Citing critical long-term impact, the GCP urges further review of projected medical mart costs

Friday, January 23, 2009

Cleveland, Ohio - The decision by the Cuyahoga County Commissioners to select the existing mall site as the location for a new medical mart and convention center was obviously a different outcome than that recommended by GCP's Site Selection Committee in August, 2008.  The main factor in the Commissioners' decision was the conclusion by Merchandise Mart Properties Inc. (MMPI) that all of the program elements for the center as recommended by GCP and the Convention Bureau could be realized at the Mall site. This conclusion was based on a very different  approach to engineering than was on the table during GCP's evaluation. This new approach projects cost savings from previous estimates of the mall site by well over $100 million. MMPI's comparative estimates suggest that the cost at the Mall site is now about $110 million less than the Riverfront location.  

We will be urging the city and county to engage an objective, third-party engineer to study this new approach  to construction, which also requires building up an additional 3-4 feet on top of the existing mall platform. Clearly, the MMPI numbers are substantially different and require intense scrutiny.  We also believe that MMPI and the county should simultaneously work closely with Forest City to re-examine whether there are potential savings at the Riverfront site. The decision about where to build the center is one of those urban planning decision that occurs only every 50-100 years. For this reason, it needs to be done right--despite the expectations to pick a site now. The community can only afford detailed engineering and architectural expenses on one site and can't afford going down a road that leads to a no-build scenario.

The Greater Cleveland Partnership, (GCP), the primary voice for businesses in Greater Cleveland, seeks to create jobs and improve the economic vitality of the region. On behalf of its more than 17,000 members, the GCP advocates with one voice; advances small business success; accelerates economic inclusion; builds a high-impact, sustainable economic development system; changes the face of Cleveland; strengthens global connections; and initiates a demand-driven talent system. The GCP is a founder and proud supporter of the Cleveland Plus marketing campaign.

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