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ARCADE'S FAILURE POINTS TO MORE DOWNTOWN PROBLEMSSubmitted by Roldo on Mon, 12/07/2009 - 10:35.
The highly-subsidized Hyatt Regency Cleveland and the historic 1890 The Arcade “may go up for auction at a Cuyahoga County sheriff sale”, according to an article today in Crain’s Cleveland Business by Stan Bullard. Failure of the Cleveland’s architectural gem points to continued economic problems in downtown Cleveland.
This is a severe blow to the notoriety being given to the comeback of Euclid Avenue and that section of downtown Cleveland at E. 4th Street.
A near $200 million beautification/transit project has recently been completed along Euclid Avenue, site of The Arcade.
“The 1890-vintage landmark is in the final throes of a foreclosure proceeding in Cuyahoga County Common Pleas Court,” Bullard wrote.
Not only is this a damaging blow to downtown Cleveland but a heavy financial cost to Cuyahoga County and the City of Cleveland, both lenders to the rehabilitation of The Arcade. Bullard notes that the County loaned $2 million. It is unclear how much of that is still owed. The city of Cleveland is still owed $948,000 of its $1 million loan.
Local foundations could also be hit with losses. The Gund and Cleveland foundations each loaned $750,000 to The Arcade’s restoration, Bullard wrote.
It is ironic that so much publicity has been given to the E. 4th restaurant/retail success when it is directly across the street from The Arcade at Euclid and East 4th Street. The Plain Dealer has played up the success at E. 4th Street, also the recipient of more than $10 million in public subsidies. Even the New York Times recently did an article touting the E. 4th Street economic success.
I made note of the problems at The Arcade back in July. The article also noted other government subsidies given to the renovators. See it here: http://realneo.us/content/see-saw-economics-here-down-over-there
Paul Oyaski, Cuyahoga County development director, told Bullard, “We are trying to protect our interests.” He was not encouraging.
In all, The Arcade renovation has some $10 million in public subsidies.
“Ironically, Arcade LLC’s troubles loom as plans for a casino, a new convention center and a medical merchandize mart percolate in town, promising to rally the flagging hotel market,” writes Bullard.
The Arcade also has had some new retail space opening, according to the story. Although in a walk through the building, which runs from Euclid through to Superior Ave., I found continued vacancies in the retail portion.
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Hyatt rates have always been low
I've been hearing about people regularly getting $35/night rates at the Hyatt via Priceline.com for years. I've gotten some great deals on Priceline myself, but never a luxury brand hotel for less than $50. I always wondered if that hotel made any money... apparently not.
Its a bad economy, try not
Its a bad economy, try not to appear to be relishing in it.
668 is moving along they will be looking for hundreds of people to rent those units. That’s people and those people could be customers for potential businesses in the Arcade.
The Scholfield seems to be languishing, it calls for a hotel and residential units. A major restoration project of a major landmark.
What they are attempting is to attract people to live in the city center, they intend to convert many of the old buildings on Euclid to residential, that will reduce the glut of B type office space. The intentions are there to bring a critical mass into the city center, that being residential. Not sure I believe it is currently around 9,000 people living in the city center….then the goal is to triple that. That will subsequently reduce B office space and subsequently drive up prices.
The projects are struggling, the banks reluctant to finance them, they fear the demand is not there and the subsequent return.
There may be a bomb about to go off, the projects all going at once, what happened in the 90’s nothing compared to this. The east bank, the convention center, the casino will or should drive interests in the other hotel and residential developments.
I believe that the cities office space is not well marketed and that parking is an issue as well. The city would be wise to address parking aggressively and link it to better public transit. Mainly the convention center site if it become mall C. It should be a transit center as well then.
This site is not a good place to be forward thinking is it? It is more a contrarian site, which can be good as it keep an eye on things but we have to be careful we are not driving disparity and shooting confidence.
Roldo there are lots of projects going on Euclid, they are all on the drawing board, they may never become realized and that would be sad. Where are all the members of the CAC today? Nobody planning a wedding at that venue? No executive expelling some stress in a sauna there? its sad.
Are we attempting to attract people to our city or repel them?
Construction is a feeder to the economy, you may not like that but it is true,
"There may be a bomb about to go off"
Obama can only bail out so many of our failed leaders' stupid plans... I expect lots more high profile local "downtown" bankruptcies and out of town bottom feeders like Kennedy and Gilbert - nothing good to come of any of the current plans for the edges of downtown... more like a neutron bomb going off in the center city - wait decades for the radiation to settle for any sort of half life in Cleveland, again.
Ernst and Young get $10s millions from our corrupt stupid politicians to "save their jobs" to pay "higher rent" to Wolstein for gutting the old financial district to build a really ugly office tower on the East Bank of the Flats... gee, now we have a reason for that nifty rail line on the waterfront, that helped bankrupt RTA - wow is that great.
Fat, drunk, stupid and broke.... what is the attraction here?
Disrupt IT
16 hours and 1 minute
without comments. Interesting, and healing. Flat line?
No flatlines in realneo (see header for proof)
You can;t handle the truth...
Just kidding - on realneo, we handle the truth...
Where to begin - how about the Euclid Corridor becoming the world's lamest and most corrupt corporate charity office and industrial park - for that, taxpayers wasted near a billion dollars, and ALL our leaders sold our souls and futures... Mental Hospital, Ice Cream factory, sugar packaging plant, a gated "high tech" office park, etc, etc... what a load of crap, at what great cost, bankrupting RTA.
Our leaders are fools... very corrupt, incompetent fools.
That's my comment for the moment...
Now, back to analyzing the stats for realneo that show how we have thoroughly kicked our very corrupt, incompetent fool leaders' asses for yet another year, and are surpassing their sorry wastes of technology by leaps and bounds...
No flatlines in realneo (see header for proof).
More proof forthcoming
Disrupt IT
wow on the stats
seriously
I'll explain more about this, as we review the numbers...
Wait til you see my analyses of the region's virtual community... REALNEO has the best demographics and stats in the region, for the citizens of the region, for MANY reasons, hand down!
While I'm reviewing our last year's performance, and comparing that to others in our virtual community, I'll highlight how our region's leadership has wasted $100,000s trying to compete with REALNEO, rather than integrate with us, as they have failed miserably with information technology, while we have totally kicked ass, at the global level.
If our community leaders had made a few better decisions over the last several years, regarding integration with REALNEO, our region's quality of life and economy would be in far better condition.
I'll explain more about this, as we review the numbers...
Disrupt IT
really looking forward to more details
especially if given in low IT-speak that someone like me can grasp without a pile of reference materials.