http://blog.cleveland.com/business/2...h_plans_f.html
Flats developers pitch plans for an East-West combo
Posted by Henry J. Gomez May 21, 2007 10:17AM
Categories: Breaking News, Economic development
In a booth on the floor of this year's International Council of Shopping Centers' spring convention in Las Vegas, east has met west, Cleveland-style.
"This is big," said developer Bob Corna, who with K&D Group Inc. of Willoughby is working on the West Bank's $700 million Stonebridge apartment and condo project. "The sum of the parts makes a much bigger whole. We're known nationwide as the Flats."
Corna and K&D Group will exhibit with the Wolstein Group and Fairmount Properties LLC, partners on the $230 million Flats East Bank neighborhood.
A united front could help at a huge trade show such as this one, where East Bank and West Bank mean little to retailers that are more impressed by critical mass when deciding where to put new stores. In Cleveland, the combined effort could help eliminate the physical and psychological boundaries that exist between each side of town.
Together, Stonebridge and Flats East Bank plan to push the city to help with walkways that would better connect the two banks. A master plan on display at the show, which began Sunday and ends Wednesday, shows a proposed Main Avenue pedestrian bridge to link the Stonebridge's core with Old River Road across the Cuyahoga. (PDF of current plan: Download file)
"The Flats doesn't work with just an east bank or just a west bank," said Corna, who also envisions a link to Whiskey Island. "The West Bank died because the East Bank died."
Still, skeptics wonder if retail can work in neighborhoods just off downtown, where malls at Tower City Center and the Galleria have slumped mightily since the 1990s. That's why upscale housing has emerged as an anchor for both projects.
About 500 apartments and condos already have been completed at Stonebridge, which also includes some office space and a restaurant. Another 1,500 housing units are planned. Flats East Bank calls for more than 300 for-sale condos.
Scott Wolstein, who with his mother Iris is bankrolling the East Bank development, also wants to lure national retailers and restaurants. In an interview last week before leaving for Las Vegas, Wolstein said talks are progressing with a grocer, bookstore and theater.
"I think we'll probably have a lot of discussions with restaurants" and niche retailers such as Urban Outfitters at the convention, said Wolstein, who also is here to drum up business as chief executive of Beachwood's Developers Diversified Realty Corp. DDR, a publicly traded shopping center real estate investment trust, is not involved with the Flats project. Fairmount Properties is handling most development duties.
The convention comes as the East Bank project enters its third week as the subject of an eminent domain hearing in Cuyahoga County probate court. The Cleveland-Cuyahoga County Port Authority is suing to take control of nine properties Wolstein wants to advance development. A jury ultimately could decide the value of the land.
Tony George, one of the holdout property owners, is here this week to meet with restaurateurs. The Cleveland businessman, who feels Wolstein and the port have not negotiated fairly, said he would rather see the Flats reclaim its image as an entertainment district. He said his proposal would cost $30 million and create 1,500 jobs.
Wolstein previously settled with other property owners, and demolition of buildings on land he already controls has started. Between receptions Sunday night, Fishman conceded that signing and announcing a major tenant could help push their plans further.
"Ours is a momentum business," Fishman said.
More from the International Council of Shopping Centers' spring convention
Sunday evening, a wind down to the first official day of the show, is marked by scores of exclusive parties. Roetzel & Andress, an Akron and Cleveland law firm that has a real estate and finance group, kicked off the Northeast Ohio networking with a swanky reception at the Little Buddha sushi bar at the Palms Casino Resort.
One of the more chatty guests was East Cleveland Mayor Eric Brewer, making his first trip to the convention. Brewer said he is looking to breathe some retail life into his city.
Another first-timer was Warrensville Heights Mayor Marcia Fudge. Fudge said she's looking to spur development near the Chagrin Highlands area and along Northfield Road.
Also in the crowd was North Royalton Mayor Cathy Luks, here to find retail for her city's proposed Town Center. It is Luks' second trip to the convention. In 2004 she was here in search of a developer. The city chose the Coral Co. of University Heights.
On the developers' side, John Ferchill of Cleveland's Ferchill Group bounced between parties for Roetzel & Andress, Forest City Enterprises Inc. of Cleveland (Wynn) and Beachwood's Developers Diversified Realty Corp. (Bellagio). Ferchill said he is here to scout possible joint-venture opportunities on historic rehab projects in the Midwest.
On the brokerage side, David O'Neill, a partner at Cleveland's Colliers Ostendorf-Morris, held court at the Roetzel & Andress and DDR parties. The brother-and-sister team of Scott Wiles and Erin Wiles-Patton - retail specialists for the Independence office of Marcus & Millichap -- camped out at the Visconsi Cos. bash, also at the Bellagio.
One of the busiest folks of the evening was Cleveland publicist Nancy Lesic, juggling party-going clients such as Bob Glick, chief executive of Solon fashion retailer Dots LLC, as well as developers Adam Fishman, Mitchell Schneider and Scott Wolstein.
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