Newsroom
Port approves $15 million in taxable lease revenue bonds for Cleveland Heights historic redevelopment
Port approves $15 million in taxable lease revenue bonds for Cleveland Heights historic redevelopment
Cleveland – October 10, 2024— The Port board today approved issuing up to $15 million in taxable bonds for financing of the $25.6 million Taylor Tudor Plaza Project, part of the first phase of a larger $150 million mixed use neighborhood revitalization of the Taylor Road neighborhood in Cleveland Heights.
The Taylor Tudor project is the cornerstone of the Cain Park Village revitalization project. It will redevelop three three-story city-owned vacant historic buildings into 44 apartments, including eight live/work units, amenities including fitness and office space and 11,000 square feet of street level commercial suites.
The Taylor Tudors were built between 1927 and 1929. An Ohio Historic Preservation Tax Credit was granted to the development in 2023.
Work on the project is expected to start by the end of 2024, with the completion planned by the second quarter of 2026.
The Taylor Road project is being planned by WXZ, a Fairview Park based family-owned real estate developer who was selected by the City of Cleveland Heights to develop the properties.
In other business, the board approved a plan under which the Port becomes owner of the Gateway East parking garage and leases it to the Guardians, allowing the team to take over garage operations from the City of Cleveland. The City of Cleveland approved the sale earlier this year. The Port will receive $35,000 per year in fees to facilitate the arrangement between the City and Guardians.
Partner Highlight - Seaman's Service: Volunteers supporting international crew members in Port
Partner Highlight - Seaman’s Service: Volunteers supporting international crew members in Port
The Seaman’s Service has been welcoming international seafarers to Cleveland since 1964, providing services to foreign crew members while they are in the Port of Cleveland. Volunteer staff assist seafarers between noon and 8 p.m. in two four-hour shifts each day that a ship is in port.
“The Seaman’s Service plays a crucial role in making Cleveland a welcoming port for international seafarers. Their dedication to ensuring the well-being of these crew members, who often spend months away from home, is truly commendable. We are deeply grateful for their service and the positive impact they have on the lives of so many,” said the Port’s Will Friedman.
In 2023, services were provided during 61 Port calls by different foreign cargo ships. The seafarers — mostly from countries in Asia and Eastern Europe, with the leading numbers from India, the Philippines, Poland and Ukraine — do dangerous work, earn modest wages and are isolated from home for up to nine months.
The Seamen’s Service, an all-volunteer organization, was formed to welcome, serve and support these visitors, and is one of only a few such groups on the Great Lakes serving international seafarers. They are based out of a converted cargo container at the Port.
The Service has 17 Participating Members who actively volunteer at the Port, with an equal number of Supporting Members who help out in other ways. The majority of members are retirees.
The service provides:
- Help contacting family members back home
- Free WiFi
- Help with shopping and arranging cultural, recreational or religious activities
- Arranging or providing local transportation
- Snacks, souvenirs, DVD’s and a comfortable place to relax and socialize
“Multiple agencies focus on the operation of the vessel itself and on the managing of its cargo. Only Seamen’s Service is focused on the welfare of the crew,” said Eric Kretzmann of Seamen’s Service.
Their volunteering is appreciated by both ship captains and crew members.
“When no one else is around, we know that we can count on you to be here for us,” said the captain of the Edenborg.
For more information on Seamen’s Service, go to www.clevelandss.org.
Port Hires Construction Manager for Electrification Hub and Modernization of General Cargo Terminal
Port Hires Construction Manager for Electrification Hub and Modernization of General Cargo Terminal
CLEVELAND, September 12, 2024 – In a major step toward decarbonizing the port, modernizing its facilities and enhancing its operational capabilities, the Port of Cleveland has approved $2.9 million to hire The Whiting-Turner Contracting Company as the construction manager for an important upgrade at its 49-year-old General Cargo Terminal. This project will rehabilitate a key warehouse and enhance the terminal’s electrical infrastructure as a first step for decarbonization, ensuring the port remains competitive and sustainable for decades to come.
Whiting-Turner, a national construction management firm with a local office in Cleveland, was selected through a competitive public process. The company will partner with The AKA Team, a Cleveland-based minority construction management firm, which will handle 30% or more of the contract. This collaboration reflects the Port’s commitment to diversity and inclusion in its major projects.
