Project: Healthline / Euclid Corridor

1.0 Synopsis

With help from the HealthLine, a bus rapid transit system, Cleveland’s Euclid Avenue corridor has experienced a resurgence during the last several years. This case study documents the attraction of an estimated 1,120-1,600 office jobs, with the development of nearly 380,000 square feet of commercial real estate, along the corridor since 2008, when the HealthLine bus service commenced. Some of these jobs were relocated from other locations in the metro area, although the exact number is difficult to ascertain given available data. While its methodology is uncertain, a Cleveland RTA fact sheet on the HealthLine documents 13,000 new jobs and $7.9 million in commercial real estate development along the corridor. Similarly, one person interviewed for this case study cites $3.9 billion invested in development along the corridor and several adjacent streets since 2007, with another $1.2 billion of investments in buildings that are currently under construction and $168.5 million in proposed investments. 

2.0 Background

2.1 Location & Transportation Connections

 The HealthLine stretches 7.1 miles along Euclid Avenue in Cleveland, stopping at 36 stations spaced at approximately quarter-mile intervals; the larger Euclid Corridor Transportation Project represents 9.2 miles of roadway improvements along and adjacent to the corridor. At a total cost of $200 million, the project allowed Cleveland to construct its first bus-only lanes along downtown streets, and make existing bus stations ADA accessible. Of the $200 million, approximately $50 million represents investments in transit infrastructure alone (i.e., stations, vehicles, and related equipment). During weekday rush hours, the HealthLine arrives every five minutes; traveling from Public Square in downtown Cleveland to the heart of University Circle takes approximately 24 minutes, according to Google Maps, while traveling all the way from downtown Cleveland to East Cleveland takes 38 minutes.

Several HealthLine stops are within walking distance of RTA’s Red Line, a train line that extends from Cleveland Hopkins International Airport on the west side of the city to the eastern suburb of East Cleveland. Travelers can now make HealthLine-Red Line connections at a new station immediately east of Euclid Ave. in University Circle. According to one person interviewed, ridership surveys indicate that up to 13 percent of HealthLine riders transfer to the Red Line—a data point that suggests the HealthLine serves corridor travelers more so than regional travelers. In addition, bike lanes running four miles in both directions serve part of the Euclid Ave. corridor. Ridership surveys have also revealed that up to 18 percent of HealthLine riders were attracted from private automobiles. 

2.2 Community Character & Project Context

 From 2000 to 2010, the population of the neighborhood (using zip-code data) declined by 13.8 percent, from approximately 92,000 to 79,600 reflecting the influence of the recession. During 2005-2013 employment in the neighborhood also declined by 12.8 percent from over 150,000 to 131,000 reflecting that the economic recovery had been slow. This interval includes the Great Recession, which affected some Midwest cities the hardest, coupled with a slow recovery.

For decades, the Euclid Avenue corridor had been trending downward in employment, real estate values, and visual quality. The Euclid Corridor Transportation Project, which helped reverse this trend by connecting downtown Cleveland with University Circle, was described by one person interviewed as “...not just a transit project”; indeed, rights-of-way were widened, bike lanes were added, aesthetic improvements were made, and vacant buildings were demolished to complement the addition of the HealthLine. While stretches of Euclid Avenue remain underdeveloped, neighborhoods stretching from Playhouse Square, Cleveland’s theater district, to University Circle’s Uptown District have seen increased pedestrian and business activity.

Euclid Avenue forms the spine of MidTown Cleveland, a neighborhood bounded by Interstate 90 to the west and East 79th Street to the east—a stretch of just under two miles. According to MidTown Cleveland, Inc., a nonprofit economic development organization, the neighborhood is home to over 2,000 residents and approximately 18,000 jobs. In 2008, MidTown was designated as one of four Cuyahoga County, Ohio, Innovation Zones, and in 2010, an Ohio Hub of Innovation and Opportunity.

Cleveland’s University Circle neighborhood encompasses numerous cultural, academic, and healthcare institutions, including Case Western Reserve University and University Hospitals, the Cleveland Botanical Garden and Children’s Museum of Cleveland, as well as the Cleveland museums of Art, Contemporary Art, and Natural History. The neighborhood is the second largest employment center in Northeast Ohio, followed only by downtown Cleveland. 

3.0 Project Description & Motives

Before the genesis of the HealthLine, planners proposed a “dual-hub” transit system that would connect downtown Cleveland with University Circle via an underground train, but at a significant cost. One person interviewed describes the experience in Cleveland as a “50-year history of considering alternatives and ‘making great plans that [couldn’t be funded].’” Eventually, RTA adopted a less expensive BRT option, ultimately becoming the HealthLine, a name born out of a partnership between Cleveland Clinic and University Hospitals. For the majority of its route, the HealthLine travels in a designated lane. 

