Crain's Cleveland Business

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be successfully transplanted. Property taking, called eminent domain, for road building on this scale hasn’t been undertaken in Cleveland in years. Unlike the rebuilding of the Inner Belt Bridge over the Cuyahoga River, which is using an existing right-of-way, the Ohio Department of Transportation (ODOT) expects to purchase more than 90 acres of land — all or parts of 379 parcels of land — to create what will become part of state Route 10. The road would be a divided, 35mph boulevard linking Interstate 490 at East 55th Street to University Circle along East 105th Street. It would make it easier to reach the growing health care and employment center at University Circle from the west. City planners also see the road as an opportunity to rejuvenate an aging, struggling part of Cleveland by redeveloping land adjacent to the roadway into a new commercial or light industrial district. Work on the roadway so far has been in the University Circle area. But early last month, ODOT awarded a $35 million contract to Great Lakes Construction Co. for what’s called Phase 2, a major section of the roadway from, roughly, East 105th

Street near University Circle west to East 93rd Street. The work is scheduled to begin later this year and be completed in the fall of 2018. But the transportation agency is still buying land along Woodland Avenue west of Woodhill Road. Property acquisition in the Phase 2 area is scheduled to be completed by August. ODOT hires appraisers and other professionals to negotiate with property owners. Asked to comment on its dealings with business owners whose land the agency is taking, an ODOT spokesperson emailed that the person who could talk about property acquisitions was out of the office until June 13. While most of the land being acquired is residential and a chunk of that, nearly 12 acres, is vacant land or abandoned homes owned by the city of Cleveland’s land bank, ODOT has identified 13 businesses that will have to be relocated and 22 commercial buildings that will have to be demolished to make way for the roadway. The construction will also trim 26 acres off 150 parcels of land, so-called partial takes, with some of the taking disrupting the plans of operating businesses. Bruder Building Materials’ operation at East 90th Street and Buckeye Road is directly in the road’s path, so the business is relocating to Maple

Contact: Lynn Calcaterra Phone: (216) 771-5276 E-mail: CLBClassified@crain.com

Heights in August. But owner Michael Bruder isn’t happy about how his family business that sells bricks, stone pavers and other landscaping materials is leaving a property it has done business from for 70 years and through three generations. “It hasn’t been good for us,” he said. “The compensation is called ‘fair market value’ (for the land being taken), but to buy a four-plus-acre property with the size warehouse we have anywhere in Northeast Ohio costs considerably more than (the value) we have (on Woodland).” Bruder also complained that the $25,000 cap the Ohio Revised Code puts on what is called “reestablishment expense reimbursement,” to compensate a business owner for the cost of making a new location ready for business, is inadequate. “If you’re a larger business and you have a big property and you have engineering fees and have to buy signs and build a big fence, all of those things add up, so (the $25,000) doesn’t go very far,” he said. “The expense of the move is a challenge for us.” Governments at all levels have the power to take private property for important public use, especially for road building. Ohio law strictly guides the process ODOT uses and requires property owners to be paid “just compensation,” which includes the fair market value of the property

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Thayer said he had bought the back parcel and the building on it, formerly home to a box-making business, several years ago with expansion in mind. “It gave us some peace of mind and breathing room that now we could expand,” he said. “We had some decent storage area and a place to relocate our machine shop and enlarge our forge.” Now, that plan is in the trash and Thayer and Wright have to find a place for a storage building to replace what the roadway is taking away. But the road project was even harder on Todd Shaker and his business, The Final Cut, which processed produce for use by grocers and fastfood restaurants on Evins Avenue, directly in the roadway’s path. When he first heard about the plan for a new roadway three years ago, Shaker told Crain’s Cleveland Business he wasn’t sure his business could survive. He said that he couldn’t use some refrigeration equipment in his current building in whatever new building he would move into because he couldn’t afford the downtime a move would entail. He would need to buy new. He was right. Reached last week, Shaker was reluctant to discuss what happened to his business. “We ended up closing it,” was all he would say.

and, if only a part of the property is taken, damages to compensate for the loss of the piece of land taken. Those guidelines work comparatively well for taking residential property, though depressed property values along the Opportunity Corridor and the sentimental attachments long-time residents have to their homes have made the process a little bumpy. But the financial impact of a move or even a partial taking of land on an ongoing business doesn’t easily fit into the guidelines. Take Forge Products Corp. and its operation at 9303 Woodland Avenue. “They’re cutting off our leg at the knee,” is how general manager Andrew Wright describes how ODOT is treating Forge Products, though he admits that ODOT is just following what state law allows the agency to do. The roadway will bisect a parcel north of Forge’s main operation owned by Forge’s president and CEO, Charles Thayer II. The property has a four-story building the forging, metal-machining and heattreating company uses for storage. So the building will be demolished and Thayer and his business will end up with two parcels of land. One, the operating facility south of Route 10, and another remnant piece north of the roadway, no longer of value to the forging business.

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