Sup with Burke Scenario Remove Burke Lakefront Airport

‘Sup with Burke?

Scenario: Remove Burke Lakefront Airport and Create Alternative Land Use Plan Patrick Christie-Mizell James De. Rosa Jessica Dunn Michael P. Graham John Storey

Burke Lakefront: Taking It To New Heights

Project Goals n n n Increase overall productivity and usage of currently under utilized Burke parcel Minimize losses and negative impacts of closing the airport Encourage universal access to the lakefront Maximize tax benefits Make a splash in the national development scene

Debunking Burke Myths n Rerouting flights can be accomplished within existing regional framework of airports Oberlin (Lorain County Airport) undergoing expansion n Cuyahoga County Airport n Akron Fulton Airport n Akron-Canton Regional Airport n – 2 nd fastest growing airport in US (2002) – Adding runway/terminal space

Debunking Burke Myths n Business Convenience? Witness 20 -year exodus of Fortune 500 companies n CEO’s of Northeast Ohio live closer to other airports & businesses themselves are not centralized near Burke n Hopkins itself: 15 minute drive from Downtown n Chicago (Meigs Field) n

Debunking Burke Myths n FAA money 15 years—this project will take years just to plan, so this figure can be paid down without penalty or figured into the cost n Only $6 million to begin with n The long-term economic benefit of redeveloping will exceed the startup costs n

Debunking Burke Myths n Building Residential on Landfill According to Ohio Law, this is permissible so long as the land use promotes public access and/or navigation n Devoting a large portion of the redeveloped land to park space (as intended by this plan) would satisfy this requirement n

What Can We Expect to Gain? n Tax base n Public Space/Lake Access n Benefit of an enormous alreadyassembled site n Catalyzing effect for the entire region

Downtown Neighborhoods n Halt & Reverse Population Drain Draw from outside the city n Jane Campbell’s campaign promises: n “ 500, 000+” goal n “ 1500 new homes per year” n

Housing Demand Survey Methodology n Stratified random sample n Two distinct suburban community types n Brief telephone interviews n 206 respondents

Housing Demand Survey Sample Question: Try to imagine a new neighborhood of townhouses, loft units, and condominiums within one mile of downtown Cleveland, on a tree-lined boulevard with nearby freeway access, adjacent to waterfront parkland, and connected to a system of biking/walking trails. On a scale of – 3 to +3, where – 3 means “I’d never live there, ” +3 means “I’d move there tomorrow, ” and 0 means “I’m neutral toward the idea, ” please estimate your interest in living in such a neighborhood.

Target Population n n Considering a move within the next year Rated interest in living in described neighborhood between +2 and +3 Identified interest in living in townhouse or stacked flat 5. 3% of the sample

Characteristics of Target Population n n 91% childless households 45% single-adult households; 55% multiadult 45% plan to rent (rent range $350 -$1000) 55% plan to buy 22% < $175, 000 45% $175, 000 -$200, 000 33% > $200, 000 82% under the age of 50

Amenities n n n n Public biking trail/walking trail View of Lake Erie Next to lakefront public park View of downtown skyline Close to downtown Proximity to freeway interchange Adjacent to retail Access to marina/boat slip * Survey results based on a – 3 to +3 scale 2. 3 2. 0 1. 9 1. 8 1. 7 1. 5 1. 4 1. 0

Drawbacks n n n n Exposure to aircraft fumes Small-plane takeoff/landing noise Capped landfill of river dredging Within ½ mile of railroad Adjacent to Burke Airport Remediated brownfield View of airport activity * Survey results based on a – 3 to +3 scale -2. 0 -1. 3 -1. 0 -0. 9 -0. 4 -0. 1

Supportable Housing Demand

Multiple Design Objectives n n n n Provide public access to lakefront Preserve open space Offer recreational activities Increase boat slips Offer many housing products Provide transportation access to development Incorporate public art Provide economic return to the landowner

Burke Lakefront Master Plan

Public Use Features n n n n n Park space, trails, and paths Promenade along water Public boat ramp and boat slips Cleveland Sports Complex Pond/Ice skating Ferry access to Flats, E. 9 th, and Dike 14 Fishing piers 1/2 mile beach Top notch 9 hole public golf course

