Why Cleveland Matters

Why America Needs A Jobs Bill

2011-09-09T14:19:00.001-04:00

Last night, in front of a joint session of Congress, President Obama announced his $450 billion plan to help jumpstart the U.S. economy. “The American Jobs Act” calls for tax cuts for small businesses, new investments to modernize infrastructure and a 50 percent reduction of payroll taxes for 160 million workers. The plan also aims to reform unemployment insurance to encourage workers to pursue job training and expand summer job opportunities for low-income youth.

Many of the ideas unveiled yesterday have been supported by both Democrats and Republicans. With the political gridlock in mind that continues to plague Washington, the President urged strongly for compromise.

“The people of this country work hard to meet their responsibilities,” Obama said. “The question tonight is whether we'll meet ours. The question is whether in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy.”

As a whole, the plan is a good step in the right direction. If passed, the plan could add 2 percentage points to real GDP growth and 1.9 million payroll jobs, and reduce unemployment by a percentage point, according to Moody’s chief economist Mark Zandi. Extending the payroll tax holiday on its own could add 750,000 jobs, Zandi told McClatchy-Tribune News. While the bill still needs to be vetted by Congress, this short-term stimulus would come at a critical time for an economy that has yet to fully recover from the 2008 recession.

The U.S. unemployment rate continues to hover around 9%. Even more alarming are the number of Americans who are unemployed or working part-time but want full-time work, which stands at 18.5 percent, up from 18 percent at the end of July, according to a Gallup Poll. It is clear that Congress needs to act quickly to improve the labor market. Without immediate action, there will continue to be uncertainly in global financial markets, which will undermine long-term economic growth and private sector job creation.

For far too long, politicians in Washington have ignored our real priorities. America can no longer afford the price of political posturing. As we approach the 10th anniversary of 9/11, we should be reminded of our ability to come together as a nation in times of uncertainty. Today, our economic security is in danger. I hope Congress and the President will set ideological differences aside and unite to pass a jobs bill. The American people deserve it.

Bond Market and the U.S. Dollar

2011-05-06T14:13:00.002-04:00

Great article about the Wall Street Journal discussing how the bond market is creating new implications for the U.S. dollar.

Have Bond Vigilantes Become Dollar Vigilantes?

Have market “vigilantes” — the scourges of U.S. economic policy who in years past drove up Treasurys yields in response to inflation fears — traded in bonds for dollars as their weapon of choice?

And if they have picked up the dollar as their sword, they are headed for their final showdown when the Federal Reserve ends its controversial $600 billion bond-buying program in June.

During the late 1970s through the 1990s, bond vigilantes routinely demanded higher yields to compensate for rising prices, cowing U.S. policymakers into curbing budget deficits or hiking interest rates. But the U.S. government’s current unsavory mix of cheap credit and a precarious budget deficit has closed off that path.

The Fed’s bond buying program has suppressed Treasury yields and curbed selling pressure. Also in a world where several central banks are large buyers of Treasurys, vigilantes would not only be fighting the Fed, but also several other central banks.

“What investor will fight the power of a central bank?,” asked Alessio de Longis, vice president and portfolio manager of the Oppenheimer Currency Opportunities Fund. The bond-buying program “may incentivize macro investors to find different vehicles to express” disapproval of U.S. economic policies, he said.

Have the vigilantes pounced on the dollar? The dollar has fallen by more than 10% on a trade-weighted basis since Fed Chairman Ben Bernanke announced the bond buying in August 2010.

The dollar has plunged to multiyear lows against higher-yielding currencies such as the euro, Australian dollar and pound. It has also plumbed a record low against the Swiss franc, sliding nearly 5% in April against a basket of major currencies on its way to its lowest level since July 2008.

“Although the dollar has declined substantially from recent peaks, it remains about 20% above its average level over the last 40 years versus a broad, trade-weighted index,” noted Matthew Gelfand, a senior economist and senior investment advisor at Rockefeller Financial.

As a result, the dollar is not yet at levels that would lead to a loss of confidence in U.S. assets. But should Washington prove incapable of taming its debt-fueled spending and the Fed remain biased toward easy money, the vigilantes would likely press U.S. policymakers.

Before that occurs, “I expect the Fed and the U.S. government are likely to shift gears in the foreseeable future. . . and thus forestall a significant, deleterious drop in the dollar,” Gelfand said.If the vigilantes have moved to the U.S. currency, their hand definitely will be forced when the Federal Reserve ends its bond buying.

They could get caught if the end of ultra-loose liquidity leads to a pent-up wave of dollar buying. John Taylor, chief investment officer at FX Concepts, said the program’s end “should put upward pressure on the dollar, even if interest rate differentials stay exactly where they are.”

But the vigilantes could cash in should the dollar fall into a death spiral if the economy falters or needs even more stimulus once the bond buying ends.

Dollar bears are clearly discomfited by the current U.S. policy mix, but not all market observers think that vigilantes are the culprit.

David Gilmore, a partner at FX Analytics in Essex, Conn., sees the yield differential between Europe and the U.S.–expected to grow wider as the European Central Bank embarks on a monetary tightening cycle–as the single biggest reason why the dollar is falling. Gilmore sees surging stock markets, which have risen on strong earnings, and stable bond markets as a sign that investors have not yet completely lost faith in U.S. assets.

“If those two markets start to weaken because people are losing confidence in the dollar, we will have a rapid change in policy. That would bring forward an exit policy from the Fed,” which would likely start talking up the dollar in order to avoid a run on dollar-denominated assets, Gilmore said.

Invest in America's Children

2011-04-25T09:13:00.002-04:00

My Latest Piece Featured @ YPNation.com:
http://www.ypnation.com/blogs/invest-americas-children

Conspicuously missing from the national budget debate is a discussion about strategic investments in early childhood education.

Without a doubt, all levels of government are facing tough choices in this new age of austerity. But if America is to remain a country that prides itself on enabling individuals to pursue their God-given abilities in a free market system, than it must place top priority on ensuring its children have the skills to compete in today’s global economy.

Targeted investments in early childhood development can lead to significant economic gains for society. For every dollar invested in early learning programs today, savings range from $2.50 to as much as $17 per child in the years ahead, according to the U.S. Chamber of Commerce.

Children who are involved in early childhood education programs are less likely to rely on social services and are more likely to earn more. High-quality prekindergarten for disadvantaged three- and four- year olds generates a 16 percent annual rate of return, according to the Federal Reserve.Which leads to increased tax revenues for local communities as well as declining expenditures on costly juvenile justice and social welfare programs.

Many communities across the country have begun to develop innovative programs to address this need. For example, in Cleveland, a broad spectrum of leaders from the public, private, and non-profit sectors joined together in 1999 to develop Invest in Children, an initiative aimed at increasing the development, funding, visibility, and impact of early childhood services. Since its inception, the program has served more than 75 percent of all new infants born in Greater Cleveland. Students who participated in the Invest in Children program and then entered kindergarten in the Cleveland Metropolitan School District averaged a score three points higher on the Kindergarten Readiness Assessment for Literacy (KRA-L) than other students in the district.

Early learning programs are a good investment, yet they are too often neglected in economic agendas, despite their importance to America’s long-term strategic interests and the high rates of return they generate for the public and private sectors.

Investing in early childhood education is an important first step as America plots its path back to prosperity. Tax cuts and entitlement reform are only part of the solution. To win the future, we must invest in our most precious asset—our children.

Building A Critical Mass

2011-03-17T17:37:00.000-04:00

St. Patrick’s Day is a great day if you’re a Clevelander. It’s one of those rare occasions where you can experience having a critical mass of people downtown. Bars are packed. Cars stand at a stand still on the street. If you close your eyes and take in all of the sounds of the city, you would easily think you were in Chicago or New York City. Walking down the street, I was struck by the comments of a bystander who said, “I would easily live downtown if it were always this crowded and filled with energy.” The sad reality is that there a probably thousands of people across Northeast Ohio who feel the same way. They would live in the city if it had a vibrant urban core, good schools, and a sense of connectedness.

The latest figures from the U.S. Census make the case for a new sense of urgency around quelling Cleveland’s population loss even greater. With 396,815 residents, the lowest since the 1900’s, the challenge of creating a robust urban core seems daunting, but the problem can be fixed. To help solve Cleveland’s population problem, a group of civic and business leaders have come together to help re-engineer Cleveland as an international metropolis, through Global Cleveland, a new initiative aimed at attracting diverse talent and marketing the city in immigrant and minority communities across the country. The group has set out an ambitious goal of attracting 200,000 immigrants over the next two decades. This new project is also focused on building a welcome center that would serve as a way to connect new residents to the greater Cleveland community.

The Global Cleveland project, if done right is certainly a step in the right direction. By attracting new immigrants and creating more open and welcoming neighborhoods, the city could truly begin to develop the entrepreneurial culture and dynamism to foster sustainable economic growth. Creating a prosperous urban core in Northeast Ohio also requires dramatically transforming public education to help encourage middle-class families to live in the city. More of the same just won’t do.