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

 Several people interviewed believe the HealthLine has had a significant positive economic impact on the Euclid Corridor by inducing private investment in new commercial real estate projects. Doing so has provided an option for companies that want to be located in the inner city but may be unable or unwilling to pay a premium for downtown office space. Conversely, other companies have moved to the corridor to have access to University Circle and its mix of academic and healthcare institutions. Among existing businesses along Euclid Ave., one person interviewed believes that workforce recruitment has also become easier due to the ease with which employees can commute into and out of the corridor.

Neighborhoods along the corridor have also experienced a wave of mixed housing and retail development within walking distance of HealthLine stops. While residential and retail projects create a limited number of permanent and well-paying jobs, their ability to create places where young, highly skilled workers want to live can in turn attract companies that export high-value goods and services. The relocation of Rosetta, a marketing agency based in New Jersey with offices in the Cleveland region, offers proof of this. In 2010, the company announced plans to bring 400 jobs from its suburban Cleveland offices into a vacant building on Euclid Ave. in downtown Cleveland. According to the company’s president, Kurt Holstein, “Most of our staff are under the age of 40...We’re hiring college graduates who are interested in a dynamic, urban environment, which Cleveland offers, particularly in the East Fourth Street area that we’re relocating to.”

In downtown Cleveland, at the beginning of the HealthLine’s route, several large apartment buildings have recently opened, including The Residences at 668, with 236 units and first-floor retail, and The 9, with 184 units. In the Uptown District, which extends along Euclid Ave. from Mayfield Road to East 117th Street (roughly), developers have started on Intesa, a five-building complex slated to open in 2016 that will include 100,000 square feet of office space, 96 apartments, and designated student housing. If Intesa achieves 85.7 percent office occupancy—the current average in the eastern portion of the Cleveland metro—the development could host between 190-380 jobs, a value based on average square feet to employee ratios for office space. The Intesa site is adjacent to a new RTA Red Line station, and less than a five-minute walk from the HealthLine.

Other planned developments that would take advantage of University Circle’s proximity to the HealthLine include One University Circle, a 20-story, 280-unit luxury apartment building, and University Circle City Center (UC3), a cluster of buildings covering five acres that could include over 700 apartments plus townhouses, retail, offices, and open space. Importantly, one interviewee believes the HealthLine has helped send a message to large employers in University Circle, especially, that Euclid Ave. is their “front door.”

The HealthLine has also accelerated the growth of the “Health-Tech Corridor”–the marketing name for Euclid Avenue and several adjacent streets between downtown and the Uptown District—an area targeted for the attraction and expansion of health- and technology-oriented businesses. In 2011, the MidTown Tech Park opened approximately halfway between downtown Cleveland and University Circle. A third building was added as of 2013, bringing the total office space to 240,000 square feet. JumpStart, Inc., an organization providing support to entrepreneurs, currently occupies the Tech Park, as well as the Cleveland HealthLab, Chamberlain College of Nursing, Cleveland Eye Bank, and several other organizations. At the end of 2014, the Tech Park was 76 percent leased with 344 jobs.

Several blocks west of the Tech Park, University Hospitals intends to open a health clinic in late 2017 or early 2018 that could eventually occupy 11 acres. According to news coverage, University Hospital’s planned expansion site, together with land purchased by Hemingway Development for a mixed-use development project, could support over 250 jobs and 150,000 square feet of space. According to one person interviewed, of this total, an estimated 44 jobs and 30,000-40,000 square feet will be associated with the clinic alone. In early October 2015, the site master plan won approval from two City of Cleveland boards, and construction is expected to begin in the spring 2016. Regarding to the hospital’s plan to shift the clinic from its main campus, The Plain Dealer remarks that “Access to buses, including the Euclid Avenue HealthLine, is key for [an existing] facility that sees 45,000 annual visitors, with more than 70 percent of them arriving by public transportation.” Anticipating continued reliance on transit among patients, University Hospitals plans to locate a HealthLine stop directly outside its new clinic. 

5.0 Non-Transportation Factors

 An overall trend of economic resurgence throughout the Cleveland metro (inclusive of Cuyahoga County plus four surrounding counties) has buoyed Euclid Avenue’s success. From 2010-2013, total employment in the region grew from 1.24 million to 1.29 million (3.9%) after declining from 2007-2010 (during and immediately following the Great Recession). Noting economic drivers such as LeBron James’s return to the Cavaliers and the anticipated 2016 Republican National Convention, Mark Schweitzer of the Cleveland Federal Reserve Bank said in January 2015 that the city is “enjoying a genuine turnaround.”

Downtown Cleveland, especially, has also benefitted from a “brain gain”; from 2000-2013, close to 2,000 college-educated residents between the ages of 18-34 moved downtown, representing an increase of over 100 percent. This demographic trend has been attributed in part to the city’s improved quality-of-life (e.g., walkability, access to retail) and employment opportunities in industries requiring advanced degrees, such as healthcare and education.

