Every Monday, December 19, 2011 -- News from the Greater Cleveland Partnership
2011 ends with positive momentum for the Cleveland Plus economy
This year is ending with a strong burst of positive momentum for the Cleveland Plus region's economy. Here are a few examples that are connected to the Greater Cleveland Partnership's economic development priorities and Northeast Ohio's economic vitality:
Economic Development: By the numbers, improvement
The 18-county Cleveland Plus region’s economy is getting a boost from a strong manufacturing sector, which is expected to outpace that of the United States by nearly 10 percent by 2015, according to Team NEO research.
The Cleveland Plus Economic Review® also reported that our region’s employment picture continued to improve in the third quarter of 2011, up 1.2 percent by nearly 24,000 jobs from the second quarter, while our unemployment rate continues to improve faster than the national average. The Q3 2011 unemployment rate for the region is at its lowest point (8.5 percent) since December 2008 and is lower than that of the United States (9.1 percent) and Ohio (8.8 percent).
How to support the CLE Hub
We’ve also begun efforts to engage the business community in supporting the CLE hub. Here are ways you and your company can help:
Contract your air travel with United. You’ll increase your company’s efficiency by eliminating the challenges of juggling routes, schedules and fares when using multiple carriers. Plus, you will have access to many of United’s travel and cost savings programs that will increase your company’s bottom line.
Create a company travel policy for United and CLE. Consider adding a pricing guideline that allows you and your employees the flexibility to purchase a United ticket out of CLE when the price is more (see the amounts below) more than a competing airline that’s flying out of Hopkins or Akron Canton. This incremental cost is the foundation for maintaining United’s long-term service at the CLE hub.
- Corporations: $100 to $300
- Mid-market companies:$100-$200
- Small business: up to $200
The range is based on research, and we suggest it as a guideline. Your decision on what the pricing threshold should be for you and your travel levels is, of course, best set by you.
Encourage company meetings and training in Cleveland. Take advantage of Cleveland's great assets and book your company meetings or training programs in Cleveland with United and fly your groups into CLE.
Inform. Educate. Advocate. Educate your vendors and customers about the importance of having the United hub at CLE and how it impacts your business. Encourage them to fly United into CLE when it makes sense for their business. Also, educate your employees and their families about the benefits of having the United Hub at CLE, especially as they plan their family vacations.
Utilize United’s travel products and services. United offers travel rewards and discounts to small and mid-market companies to better manage their travel spending while earning savings and rewards.
Advocacy: A loud and clear voice for business
Maintaining support for NASA Glenn and Plum Brook Station: Thanks to a bipartisan effort led by U.S. Senator Sherrod Brown and U.S. Congressman Steve LaTourette, NASA’s FY2012 budget will play to the Glenn Research Center’s sweet spot with a focus on space technology and aeronautics will have a real impact in Northeast Ohio. The GCP will continue to mobilize support from members of Congress and the Administration and continue to seek mission-specific funding for these assets.
Saying “no” to new federal taxes on airlines: The GCP spoke out against proposed new taxes on the airlines and will continue to do so. These taxes, presented as a part of a deficit-reduction plan, could negatively impact the Cleveland Plus region and our efforts to preserve the United hub at Hopkins International Airport. In 2012, we will monitor further developments and remain committed to advocating against this proposal.
“Redesigning Ohio” recommendations inform state budget process: The GCP, along with the Ohio Chamber of Commerce and seven other Ohio metropolitan chambers published "Redesigning Ohio" in December 2010. Our report detailed recommendations aimed at transforming the way in which Ohio is governed with an eye toward fiscal restraint. State leaders listened, and in 2011 we saw the results of our work in the Governor Kasich’s 2011-2012 budget and in budget legislation passed by the General Assembly. Throughout the process, our report was cited by the governor, administration officials, and legislative leaders.
Physi cal Development: A snapshot of 2011 highlights
Flats East Bank: Steel beams rising: The structural steel framework is going up at the Flats East Bank project. The massive beams are being placed above the accompanying three-story parking garage. Construction of the office tower, which is just part of the first phase of the $275 million Flats East Bank project opening Spring 2013, is on schedule. The office building – future home of GCP Investor members Ernst & Young and Tucker, Ellis & West and CB Richard Ellis – will feature unique waterfront views. Visit www.flatseast.com to get a first-hand look at project developments, right from your desk, through a new Web cam.
Cleveland Development Advisors announces New Market Tax Credits: The Board of Directors of Cleveland Development Advisers (CDA), the real estate affiliate of the Greater Cleveland Partnership, approved at least $10 million in New Markets Tax Credits (NMTC) to enhance the financing plan to redevelop the 23-story former KeyBank Center at 800 Superior Avenue for AmTrust Financial Services. The company, which announced last week that it plans to bring as many as 1,000 new employees to Cleveland, it is working directly with the State of Ohio, Cuyahoga County and the City of Cleveland to facilitate this opportunity. The CDA Board also approved approximately $7.5 million in NMTC to finance the construction of a new headquarters in Warrensville Heights for Marcus Thomas, an integrated marketing communications agency.
