Bob Stark's vision for the Warehouse District

Pesht, Robert Stark’s proposed, large-scale mixed-use development on 21 acres of surface parking lots in the Warehouse District, could be transformative for downtown Cleveland.

Stark says Pesht would be a $1 billion project that stretches from Superior (between W. 6th and W. 3rd streets) north to the Lakefront with development over the train tracks to connect with more development at the Port Authority parking lot just west of Cleveland Browns Stadium. He envisions 1 million square feet of street-level retail and, above that, parking and 6 million square feet of mixed residential and office space.

Multiple issues need to be addressed.

  • series of Sun Newspapers articles penned by Ken Prendergast pegs downtown Cleveland's current population at less than 10,000 and quotes development consultant Steve Strnisha saying 15,000 people "should be enough of a market to support basic retailers, like full-service grocery stores. In turn, that should attract more residential construction."
  • Can Stark attract the retail at the same time proposing to add tens of thousands of new residents?
  • A cover article in the Feb. 27, 2006 Crain's Cleveland Business reports that a possible hurdle is the profitability of the parking lots. How much parking needs to get built into Pesht to offset the loss of the surface lot and accommodate the new residents?
  • It's almost inevitable that the developers will seek a TIFF or public subsidy for the parking deck - how much tax revenue will the city and the schools be asked to forgo?  
  • Will the developer consider the average household income of the region and include at least a percentage of units that are affordable for the average Clevelander?
  • How does Pesht become an example of an exciting destination that utilizes sustainable technologies and becomes a national model for commercial green building?

PD story on the Stark plan for the Warehouse District (4/23/06)

Updates: 

(7/02/07) Ohio City Near West director Joe Mazzola hired to lead Pesht development. Darryl Whitehead, Stark's director of marketing, said "it's going to be a while" before a formal announcement of the project can be made, PD reports. "The next step will be solidifying letters of intent" from retailers and office tenants, he said.

(10/17/06) Stark tells audience at Levin College that he's ready to sign leases and has unanimity with Port Authority for Pesht. See link below.

(5/24/06) Stark grabs interest of national retail chains at Las Vegas meeting, The Plain Dealer reports. Sitting in meetings with Stark are Port Authority chair John Carney and Cleveland chief of government affairs, Valarie McCall.  

(5/18/06) Robert Stark signs a development agreement for three key downtown parking lots between West Third and West Sixth streets owned by Weston Inc., a Solon-based developer controlled by the Asher family, the Plain Dealer reports. With site control locked up, Stark heads to the International Council of Shopping Centers convention this weekend in Las Vegas. The deal will allow him to market the property to retailers there.

  

June 3, 2006 - 9:43am

Public spaces?

Ed Says:

I'm all for plans such as this, but what overall plans are there for public spaces downtown as development progresses?  People need things like greenspace and facilities for outdoor activities like bicycling facilities (paths, bike lanes on streets, etc)and/or parcours trail and other things of this nature. 

What's being done, if anything, for these things?

June 4, 2006 - 7:46pm

Downtown public spaces

David Beach Says:

Several projects are focusing on downtown greenspace and bike links. Parkworks has a downtown greenspace program that already has helped turn a parking lot into a park on Mall C and now is working to rebuild Perk Park and create parks on other sites. The Euclid Corridor project will include bike lanes, thanks to advocacy by EcoCity Cleveland and the City of Cleveland. The city's lakefront plan will improve the downtown lakefront. And projects in the Flats — such as Flats East, the proposed Canal Basin Park, and the extension of the Towpath Trail — will add amenities for downtown residents. There is also interest (though no formal plan) in turning Public Square into a much better urban square.

Of course, much more needs to be done. But this is a start.

May 19, 2006 - 7:44pm

Some thoughts on Stark's plan

Stephen Gross Says:

>A series of Sun Newspapers articles penned by Ken Prendergast pegs downtown Cleveland's current population at less than 10,000 and quotes development consultant Steve Strnisha saying 15,000 people "should be enough of a market to support basic retailers, like full-service grocery stores. In turn, that should attract more residential construction."

The logic inherent in this question is sound: populations precede retailers. That is, we assess the viability of retailers on the basis of the resident population. For the most part, I think it's a reasonable point.

