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Effort gears up to mount school levy campaign
Bank seeks receiver for Akron-based lumber firms In lawsuit, Huntington fears Empire ‘insolvency’
Backers will seek help from businesses, but face a crowded ballot
By MICHELLE PARK mpark@crain.com
By TIMOTHY MAGAW tmagaw@crain.com
The coalition that got behind legislation to reform the operations of the Cleveland Metropolitan School District is scrambling under a tight deadline to put together a campaign aimed at passing this November a school operating levy for the first time in 16 years. The coalition of Mayor Frank Jackson, school district officials, the Greater Cleveland Partnership and local foundations is on the verge of tapping a consulting firm to lead the campaign. Firms already interviewed for the job are led by seasoned political gurus Bill Burges, Alan Melamed and Jeff Rusnak.
Roman
Jackson
Also, GCP is gearing up to solicit the business community to help foot the bill for what advocates anticipate will be a $1 million effort. “Clearly we will ask business community to fund the campaign effort, and we’ll start that soon,” GCP president Joe Roman said. “But even more importantly than that, because this will be such a crowded and expensive campaign field, we’ll work very hard with our members to ensure their Cleveland-resident employees have the information necessary to make an informed decision.” Even John Kasich, Ohio’s Republican governor who worked with Cleveland’s Democratic mayor to move a bill enabling the reform plan’s implementation through the Legislature, is
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See LEVY Page 5
STAN BULLARD
Forest City Enterprises is considering converting to apartments the Halle Building, on Euclid Avenue in downtown Cleveland, shown here looking east on Euclid.
Halle Building could enter downtown apartment mix Office space on upper floors would be replaced by up to 200 rental units under nascent plan
By STAN BULLARD sbullard@crain.com
The Halle Building in downtown Cleveland, well-known thanks to “The Drew Carey Show” and a celebrated role as the former home of Mr. Jingeling, may become apartments under a plan Forest City Enterprises Inc. is considering. The former Halle department store at 1228 Euclid Ave. is now an office building on its upper floors with retail space on the first floor and basement, but the office use
could be relegated to memory if the Cleveland-based developer pursues the idea. Forest City is weighing converting part or most of the structure in the PlayhouseSquare neighborhood to more than 200 apartments and retaining its first floor as retail space, according to a source who declined to be identified because he is not authorized to discuss the plan. Although Forest City isn’t showing its hand, real estate observers agree the concept makes sense. Downtown See HALLE Page 6
NEW PROJECTS ABOUND A sample of planned or proposed apartment projects in downtown Cleveland, a list to which the Halle Building could be added. Avenue Tower: A joint venture has proposed to buy the long-stalled tower condo project and turn it into 57 highend rentals. Rosetta Building: MRN Ltd. plans to spend $17 million to convert five floors to 85 market-rate apartments at 629 Euclid Ave.
May Co. Building: The Floridabased owner, Morgan Reed Group, is studying whether to turn the empty upper floors of the building on Public Square into apartments. Hanna Annex: K&D Group of Willoughby announced plans to buy the building from the PlayhouseSquare Foundation for conversion of the office building into 102 apartments. East Ohio Gas Building: Reports have K&D as the buyer of the building
at 1717 E. Ninth St., also for conversion to apartments. Truman, Schofield buildings: A total of 76 apartments are proposed for the buildings, at 1020 Euclid Ave. and 2000 E. Ninth St., respectively, by their longtime owners, groups associated with principals of CRM Real Estate Services of Cleveland. Plans for the Schofield Building continue to include a hotel.
The future of a group of lumber companies based in Akron is unclear after a judge ordered a receiver to take control of the companies amid allegations that a large amount of the assets pledged as collateral for millions of dollars in bank debt either does not exist or may be at risk. In a lawsuit filed June 11 in Cuyahoga County Common Pleas Court, attorneys for Huntington Bank requested that a receiver be appointed to operate Empire Enterprises Inc., a forest products and building materials distribution holding company; its subsidiary, Empire Wholesale Lumber Co., which has been in business for 63 years; and two other affiliated entities. “By all accounts, defendants are unable to pay plaintiff amounts due to it, thereby creating a presumption of insolvency,” Huntington stated in its lawsuit. The filing said the bank “reasonably believes that a significant portion of the inventory and receivables defendants pledged to plaintiff may not exist or may be in danger of being lost or materially damaged.” “The immediate appointment of a receiver is necessary as (Empire is) unable to pay their debts as they See LUMBER Page 7
INSIDE UH continues to bolster its cancer program In addition to its $260 million Seidman Cancer Center, opened last year, University Hospitals has opened a new facility in Westlake and is upgrading one in Geauga County. PAGE 7 PLUS: ■ Some Cleveland marketing agencies are pitching themselves as the perfect coach for sports teams and organizations. PAGE 12
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