Stakeholder input informs Opportunity Corridor planning: Planning for Opportunity Corridor transportation and economic development project continued to work its way through the appropriate channels. Progress includes the project’s Steering Committee identification of a single Recommended Preferred Alternative, based on input from the City of Cleveland, Community Development Corporations, neighborhood stakeholders, steering committees, businesses, and the public. City of Cleveland and Greater Cleveland Partnership consultants are continuing to identify the best community and economic development opportunities along the Corridor. They also will provide the estimated economic impact that these improvements will generate for the city, county, and region.
Economic Inclusion: New resources helping MBEs succeed
Minority Business Development Agency Business Center Cleveland: Located at the GCP/COSE offices, 1240 Huron Road, the Cleveland office is one of 27 MBDA centers located throughout the U.S. and the only center in the State of Ohio. Staff will work with minority-owned companies in Greater Cleveland and throughout the state to help minority-owned businesses create jobs and increase their bottom line.
It has already racked up success stories, with several companies returning from the 29th annual Chicago MED (Minority Enterprise Development) Week with several contracts or pending contracts. In addition, one client, Del’s Catering, landed a three-year, $1.2 million cafeteria management contract with the Cuyahoga Metropolitan Housing Authority.
Commission on Economic Inclusion Planning and Estimating Room: Located in Suite 509 of the Terminal Tower in downtown Cleveland, the Planning and Estimating Room was launched to help MBEs in construction and construction-related industries become more competitive by providing low-cost access to blueprints and estimating experts. The space was donated by Forest City Enterprises, a GCP and Commission-member company. Planning and Estimating Room services will help leverage clients’ capabilities and capacity, as well as better prepare them to bidg on projects. Research shows that many MBEs that are able to secure contracts and deliver on the work often barely break-even or actually lose money after project completion.
Business Development: Project successes and a $2 million grant
The Greater Cleveland Partnership Business Development team was heavily engaged in successful efforts to retain and expand several Greater Cleveland companies. several Greater Cleveland companies including American Greetings, Orlando Baking, Miceli Cheese and Nestlé, Inc. Further, technical and advisory services were provided to Sage Hospitality and Optima International for the $65 million conversion of the former Cleveland Crowne Plaza hotel to a new 481-room Westin Hotel.
In addition, the receipt of a $2 million Jobs Ohio grant with four metro chambers partners at the Greater Akron Chamber, Stark Development Board, Team Lorain County and the Youngstown/Warren Regional Chamber . will support ongoing and future Northeast Ohio retention and expansion projects. The grant will be utilized to build much-needed capacity in the organizations’ respective business development retention and expansion programs.
The metro chambers will use $500,000 to create a shared-service platform that will allow all of the local economic development organizations to have access to certain services and amenities that will drive job retention and creation. This includes dedicated resources to both MAGNET and BioEnterprise for their outreach activities.
Of the remaining $1.5 million, the GCP will receive 40 percent of the grant award—$600,000. The award is based on the number of businesses in Northeast Ohio that are located in the GCP subregion of Lake, Geauga and Cuyahoga counties.
Action item: Oppose proposed NLRB rule change
Greater Cleveland Partnership members are encouraged to write their member of Congress and our Ohio Senators to state their opposition to a proposed rule change by the National Labor Relations Board (NLRB) that would accelerate the process of union elections.
In a vote of 2-1, the NLRB voted in late November to move forward in drafting a rule to speed up the process of union elections. In an apparent compromise, the board recommended removal of several controversial parts of the rule as previously proposed, including: providing employee email address and phone numbers, and online petition filings. However, business groups continue to argue that the direction of the new rule, which has yet to be drafted, will infringe on a business’ right to respond to a petition for a union election.
The timing of the NLRB’s action is additionally intriguing. The vote came on the same day that the Boeing Company and the International Association of Machinists and Aerospace Workers announced that an agreement was reached on a contract extension which would resolve the IAMAW’s NLRB complaint related to Boeing’s construction and operation of a non-union plant in South Carolina.
Additionally, the recess appointment of former AFL-CIO and SEIU attorney, Craig Becker, is on the clock. His term will expire once the Senate recesses for the year, which would prevent the NLRB from reaching its three-member quorum. The board, which should total five, currently has only three members- one Republican and two Democrats, including Becker. Without a quorum, by law, the NLRB would not be able to take official actions. Complicating the appointment process, is the stance taking by some Senate Republicans, which confirms appointees to the board, that the board overreached in the handling of the Boeing case and its attempts to circumvent the legislative process through the rulemaking process.
The House of Representatives responded to the new election proposal by passing bill HR 3094, the Workforce and Democracy Fairness Act, which would require a nearly two-month interval between the filing of election petitions and the vote. It would also address issues related to the composition of employee bargaining units, which otherwise could result in multiple, smaller unions within a company, among other items. There is no likelihood of the bill being taken up in the Senate.