Theres that small gap between the rear of the JHB buildings and the rear of the Huntington building/annex. You can almost see the cars parked down in there. Its not too wide, but combining with the existing statler garage, demolishing the rear of the JHB building, plus building up would add a significant amount of spaces

Is Le Meridien out of the picture for good? Or would they be able to work with new owners?

 

Also this is the last building to the east. Did this building have any significance architecturally?  Was it covered up a la Schofield? Or is it more modern.

^ The building dates from the 1910s. I think it was determined that there was no remainder of any historical facade, but I don't remember for sure.

^I think that's right. I don't think any of the renderings we saw of earlier schemes using the preservation credits had a recreated/restored facade on that part of the complex.

Here's a photo where you can get some semblance of the facade http://digital.wrhs.org/islandora/object/wrhs%3A7772

^Everytime I see an old pic like that, I wonder why we can't have cool street lamps like they did, instead of those horrible things we got with the HL

The scaffolding over the sidewalk has been removed

 

I hope someone remembers to put new plastic in those windows before the convention.  [cries to self].

Does anyone know where this project stands in the receiver procedure?

I am thinking those buildings will see a lot of giant RNC signage across the facade.

^^I think the building is stuck in litigation between the note holder and the nominal owner.

I am thinking those buildings will see a lot of giant RNC signage across the facade.

 

Yep.

 

"In two cases, those banners would partially cover the faces of empty buildings - the Euclid Avenue side of the May Co. Building and the facade of the John Hartness Brown Building, a Euclid Avenue property that is in receivership."

 

from: http://www.cleveland.com/business/index.ssf/2016/03/gop_convention_signs_will_blan.html

Hanna Commercial just tweeted the following: "Court Appointed Receiver Orders Immediate Sale! 1001-1101 Euclid Avenue, Cleveland.  Bids Due 05.26.2016"

 

According to the court docket, the developer is closing on a financing package this week that will allow it to resolve the litigation and proceed with the project.  In the meantime, the docket indicates that the receiver was given authority to retain Hanna to market the property for sale.  If a bidder comes through, the current developer has the right of redemption.  Hopefully though the financing closes this week and this project moves forward.

^haven't we heard "that one" before during this long saga?

 

No kidding.

I will believe it when I see it...

According to the court docket, the developer is closing on a financing package this week that will allow it to resolve the litigation and proceed with the project.  In the meantime, the docket indicates that the receiver was given authority to retain Hanna to market the property for sale.  If a bidder comes through, the current developer has the right of redemption.  Hopefully though the financing closes this week and this project moves forward.

 

At least this is progressing with a sale date later this month.  Best case scenario, of course, is the developer pulling off financing and moving forward with the project.  Although a sale with redemption rights will continue the delay with a new owner, at least it would be in the hands of another developer that can handle the project to completion.

 

This project getting done is essential to the Euclid Avenue renaissance.

^I suspect the state will finally pull the credits if a new owner takes title. I'm assuming a new developer would be back at square one.

According to the court docket, the developer is closing on a financing package this week that will allow it to resolve the litigation and proceed with the project.  In the meantime, the docket indicates that the receiver was given authority to retain Hanna to market the property for sale.  If a bidder comes through, the current developer has the right of redemption.  Hopefully though the financing closes this week and this project moves forward.

 

At least this is progressing with a sale date later this month.  Best case scenario, of course, is the developer pulling off financing and moving forward with the project.  Although a sale with redemption rights will continue the delay with a new owner, at least it would be in the hands of another developer that can handle the project to completion.

 

This project getting done is essential to the Euclid Avenue renaissance.

 

And CAC

^I suspect the state will finally pull the credits if a new owner takes title. I'm assuming a new developer would be back at square one.

 

That would be unfortunate for everyone.  Are the credits not transferrable?  Part of me would rather see the May Co get them but this rehab is important too.

^The problem is the time line. The credits have to be claimed within a fixed term after being awarded, and that initial term expired a while ago. The old development team (which itself acquired the rights to the credits along with the project from Eli Mann) had been able to get extensions along the way, but at some point you have to think the state just pulls the plug and puts the credits back into circulation.

