jfristik

i'm not holding my breath... i will believe it when i see a shovel in the ground. what are we at now, 6+ years of "groundbreaking soon". if i had to bet, i would still bet it does not happen.

IF this is the worst it gets, I see the projects proceeding and potentially benefiting... but that's a big unknown IF. There is a reality in which our country is effectively on lockdown into May-June, which I have to imagine would delay things getting off the ground this summer. We will need to watch the countries ahead of us.

Why are we convinced it is going to be greater than 1,000 feet? Just wondering if that is hopeful speculation or based on something tangible? They could keep their current space and build an additional space that is much smaller, right?

Stock price jump appears coincidental. Several analysts recently revised their price targets... look at the volatility in the last 30 days. Analysts and institutional shareholders drive stock price changes and they are generally not concerned with buildings. If anything, it would tend to have the opposite effect. Institutional stockholders want their companies operating as lean as possible.

It is a balance sheet only gross-up. Does not impact the income statement, or key operating ratios. Previously future operating lease payments were off-balance sheet and disclosed in the footnotes to the financial statements. This is a form over substance change for operating leases with no real impact to the users of the financial statements.

The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. For finance leases, a lessee is required to do the following: 1. Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position 2. Recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income 3. Classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, a lessee is required to do the following: 1. Recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position 2. Recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis 3. Classify all cash payments within operating activities in the statement of cash flows.

Operating leases and finance leases (fka capital leases) are not treated the same (operating leases are not treated as debt). The Company would need to analyze whether the lease would met the criteria of a finance lease (https://www.fasb.org/leases). A 30-year lease may still be accounted for as an operating lease, which would result in a balance sheet only gross-up under ASU 2016-02.

don't freak out (i know many of you will)... with site remediation, doesn't demolishing the whole non-tower complex and removing however many feet of soil they need, make a whole lot more sense? then they would have a blank canvas to build on. based on everything we know today (and likely will learn in the next few decades), i would not live on any manufacturing site without significant remediation.

for clarification, is this a demo solely for the sake of construction parking and staging, or is a phase II currently in the early-stages (i.e., not public) based on the response to phase I? seems like there is plenty of space for parking and staging without demo'ing the building... so why even incur that expense?

troeros - We are in agreement. It's a dilapidated eyesore because no one wants it. I have not advocated demo'ing the buildings for decades of parking lots in any of my posts... I am not upset if they demo it and then build something that actually uses the space. Apparently that really works this forum up...

You need a check in forum manners. Not embarrassed in the least bit. I know what the building housed and I do not care that it was Rendevous Records. It is a dilapidated eyesore that I will not miss. I can have my opinions and you can have yours... Neither of us is alone in our opinions.

I don't disagree, but Playhouse Square was beautiful even in disrepair. Similarly, the John Hartness complex and the Cleveland Athletic Club are beautiful big buildings that needed to be saved... this block of small buildings, imho, is not exactly a treasure (architecturally speaking). Again, to drive home my point, if someone proposed demo'ing the Rockefeller building to make way for something new, I would be up in arms. Here... whatever. I am just curious as to why many on this thread are upset about this. Just offering a perspective I am sure is not all that uncommon. I am embarrassed when I take clients/visitors past that stretch.

Gang... as one of the younger people that follows these forums, why on earth are you all worked up against the demolition of that dilapidated eyesore. Level the whole block, Harry Buffalo included. Build something new and fresh. I liked that one proposal that was circulated a few years back.

was there any comment on breaking ground? much like NuCleus i feel like we've been talking about this for 5+ years... don't fact check that

It's a shame because that area is such an eyesore... I'd sign up immediately for a demo of the parking garage, small building north of the garage, and the dilapidated buildings just west of the open air parking lot (which to some has great sentimental value), including the ugly Harry Buffalo, for a 8-10 story mixed use complex. Bring back that old proposal for the multi-story building with neon advertisements... Whenever I bring someone from out of town in for a ballgame and night on E4, I'm embarrassed to walk past that mess.

I was surprised by the 80% LTV... I thought it would have been in the 60% range.

I agree. A significant market correction or recession is imminent and many analyst predict it will be unlike anything we have ever seen (a great open-ended hedge)... IMO whatever is not already underway (or planned to start in the next 12 months) will likely not be completed in the next 5-6 years (much like the Flats East Bank project that was on hold for half a decade). Additionally, I have been skeptical that the passing of HB469 would actually get this project going... I understand there is an "enticing" tax credit, but more important than the credit is the rate of return on the investment and I'm not sure that the NuCLEus project would yield a high rate of return. Reckless speculation here, but I am curious if they checked in with the investment groups at Progressive, Nationwide and American Financial Group (the largest insurance companies in Ohio) and there was no real appetite for any investment. It pains me to say it, but NuCLEus will likely be filed away with our pictures of the other skyscrapers that were never realized... Happy Holidays!

Another revision will follow this one and be even smaller in scale. We will see something completed around 2022, but I expect it to be a lot closer to the scale of FEB phase 3 than nuCLEus as first proposed...

What is the time frame to get the outside of the building fixed up? Can they please do something about the billboard frame on the top of the building...

How many more floors do they have to go?

Has anyone noticed if they are actively working on this building? At the Indians game this past week, I noticed the top of the building has been deconstructed and opened up to just the framing.

Unfortunately, I would advise not to get excited for any announcements related to a new HQ building on the second quarter earnings release. Generally, SEC filed earnings releases do not disclose that type of information. They may disclose non-recurring costs related to the acquisition and future synergies (but not at a level that would tip their hand to a new building). Here is the link to the first quarter earnings release: https://www.sec.gov/Archives/edgar/data/89800/000119312517129703/d381903dex99.htm. Similar to other preliminary earnings releases, the CEO will read from the report on a public conference call/webcast and the CEO/CFO will answer questions from analysts about operating results.

I fear this is a sign of things to come... I predict Flip Side will not be far behind. It usually empty.

Bad news. The Flats Crop restaurants and On-air will close this September... I've also heard that Flipside will be closing in the near future... Is this the beginning of the end?

Given Stark's involvement, do you think the 515 garage could serve as a blueprint (not a literal blueprint) for nuCLEus? Build the garage and street level retail (including the "laneway") and then years down the road build the tower? This might be more appropriate to post in the nuCLEus thread, but the similarities got me thinking...