Crain's Cleveland Business

Page 1

EDUCATION

Survey: Cleveland’s educational attainment lags behind other metro areas.

SPORTS: Decades after debut, Guardians broadcaster still loves what he does. PAGE 6

PAGE 4 CRAINSCLEVELAND.COM I MAY 23, 2022

MORE THAN A SEASONAL ATTRACTION

CITY OF SANDUSKY

Downtown Sandusky recasts itself as a destination with fresh water and affordable properties. Page 10

Reforms catch developers off-guard Clinic’s capital plan Bibb administration proposes changes to tax-abatement program for housing BY MICHELLE JARBOE

Builders and developers were shocked this month when Cleveland Mayor Justin Bibb’s administration proposed significant changes to the city’s longstanding tax-abatement program for housing. Those modifications include reducing property-tax breaks in hot areas, including parts of downtown; requiring apartment developers to incorporate lower-rent units into their projects, in exchange for incentives; and capping abatement

on for-sale properties. None of those ideas are new. They surfaced in 2020, in a detailed study of the program, which is designed to attract new residents and improve the city’s aging housing stock. But practitioners who had a seat at the table a few years ago, during broad community discussions, said they weren’t part of the process of crafting legislation unveiled on May 9. And they believe the city needs to be doing more, not less, to attract private investment during a housing

NEWSPAPER

VOL. 43, NO. 20 l COPYRIGHT 2022 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

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shortage worsened by soaring construction costs and interest-rate hikes. “I feel like a lot of the people who are behind changing the abatement don’t truly understand how stressed we are in our industry right now,” said Andrew Gotlieb of Keystate Homes, a Bedford Heights builder that is active in the city. “And I don’t think they truly understand the repercussions. … You’re rocking the boat of an industry.” See REFORMS on Page 28

THE

LAND SCAPE

focuses on research BY LYDIA COUTRÉ

Recently unveiled details of Cleveland Clinic’s $1.3 billion capital commitment significantly expand on plans to add capacity to its Neurological and Cole Eye institutes — plans first announced three years ago and then paused during the pandemic. In addition to a new building for the Neurological Institute and expansion of the Cole Eye Institute — each of which grew substantially in

scale since 2019 — the Clinic also is expanding research facilities through its commitment to the Cleveland Innovation District, a research and education partnership among five anchor institutions. The biggest change to the capital plan over the past three years is this “major, major investment in research,” said Bill Peacock, the Clinic’s chief of operations. See CLINIC on Page 29

A CRAIN’S CLEVELAND PODCAST

5/20/2022 3:18:30 PM


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