 

ink[/member] might have some insight (he often seems to on this topic).

FYI: Here's the ad from Hanna Commercial that was mentioned a few posts earlier. It states historic credits "possible." The word "possible" instead of "available" make me believe a new owner would have to apply for new tax credits, total guess on my part though. One can only hope that all the issues surroundings this project get resolved in the near future.

An update from mjarboe[/member] on the JHB Building. Sounds like there's a good shot the current purgatory ends sometime in the near/medium term. Hopefully the preservation credits stick so we can see a new owner step in.

 

New buyer emerges for troubled John Hartness Brown complex in downtown Cleveland (photos)

CLEVELAND, Ohio – An international real estate developer wants to buy one of the last vacant strips of Euclid Avenue in downtown Cleveland, adding a new and potentially interesting wrinkle to the tortured saga of the John Hartness Brown Building.

 

EDIT: oops, forgot the link- thanks stpats44113[/member] !

Here'

An update from mjarboe[/member] on the JHB Building. Sounds like there's a good shot the current purgatory ends sometime in the near/medium term. Hopefully the preservation credits stick so we can see a new owner step in.

 

New buyer emerges for troubled John Hartness Brown complex in downtown Cleveland (photos)

CLEVELAND, Ohio – An international real estate developer wants to buy one of the last vacant strips of Euclid Avenue in downtown Cleveland, adding a new and potentially interesting wrinkle to the tortured saga of the John Hartness Brown Building.

 

Here's the link to the article:

 

http://www.cleveland.com/business/index.ssf/2016/07/new_buyer_emerges_for_troubled.html#incart_m-rpt-1

Steve Goodman, of John Harttness Brown fame locally, is making news over his participation in a redevelopment project in Oklahoma City that is also on the rocks.

In this article the Cleveland project and receivership are mentioned.  Also included is the intrigue of a fellow who calls himself "The Turkish Donald Trump" - Oh brother!

 

News article from the Oklahoman online:  http://newsok.com/article/5512083

 

Make or break time for Oklahoma City's downtown First National Center

Steve Lackmeyer by Steve Lackmeyer Published: August 2, 2016

The "Turkish Donald Trump" mentioned in the article is the same Dallas developer (Alterra) trying to buy the JHB buildings from Goodman. Odd that Alterra and Goodman are associated in some way in the OKC project too.

Judge OKs sale plan for John Hartness Brown building in downtown Cleveland

 

By Michelle Jarboe, The Plain Dealer

on August 10, 2016 at 11:56 AM

 

CLEVELAND, Ohio – Say "so long" to visions of a Le Meridien hotel on Euclid Avenue.

 

After years of struggling to secure financing for a hospitality project, an out-of-state development group has lost its shot at remaking the historic John Hartness Brown complex in downtown Cleveland. Now the property is likely to be sold to Alto Partners, another out-of-town developer with designs on making the empty buildings part of the center city's revival.

 

http://www.cleveland.com/business/index.ssf/2016/08/judge_oks_sale_plan_for_john_h.html

Unfortunately the articles description of the new owner and it's proposed plans does not give me the warm fuzzies.

Unfortunately the articles description of the new owner and it's proposed plans does not give me the warm fuzzies.

 

Residential and retail? What would you have preferred?

^It was the "parking" mentioned in the article that concerned me.  I could see an idiot developer with no ties to Cleveland (such as this one) trying to gut the lower floors for parking which will be solely needed if the Huntington renovations comes about.

Hey there -

 

Parking was part of the Le Meridien plan, as well, and was designated for the non-historic building at the eastern end of the project. If Alto Partners wants to hang onto the historic tax credits, the company will be constrained by what the state preservation folks will - and won't - allow.

 

The 925 Building developer already purchased the Statler garage to ensure controlled parking.

 

Michelle

^Disappointing.  I had hoped for the Le Meridien for this property.

This is probably good news. The LeMeridian was always just a concept by a developer without capacity to deliver. Now the hotel market can stabilize/absorb the new rooms brought online with Schofield, Hilton, The 9, Drury, etc..

