Old Hotel Call To Arms...

Been a busy couple of weeks closing the first deal on the old hotel building, and then trying to quickly structure a re-sale of the property to Ron Burbick.  Lots of work — but no complaints here, this is a problem that we’ve been waiting a long time to have. 

With a story that is 30 years in the making, we knew there’d be a lot of local interest to see what’s behind those boarded up windows and brick walls, which is why we invited the media to go behind the curtain and join the members of City Council last week to walk thru the building.  

Old Hotel Walk Thru (image courtesy of Kent Patch)

The building and media didn’t disappoint.  Curiousity drew a hearty crowd of media journalists, photographers and videographers — and the old hotel stayed in the headlines for about a week.  The story even got picked up by some of the larger news search engines and I ended up getting comments from friends as far away as Virginia that congratulated Kent on moving forward with the old hotel (and suggested that I will never make facemasks a fashion statement). 

For those that couldn’t join us, or had not come across the KentPatch video of the building walk thru (complements of Matt Fredmonsky), here’s your chance to get an inside peek:  Old Hotel Tour Video Link

Standing in the building, stepping around holes in the floor, and seeing how the weight of some 90 years had caused many of the concrete floors to bow, it was evident that renovation of this building would not be for the faint of heart, with weak convictions, inexperience – or shallow pockets. 

Which is why Mr. Burbick’s proposal to purchase the building from the City was such a welcomed offer.  With a project as challenging as the renovation will prove to be, success is going to depend on the perfect fit between the owner and the community. 

I have no doubt that this project will test Mr. Burbick’s patience like nothing else he’s done yet (and that says a lot because he’s done a lot) but being the astute person that he is, he already gets it, and he’s busy inviting the community to join him in resurrecting this structure. 

It’s going to take a village to restore this building and Ron has put a call out to all of the villagers that have something to offer to help him return this building to its proper prominent place in downtown Kent.  There’s a reason the building has been for sale for years – facing such large costs of restoration this building is going to be hard pressed to ever yield a business return on investment. 

Ron is a successful business man, and he’s run the math too — which is why he’s not trying to pursue this as a profitable enterprise in the traditional business sense.  He’s willing to take this project on as a community give-back; as a way of stepping in to fill a longtime need that if not met soon, would probably result in the loss of a significant local historic structure whose useful life has nearly run its course.   

Ron’s committed to not making a penny of profit off this likely $4 million investment.  After paying the bills, all proceeds will go into local community foundations and non-profit agencies in Kent and Portage County.  That’s a gift that will keep on giving for decades to come. 

The old hotel building is too important to Kent and Kent’s past, to not be part of it’s future — and that’s where Ron comes in.  He wants to carry the torch but just like those Olympians, Ron needs some fellow torch-bearers. 

Ron has already spent close to $15 million of his own retirement funds to redevelop downtown Kent and now he needs a little help from the community to finish what he started. 

There’s no limits on the help he needs, from investors to brick masons and plumbers and contractors. 

If you can help, you can reach Mr. Burbick through Main Street Kent at (330)677-8000.

Old Hotel In Kent...

With all the news focusing on the progress of the NEW Kent State University hotel (rendering below) in downtown Kent, it might be tempting to try and overlook the status of the old hotel in downtown Kent, but try as we might, it’s prominent location, size and historical importance makes it too important to dismiss. 

Rendering of the New KSU Hotel

2007 Picture of the Old Hotel

The good news is that the building was purchased by the City last week, and now, for the first time in 30 years we’re in a position to perhaps change the fate of this historic landmark and restore it’s faded glory. 

As the picture suggests, that will be easier said than done.  The building is showing its age, both inside and out, and it will take a lot more than a little TLC to get it back in shape — but with all the good things that are going on downtown, I can’t think of a better time at trying to attract investment interest in the building than right now. 

The City didn’t buy the building to get in the real estate business or to flip the property for a profit.  Our goal is to find a buyer who shares our vision for what the building could be, and happens to have the capacity and financial wherewithal to take this challenge and write a happy ending to this story.  The building deserves it. 

We’re already about 20 years behind schedule so the sooner we can bring a credible investor to the table the better, and I hope to have a workable sale no later than the end of the year.   It’s no small challenge and everyone will have their due diligence to do but I still think it’s reasonable to set an aggressive schedule and go after it full speed ahead in order to make up for all the years of lost time. 

Stay tuned.    

Wild Earth Outfitters Open in Kent...

The Record Courier ran a great article about Ron Burbick last weekend, celebrating the amazing transformation he helped spark in downtown Kent with his Acorn Alley Projects, Phases I and II. 

Ron has proven that if you build it, they will come.  As fast he builds new buildings, he’s had waiting lists for businesses that want a chance to chase their dreams in them. 

Ron builds’em, dreamy shop owners open’em, and now it’s up to all of us to shop’em.  