Local Budgets, The Bond Market, & Winning the Future

2011-03-08T16:05:00.001-05:00

The protests in Wisconsin and Ohio have made us even more aware of the difficult choices that lie ahead when it comes to America’s fiscal challenges. Nowhere is the problem more real than at the state and local level, where according to the Center on Budget and Policy Priorities, 45 states and the District of Columbia are projecting budget shortfalls totaling $125 billion. Failure to repay these debts not only has huge implications for jobs and public services, it also presents severe implications for the municipal bond market.

The US municipal bond market is a $3 trillion part of the global credit markets where state and local governments can borrow funds to support the building of schools, bridges, and hospitals. Without access to these funds, local communities would not be able to support vital community development projects. In the face of stark economic challenges, state and localities may be forced to slash spending and increase taxes to repay debts or restructure their debts entirely which would force bondholders to swallow huge losses with their citizen public sector union counterparts.

With these tough choices, state and local leaders need to engage in a pragmatic debate about best ways to ensure fiscal solvency without undermining the future competitiveness of their local economy. Every one has to make sacrifices. Raising taxes alone won’t solve the problem. Eliminating collective bargaining and destroying America’s middle class won’t also help restore our fiscal woes either. It will take political will, courage, and trust for local communities to deal with the unpopular choices that lie ahead. As President Obama said in a recent speech:

“To win the future, we have to out-innovate, out-educate and out-build the rest of the world, tapping the creativity and imagination of our people. We have to take responsibility for our deficit, by investing in what makes America stronger and cutting what doesn’t. And we have to reform our government so that it’s smarter, leaner, and better able to take on the challenges of the 21st century.”

I hope our leaders can heed this message sooner rather than later.

Cleveland: A Visionary City

2011-02-09T22:56:00.012-05:00

Last week, Yahoo Travel ranked Cleveland as one of the word's most visionary cities. This comes as a pleasant surprise for a city who is usually showcased in a negative light when it comes to rankings on misery, crime, and education.

Being back in Cleveland recently, I have been able to feel the sense of excitement and optimism in the possibilities for the future. Businesses, policymakers, and foundations are collaborating in innovative ways to turn the tide to create sustainable economic growth in the region. Just in the past two weeks the city has held groundbreaking ceremonies for over $2 billion dollars worth of development projects, which over time has the opportunity to make Cleveland a true 24-hour city.

Social entrepreneurs from across the city are also rallying together to help renew the civic fabric of Northeast Ohio. Just yesterday I had the opportunity to meet with Jack Storey, Co-Founder of Saving Cities, an organization dedicated to using media as a tool to advance community development across the Rust Belt. Jack shares the passion and intellectual curiosity of so many young professionals in Northeast Ohio who are dedicated to putting Cleveland back on the map. They just need the right voice and the right mechanisms to ensure that their ideas can be translated into action.

Moving forward, Cleveland should be proud of this new ranking. Our city has all the right assets to be a competitive city in the 21st century. For too long we have focused on whats wrong and not whats right. Citizens of Cleveland should hold their heads high and be proud as people from all walks of life are rolling up their sleeves to solve local problems. At the end of the day, this is the only thing that will allow us to realize our true destiny.

Lessons from Italy

2011-01-14T16:30:00.000-05:00

Last month, TIME Magazine did a great story on what lessons Cleveland can learn from Torino, Italy. Check out the piece below:

What Tornio Can Teach Cleveland

By Stephan Faris

The closure of Torino's Lingotto assembly plant in 1982 was a body blow for the Italian car capital. The Fiat automobile factory, inaugurated in 1923, was once the largest in Europe. Assembly lines carried cars up five levels and delivered them fully formed onto the roof, where they'd whip around an oval test track before spiraling down the building's ramps and heading to showrooms. The shutdown marked the end of an era. That decade, Torino would lose more than 100,000 jobs, a trend that would continue through the rest of the century as the city's industrial dominance slowly bled away. (See TIME's photo-essay "Torino's Lingotto: Symbol of an Aging Auto City Reborn.")

Today the Lingotto plant stands once again as the symbol of the city. Only now the old factory serves as a testimonial that there can be life after the auto industry. Redesigned in the 1990s by Italian architect Renzo Piano, it forms the hub of a revitalized commercial district. The assembly floors, far from silenced, host a shopping mall, a multiplex, two hotels and an art gallery, and on the roof are a rooftop meeting room, a panoramic restaurant and a helicopter landing pad. The test track remains, now at the disposal of hotel guests looking for a jog high above the city streets.

Torino — once known as the Detroit of Italy — has become a model of how a city can transform itself after an industrial collapse. It's the latest chapter in how this city, which dates to ancient Roman times, has remade itself as its political and economic fortunes have shifted. Once Italy's capital, Torino turned to industry at the end of the 19th century after power moved to Rome.

This time, when its home industry waned, Torino turned outward. An aggressive urban plan, expansion into international markets, investments in innovation and the buildup of new sectors like food and tourism have made the city one of the most dynamic in Italy. Roughly 60% of Torino's abandoned industrial land has been repurposed. Its per capita GDP is more than 10% higher than the national average. Delegations from hard-hit cities like Cleveland and Detroit come to learn how their metropolis might become the Torino of America. "Turin is a city that had a plan to come back," said Detroit Mayor Dave Bing while touring the city in November. "It's good to see we're not in this by ourselves." (See pictures of how cities are powered.)

Torino was a company town whose company nearly went down. When Fiat sneezed, Torino didn't just catch a cold; everybody competed to supply the handkerchief. So when the car company started to slump, much like GM, the city was suddenly faced with the possible loss of its only customer. Torino's leaders knew they had to diversify, not just technologically but also geographically. The city would concentrate on its core competences — automobiles, aerospace, industrial design — but market them elsewhere.

A series of public agencies began marketing Torino as a package. Rather than having a host of small companies feeding into a single big one, the businesses in the region would promote themselves as a single brand, offering one-stop shopping to clients all over the world. "It's strength through numbers," says Silvia Sabato, a manager at the Piemonte Agency for Investments, Export and Tourism, which markets the area's firms internationally. "We don't represent just one company but an ensemble of companies." (See why Bangkok is the capital of gridlock.)

As an example, Sabato points to companies like the 2A die-casting foundry, located in a suburb about 20 minutes outside town. There, in the red glow of molten aluminum, the city's manufacturing tradition is still very much alive. Indeed, thanks to contracts developed through the agency that pull in more than a quarter of the company's $67 million annual turnover, the company logged its best year ever. "We will soon be expanding," says Vincenzo Ilotte, 2A's director. Exports account for 85% of the firm's business; Fiat, just 8%. "Fiat is one of our customers," says Ilotte. "It's not our only customer."

Torino's experience suggests that development can't necessarily be left to its own devices, especially in the face of historic forces like deindustrialization. Industry can be guided, even given a boost. Public agencies and philanthropies can provide small and medium companies with some of the services that would be handled by the back office at a company like Fiat or General Motors: funding R&D, promoting products, attracting talent and financing start-ups. In addition to hosting the 2006 Winter Olympics, Torino has revamped its public transportation, redeveloped industrial sites and invested heavily in culture and tourism. "The private sector is not going to invest only because there's open space," says Sergio Chiamparino, Torino's mayor. "Our principal lever is the things our territory has to offer."

One of those things is Torino's university, the Politecnico di Torino, which the city has leveraged into industrial advantage. An extension of the campus hosts the I3P incubator, where start-ups can get a three-year jump start and contacts with consultants and funders, which could lead to no-collateral loans from local banks. Nearby, workers are finishing a $33 million facility where General Motors designs and tests diesel engines. GM established the branch in 2005 after breaking off a joint venture with Fiat, electing to remain in Torino in no small part for the skills of the Politecnico's graduates, who make up more than half the project's 420 engineers. "They're almost plug and play," says Romualdo Ruotolo, a manager at GM. "They have a lot of knowledge when it comes to diesel engines." (See pictures of London preparing for the 2012 Olympic Games.)

The city's example has encouraged the likes of Cleveland, where a group of philanthropists has teamed up with local politicians to boost the region's economy. Once a powerhouse of heavy industry — steel, rubber, automobiles — Cleveland has struggled for decades to find its footing. Recently, however, the city and the surrounding area have established agencies like those in Torino to help young companies get off the ground, assist midsize businesses with finding new markets and guide the city's old manufacturing base into faster-growing sectors such as medical supplies, flexible electronics, clean energy and next-generation polymers. "The question is, What do you do if Bill Gates doesn't settle down in your town?" says Brad Whitehead, president of the Fund for Our Economic Future, a partnership of more than 100 regional philanthropies. "We're trying to put ourselves in the way of luck."

