 1.3 million Ohioans do not have medical insurance — and Ohio is better Crain’s Cleveland Business for the also will be considered. off, relatively speaking, than the rest of the country, according to a new report second year will recognize some of The deadline is Feb. 21. You may by The Center for Community Solutions and the Mental Health Advocacy the region’s best-run, financially stable nominate family businesses by sending Coalition. Ohio’s percentage of uninsured is four percentage points below the family businesses. an e-mail nomination to editor Mark 700 W. St. Clair Ave., Suite 310, national average, and its share of people with private insurance is five Cleveland, OH 44113-1230 On April 4, we’ll profile three compa- Dodosh that should include the com- percentage points above the United States as a whole. Here’s how Ohio Phone: (216) 522-1383 nies each in three categories: second-, pany’s name, how many generations it residents’ health insurance status compares with people nationwide: Fax: (216) 694-4264 third- and fourth-generation or greater has been in business and an explana- www.crainscleveland.com businesses. We’re looking for compa- tion of no more than a single page as Health insurance status Ohio United States nies regarded as good employers and to why it should be recognized. Publisher/editorial director: that have earned the respect of their E-mails to [email protected] Brian D. Tucker ([email protected]) Private 59% 54% Editor: peers. Factors such as growth and a should say “Family Business” in the Mark Dodosh ([email protected]) company’s involvement in its community subject line. Medicare 14 12 Managing editor: Scott Suttell ([email protected]) Medicaid 13 16 Sections editor: REGULAR FEATURES Amy Ann Stoessel ([email protected]) Uninsured 13 17 Assistant editors: Joel Hammond ([email protected]) Big Issue......................11 Letters.........................10 Other public 11 Sports Classified .....................18 List: Largest hotels ......16 Kathy Carr ([email protected]) Editorial .......................10 Tax Liens .......................9 SOURCE: “BY THE NUMBERS: “DEVELOPING A COMMON UNDERSTANDING FOR THE FUTURE OF Marketing and food BEHAVIORAL CARE,” BY THE CENTER FOR COMMUNITY SOLUTIONS AND THE MENTAL HEALTH ADVOCACY Senior reporter: Going Places................12 Reporters’ Notebook ....19 COALITION Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Anyone can keep your money active; Michelle Park ([email protected]) Finance Research editor: Deborah W. 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