So in case you hadn’t heard there’s a new shop in town — the Wild Earth Outfitters.  It’s the first shop to open in Acorn Alley Phase II, and because there’s construction going on all around it, it would be easy to not even notice the neon Open sign in the window — but the products in that store are too good to just sit on the shelf, so get down to Erie Street and do your part to support a new locally owned store.

What products do they sell?  With names like NorthFace, Mountain Hard Wear, Granite Gear, and Columbia they’ve got your outdoor gear covered.  From hiking to camping and everything in between this is a store that can’t be missed. 

Seriously, I could max out my credit card in this place.     

Business Stats...

-  A recent report produced by Enrst & Young ranked Ohio as the third friendliest tax environment in the nation.

-   In Ball State University’s Annual Manufacturing and Logistics Report Card, Ohio was one of only two states to ear an “A” grade in manufacturing and logistics. 

That’s why I was impressed with Grand Rapids Michigan, who was recently listed as one of America’s dying cities and rather than try to deny it, they put together a pretty creative video that does a good job making the statement for them. It’s a bit hokey and quirky but I have to admit, I enjoyed watching it and it left me with a favorable view of the City — despite their ranking.

See for yourself:  Click To Watch the Grand Rapids Video  

New County Economic Director...

If we’ve learned anything from all our efforts over the last couple of years to dig out of the economic doldrums, it’s that great partners are difference makers. 

The City of Kent and Kent State University jumped on board the partner train with both feet and other’s have joined that bandwagon along the way.  This core group of partners has paved the way for the flurry of economic activity that we’re witnessing in the downtown and in other parts of Kent as well. 

In that spirit, I am pleased to share the announcement from the newly created Portage Development Board on the hiring of their first Executive Director.  (Yes!  Another partner to add to the mix).  Please welcome Mr. Bradford Ehrhart to our team.

Downtown Revitalization Project Financing Done...

Good News,

Tuesday afternoon the banks, contractors, Fairmount and its partners completed all their due diligence, dotted all the I’s and crossed all the T’s, and then proceeded to sign off on all of the agreements, leases, loans, and the other downtown project related documents.  Dan Smith tells me that as of 4:01 Tuesday afternoon the respective documents were recorded with Portage County, so it is finally official — the Downtown Project is On!

Money doesn’t just make the world go round, it’s also how you get new retail stores, office space and restaurants built — which is why completing the financing was such an important bridge to cross.  The loans and leases signed Tuesday cover the $35 million mixed use project that will include the new Davey Tree and Ametek offices. 

Admittedly this has taken longer than any of us would have preferred but at the end of the day, we put together one of the largest and most complex projects for a City of our size in the state of Ohio at a time when in the economy is really hurting — so a little extra time may be a fair price to pay for our ambitious goals. 

As a result, I also think that we have a project that has been analyzed inside-out and upside down by a lot of different experts and while that took extra time, it should prove to be time well spent as it forced us to ask a lot of hard questions and come to agreements with our partners at the start, rather than later on when problems are harder to fix. 

That’s not to say everything will be problem free from here on out, but the next set of problems should be dealing with construction mobilization, utility relocation, street closures and general construction head-aches, which while they still hurt, are good problems to have as they are part of the process we’ve committed to for Kent’s economic recovery.   

Last week  Kent landed the largest manufacturer in the last 40 years in Kent — MAC Trailer — and this week the ink was signed for the largest revitalization project in Kent’s history.  I’m not sure what we can do for an encore but its sure been a rewarding couple of weeks. 

It would seem fitting to express my gratitude to everyone that made this opportunity possible — beginning with City Council and their bold decisions to buy the land we needed to get this ball rolling — to the senior staff that have put in hundreds (if not thousands) of hours to create something out of next to nothing.  And of course, our growing list of partners.  None of us could have done this by ourselves, but together we could, and we did. 

Next up, approving construction plans, issuing construction permits and getting some dirt flying.   

Hot dog!

Kent’s Liquid Crystal Press...

You can’t control the press you get — which is why were pretty fired up to learn that the nation’s leading investment service, Kiplinger, lauded the role of Kent’s liquid crystal flexible electronics in the long term economic recovery of Ohio.    

MAC Trailer in Kent...

It’s official — MAC Trailer purchased the old Fontaine facility on Fairchild Avenue last week and they are already busy working to get their Kent operations up and running asap. 

The arrival of MAC Trailer in Kent is a great example how the City can help connect interested buyers and willing sellers.  In this case, Dan Smith, the City’s Economic Development Director, had an opportunity to hear a presentation on the success of this rapidly growing truck manufacturing company out of Alliance Ohio and he immediately thought of the vacant Fontaine Trailer manufacturing site on Fairchild Avenue as an expansion opportunity.

The Fontaine property had been looked at by a tire reclaiming/recycling company last year but it turned out to be a less than ideal fit given the close proximity of the property to residential neighborhoods and the company’s plans to store tires in piles outside of the building. 

When Dan heard about MAC Trailer’s growth plans, he went to work pitching Kent to the MAC Trailer folks and contacting the property owners about this prospective buyer.