Cleveland and its region are now home to 19 venture-capital firms — up from two in 2000 — and are focused on working to help existing firms find their places in the new economy. GrafTech, a company that once provided carbon and graphite products exclusively for the steel industry, now makes heat sinks for electronics. And Lumitex, a maker of backlighting systems for LCDs and dashboards, has expanded its customer base from car companies to hospitals, providing lighting for surgery. "We need to build on our region's existing strength in old-line manufacturing and connect them to these high-growth sectors," says Daniel Berry, president of MAGNET, a government-funded organization that advises the region's manufacturers. "It would take northeast Ohio a very long time to build a new economy using only entrepreneurial start-ups." (See pictures of Beijing cleaning up.)

If Cleveland has one advantage, it's that its belt has already been tightened. Since April 2009, Cleveland's unemployment rate lagged the national average. In the first half of this year, it was a leader in private-sector job growth — signs, say the city's leaders, that by following in the footsteps of Torino, the metropolis might have finally found the way out of its slump. "We have to do this," says Whitehead. "We have to achieve a transformation. You see and hear a story like Turin's, and you say, 'Well, maybe it's a tall mountain, but it's a mountain that can be scaled.'"

A New Era Begins

2011-01-09T17:03:00.001-05:00

This week, Ed Fitzgerald began his tenure as the county's first-executive. On his first day in office, Fitzgerald implemented a sweeping new ethics policy for county employees. Under this new framework, county employees will no longer be able to accept any gifts that could influence their official duties and will be forbidden to hold any outside job without approval. This is certainly a step in the right direction. Focusing on creating a more accountable and transparent government is the best way to rebuild public trust. Yet, beyond focusing on good government policies, Fitzgerald will have a huge opportunity to create a 21st century economic agenda for the region.

The latest economic downturn has fundamentally changed our global economic order, creating huge implications for state and local governments across the United States. With rising deficits, unfunded mandates, and weak economic growth, the mantra of “doing more with less” will continue to be an overriding principle when delivering public goods. While the challenges of this “new normal” seem insurmountable, there is a unique opportunity for Northeast Ohio to think differently about it's economic assets.

Cleveland's healthcare sector is one economic asset that, if leveraged right, has the opportunity to truly revive the region. Just this month construction started on the Medical Mart and Convention Center, which will showcase and market high tech medical equipment. The $465 million facility is not a economic panacea but alongside other strategic investments, it could help re-brand Cleveland as a global health-care hub while attracting high-paying jobs. It also will help bring more customers to the Cleveland Clinic and University Hospital. Yet, to fully reap the benefits of these economic development projects, regional leaders, like Fitzgerald, will need to work towards developing policies and strategies to ensure our region has a world-class workforce. This requires a bigger, bolder, and better approach to education.

According to the U.S. Census, more than a third of adults in Greater Cleveland hold an advanced degree. However, in the city of Cleveland, only 13.7% of adults hold a bachelor degree, and only 5.2% have an advanced degree. This huge gap, coupled with the cities low graduation rate, make it particularly difficult to attract employers in today's highly competitive knowledge based economy. Fitzgerald, along with the regions other business and civic leaders must use this defining moment in our region's history as a clarion call to action. Ensuring that every child in Cuyahoga County has the skills to be ready for college, work, and life in the 21st century is in everyone's best interest.

Great Lakes Region Increases Hiring

2010-12-20T11:08:00.000-05:00

Great blog post from the Wall Street Journal highlighting recent job growth in the Great Lakes region.

Great Lakes, Good Job Market

College hiring is rebounding in the Great Lakes and Mid-Atlantic regions, but remains muted in the Northeast, Southeast and Southwest, Dow Jones’s Melissa Korn writes this week.

Companies based in the Great Lakes area expect to hire 13% more new graduates with bachelor’s degrees regionally for the 2010-2011 academic year compared with the year earlier, according to a recent survey by the Collegiate Employment Research Institute at Michigan State University. The region includes Ohio, Michigan, Indiana, Illinois and Wisconsin.

The uptick stems in part from pent-up employer demand after years of hiring “sporadically, at best,” says study author Philip Gardner. He expects manufacturing, professional and science-related jobs to bounce back, especially at smaller companies.

The survey was conducted in September and October.

Sustainable Leadership in Urban Schools

2010-12-16T16:15:00.000-05:00

Earlier this week, Cleveland Schools CEO Eugene Sanders announced his intentions to resign. Sanders retirement came as a surprise to many throughout the city. Just six months ago he announced a wide scale school transformation plan, calling it the most important work of his career. While the district has asserted its intentions to continue moving forward with the plan, its success is without a doubt in question.

Cleveland, like many other cities with failing schools, is struggling to keep students and attract high-quality teachers. Bold reform is needed. But can it be achieved without sustainable leadership?

The D.C. public schools face a similar challenge. This past November, school Chancellor Michelle Rhee and Mayor Adrian Fenty suffered an electoral defeat that has put the city’s education transformation plan in jeopardy. While Mayor-Elect Vincent Gray has promised to continue those reforms, there is still a sense of uncertainty about the future. The challenges facing Americas education system are too daunting for inconsistent leadership. School chiefs need time to implement their plans. And elected officials need to think creatively about how they hire superintendents. Even more importantly, superintendents must implement succession planning into their human capital strategies. All of these factors are critical to ensure school effectiveness.

It is my hope that Cleveland community leaders will do their due diligence to ensure our next schools chief has the commitment and the vision to turn around Cleveland’s schools. With a 54% graduation rate, one of the lowest in the nation, we need more than a plan…we need a movement.

Connecting Lake Erie to the Global Economy

2010-11-18T10:17:00.002-05:00

Yesterday, the Cleveland Plain Dealer released a thoughtful op-ed discussing the merits of Cleveland connecting its port with Montreal. The Cleveland-Cuyahoga County Port Authority has struggled for years to develop a comprehensive vision. Developing a strategic partnership with Montreal is a step in the right direction for opening up our ports to the global economy.

Montreal link with Cleveland port is worth a look: editorial
By: Plain Dealer Editorial Board

They're back. But this time the Cleveland- Cuyahoga County Port Authority is developing a strategy for container traffic within the Great Lakes that could actually hold water -- and make Cleveland a leading innovator for a new form of lakes shipping.

Former ports CEO Adam Wasserman first flagged the idea of expanding the Cleveland port to handle containers that also ship by truck and rail. But Wasserman never moved beyond pie-in-the-sky schemes.

Since taking over after Wasserman's ouster, current port President Will Friedman has been busily establishing the contacts and key planning elements needed to create the first international container service on the Great Lakes. Among them:

• The definition of a route between Montreal and Cleveland. Great Lakes Feeder Lines, a joint American-Canadian company, would provide a vessel to shuttle containers back and forth.

• A demonstration that Cleveland's current docks could handle container cargo without added taxpayer investments. Last month, one of Great Lakes Feeder Lines' vessels was in town to demonstrate how containers could be loaded and unloaded here. Cleveland has the necessary longshoremen, a terminal operator with the needed equipment and the road and rail connections to move goods throughout Northeast Ohio.

• A realistic sense of scale. Cleveland is not going to compete with the Port of New York and New Jersey, which handles more than 5 million containers a year. Friedman figures the feeder line would handle 16,000 containers a year, linking with ocean-going vessels plying trans-Atlantic routes. "We're trying to provide a niche service for Northeast Ohio," he said.

Initial response from Fortune 100 and Fortune 500 companies in the region has been good, according to David Gutheil, who was hired last month as vice president of maritime and logistics for the Cleveland-Cuyahoga County Port Authority.

For taxpayers, the good news is that, unlike Wasserman's approach to international shipping, Friedman's envisions no public subsidy. But it's not all likely to be smooth sailing.

Transit time and cost must be competitive enough to give ocean shippers a reason to change to a new mode of transportation. And let's not forget Mother Nature. The St. Laurence Seaway and the Great Lakes freeze between mid-December and mid-February

Still, the idea of a contained container service between Montreal and Cleveland merits further study. As cargo tonnage on the Great Lakes drops, it is crucial that the port embrace innovative ways of selling its services. And container traffic could help buoy it up.

The End of Our Real Estate Market Woes?

2010-11-16T23:57:00.001-05:00

Without question the latest economic recession has had a devastating impact on the economy of Northeast Ohio. Exacerbated by the foreclosure crisis, Cleveland's real estate market has been in decline as early as 2007. However, recent market trends show some signs that Cleveland's real estate market may be on the upswing.

While the housing market in cities like Detroit and Las Vegas has yet to fully recover, the Cleveland market has begun to stabilize and bottom out. According to the most recent numbers, home sales in the greater Northeast Ohio area from January through September are better than they were in 2009. Throughout the region, housing consumers are beginning to buy and their appetite for investment has been increased due to historically low interest rates and federal tax credits. Home prices have also gone up over the past six months, which bodes well for residents who have seen their housing values plummet due to the sub-prime mortgage crisis that almost paralyzed the region. While these trends are promising, Cleveland's economy still has a long way to go to fully recover. Over the past 10 years, Cleveland lost a a fifth of its jobs as the manufacturing base eroded. Leaders in the region are now working vigorously to retrain workers in healthcare, one of the regions greatest economic assets.