The modernization efforts will include:
- The Rehabilitation of Warehouse A: A comprehensive overhaul of the terminal’s largest warehouse, including structural steel repairs, installation of a new overhead crane, window replacements, a new concrete slab, updated lighting, and a new roof. Built in 1975, Warehouse A requires significant updates to accommodate evolving technologies critical to the Port’s operations.
- Electrification: Bring in new medium/high voltage Cleveland Public Power (CPP) feed to Warehouse A to establish the Terminal’s electric distribution hub. This new electric distribution hub will support future electrification efforts, including cargo handling equipment, charging stations, switching locomotives, powering ships at dock, mobile harbor cranes, and potential solar arrays on warehouse roofs.
- Enhanced Stormwater Management: Installation of stormwater collection and treatment infrastructure to ensure clean discharge into Lake Erie. This effort will build resilience against climate change impacts, such as increased storm intensity and heavy rainfall.
- West 3rd Lot Cargo Movement Efficiency Improvements: Demolish existing cargo handling equipment maintenance facility and hiring hall building and reconstruct as annexed wings off Warehouse A.
Whiting-Turner brings extensive experience managing public and private industrial, warehouse, and electrical infrastructure projects with state and federal funding. As a Construction Manager at Risk
(CMAR), Whiting-Turner is engaged from the design phase to provide pre-construction input, manage all construction contracts, and ensure the project stays within the guaranteed maximum price.
When completed, the work involved will ensure ongoing efficiency of Port facilities and prepare the Port for upcoming electrification efforts.
The modernization project is funded through two major grants:
- $27.2 million from the U.S. Department of Transportation Maritime Administration’s Port Infrastructure Development Program to improve safety, efficiency and reliability of movement in and around the Port.
- $4.9 million from the Ohio Department of Transportation’s Maritime Assistance Program for projects enhancing efficiency and capacity of cargo terminal operations.
William Friedman, President and CEO of the Port of Cleveland, underscored the importance of this investment.
“Hiring a Construction Manager at Risk makes good business and economic sense,” he said. “Whiting-Turner is highly qualified and will ensure these projects stay on track and within budget. We are committed to safeguarding taxpayer investments and keeping the Port operational for the future.”
This initiative is part of a broader $93.8 million investment in Port infrastructure since 2015, with over 75% of funding provided by state and federal grants. The upgrades align with the Port’s recently implemented Climate Action Plan, which aims to achieve net-zero greenhouse gas emissions by 2050, making Cleveland the first Great Lakes port to adopt such an ambitious environmental goal.
Port of Cleveland Approves $170 Million in Financing for Transformative Economic Development, Educational and Cultural Projects
Port of Cleveland Approves $170 Million in Financing for Transformative Economic Development, Educational and Cultural Projects
Cleveland – September 12, 2024—The Port of Cleveland’s board of directors has approved $170 million in bond financing to fuel a series of high-impact projects, including a major manufacturing expansion, the revitalization lanSeptd that contained a former Veterans Administration facility, and refunding bonds for a 501c3 school. These investments underscore the Port’s pivotal role in driving economic growth, facilitating access to the tax-exempt bond market, and supporting cultural institutions across the region utilizing its credit enhanced bond fund program.
Since June alone, the Port has approved more than $311 million in bond financing, reflecting the significant demand for its services and the vital role it plays in supporting regional development.
“These projects, coupled with others approved by the Port board in recent months, show just how crucial this agency’s support is for economic development and community growth,” said Rhonda Winslow, Vice President of Development Finance.
The projects approved today include:
Momentive Technologies Expansion: Up to $50 million in lease revenue bonds were approved for the $40.2 million expansion of Momentive Technologies’ High Quality Quartz production facility in Richmond Heights. This project, critical to industries ranging from semiconductors to aerospace, will see a significant upgrade with new furnace equipment and a reconfigured, modernized manufacturing process. The expansion, covering 18,000 square feet on a 26-acre site, is expected to be completed over five years, and adding 14 skilled jobs to this global company that has approximately 850 employees.
Valor Acres Redevelopment: The first phase of Valor Acres in Brecksville being developed by the DiGeronimo Companies, will receive approximately $93 million in lease revenue bonds. This ambitious mixed-use development, on the former Louis Stokes Cleveland Veterans Administration Medical Center site, will include residential units, retail space, and office buildings, with 292 permanent jobs expected upon completion.