In the Euclid Corridor, strong support from city officials and the local community development corporations have helped to market the Downtown, MidTown and University Circle neighborhoods. A zoning overlay in MidTown attempts to ensure compatibility between new land use in the corridor and the BRT line. In general, land use planning is relatively hands off, with no specific density bonuses or other features to encourage redevelopment. The city, however, does offer a number of financial incentives to encourage revitalization throughout Cleveland that are available to developers in the corridor. In addition, Cleveland Regional Transit Authority runs an active transit-oriented development program that interfaces with developers, property owners, and community development corporations. 

6.0 Resources

6.1 Citations

 “30 Years Of Reinventing MidTown,” MidTown Cleveland, Incorporated (a), accessed October 13, 2015, http://www.midtowncleveland.org/media/documents/mtc-timeline.pdf

“About: Geographic Area,” University Circle, Inc., accessed October 14, 2015, http://www.universitycircle.org/about/geographic-area

American Community Survey, U.S. Census Bureau.

Bureau of Economic Analysis, U.S. Department of Commerce.

“Area Map/Directions,” MidTown Cleveland, Incorporated (b), accessed October 13, 2015, http://www.MidTowncleveland.org/area-map-directions.aspx

CBRE, Outside Investment in Cleveland Continues as Prime Assets Transfer Ownership (Cleveland, OH: CBRE, 2015), accessed October 21, 2015, http://www.cbre.us/o/cleveland/Pages/market-reports.aspx

“History,” Greater Cleveland Regional Transit Authority, accessed October 14, 2015, http://www.riderta.com/history

“Intesa,” The Coral Company, accessed October 13, 2015, http://www.thecoralcompany.com/properties/intesa/#

Eric Jaffe, June 23, 2015, “How Millennials Are Reviving Cleveland,” CityLab, accessed October 14, 2015, http://www.citylab.com/work/2015/06/how-millennials-are-reviving-cleveland/396572/

“MidTown Tech Park,” MidTown Cleveland, Incorporated (c), accessed October 13, 2015, http://www.midtowncleveland.org/midtown-tech-park.aspx

Michelle Jarboe McFee (a), January 25, 2010, “Digital agency Rosetta plans to bring nearly 400 jobs to new downtown Cleveland offices,” The Plain Dealer, accessed October 13, 2015, http://www.cleveland.com/business/index.ssf/2010/01/digital_agency_rosetta_plans_t.html

Michelle Jarboe McFee (b), April 10, 2014, “Developers plan high-rise apartment tower in University Circle, on children's museum site,” The Plain Dealer, accessed October 20, 2015, http://www.cleveland.com/business/index.ssf/2014/04/developers_plan_high-rise_apar.html

Michelle Jarboe McFee (c), May 1, 2014, “Intesa project in University Circle aims for fall groundbreaking, with apartments up first,” The Plain Dealer, accessed October 13, 2015, http://www.cleveland.com/business/index.ssf/2014/05/intesa_project_in_university_c.html

Michelle Jarboe McFee (d), April 9, 2015, “University Hospitals plans MidTown’s women’s and children’s clinic, anchoring 11-acre development,” The Plain Dealer, accessed October 13, 2015, http://www.cleveland.com/business/index.ssf/2015/04/university_hospitals_plans_mid.html

Michelle Jarboe McFee (e), August 28, 2015, “First look: One University Circle high-rise apartments to start rising in January,” The Plain Dealer, accessed October 13, 2015, http://www.cleveland.com/business/index.ssf/2015/08/first_look_luxury_apartment_hi.html

Michelle Jarboe McFee (f), September 10, 2015, “University Circle proposal could add 700-plus apartments near Chester and East 107th,” The Plain Dealer, accessed October 13, 2015, http://www.cleveland.com/business/index.ssf/2015/09/university_circle_proposal_cou.html

Michelle Jarboe McFee (g), October 2, 2015, “Hemingway Development expects to break ground in spring at 12-acre Cleveland office park,” The Plain Dealer, accessed October 20, 2015, http://www.cleveland.com/business/index.ssf/2015/10/hemingway_development_expects.html

Teresa Dixon Murray, January 14, 2015, “Cleveland is enjoying economic revival, Fed official says, while nation overall continues to rebound,” The Plain Dealer, accessed October 14, 2015, http://www.cleveland.com/business/index.ssf/2015/01/cleveland_is_enjoying_economic.html

Richey Piiparinen, Jim Russell, and Eamon Johnson, Mapping Adult Migration in Cleveland, Ohio (Maxine Goodman Levin College of Urban Affairs, Cleveland State University, 2015).

“RTA HealthLine Fact Sheet,” Cleveland Clinic and University Hospitals, accessed September 14, 2015, http://www.rtahealthline.com/project-overview.asphttp://www.rtahealthline.com/project-overview.asp 

6.2 Interviews

Organization

Greater Cleveland Partnership

University Circle, Inc.

MidTown Cleveland, Inc.

Health-Tech Corridor

Greater Cleveland Regional Transit Authority      

Footnotes

Case Study Developed by Economic Development Research Group, Inc.