Moving forward, Cleveland and its leaders must continue to work towards creating regional economic development strategies that will attract new investment. Cleveland's unique location by Lake Erie and its emerging strengths as a biotechnology and healthcare capital are all great foundations to build upon.

In Cleveland Loyalty Matters

2010-11-05T17:35:00.001-04:00

Check out this latest commercial a group of Clevelander's put together in response to LeBron's latest Nike Commerical. Gotta love that Cleveland Pride!!!

A New Path for Revitilization

2010-11-03T23:54:00.003-04:00

Yesterday voters elected Ed Fitzgerald, Mayor of Lakewood, as the new County Executive for Cuyahoga County. Under the backdrop of the worst corruption scandal in county history, Fitzgerald was able to overcome his Republican challenger, Matt Dolan, who spent millions of dollars linking Fitzgerald to the current scandal facing the local Democratic party. As the first County Executive, Fitzgerald will be faced with a laundry list of challenges. While restoring faith and credibility in county government should be his main priority. Fitzgerald has a unique opportunity to re-imagine Cleveland's role as the economic nucleus of Northeast Ohio.

Earlier last month, urban development experts from across the country gathered in Cleveland to discuss how to use vacant properties as an economic asset. Many cities across the country have had no choice but to make this issue a priority, as towering mortgage debt and urban disinvestment continues to plague many inner-city communities. In 2009, Cleveland alone witnessed more than 20,000 foreclosures, according to cases filed in the Cuyahoga County Common Pleas Court. This coupled with rising population loss and increasing levels of poverty, has undermined real GDP growth in the region. Yet while these structural challenges seem impossible to address, there is hope as some communities in the city are beginning to turn the page. Urban wine gardens are being created in the Hough Neighborhood, and University Circle is only at the cusp of witnessing how the new transit line will help link its assets to Downtown Cleveland. "Instead of figuring out what to do with (all) the vacant land, we need to figure out for each neighborhood, 'What are your most pressing problems, and in what way can vacant land be part of an answer?" says, Terry Schwarz, director of Kent State University's Cleveland Urban Design Collaborative. And it may take this neighborhood approach to really help make Cleveland, and thus Cuyahoga County, more economically competitive.

Nonetheless, as Fitzgerald begins his transition as the region's newly elected leader, he must do all the he can to listen to leaders in Cleveland to develop a sophisticated economic agenda that places the city at the center. In this age of austerity, rethinking how we utilize our must underused properties will be integral to that economic agenda. Cleveland can't afford to wait for another historic election to solve its problems. If Fitzgerald does his due diligence, he can help lead the both the county and the city to a new age of prosperity.

Cleveburg Rising

2010-10-13T11:01:00.001-04:00

Check out this great post via Burgh Diaspora by Jim Russell

The next Silicon Valley won't look like Silicon Valley. The era of greenfield economic development is over, at least in most OECD countries. Here in the United States, we've done a good job of picking that low-hanging fruit. The next innovation heartland will be in the Rust Belt, brownfield economic development.

Richard Florida, and others, are very good at mapping where the current clusters are located. We also understand why regions such as Silicon Valley are now economic powerhouses. Unfortunately, that hindsight doesn't project well into the future. What we read and hear is that the current winners will only get stronger. In many cases, that's likely true. But there will be new winners. How might we divine them?

Worthy of reiteration, Detroit hopes to be the next Pittsburgh:

Primary metals and all of manufacturing continued to decline as a share of metro Pittsburgh’s employment earnings. But it didn’t consign the region to permanent low- prosperity status. By the 1990s Pittsburgh was at or above the national average in per capita income even though primary metals accounted for only 4 to 5 percent of employment earnings and 17 to 19 percent for all of manufacturing. In 2008 Pittsburgh returned to its previous peak compared to the nation—104 percent of the national average. Of the 55 metropolitan areas with populations of a million or more, it ranked 16th and was more prosperous than Dallas, Raleigh/Durham, Austin, Portland and Atlanta.

In terms of prosperity, Pittsburgh hits way above its weight. If Cleveland could gets its act together, look out world:

Cleveland historically had the more diversified economy [than Pittsburgh] and traditionally was the most successful and largest city in the region. The city primarily built component parts, providing the essential industrial pieces to other mostly producer products. Companies such as Parker Hannifin, Standard Products, Cleveland-Cliffs, the Eaton Corporation, Yale & Towne, TRW, White Motor, and Sherwin-Williams exemplify the entrepreneurial efforts that build Cleveland.

This proud historical legacy is a blessing and a curse. It is a curse because the industrial decline of Cleveland has been more gradual, punctuated by many efforts to restructure alongside a common belief that corners were being turned—only to face another setback amid the steady decline of employment in industrial manufacturing across the Midwest. But it is a blessing because many parts and components are still manufactured in the city, along with the important service components that accompany their distribution. These industries remain highly competitive in the global economy, sustaining the region for export markets and defining a source of expertise and strength.

Pittsburgh shed its manufacturing base much more quickly than Cleveland did. Hence, Detroit looks at Pittsburgh as opposed to Cleveland as a model for a way forward. Ironically, Cleveburgh is a tried and true economic geography that lends itself to cluster-based economic development:

The fortunes of regions, of course, are tied to the fortunes of their firms and industries. The success and specialization of 19th-century achievements are still visible and still define many of the expectations, capabilities, and obstacles in this region. Writing in 1936, economic geographer Richard Hartshorne noted that the Pittsburgh-Cleveland region—geographically situated in western Pennsylvania and northeastern Ohio—was one of the most important regional economies in the United States.

The name "Richard Hartshorne" should be familiar to anyone who majored in geography at university.

(I didn't realize he was born in Kittanning) Cleveburgh was obvious in 1936. Cleveburgh should be obvious now. It isn't. I think we are looking at the first regional innovation cluster to cross state boundaries. At least, where better to test the policy idea?

Cleveburgh, not the Great Lakes Economic Initiative or the Global Midwest, is the policy geography of the future. The TechBelt is further along than anything John Austin or Richard Longworth has proposed. The reason why is buried in obscure texts about historical geography. If only more analysts and pundits read them.

The Washington Post Takes a Trip To Cleveland

2010-09-27T06:19:00.001-04:00

Check out this great article on Cleveland from Washington Post Travel Section:

Impulsive Traveler: A Cleveland neighborhood rises above the city's Rust Belt image
By Maryann Haggerty
Special to The Washington Post

There's something appropriate about going to Cleveland to pay homage to Bruce Springsteen, the poet of Rust Belt rock. What I didn't expect in that much-maligned city was a fun neighborhood of historic bed-and-breakfast inns, up-to-the-minute restaurants and one of the best traditional food markets I have ever visited.

Cleveland, about seven hours by car from the Beltway, was the first stop my husband and I planned on a longer Midwestern road trip. The goal was to see the special Springsteen exhibit that runs through Dec. 31 at the Rock and Roll Hall of Fame downtown. But somehow, nearly every downtown hotel room was booked by convention-goers.

Serendipity (and some Internet trawling) led us to a B&B, the J. Palen House. Maps showed it a few miles from downtown, across the Cuyahoga River and close to a station on the city's light rail system.
Make no mistake, the Great Recession has battered Cleveland, already shaky from the decline of Midwestern manufacturing. The neighborhood around the J. Palen House isn't the hardest hit, but it's transitional. The B&B, a pretty purple Victorian, was the most obviously gentrified building on its block. Rooms were large and lovely, with the sort of flouncy touches that turn a night on the road into a romantic interlude.

The host, Scott West, offered us a tour of the neighborhood, called Ohio City. No big deal, he assured us; the walk would take just a few minutes.

As Scott led us past solid renovated houses and a few old industrial buildings, he explained that Ohio City is one of Cleveland's oldest neighborhoods, once an independent city and home to Irish and German immigrants, including brewers. There's still a sweet-stale smell of beer in the air, but now it comes from Great Lakes Brewing Co., which opened in 1988. (Although it has microbrewery cred, Great Lakes is more than a corner brewpub with a few copper tanks. It ships 100,000 barrels a year.)

We turned the corner onto Market Avenue, a restaurant-lined block lively with young Clevelanders. Scott pointed out the highlights - the Flying Fig, considered one of the city's best locavore restaurants; a nice wine bar; the Great Lakes brewpub. Around the next corner, on 25th Street, there were more shiny new restaurants mixed in with worn neighborhood storefronts. And a few hundred yards away, in a handsome red-brick building with an eye-catching clock tower, was the West Side Market, one of those century-old food-stall palaces. Later, I found that city boosters are trying to brand the immediate neighborhood the Market District and attract even more restaurants and food-oriented retailers.