Public Areas

Housing Features n n n n n High-tech telecommunity Access to Waterfront Line Market rate and affordable products For rent, for sale, and rent to condo options Millionaire’s Row replicas Houseboat style units Mainstreet with new urban village feel New charter school Energy efficient design and windmill powered

Housing Products n Millionaire’s Row: 200 stacked flat units replicating 40 historic Cleveland mansions n The Edge: n 155 individual condominium units simulating houseboat living n 600 units in 4 10 -story apartment buildings

Housing Products n Burke Towers: 1, 200 units in four 20 story high rise residential apts. & condominiums n Wright Estates: 133 single family detached homes n Burke Homes: 1, 100 cluster homes n North Coast Townhouses: 100 townhouse n Aviation Assisted Living: 268 units in historic conversion of Aviation HS with two three story additions n Main Street Apartments: 100 market rate and affordable apartments

Residential & Retail

Marketing Strategy n Actively market to young professionals, empty nesters, including those living outside of Cuyahoga County n Market as a transit oriented community n Emphasize proximity to downtown Cleveland waterfront location n See Concord Place in Vancouver marketing as example

Some Rejected Ideas n n n Retain paved area for Grande Prix and air show Relocate Thistledown Racetrack to Burke site Create outdoor amphitheater Create private parks for residents Offer less public amenities Private golf course n n n n Office uses Low-rise biotech office uses Big box uses Industrial uses More high rise residential No single family detached residential Rehab Aviation H. S. into school

Financing: Phase 1 Redevelopment Costs n Demolition of Airport n Brownfield Remediation n Park Development n Construction Costs n Soft Costs n Total Redevelopment Costs: $93, 910, 601

Financing: Phase 1 New Residential Construction n 100 Low-Rise Apartments @ 1000 SF. Lease rate of $1, 000/month n 200 Stacked Flats 1200 -1700 SF. Sales Price of $145, 000 -$175, 000. n 100 Townhouses- 2500 SF. Sales Price of $225, 000. n Potential Gross Income=$28, 730, 000

Financing: Phase 1 New Public Use Construction n Community Center- 25, 000 SF n Marina W/Restaurant-12, 000 SF n 125 acres of New Parkland-5, 000 SF n Total Construction Costs= $8, 000

Financing: Phase 1 New Residential NOI n Potential Gross Income $28, 730, 000 n Total Operating Expenses $5, 618, 725 n Net Operating Income $23, 111, 275 Cash available for Debt Service= $19, 013, 416 n Cap Rate= $19, 013, 416/93, 910, 601= 20% n

Financing: Phase 1 Financing Partnership TIF District Financing $65, 000 Clean Ohio Fund $10, 500, 000 Developer Equity $6, 500, 000 Port of Cleveland-Revenue Bond $12, 000

Built Value Housing Product Average Price # of Units Built Value Millionaire’s Mile $200, 000 200 $40 M The Edge – Condos $185, 000 155 $28. 7 M The Edge – Apts. $144, 000 600 $86. 4 M Burke Towers $227, 500 1200 $273 M Wright Estates $412, 500 133 $54. 9 M Burke Homes $200, 000 1100 $220 M North Coast Townhouses $250, 000 100 $25 M Aviation Assisted Living $90, 000 268 $24. 1 M Main Street Apts. $105, 000 100 $10. 5 M TOTAL 3856 $762. 6 M Retail Space $2, 160 125, 000 sq ft $270 M $ 1. 032 B

Projected Cleveland Revenues Property Tax: (based on 1. 95%) $30. 5 M Income Tax: (based on 2%) $6. 9 M TOTAL $37. 4 M per year (does not include sale or lease of land to developers, revenue from construction, etc)

Conclusion n Underperforming airport on largest contiguous, downtown, lakefront site in region. n City has projected $12 million deficit. n Mass exodus of Fortune 500’s has continued despite Burke’s presence. n City seeks to build population base and add to public green space.

Conclusion (cont. ) n Our project would: Generate $37 M per year in tax revenue. n Add up to 6, 000 downtown residents n Add park space & lakefront access n Make a statement in national development scene & n Illustrate that this City is planning for its future. n