The Observer, February 23, 2007
Volume XXXIX, Issue 18
Cleveland on Fire: Steelyard Commons drama continues
One of the most drama-filled retail developments in Northeast Ohio in recent memory has taken another turn worthy of an Academy Award. Steelyard Commons has plodded along from potentially prohibiting legislation to backroom deals and local protest. As it progressed, long awaited economic development reports showed the potential upside of the project, but recently a state-level Brownfield Grant became public which would have allowed for a complete tax-break. However, all the parties involved – including the publicly maligned Wal-Mart – have chosen to not accept the tax-break and embrace the community.
This news is truly vital and unexpected for the city of Cleveland. A majority of the land is owned by developer Mitchell Schneider of First Interstate Properties Inc, with the remaining parcels owned individually by Wal-Mart, Target, and Home Depot. According to a state Brownfield redevelopment law, the site was eligible due to it being built on top of what used to be LTV Steel. However, with the property owners forfeiting their eligibility, Cleveland will receive millions of tax dollars every year, and a part of a Tax Increment Financing (TIF) package will support the extension of the Towpath Trail.
This twenty-million dollar TIF is essential as it will continue the plans to connect the Towpath Trail and ideally further the redevelopment of the region. If it had been lost, the repercussions would have been felt economically, politically, and symbolically. Not only would the already promised Towpath Trail have been pulled away, there would have been a public uproar. Since the project has already been debated on every possible level, it would have added another round to the fight against political leaders who have been fought against since the first day by unions, political activists, and local development corporations.
Moving forward, however, this provides a new light to be shed on the supposedly 'evil' big-box retailers at Steelyard Commons. Opponents cannot ignore the kind gesture from the corporations, even if it appears to be a simple public relations decision to counteract the cultural phenomenon that loathes its products, practices, and prices. Though there have been complaints that Wal-Mart destroys local merchants and underpays its employees, its financial support to the schools, Towpath Trail, and general tax-revenue will have a positive impact for the city.
Furthermore, Wal-Mart has also pledged to create a "Jobs and Opportunity Zone" in Cleveland, as they are also planning to do in other communities across the country. Although the details are not cemented, the corporation will work with local businesses, community development corporations, and chambers of commerce to funnel grants and assistance to spur economic growth in the area. Also, Wal-Mart will be providing free advertising within its facilities for local stores and will be financing marketing in publications throughout Northeast Ohio.
A laundry list of dirty corporate tactics employed by Wal-Mart has been well monitored and made public over the past decade, but in this scenario they have helped Cleveland. By leveraging their market demand and financial sway, they are able to provide products to an underserved population and at the same time financially and symbolically support a community in need of assistance. This is a prime example of how even less-than-ideal situations can be turned into positive outcomes for a region – something that through collaboration should occur more often.
Verespej is a senior Political Science/Pre-Law student involved in the performing arts and is also the Executive Director for the Student Turning Point Society.