We started the evening with a pint at Great Lakes - I opted for the Burning River Pale Ale, a nod to the bad old days, when the Cuyahoga infamously caught fire. Dinner at the Flying Fig was all that a fashionable New American farm-to-table meal should be: creative, fresh, seasonal. Afterward, we wandered the little neighborhood and learned that in this city with brutal winters, the locals flock to sidewalk cafes and outdoor beer gardens on a pleasant summer evening. We read menus and added to our list of must-visit places for our short stay: Bar Cento for Italian-ish; Momocho, several blocks away, for what it called Mod Mex.

In the morning, we took the Red Line of the light-rail system, the Rapid, to the main Tower City station downtown. After a frustrating wait there, we determined that the Waterfront line, which runs near the Rock Hall, no longer operates on weekdays even though it's on all the system's maps. Nobody had bothered to put up a sign on the platform, and transit employees were dismissive. It turns out that most service on the line, always underused, was discontinued this year for budget reasons. I grumbled, but as we knew from past visits, the walk to the Rock Hall is less than a mile. Did you know that Bruce, who made his name as the voice of the gritty '70s, was touring around the country in the 1960s, long before he became famous? Or how much he paid for the guitar he held on the cover of "Born to Run"? (It was $180, maybe $185, Bruce recalls - a fortune to him at the time.) Or how little I probably paid for my ticket to the "BTR" concert in 1975, if the other posters from that tour are any guide? (If I paid more than $10, I should have had a much better seat.)

The Hall lets you go in and out all day, so you're not stuck with a museum cafeteria. We decided against Iron Chef Michael Symon's downtown restaurant, Lola, instead opting to hunt down Polish Boy sandwiches. The Polish Boy, a very local specialty, is a sausage topped with cole slaw, French fries and barbecue sauce. I know, but it's good - and we found some not far away, at a hole-in-the-wall called Freddie's Southern Style Rib House.

But the highlight - the big pig-out revelation - came the morning we visited the West Side Market. It's huge, vastly outsizing Capitol Hill's beloved Eastern Market. It's sparkling clean, putting Baltimore's Lexington Market to shame. And the variety! Pasta, sausage, cheese, pastry, pierogies, tamales, meat, meat, meat. (Produce, not so hot.)

We still had two weeks of road trip ahead, so we restrained ourselves, buying a pound of raw-milk Amish cheddar, pretzel-and-cheese concoctions called pretzel boats, and some spicy distant cousins of beef jerky known as smokies. A few days later, when we finished the cheese, we agreed to shift our route home and swing back through Cleveland.

This time, it was the J. Palen House that had no rooms available, so we stayed in another romantic, historic Ohio City B&B, Stone Gables. We had dinner in yet another local-food restaurant and the next morning filled a cooler with yet more West Side Market purchases - beef pasties, chicken enchiladas, pasta, bread, sausage, cheese, smokies. After all, it was only a seven-hour drive home.

Making Government Work

2010-09-25T15:33:00.000-04:00

The recent arrests of County Commissioner Jimmy Dimora and former County Auditor Frank Russo further cemented the fact that Cuyahoga County government has been paralyzed by lack of accountability and transparency. For years, Dimora, Russo, and others used their office and taxpayer dollars to advance their own political and personal interests, while the region they served witnessed massive brain drain and lost thousands of jobs. Incompetent leadership in government at any level is a recipe for conventional thinking and persistent decline. For Cuyahoga County, and the Greater Cleveland area, this is has been a sad reality for far too long. However, with the new county charter and the upcoming county elections, there is a small glimmer of hope that the newly elected leaders will put restoring faith in government as their number one priority.

When voters head to the polls on November 2nd, the most important vote they cast will be for the newly elected county executive. So far, a majority of the candidates have a promised specific policies to promote openness and transparency. According to a survey conducted by the Cleveland Plain Dealer, a majority of the candidates agreed to the following provisions:

Make public records available without delay
Provide timely access to their calendars of public business
Disclose any gifts they receive as public officials and the values of them

These are all steps in the right direction. Yet, beyond these basic recommendations, voters should look towards putting their faith in the candidate who best articulates a vision and a plan to usher in a new era of leadership in county government. One that is grounded in understanding the fundamental challenges our region faces in today's global economy, not based upon patronage and favoritism. As the sole shareholders of our region, citizens must take their vote seriously. We must hold our elected officials accountable. Each of us have a stake in the economic prosperity of our region. To invoke the words of Thomas Paine, let us begin the work of remaking our county. If we wait any longer, it may be too late.

A Bold Call to Action

2010-09-08T20:51:00.003-04:00

The continued challenges facing the Warehouse District have forced many leaders in Cleveland to reassess the cities viability as destination for young professionals. Reverend Jawanza Karriem Colvin wrote a compelling editorial articulating his vision for the city. It's a bold reminder to all of us who care deeply about the future of our city. Check out the piece below:

Finding Strength in Open Minds:

Last week's reports on the arrest, detention and alleged beating of two African-American corporate executives in the Warehouse District are disturbing, but unfortunately not surprising. The Warehouse District, a section of the city that at its best should reflect the trendy, cosmopolitan character of Cleveland, is gaining a reputation for racial insensitivity.

Coupled with the shocking allegations of police misconduct, this incident only complicates attempts to successfully market the city and the region to aspiring young professionals. As we know, the recruitment of this population is an important part of fulfilling any hopes of regional prosperity, which can positively impact the quality of life for our communities and neighborhoods.

The arrival of bright, vibrant and energetic persons seeking to begin their careers with the prospect of eventually settling down, starting families and making civic contributions is an increasing reality for some American cities and an urban planner's dream in others. Today, growing and emerging regions recognize that this is a population they simply cannot do without. They also recognize this is a demographic that is increasingly diverse in race, culture and place of origin.

As a result, the message is clear: Tolerating intolerance is self-defeating.

If Cleveland and Northeast Ohio are going to attract a new generation of talent, they must -- along with reimagining the local economy -- continue to nurture an inclusive and open environment across racial, cultural and geographical lines. Historically, such lines, instead of being points of meeting for healthy discourse on our commonalities and differences, have become intersections of ignorance and discrimination.

As this region wrestles to find its 21st-century political and economic identity, it must expend similar intellectual and soul-searching capital to frame a new cultural one. It must do so or risk lagging behind in a competitive global marketplace where the talent pool is multiracial, multicultural and more tolerant of differences than previous generations.

How do we accomplish this?

There are no quick formulas or magic potions for changing hearts and minds, nor are there assurances that the embracing of inclusion in our personal lives will translate into more progressive policies and practices, or vice versa. However, there is an opportunity and a challenge. The opportunity at this moment is to celebrate the growing diversity of our region and to continue to increase such efforts in defiance of the pockets of prejudice that still remain in sectors of the public, private and commercial arenas.

The challenge is to summon the courage to confront our deeply embedded historical, cultural and institutional "isms," which can manifest themselves in the form of glass ceilings, abuses of power and violations of the most basic civil and human rights. W.E.B. Dubois, the famed African-American sociologist, asserted that the greatest issue of the 20th century would be the color line. It is a new century but, sadly, we have still not solved this old, vexing problem of race and difference; and while some pray for it to simply go away, the future will not wait for us. As a matter of fact, it's time to catch up.

Colvin is the pastor of Olivet Institutional Baptist Church in Cleveland.

Rethinking Homeownership

2010-08-29T19:39:00.002-04:00

If your in Cleveland, take a drive through the Kinsman neighborhood or Slavic Village, and you will easily see the symbols of America's most recent housing crisis. Fueled by poor regulation and exuberant behavior from both banks and homeowners, the era of sub-prime lending has given the argument against homeownership in America even more credibility. The blight, crime, and poverty associated with the recent foreclosure crisis, particularly in urban America, should give our leaders an even greater sense of urgency to dramatically transform our nation's housing policies.

Check out Time's Magazines new cover story: "The Case Against Homeownership"

It's a good piece that can help inform a new conversation about how we can bring prosperity and stability to communities like Cleveland who are still struggling to recover from our most recent housing crisis.

Detroit's Master Plan

2010-08-22T20:42:00.000-04:00

The 21st century is quickly becoming the age of the city. Today, half of the world's population lives in cities. And in the developing world, cities are constantly expanding to meet the demands of massive population growth in the urban core. This narrative however is quite different in the United States. While economically metropolitan centers are critical to the U.S. (90 cents of every dollar made in the U.S. comes from U.S. cities), many are facing declining tax revenues and massive population loss. Detroit, like Cleveland, is one of those cities that shares this narrative. Currently, the city has an $85 million budget deficit, an unemployment rate of 14%, and a high school graduation rate of only 37.5%.

