The Warehouse District Dillema

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

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?

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...

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

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.