 

Hotels may also be more critical pieces to the much larger nuCLEus and 925 Vine projects, so those can take any additional hotel demand and John Hartness can fill the continued need for residential and parking.

I really love this photo of the backside of the JHB cluster.  In the foreground you see the start of the Union Commerce building, off in the distance is the Statler and across Euclid you see 1010/1020 Euclid.

Via Twitter mjarboe[/member] indicates the tax credits have been extended till April 2017 because of the ongoing litigation.

That's Good News.

http://www.newsnet5.com/news/local-news/oh-cuyahoga/downtown-cleveland-high-rise-redevelopment-clears-hurdle

 

The new potential buyers want to bring in apartments and a "limited service Marriott" ...what is that?

 

But sounds like the court drama is still dragging on

^Maybe a Courtyard or Residence Inn

I know we hate conjecture on here, and I am probably just letting my mind get the best of me... but I have heard now from three separate people that Sherwin Williams might be in play for these parcels for their new HQ, obviously this would include a demo, if true.

 

I had also read that the Valspar deal would be pushed back until June. From my experience, though limited, in corporate finance it would not be illogical to assume that Sherwin wants to be leveraged come the end of June. It would be logical for a major corporation to leverage themselves at times that would allow uniform borrowing. Perhaps for real estate.

Interesting... maybe with all the ownership wrangling here, they can swoop in and get downtown parcels relatively cheap.  Everybody wants an arm and a leg for the surface lots.  City policy is so parking-friendly there's no motivation to sell.  Hard to keep historic buildings around like that.

I always thought the Krenzler parking lots on Euclid and Prospect (with the parking structure in the middle) would be a great site for a large headquarters building. Saving on building a garage at the very least. I think we've all seen the design proposal there from the early 80's.

Interesting... maybe with all the ownership wrangling here, they can swoop in and get downtown parcels relatively cheap.  Everybody wants an arm and a leg for the surface lots.  City policy is so parking-friendly there's no motivation to sell.  Hard to keep historic buildings around like that.

 

I was thinking the same thing. I think SW would be able to obtain parcels like this with relative ease and for a comparatively small cost.

 

It would be cool to have a 40-story sky scrape jutting up from Euclid.

Yes very interesting conjecture. The JHB parcels total about 45,000 square feet (estimated using Google maps). That certainly makes it large enough for a headquarters building and comparable to the Jacobs lot on Public Square. Though they would be throwing away $11 million in tax credits by demolishing the buildings.

Yes very interesting conjecture. The JHB parcels total about 45,000 square feet (estimated using Google maps). That certainly makes it large enough for a headquarters building and comparable to the Jacobs lot on Public Square. Though they would be throwing away $11 million in tax credits by demolishing the buildings.

 

I also thought of the tax credit issue, but:

 

A) I do not think there is any way an HQ could go there without those buildings being demolished.

 

B) The money saved by purchasing a building in receivership might save them a few million on its own.

I always hate to see historical structures go especially with the vacant lots that already exist downtown.  Seeing new construction in its place will soften the blow however. 

I always hate to see historical structures go especially with the vacant lots that already exist downtown.  Seeing new construction in its place will soften the blow however.

 

There is always a scale with historic preservation and progress. Most of the time, I am inclined to preserve historic buildings. In this case, I would gladly hand it over to SW

I hate that location for a new office skyscraper. I like it much better for a residential skyscraper. Or better still, for an historic renovation. I can't stand the thought of demolishing historic buildings when we have so much surface parking already. Besides, the Public Square lot is already owned by a real estate development company. Ive noticed mamy new headquarters buildings are not owned by the companies who occupy them.

Historic tax credits can be sold from what I understand

Seems hard to believe when this property is still mired in ongoing litigation.  Speaking of, the case is scheduled for oral argument tomorrow in the Court of Appeals.

Seems unlikely. If they want to build a new downtown tower, why not go to nuCLEus, or the Weston warehouse district parking lots, or one of the other prime surface parking lots (like the E. 9th lot next to Progressive Field).  Why knock down buildings?  Why forgo the opportunity to be on a corner?