Understanding the challenges facing the city, earlier this week, Detroit Mayor Dave Bing announced his new campaign to revitalize the city. While the details of the plan will primarily depend on public input, the Mayor has boldly challenged his constituents and city officials to think differently about redeveloping a shrinking city. Like many other mayors of shrinking cities, Bing is beginning to embrace the new era of downsizing. Youngstown, Ohio and Flint, Michigan have paved the way for how we think about redevelopment in this new era. They have torn down blighted homes to create more green space and have consolidated city services with inner-ring suburbs to save tax dollars.

Now more than ever, cities like Detroit and Cleveland need to think critically about the merits of downsizing. For many urbanists this is a hard idea to accept, as the notion of downsizing an American city goes against our optimistic nature. Yet, their is immense opportunity for these cities if downsizing is done right. If Detroit can embrace its shrinkage through innovative land use plans, it could allow the city to focus more on addressing the systemic problems of creating jobs and improving public schools. Let's see if Detroit can prove us wrong and return to its glory days. Cleveland could use the competition.

New County Government Critical to Cleveland's Future

2010-08-12T08:53:00.001-04:00

The political corruption scandal that has plagued Cuyahoga County has sparked an unprecedented mood of reform in Northeast Ohio. As the federal public corruption investigation continues, voters seem eager to eradicate the politics of bribery and corruption with common sense governance that can advance the region in the 21st century. For decades, regionalism proponents have argued that the current governance structure in Cuyahoga County seemed redundant and stifled economic development for the region. After voters overwhelmingly supported a grassroots movement to enact a new county charter, regionalism supporters now have their opportunity to enact a new county government, led by a County Executive and an 11-member County Council.

As voters head to the polls to vote in the primary elections on September 7th, it is critical that they support candidates who have bold ideas to ensure that the Northeast Ohio can compete successfully in today's knowledge-based economy. From education to promoting regional development, the new County Executive and County Council will have a unique opportunity to lay the foundation to advance the social and economic well-being of the county. Even more importantly, the new government must understand Cleveland's critical role in having a thriving and vibrant region. Every decision they make will impact Cleveland's viability as a successful metropolitan center.

The Why Cleveland Matters Blog will keep its eye focused on what's happening during this exciting election season. Stay tuned for more....

Cleveland's 2012 Democratic National Convention Sweepstakes

2010-08-07T18:13:00.001-04:00

The buzz around town is that Cleveland may be a leading front runner to host the 2012 Democratic National Convention. Hosting the convention would be a great opportunity showcase Cleveland's greatness. As goes Ohio, so does the White House.

Cleveland Congressman Dennis Kucinich has just launched a statewide effort to rally his congressional colleagues to bring the convention home to the shores of Lake Erie. Check out the Cleveland Plain Dealer's latest article on this important effort. Keep your fingers cross Cleveland! After the "DECISION", we need some good news...

Dennis Kucinich rallies colleagues to bring DNC Convention to Cleveland

The Warehouse District Dillema

2010-07-29T15:17:00.002-04:00

No city can thrive in the 21st century without a thriving downtown. Downtowns are innovative places where creative business can grow and prosper. From the architecture of restored and new buildings, to the offspring of new retail shops and restaurants, downtowns reflect the cultural diversity of the urban core. Yet sometimes, rejuvenating the downtown of a city can produce dramatic consequences, especially under the backdrop of historical racial tension. The latest events surrounding Cleveland’s Warehouse District is a classic example of what happens when such racial and economic tensions clash in a city’s quest to revitalize its downtown.

Since the early 1990’s, downtown Cleveland has undergone a dramatic transformation. The Gateway development project that lead to the development of Quicken Loans Arena and Progressive field, ushered in what was considered by many, a new urban renaissance for Cleveland. However, while these efforts to revitalize downtown and the city's economy have not fully created the substantive renaissance Cleveland desperately needs, it has created pockets of real hope and opportunity in some neighborhoods. Cleveland’s Warehouse District is a great case study of what can happen when residents and private-sector investors come together to create systemic change. With help from the local government as well, leaders in the neighborhood since 1992, have gone above and beyond to develop a hip community that has the amenities and atmosphere to rival any urban enclave in New York City or Chicago. There are new restaurants and clubs, and housing developments that offer great views of Lake Erie.

The distinct problem that may undermine the Warehouse Districts future progress however, lies in the fact that it is one of the very few places in downtown Cleveland that offers a vibrant nightlife. This concentration of clubs, restaurants, and a rowdy crowd anxious to enjoy one of the very few appealing places to relax and party, has created a toxic mix that may jeopardize the districts future. The recent proliferation of several hip-hop clubs has created a tension between residents, owners, and party goers that have led some to believe the local police and club owners are profiling African-Americans without just cause. These accusations led Cleveland NAACP President George Forbes to meet with Mayor Frank Jackson to discuss best solutions to eliminate any unjust racial profiling that could be occurring. In response, the Mayor has urged officials from the federal prosecutors office to improve business owners and employees knowledge of anti-discrimination laws.

Mayor Jackson and George Forbes response is a step in the right direction. However, it will not cure the inherent problem that exists. Cleveland lacks an array of options when it comes to downtown nightlife. To attract talented young professionals, Cleveland needs a concentrated and swift effort to redevelop its downtown in a way that can appease the various ethnic and social groups who call Cleveland home. The Medical Mart Project and the new Casino development may help in relieving some pressure off the Warehouse District. Additionally, the new Flat’s redevelopment also has the opportunity to be a new hub of dynamic nightlife. And while downtown redevelopment is vital for Cleveland's future competitiveness, it will only be a “symbol” of a renaissance, not the "substance" of a renaissance the city needs if redevelopment efforts do not encompass real reforms to create a competitive business climate and a world class education system.

Cleveland's Iconic Business Roots

2010-07-19T23:03:00.002-04:00

Last week the business world mourned the loss of one of its legendary icons, New York Yankees owner George Steinbrenner. Known for his brass knuckles, micromanagement style, Steinbrenner helped restore a fledgling Yankees franchise into a multi-billion dollar empire. Steinbrenner embodied everything that makes an entrepreneur successful. He took risks, winning meant everything to him, and he portrayed a sense of raw resilience that would make any Fortune 500 CEO envious. Yet, one of the most forgotten facts about this great business legend is the fact that he was a native Clevelander. Born in the Cleveland suburb of Rocky River in 1930, Steinbrenner attended Williams College and excelled at track and football. After a stint in the Air Force, he joined his family’s Great Lakes shipping business, Kinsman Marine Transit, and later went on to own a Cleveland basketball franchise before leading a consortium bid for the New York Yankees in 1973.

George Steinbrenner joins the ranks of many business legends who once called Cleveland their home. Perhaps the most notable business icon from Cleveland was John D. Rockefeller, who got his start as bookkeeper for the Hewitt & Tuttle commission merchants. Years later, Rockefeller went on to build his career in the refinery business and later started Standard Oil in 1870. At the height of his career, Rockefeller had an estimated worth of almost $1 billion, in today’s value he would be worth more than $200 billion. His notable accomplishments transcended business, as he used his wealth to help establish the University of Chicago and the Rockefeller Foundation.

Nonetheless, as history has shown us, Cleveland’s past is full of notable business icons. But the one thing that stands out the most is the fact that while many of these icons start in the city, they tend to leave their talents and go elsewhere. The recent departure of basketball superstar LeBron James has even added to this myth of Cleveland being place where the most talented leave for greener pastures. Across the Rust-Belt, the flight of the creative class seems to be a standard anecdote. For Cleveland, this anecdote has been a sad reality for years. However, there is still much to hope for in that shining city on a lake.

Currently, Cleveland has a number of business leaders who are beginning to help re-energize Cleveland’s business climate. From Al Mixon, CEO of Invacare, to Baiju Shah, CEO of BioEnterprise, Northeast Ohio’s future as a hotbed of entrepreneurship and innovation is promising. Biotechnology, healthcare, and renewable energy combined together could help fuel a new era of economic growth in the region. Let’s just pray that the emerging and current business leaders keep their talents at home for the next few decades.

LeBron Who?

2010-07-13T21:38:00.004-04:00

There is still a lot to love about Cleveland even if LeBron has ditched Lake Erie for the beaches of Miami. The Cleveland Plain Dealer listed the best things to love about that great city on the Lake in last Sunday's paper.

Here are 20 of Cleveland's greatest gems:

1. Cleveland Metroparks. Kind of a hidden gem an Emerald Necklace, to be exact.

2. Cleveland Orchestra. Consistently one of the worlds best.

3. Actual seasons. One lasts a little longer than the others, but still.

4. Cleveland International Film Festival. Lights, camera, action and a lot of documentaries downtown. Annual movie-buff heaven.

5. The Dawg Pound. OK, it's not where you want to spend quality family time, but it's our own special spot within Cleveland Browns Stadium.

6. The Big Egg. The legendary hangout in Cleveland is reopened, with something for everyone on its menu.

7. Progressive Field. Would you rather watch a ballgame at the old Municipal Stadium?

8. Cost of living. Median home price in the Bay Area in Northern California topped $400,000 last month. And how much did you pay for your house?

