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Apartments may rise at Flats East Bank
COULD THIS SPACE ...
INSIDE Banking on the future 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 seen in decades, institutions here and nationwide say they believe the worst is over. Read Michelle Park’s story on Page 3.
As project’s construction proceeds, developers mull reviving dormant residential component
NASA Glenn perplexed amid budget quandary
By STAN BULLARD sbullard@crain.com
... HOUSE APARTMENTS?
Federal spending cuts could affect programs By CHUCK SODER csoder@crain.com
So far, fiscal 2011 is not turning out like Ramon Lugo III had hoped. NASA Glenn Research Center this year had been expecting to get more money and a leadership role in a new NASA program aimed at developing new technologies for deep space exploration. But those things might not happen because of uncertainty at the federal level, said Mr. Lugo, the center’s director. Congress hasn’t approved the federal budget for fiscal 2011, which began Oct. 1, 2010. That delay has put new programs at NASA and other 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 chances of keeping its leadership role in the new Exploration Technology Development and Demonstration program, he said. No decisions about NASA’s budget have been made yet. House Republicans have said they aim to cut spending within many federal agencies to 2008 levels or lower, though they likely would face opposition in the
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See NASA Page 6
FILE PHOTOS/MARC GOLUB
Development of the Flats East Bank project is under way. The plan originally called for a mix of condos and rental units, but developers, such as Doug Price of K&D Group — whose Stonebridge residential complex is shown directly above — said apartments may be a more lucrative and attractive option for the project.
With construction workers laboring again on the 18-story Ernst & Young Office Tower at the Flats East Bank Neighborhood project in downtown Cleveland, steps are afoot that further may change the riverfront district’s skyline. The Wolstein Group of Beachwood and Fairmount Properties of Cleveland are looking at how to revive the “neighborhood” part of what started out as a $500 million project before tough economic times forced developers to split the Flats East Bank into phases. Adam Fishman, a Fairmount Properties principal, said last week during an interview that efforts are under way to rekindle plans for theproject’s residential component, perhaps exclusively as apartments rather than the mix of for-sale condominiums and rental units originally envisioned. The idea is so attractive that developer K&D Group has discussed creating the apartments with Wolstein Group and Fairmount, according to its CEO, Doug Price. K&D Group built Stonebridge Apartments and Condominiums in the Flats and the Residences at Six Six Eight at that address on Euclid Avenue downtown. “We’ll see where it goes,” Mr. Price said of the talks. “It can’t be condos.
The green space immediately west of the planned hotel in the above rendering may house apartments rather than for-sale condominiums.
INSIDE: Other stakeholders seek representation as development proceeds. Page 4 There’s no condo market in Cleveland now.” He should know. Mr. Price said K&D sold just six condos last year at Stonebridge Plaza on the west bank of the Flats. However, the company See EAST BANK Page 4
Manufacturers adjust as raw materials prices rise Relationships guide purchasing decisions By DAN SHINGLER dshingler@crain.com
For area manufacturers, the recovery is beginning the same way the reces-
sion did — with rising prices for steel, plastic resins and other critical raw materials. “The last time we saw prices rise like this was back in 2008,” said Terry Brown, purchasing manager for Astro Manufacturing and Design in Willoughby, a custom machine shop and specialty manufacturer. Mr. Brown mostly buys
steels and special alloys that are machined into precise parts for products including medical devices and military components. Companies such as Astro, as well as countless other machine shops, stamping plants and metal fabricators across Northeast Ohio, have seen the price of just about everything they can cut, bend, shape and
weld go up in recent months. For instance, the price of copper, which is used in cables, has risen 41% in the last five months, said Astro vice president Rich Peterson. And since July, the worldwide average price for carbon steel has gone from about $732 a metric ton to more than $800 today. See STEEL Page 17
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SPECIAL SECTION
HEALTH CARE Northeast Ohio a mecca for patients seeking quality health care ■ Page 13 PLUS: HEART HEALTH ■ TEAMING UP ■ & MORE
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 6