The first phase include five buildings with a total project cost of about $128 million on about 23.75 acres at the intersection of Brecksville and Miller Road. The development will comprise about 221,204 square feet, with a total of 221 residential units, 70,000 square feet of retail space and 146,000 square feet of office space. About 292 permanent jobs are expected to be created on completion of this phase.
Constellation Schools Renovation: The board approved up to $35 million in tax-exempt bonds to refinance bonds issued 10 years ago, with a small portion allocated for upgrading facilities. This funding will support the purchase and renovation of seven school buildings in Cleveland and Parma, benefiting over 4,400 students and 550 employees across more than 20 schools managed by Constellation Schools LLC. Renovations will improve the educational environments to support students’ success in Northeast Ohio. The work will take place at several schools in Cleveland and Cuyahoga County.
Toledo Museum of Art Energy Efficiency Upgrades: The board approved $7 million in tax-exempt Property Assessed Clean Energy (PACE) revenue bonds to support the Toledo Museum of Art’s energy efficiency and alternative energy improvements. This project spearheaded by the Toledo-Lucas County Port Authority with partnership by the Columbus-Franklin County Finance Authority and Cleveland-Cuyahoga County Port Authority addresses critical HVAC issues and enhances the museum’s infrastructure, ensuring its sustainability and continued cultural contributions
Replacing the HVAC will cost about $18.25 million, with an additional $1.75 million of improvements needed for the museum’s building envelope, which is the building enclosure between the conditioned and unconditioned environment of a building, including the resistance to air, water, heat and light.
“The Toledo-Lucas County Port Authority has been actively involved in collaborative funding efforts, alongside partners at the Port of Cleveland and the Columbus-Franklin County Finance Authority, to support large-scale projects such as this energy efficiency improvement project for the Toledo Museum of Art,” said Thomas J. Winston, president and CEO of the Toledo-Lucas County Port Authority. “This collaboration illustrates how Ohio port authorities contribute to sustainable development by improving energy efficiency and supporting economic growth through shared resources.”
J. Stefan Holmes, chairman of the Port board, said “The depth of these projects, coupled with others before the board in recent months, show just how much the Port can do to help economic growth and development in Greater Cleveland.”
Since 1993, the Port of Cleveland has provided more than $5 billion to more than 160 projects in Cuyahoga County and beyond. Since its inception, the Port’s financing initiatives have been instrumental in transforming Cuyahoga County and beyond, demonstrating a consistent commitment to the region’s growth and prosperity. As demand for these services continues to rise, the Port remains at the forefront, driving the development that shapes the future of Northeast Ohio.
Port of Cleveland to welcome return of Victory Cruise Lines to the Great Lakes in 2025
Port of Cleveland to welcome return of Victory Cruise Lines to the Great Lakes in 2025
Cleveland – August 20, 2024 —
In 2025, the Port of Cleveland will welcome the return of Victory Cruise Lines to the Great Lakes and Cleveland.
The Port of Cleveland first began welcoming cruise ships to its docks in 2017. Since then, each year, cruise season in the Great Lakes begins in late May and lasts through mid-September.
In 2024, the Port of Cleveland welcomed just over 20 cruise ships to its dock. However, in 2025 that will change thanks to the return of Victory Cruise Lines.
“This is very good news for Cleveland and the Great Lakes and shows that interest in cruising on Great Lakes is strong,” said Dave Gutheil, chief commercial officer for the Port of Cleveland. “Cleveland is one of the most popular stops on the itineraries.”
After a 1-year hiatus, Victory Cruise Lines will soon return to the Great Lakes and Cleveland with more than 30 calls already scheduled. The cruise line will return to the waters with two vessels, Victory I and Victory II, both of which have sailed the Great Lakes for nearly a decade.
In 2019, both ships were purchased by American Queen Steamboat Co., later known as American Queen Voyages. In early 2024, the company declared bankruptcy and put several of its vessels up for sale. Former American Queen Steamboat Co. owner, John Waggoner, bought the two vessels with plans to reintroduce the vessels in 2025.
“As long-time enthusiasts of maritime adventures, my wife Claudette and I are thrilled for the team to open reservations for the inaugural season as we prepare to sail these magnificent waters,” said Waggoner.