9. "Hot in Cleveland." Who doesn't love Betty White? Check it out on TV Land, 10 p.m. Wednesdays.

10. Severance Hall. The venerable hall in University Circle classies up anyone who plays here.

11. Great Lakes Brewing Co. Christmas Ale, anyone?

12. Rock and Roll Hall of Fame and Museum. Yes, we rock.

13. Cleveland Museum of Art. Almost 100 years old, with a legacy of expansive collections.

14. Lake Erie Tall Ships, beaches, Edgewater Marina, Goodtime III, the Steamship William G. Mather . . .

15. Terminal Tower. A tall legacy of our city (with a reopened observation deck!).

16. Michael Symon. When he's not opening burger joints you can find him on the Food Network competing against other chefs.

17. World-class health care. Best place in the country to be chronically ill.

18. A Christmas Story house. The Tremont-neighborhood home draws us closer to Ralphie seeking that special BB gun.

19. University Circle. Cleveland Museum of Art. The Museum of Natural History. Western Reserve Historical Society. Cleveland Botanical Garden. Wade Oval. Case Western Reserve University. Enough said.

20. Playhouse Square. From "Wicked" to something wicked this way comes, these eight (soon to be 10) venues make the theater district the nation's largest performing-arts center outside New York.

Click here to view the complete list: 100 Things to Love About Cleveland

Vacation...

2010-07-07T22:49:00.001-04:00

The Why Cleveland Matters Blog will return on July 13th. Headed out to Miami for Vacation. Will LeBron be joining me?

A New Model for Teacher Pay

2010-07-02T14:59:00.002-04:00

Earlier this week, D.C. City Council approved a contract with the Washington Teacher’s Union which guarantees higher pay for teachers who show significant impact in the classroom. After 2 years of intensive debate, Chancellor Michelle Rhee has finally cemented her innovative ideas around tying teacher pay to new systems of evaluation into a school system that for decades has been in desperate need of change. While most union contracts of large cities rely mainly on tenure for paying teachers, the new D.C. contract will use growth scores as one benchmark of higher teacher pay. As many other urban districts go back to the bargaining table to approve their own union contracts, some are wondering if the D.C. model can be replicated across the country.

Some of the tenets of the new teacher contract include:

-21.6 % salary increase through 2012, which includes a raise they did not receive while the new contract was being negotiated.

-Raises the average salary of a D.C. teacher to $81,000 from $67,000.

-Includes a volunteer pay-for-performance system that could increase teacher salaries by an additional $30,000 if students achieve better than expected growth in test scores.

-Creates “teacher-centers” where teachers can receive additional profession development support and resources.

Cleveland is one of those cities that is in desperate need of examining how it attracts, retains, and incentivizes highly qualified teachers. As it stands now, Cleveland has one of the most restrictive teacher contracts in the nation. Teacher seniority and other defunct contract provisions stand in the way of any real reform that would allow the district to eliminate ineffective teachers. For Cleveland to create a word-class education system, teachers unions, education leaders, and policymakers need to think hard about creating a teacher evaluation system that rewards success and fosters real accountability, not just seniority.

Sustainable Cleveland

2010-06-28T21:53:00.001-04:00

The recent oil spill crisis in the Gulf Coast illustrates the need for our nation to aggressively move towards cleaner renewable energy resources. For the U.S. to successfully compete in the emerging green economy, cities must begin integrating the tenets of sustainability into there economic development growth strategies. With its Sustainable Cleveland 2019 Initiative, Cleveland has gone above and beyond to do just that.

Started in August 2009, the Sustainable Cleveland 2019 initaitive is focused on transforming Cleveland’s economy into a sustainable economy and the city into a green city on a blue lake. During its first summit, the initiative convened over 700 local and global thought leaders in green technology and sustainability. After the three day summit, attendees developed a robust action plan to help the city begin its efforts towards revitilizing the local economy. Some of the recommendations included:

-Positioning Cleveland and Lake Erie as the center of the offshore wind industry in the U.S.

-Creating a Global Center for Sustainable Design and Manufacturing to help promote R&D between local businesses and universities.

-Develop new metrics to measure sustainability efforts.

-Raise $100 million for the development of a Regional Sustainability Development Fund that would invest and support green ventures.

While many of these recommendations may seem far reaching, they are exactly the type of bold ideas Cleveland will need to implement in order to successfully adapt and compete in the green economy of the 21st century.

Check out some of the links below to learn more about the Sustainable Cleveland 2019 Initiative:

City of Cleveland: Sustainable Cleveland 2019

The Green City Blue Lake Blog

Sustainable Cleveland 2019 Ning Network

Cleveland's Job Creation Future

2010-06-24T19:25:00.002-04:00

Like many cities in the Rust Belt, Cleveland has struggled to reinvent its economy. The erosion of Cleveland’s manufacturing sector has not only undermined its once competitive edge, it has also triggered massive brain drain. According to the most recent report from the U.S. Census, Cleveland has witnessed an average population loss of 1% each year for the past decade: roughly about 45,000 residents. Job losses have also been immense in the area with the city losing roughly over 150,000 jobs over the past two decades. Even more striking is the fact that Cleveland has witnessed the exodus of many of its largest companies, which has further eroded the city’s base as a global economic hub.

However, beyond all the troubling statistics, Cleveland is well on its way towards revitalizing its entrepreneurial ecosystem. Understanding that the city’s economic future was at a pivotal crossroads, in 2004 leaders from all sectors came together to form JumpStart, a non-profit organization dedicated to providing intensive entrepreneurial development assistance to entrepreneurs leading high potential, early-stage companies. With many early successes it has quickly become a national model for new venture creation. John Torinus of the Milwaukee Journal Sentinel in his most recent article highlights that Cleveland’s jobs commitment is an enviable model. One of the most fascinating findings from Torinus's piece is that the fact that out of all of the 47 companies JumpStart has invested in, only three failed. According to Ray Leach, JumpStart’s CEO, the ventures created by the non-profit have helped to create over 700 jobs. This is a promising statistic, especially in an economy where every job matters.

For Cleveland to succeed in today’s innovative, knowledge based economy, it is clear that small-business creation will need to be a key ingredient. With small businesses accounting for 70% of all new job creation, cities now more than ever need to do whatever it takes to create the right entrepreneurial and regulatory climate for them to prosper. So far, with JumpStart and other key initiatives, Cleveland seems to be doing all the right things to ensure that it can help lead the Rust Belt towards a path of sustained economic vitality.

Community Policing

2010-06-21T09:29:00.000-04:00

By Andrew Adrian-Karlin
Contributing Writer

Cleveland has a crime problem. We have triple the national average of violent crime per hundred thousand people and double the national average of property crime per hundred thousand. We need to do something about it. If we want Cleveland to be a livable city people cannot be afraid to leave their house at night and walk down the street, to go to a park in the evening or park their car overnight.

There are a hundred different things that contribute to this problem and solutions to each that will help. Rehabilitation along with imprisonment, an improved economy and more jobs available, better schools and a better funded and more effective police force to name a few. The problem is that most, if not all of these take time to implement. There is something that we as a public can help solve this that costs us nothing and can be done immediately, community policing.

When most people hear about community policing they think of the neighborhood watch and nosy neighbors with nothing better to do with their time. Community policing is just making sure that there are open lines of communication between the police and the community. It is as simple as knowing a couple of officers that patrol your area so that you feel comfortable talking to them if you ever need to. It is about understanding what officers do on a day-to-day basis and learning from them what we can do to take back our streets from those who would commit crimes. It is about changing the oppositional attitude between ordinary citizens and the police that so often colors our interactions.

When I looked into what can be done to bridge the gap between the community and the police I expected to find that the department was lacking in options for the community, but they aren’t. Everything from inspecting your home for security and neighborhood watch programs to auxiliary policing and a citizen’s academy, they have a large number of programs to reach out to the community. While it would be nice if they had more foot patrols so citizens could see them and interact with them on a regular basis, that is something limited by funding and the number of available officers.

Everything I see says that the Cleveland Police Department has done what it can to provide the community with resources to help fight crime around us. However, if you are anything like me, you haven’t ever really thought about getting your building a security inspection, or taking the citizen’s academy, or just sitting outside in the evening instead of inside to make sure that someone is watching the street. So, if community policing can help our communities and the police are prepared for us to stand up and help them, then let’s do it. Here is what I am asking all of my readers today. Do one thing this week to promote community safety, take a class, sit outside in the evening, organize or participate in a neighborhood watch, or maybe just call the police when you see something suspicious. If it works out, maybe do something else towards this next week and while you are at it, post what you did below.

The Detroit Schools Crisis: A New Economic Reality?

2010-06-17T11:22:00.000-04:00

This week, 30 schools in Detroit will be closing due to budget cuts and declining enrollment. The Cleveland Metropolitan School District will also close 16 schools this year.

