Crain's Cleveland Business

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WEEKLY FOCUS: SMALL BUSINESS, Page 10 VOL. 40, NO. 10

MARCH 11 - 17, 2019

Source Lunch

Akron The Rubber City’s office market is on an upswing. Page 17

The List Largest engineering firms in NEO Page 15

CLEVELAND BUSINESS

Suzie Graham, Downtown Akron Partnership Page 19 BANKRUPTCY

Negligible payouts expected for DTV creditors

ECONOMIC DEVELOPMENT

Cleveland’s neglected avenue could be the next Midtown hotspot By Jay Miller

By Stan Bullard

jmiller@crain.com @millerjh

Carnegie Avenue in Cleveland’s Midtown neighborhood may finally become something more than a way for East Side commuters to get to and from work downtown. The city of Cleveland and MidTown Cleveland Inc., the community development corporation that serves Midtown, have commissioned a study, called “re-incarnegie,” to figure out how to make the hodgepodge corridor of vacant land and empty or underused commercial buildings along the 2-mile stretch between the Innerbelt Freeway and East 79th Street an attractive option for commercial or residential development as the parallel Euclid Avenue corridor has gotten crowded. At the same time, the city of Cleveland is working with a developer, Pennrose Properties LLC of Philadelphia, to take over the long-vacant Warner & Swasey Co. complex at East 55th Street and Carnegie, for either redevelopment or demolition. “Our vision and strategy, clearly, is to not just have Carnegie be a passthrough neighborhood,” said MidTown Cleveland chair Stephanie McHenry. “There is a big opportunity to create some north-south flow and create the look and feel of a neighborhood, especially for the residential area” to the south along Cedar Avenue.

CARNEGIE WINS FRIENDS, INFLUENCES DEVELOPMENT

SEE CARNEGIE, PAGE 6

Entire contents © 2019 by Crain Communications Inc.

sbullard@crain.com @CrainRltyWriter

As the bankruptcy proceeding in U.S. District Court of Northern Ohio in Cleveland over Danny Vegh’s, the half-century old retailer of pingpong and pool tables and home furnishings, enters its last rounds, Albert Ratner, former co-chairman and CEO of the former Ratner Forest City Enterprises Inc., has surfaced in a central role. Ratner, who ran the recently acquired Cleveland-based development firm for decades, is the only secured creditor in the group. Last fall, using the name 50 Public Square LLC, he bought KeyBank’s secured debt against the Danny Vegh’s business for $355,000. In a court filing, Ratner’s attorney said he bought the debt to help Kathy Hughes, the daughter of Danny Vegh, maintain the 55-year-old family business. Ratner is an investor in Tech Elevator, a coding boot camp operated by Anthony Hughes, Kathy Hughes’ husband, and learned about its descent into bankruptcy from him, but had no other interest in the family business. However, things apparently became less friendly after Ratner found how little revenue was left in the business and began to push for liquidation, something the Danny Vegh’s business itself agreed to do. SEE VEGH’S, PAGE 4

INSIDE

The long-vacant Warner & Swasey Co. complex on Carnegie Avenue near East 55th Street may finally be redeveloped — or demolished. (David Kordalski)

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Browns work to help high school officiating Page 6

3/8/19 12:50 PM


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