The two vessels, with a passenger capacity of approximately 190 people each, explore all five of the Great Lakes making stops in Chicago, Mackinac Island, Sault Ste. Marie, Toronto and more. The cruise line is currently booking trips for 2025 and beyond.
For more information on vessel arrivals in Cleveland, click here.
Port of Cleveland Secures $5 Million State Grant for Historic Ore Terminal Modernization
Port of Cleveland Secures $5 Million State Grant for Historic Ore Terminal Modernization
Cleveland – July 15, 2024 —
The Port of Cleveland announced today that it has been awarded $5 million from the State of Ohio to help fund the crucial modernization of the Cleveland Bulk Terminal’s iron ore conveyor system. This vital tunnel system transfers iron ore pellets into a facility through connected conveyer belts that moves the cargo onto a river-class vessel that takes the material to upriver steel manufacturing businesses.
Port CEO William Friedman thanked both the Ohio House and Senate Finance Committees and the entire Cuyahoga County delegation for championing the funding, which was approved by the Ohio Legislature as part of its capital budget.
“We are extremely fortunate to have secured such a significant grant in the highly competitive capital budget. Our local delegation—including State Sen. Matt Dolan, finance committee members and Governor Mike DeWine’s administration truly understand and appreciate the financial impact of this iron ore facility. It is vital for steel production along the Cuyahoga River, which helps underpin our Northeast Ohio economy,” said Friedman.
The Port acquired the iron ore terminal in 1997 and since then has invested millions of dollars in the bulkhead and material handling equipment and has moved away from old technology to improve the site’s efficiency, increase its throughput capacity and implement more environmentally sustainable best practices.
The original section of the mechanical conveyor system was relocated from Lorain in 2003 and includes a concrete tunnel under the stockpiled taconite on the dock. The tunnel and conveyor system were extended in 2021, which allowed for the blending of taconite and greater capacity.
But now, the original section of the conveyor system is near the end of its life and in need of major rehabilitation.
“The tunnel structure itself is good, but the steel and mechanics that hold up the conveyor are are in poor condition,” said Matt Wenham, the Port’s Chief of Engineering and Capital Development. “We are watching it closely for maintenance and hope to start construction in January as we can only shut down this tunnel and conveyor for six weeks a year, between early January and late February, when the Soo Locks connecting Lakes Superior and Huron are shut down.”
Because of this, reconstruction at the terminal is expected to take at least a couple of years. The Port expects to have two shifts of construction for six weeks for two years.
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Partner Highlight - Cleveland's Glowing Silos: Heidelberg Materials' Hub for Sustainable Cement Supply
Partner Highlight - Cleveland's Glowing Silos: Heidelberg Materials' Hub for Sustainable Cement Supply
The twin, glowing silos on Dock 20 at the mouth of the Cuyahoga River are among the most visible structures on the Cleveland waterfront. They hold cement powder and are home base to the Port of Cleveland’s longest-tenured tenant – Heidelberg Materials – which provides the raw materials needed to make concrete for projects across Northeast Ohio.
Heidelberg Materials is one of the world’s largest manufacturers of building materials. They have leased the silos since 1997 and will continue to operate there through 2047.
The silos hold 12,900 metric tons of finely milled cement powder, the primary raw material in the production of cement. The cement arrives via vessel from a cement plant in Picton, Ontario, and is blown into the silos upon arrival.
Heidelberg Materials also operates other inland facilities in Ohio and across the nation, but they emphasize the benefits of their waterfront location for local companies.
“Shipping via vessel is a more cost effective mode of transportation and it is significantly more sustainable,” said Bill Corcoran, VP of Logistics for Heidelberg Materials North America. “A ship can carry 100 tons of materials, while a truck can carry 10 tons and a rail car can handle 10,000. We can operate more efficiently via the port, and that benefits our customers as well.”
The raw materials are used by ready-mix concrete companies, precast concrete producers and general contractors for projects across Northeast Ohio.
An average of 40-50 trucks pick up about 10 tons of cement each day at the Port’s Dock 20, though it could vary per season.
The silos are operated by two Heidelberg Materials employees but support dozens, if not hundreds, of indirect jobs including truck drivers, maintenance workers, laborers, and other contractors.
In 2016, the 150-foot tall silos were artistically lit by the Port of Cleveland to create a public art display known as “Harbor Lights” ahead of the Republican National Convention. “These are industrial facilities, but we are also passionate about creating an inviting waterfront for residents and visitors,” said Port CEO William Friedman.