Is the downsizing of schools a new economic reality for the urban core?

Check out the coverage and add your thoughts to the conversation:
http://www.msnbc.msn.com/id/37642350/ns/us_news-life/

LeBron James and the Future of Cleveland’s Economy

2010-06-15T09:16:00.028-04:00

For any avid NBA fan, it’s hard to escape the hype surrounded by the free agency of LeBron James. Since being drafted in 2003, James has rejuvenated the Cleveland Cavaliers as one of the league’s best teams. His ability to transform the Cavs as a premier basketball franchise has also impacted Cleveland’s local economy. As any Cleveland fan will tell you, downtown Cleveland has the energy of any major metropolis during basketball season. However, once James and company have left the court, downtown returns to its fledgling state, leaving many to worry about future of Cleveland’s local economy in an era without one of the world’s biggest superstars.

Adam Miller, corespondent for the Bleacher Report, weighs in on the immense impact James has had on the economy of Cleveland. In his piece, Miller, coins the term “Lebrononomics”, to highlight how James has already helped the city of Cleveland outperform market expectations. Currently, the Cleveland Cavaliers are the fifth most valuable team in the NBA, while the city is only ranked 18th in nation in terms of its standing as a premier basketball market. Other larger markets are beginning to recognize the economic potential of signing James. A recent Chicago business article estimated that if the Chicago Bulls sign Lebron James, it could bring almost $3 billion to the city. It’s clear that the implications for Cleveland could be devastating without James. In 2009, local tax revenues totaled $491 million, which is only $15 million more than what the Cavs are worth currently. This value without a doubt would drop dramatically with the departure of number 23. While it is a big leap to say that Cleveland’s entire economy is built on James, the city has certainly benefited as the local hotel, restaurant industry, and merchandise stores have all boomed in the era of “Lebrononomics”.

While I am one of the cities most passionate basketball fans, it is disheartening to find that so much of our downtown revival depends on an athlete. Local politicians are planning major outreach campaigns to woo James, and even citizens are mobilizing movements on Twitter and Facebook. Everyday it seems as if there is one more campaign or initiative to keep our best player. I wonder would happen if the people of Cleveland, with the support of our local officials, put the same vigor and excitement into mobilizing the city to reform our schools or attract new businesses. For decades we have invested tax dollars and other resources to build stadiums and other developments that we think will solve our economic ills. But despite these investments, our city remains stymied by double digit employment and high levels of crime. For Cleveland to be competitive in the 21st century it is imperative that we get our priorities straight. The problems are too big and the stakes are too high.

Cleveland's History, A Green Future

2010-06-11T12:51:00.000-04:00

By Andrew Adrian-Karlin

Contributing Writer

Cleveland dwells on its history. Go anywhere that people are discussing Cleveland’s future and you will hear conversations about what the city once was. The consensus is that Cleveland was once a blue-collar, union metropolis, and a capital of American industrial production. This matters.

Cleveland’s industry built a city with a strong foundation of beautiful historic buildings, buildings that can help serve as the bedrock to build the “green-collar” jobs that are the future of our nation’s economy. While they are beautiful, and cheap to use (Commercial space for rent in Cleveland costs around $18.02 per square foot, in Chicago $36.53, in Pittsburgh $22.54) what also matters is that using historic buildings is green. In manpower, materials and energy the cost in tons of carbon to build a new office is significantly higher than the cost to refurbish an older building or use a modern one. If a business is looking to be carbon neutral they can cheaply put themselves in the heart of Cleveland with little environmental impact.

Not only that, but Cleveland has an abundance of public transportation that other cities with the same cost of living don’t. The new health line running from East Cleveland through University Circle, the Cleveland Clinic and CSU is great for commuting and the RTA was voted the best public transportation in North America by the American Public Transportation Association in 2007. The future of our nation is green and Cleveland is poised to deliver on that future.

President Obama, in a speech at Carnegie Mellon University, on the economy, asked if anyone could have expected Pittsburgh to fare better than other rust belt cities and “reemerge as a center for technology and green jobs, health care, and education.” Cleveland has the ability to do the same and is well suited for it. We are already home to some of the nation’s best hospitals, great universities and have some of the nation’s best technology infrastructure. If we already have these and the historical infrastructure that should be attractive to green businesses, then I would like to explore what we can do to position Cleveland as a leader in green jobs.

The Why Cleveland Matters Blog on Cleveland.com

2010-06-08T21:22:00.000-04:00

Cleveland Plain Dealer columnist Regina Brett features the Why Cleveland Matters Blog today in her column. Check out the write up below:

Why Cleveland matters

By Regina Brett

Is it the world-class Cleveland Orchestra? The international airport? The Cleveland Institute of Music? The Cleveland Museum of Art? The Cleveland Metroparks? The Browns, Indians or Cavs? The wild array of immigrants who dedicated their lives to build this town?

Why does Cleveland matter?

Justin Bibb asks the question in a new blog Why Cleveland Matters: The Purpose.

He was born and raised here, grew up in the Union Miles / Mount Pleasant area. I wrote about him ten years ago when he was a seventh grader at Shaker Middle School and was struggling to be respected. He was teased and tormented for being a smart black kid. He believed in dreaming big.

Justin ended up studying at American University in D.C. where he got a degree in urban studies with a concentration in leadership. He also studied at the London School of Economics.

He just started a blog that poses the question: Why does Cleveland matter?

If you work, live or play in Cleveland, why does this city matter to you?

Cleveland's Drop-Out Rate

2010-06-08T15:03:00.009-04:00

President Barack Obama gave a speech today to a group of Michigan high school graduates in an effort to call the nation to action to solve our high school graduation epidemic. In his speech, he told students “Don’t make excuses. Take responsibility not just for your successes but for your failures as well.’’

Without question, the stakes are high for our nation when it comes to this issue of our high school drop-out rate. National data tell us that every 26 seconds another student drops out of school -- totaling more than 1.3 million students per year. Even more striking is the fact that, each year, due to more than 20 million high school drop outs, ages 20-67, the United States loses more than $50 billion in potential state and federal income tax revenues. For Cleveland, the story doesn’t get any better. According to the Ohio Department of Education, Cleveland's high school graduation rate is less than 54%, one of the lowest in the United States. The key to Cleveland’s competitiveness in the 21'st century lies in its ability to transform how we think about reforming education.

For far too long, we have had too many status quo conversations about how we fix our schools. Cleveland can’t become a world class city unless we find away to ensure that every child in our community has the tools to be competitive in today’s knowledge based economy. Achieving this goal will require every person in the community to take responsibility for our children’s future. This notion of shared responsibility is the only way to ensure we develop the right interventions to fix such a complex issue. Not one teacher, policymaker, or business leader can do it alone.

Creating meaningful education reform in Cleveland also will require having difficult policy conversations around the role that teachers unions, charter schools, and parents have in empowering our children. Other ideas such as merit-based bay for teachers, school choice, and principal autonomy all need to be a part of the current debate. We can longer afford to shy away from embracing real reform.

Throughout the course of this blog, I will lay out more concrete ideas around education policy. Creating a movement in our city around fixing our schools is perhaps the biggest issue in making Cleveland relevant in the 21st century. Without good schools, our city will not be able to create the right entrepreneurial and creative climate needed for a thriving metropolitan center.

Why Cleveland Matters: The Purpose

2010-06-06T22:20:00.010-04:00

Today, I begin my own of journey of answering one question:

Why Does Cleveland Matter?

Many of you are probably wondering why I would embark on such a task. Well, the reason is quite simple. I was born and raised in Cleveland, Ohio in the Union Miles-Mt. Pleasant neighborhood. It’s a community that I have grown to love and admire over the years. Which is striking considering it’s one of the most impoverished neighborhoods in all of Cleveland. Yet, what’s made this neighborhood close to my heart is that it has shaped everything about me today. Growing up on these streets, I was taught the importance of self-reliance, determination, and respect. These invaluable lessons were given to me by my family and neighbors who saw something special in me. To them, it was their God given duty to make sure that I did not travel down the path that continues to detract so many children living in underserved communities. As I live in this country today, as a college graduate and rising civic and business leader, I can truly say that I’m blessed for their love and guidance throughout my life.

Like many metropolitan areas across America, Cleveland is faced with many challenges. From a failing school system to persistent crime and poverty; creating an economic and social climate to make Cleveland a competitive city in the 21st century seems like an elusive prize. However, the purpose of this blog is to articulate the exact opposite. Cleveland and its greater metropolitan area have all of the assets to become a world class city. Our destiny is one that has yet to be fully realized, and the promise of its future prosperity lies in its ability to realize that its best days are ahead.

Over the course of this blogs evolution, I will discuss issues in education, business, politics, urban revitalization, and culture that all play a role in stating Cleveland’s case for relevance in the 21st century. All in all, it’s my desire to use this blog as a vehicle to answer that fundamental question:

Why Does Cleveland Matter?