The issue, however, still brings up the chicken-or-egg question of urban development: does a rising population drive growth in retail & services, or vice versa? I think most would agree that the two elements, in the right circumstances, function as a feedback loop for urban growth.

Planners & city economic developers focus on a prime-the-pump mentality: tax abatement here, land clearing there, and a little bit of eminent domain (see: Wolstein) help things along. Stark, hwoever, is using a different approach: using massive financial leverage, he proposes to prime two key economic pumps at the same time: residential *and* retail growth.

>Can Stark attract the retail at the same time proposing to add tens of thousands of new residents?

Naturally, we get to the second question. Attracting retail tenants is a complicated game. Some tenants won't sign on unless a major anchor has committed to the location. Some anchors won't sign on unless there's a demonstrated income distributino in sufficient proximity to the space. Local retailers aren't very farsighted--they sign on sporadically.

Will Stark be in a position to pick and choose his tenants? I hope so. He seems to have a solid grasp of the mixed-use concept, and if he can effectively recruit the right mix of tenants he'll be in good shape.

>A cover article in the Feb. 27, 2006 Crain's Cleveland Business reports that a possible hurdle is the profitability of the parking lots. How much parking needs to get built into Pesht to offset the loss of the surface lot and accommodate the new residents?

How much parking? I imagine it will be a relatively easy calculation:

Let's say there are X parking spots currently available.
Then let's say that for every apartment unit, you build 1.5 spots as well.
Then let's say that for every 100 sq ft of retail space you build 1 spot.

Then you've got a straightforward calculation of spots. I imagine it will be lot. It *has* to be. Transportation by car is a way of life in Cleveland, despite the best efforts of RTA boosters.

>It's almost inevitable that the developers will seek a TIFF or public subsidy for the parking deck - how much tax revenue will the city and the schools be asked to forgo?

I'm sure Stark will be able to wet his beak. TIFF's are par for the course these days--it's a sellers' market when it comes to urban development. Stark doesn't have to spend his money in Cleveland--he's got the whole world available to him for investment.

>Will the developer consider the average household income of the region and include at least a percentage of units that are affordable for the average Clevelander?

I doubt it! Luxury apartments are de rigueur these days. I don't know why--I'm certainly not in a position to buy a $275k condo. But apparently developers think the market will bear it. And, honestly, if the market for upscale housing really is that strong, how can we fault developers for catering to it? Cleveland needs revenue badly. It needs money to repair roads, schools, and infrastructure. The potential revenue on luxury apartments will provide the ability to carry out those improvements.

>How does Pesht become an example of an exciting destination that utilizes sustainable technologies and becomes a national model for commercial green building?

Hehe... I wish I knew. Green building is slowly starting to catch on in business circles. If Stark recognizes (1) the cost savings in the long run, and (2) the buzz factor that will drive buyers like frenzied cows to his leasing office, then there's hope.

May 18, 2006 - 5:29pm

I'm excited by this project

Jamie Says:

I like the whole idea behind it. I'm not an expert on urban development, but I would most definitely go to this part of Cleveland to shop as it is only 10 minutes from my apartment in Lakewood. I'm assuming it will be full of all the same-old mall stuff, but that's good enough for me. I go to area indie retailers to get unique things.

I'm a little confused by one issue that is raised on this site: "Will the developer consider the average household income of the region and include at least a percentage of units that are affordable for the average Clevelander?"

Not to be purely capitalistic, but it seems to me they should be concerned with how they can make money with this development rather than thinking about the "little guy." At the same time, I think they will be considering the incomes of people in this area, and the major retailers are going to look into it, too. If they price everything too high, this will all be for nothing. But it's going to have to have a "friendly" atmosphere or the surbanites aren't going to want to go down there. But as parking decks crop up in developments out in the suburbs, I think they'll be ready to go downtown again.

One issue I think that needs to be considered is the sustainability of safety, which I think is a major point that can kill shopping areas no matter where they are.

Anyway, Cleveland is such a beautiful city, and it would be my hope that this development would spur others to come back downtown to create a diverse and vibrant city. I imagine this area of Cleveland would be rather "safe" and sterile, but I think it could spur edgier development all over town.

Anyway, with a sea of parking lots over there, this seems like a no-brainer to me.

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