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Port’s Green Marine certification renewed
Port’s Green Marine certification renewed
The Port’s Green Marine certification was recently renewed. Green Marine is a voluntary environmental certification program for the North American marine industry. It targets prioritized environmental issues such as greenhouse gases, community impacts and water and land pollution. To get re-certified, the Port had to benchmark annual environmental performance through exhaustive self-evaluation guides, have results verified and agree to publication of those results.
The Port of Cleveland was a founding member of the Green Marine program in 2007. In the recertification, the Port achieved “continual improvement” by improving levels in both the Air Emissions – Greenhouse Gases and Community Relations performance indicators.
Inner-city and suburban development projects get $70.2 million in boosts from Port
Inner-city and suburban development projects get $70.2 million in boosts from Port
The Port’s development finance team is issuing up to $70.2 million in bonds for several new construction and redevelopment projects. Those include:
- $32 million in tax-exempt, multifamily housing revenue bonds for an extensive renovation of the 191 unit Gates Mills Villa Apartment Building in Mayfield Heights. The $48 million project includes modernization of all units, significant upgrades to common spaces, mechanical repairs and replacements, new free WIFI, new windows, new roofs, landscaping and other site improvements. The property serves elderly tenants, age 62 and older, and 167 of the 191 units are under Section 8 contracts.
- $15 million in bonds for the development of a new residential project and rehabilitation of a historic building into residential in Ohio City. The $19.8 million Franklin Yard project, located at the corner of Franklin Boulevard and West 32nd street, will include construction of a modern new three-story apartment building with 29 units and restoration of a former YWCA women’s residence and a mid-19 century mansion that will create an additional 38 units.
- $15 million in lease revenue bonds for the 46 two and three bedroom affordable housing apartments and 8 two-bedroom market rate units to be known as the Gordon Crossing Project in Cleveland’s Hough neighborhood. The new $17.1 million project is expected to begin construction in Q2 2024. Woda Cooper Development Inc. and Frontline Development Group LLC are partnering on the project. Woda Cooper operates more than 350 properties with 16,000 housing units in 16 states. Frontline Development Group, LLC is a female led, minority owned real estate development company based in Cleveland, Ohio. Frontline develops real estate projects that are committed to innovative economic development and partners at each step of the development to grow the balance sheets of economically and socially underutilized businesses.
- $8.2 million of taxable bonds for construction of a cargo and aircraft storage hangar, cargo terminal, pass-through passenger terminal and vehicle parking spaces for Jets FBO at Cleveland Hopkins International Airport. The total project is planned to cost $12.6 million. Jets FBO and its subsidiary provide Ohio airports with fixed base operator aircraft services, including aircraft storage, fuel sales and de-icing.
Port authorities in Ohio can offer an array of benefits in the real estate and economic development space. Since 1993, the Port of Cleveland has provided more than $5 billion to more than 160 projects in Cuyahoga County and beyond.
Port seeks nearly $95 million U.S. EPA grant to advance environmental programs
Port seeks nearly $95 million U.S. EPA grant to advance environmental programs
The Port of Cleveland has already proven to be an environmental leader by being the first port on the Great Lakes with a Climate Action Plan. They are now hoping to take that to the next level by pursuing a nearly $95 million U.S. Environmental Protection Agency grant that will help make it one of the most sustainable maritime shipping operations on the Great Lakes. The grant is part of the $3 billion EPA Clean Ports Program, which is designed to fund sustainable infrastructure and electric equipment at U.S. Ports.
Carly Beck, the Port’s senior manager of planning, environment and information systems, said this is the largest grant application the Port has ever submitted. “The EPA is looking for really large and robust ideas and have set a minimum project ask of $10 million,’’ she said. “These grants are to cover 90 percent of costs and only require a 10 percent match.”
The Port’s application proposes a public-private partnership with Logistec USA Inc. – the general cargo and bulk terminal operator – and Great Lakes Towing – the owner and operator of the tugboats that service the Port. The grant funds would be used for warehouse rooftop solar and associated battery energy storage systems, electric cargo handling equipment, shore power for vessels to plug in while at berth, and the construction of two new electric tugboats.
The grant program, if fully funded, would reduce the Port’s maritime CO2 emissions by roughly 40%.
A decision on the grant awards is expected in September.