I’d like to say everything was smooth sailing, but if we’ve learned anything from our development deals, we’ve learned that nothing is easy — especially the really good stuff. 

So like any real estate transaction there was a fair amount of negotiations going back and forth that had us on pins and needles for weeks.  The City did whatever we could, including lining up local and state tax breaks for MAC Trailer to help the deal hit their financial requirements but it still came down to the wire before we finally heard on Friday that the deal was done. 

MAC Trailer is a great company, and they’re a great fit for the Fairchild property, so there was a lot of fist pumping and high fives going around the office on Friday.  Take a look at MAC’s employment projections and I think you’ll see why Dan was doing the robot dance in the conference room:

1ST YEAR EMPLOYMENT NUMBERS
•OFFICE WORKERS – 10 
•SALES – 1
•ENGINEERS – 4
•MANAGEMENT – 2
•SUPERVISORS – 5
•SHOP PERSONNEL – 106
•TOTAL – 128

2ND YEAR EMPLOYMENT NUMBERS
•OFFICE WORKERS – 12
•SALES – 2
•ENGINEERS – 5
•MANAGEMENT – 3
•SUPERVISORS – 7
•SHOP PERSONNEL – 217
•TOTAL – 246 

MAC Trailer is a great example of focusing on helping a local company grow rather than trying to woo companies from out of state to make Kent their home away from home.  I’m not opposed to wooing out of staters but when you look at what it takes these days to out-compete all of the other communities that are trying to woo that same company, it seems to us that we stand a much better chance at having success with companies that are already here but are growing too fast to fit in their current buildings.  We love those companies and MAC Trailer shows why. 

Downtown Parking Information...

Parking is one of those good news, bad news stories. 

When things are going good, it means people are visiting and enjoying what downtown Kent has to offer, but unfortunately they tend to bring their cars to get them there — which means parking availability can become an issue.  On the flip side no people, means no cars and no parking problem – but that’s no good either. 

So we want a parking problem without actually having it be a problem, which is why the City and it’s partners at PARTA are adding over 500 new spots to downtown Kent to support all the new development that is already coming out of the ground. 

It’s been interesting to track the downtown development gant chart — as various project milestones came and went, parking appears as a solid task bar that has had our attention from the start and will continue long after everything else is done.  

We started with a thorough study of parking availability and usage today (which by the way, tends to only use about 40% of what’s available) and we studied carefully the other end of full build out of the new development.  Right now we’re filling in everything in between and we’re trying to as flexible as possible to adjust to the rather dramatic changes that are going on with construction impacting a lot of the best parking spaces. 

With that in mind, the City staff has been working with the downtown merchants to come up with a couple of changes to the current parking scheme to help the customers find the spots they need to support their favorite downtown establishments.  Here’s some of the information that is being sent around under the premise that the more we can keep people informed the less likelihood for frustrations to rise. 

Portage Development Board...

There’s a new economic development agency in town — the Portage Development Board — and with 5 months under its belt, I’ve watched the organization get its sea legs under it, get its toes pointed in the right direction, and put in some good mileage positioning the organization to be a player in the business of creating more jobs in Portage County.

The organizational premise is pretty straight forward – more jobs for Portage County – through partnering, collaborating, cooperating, leveraging and advocating the investment value of locating or expanding businesses in Portage County. 

History has repeatedly shown that business investment tends to gravitate to those places that are well organized, that clearly communicate their business value, convey a sense of optimism and progress towards a shared vision, and perhaps most importantly, have a broad based team of local talent standing ready to be deployed to support emerging business opportunities.  The Portage Development Board is committed to make Portage County one of those places, and they’ve got a line of people busy doing just that.

Like any new organization that tries to criss-cross political boundaries, there have been some early challenges to overcome.  Not surprisingly there’s a fine line between home town pride and parochialism, especially with the economy tightening the reigns on job growth. 

It’s natural for cities and towns to fight for every last morsel of job growth and it’s tough to tell a starving man that he needs to give some to get some — but that’s exactly what it will take to break out of the cycle of living hand to mouth for economic growth — and this is the right organization to tell that story. 

As much as anything, the success of the Portage Development Board will be to de-politicize economic growth, putting business and community leaders side by side on the front lines of economic progress.  I realize I work in a political industry and politics will always be a part of how we govern our communities, but that doesn’t mean you always want to lead with your politics — at least not when you are looking to foster a vital economic base with a sense of self sufficiency and sustainability. 

The Portage Development Board business and institutional professionals have volunteered their time and leadership to give job growth in Portage County a chance to get some traction.  This isn’t some new idea; it’s a business development model that’s proven to work all over the country, state of Ohio, and even within our region of northeast Ohio. 

Portage County is in a position to be the tie that binds our many disparate towns, villages and cities and the Portage Development Board brings focus to that effort.  As a Portage Development Board member I’m encouraged by the groundwork laid in the first 5 months and I look forward to the remainder of 2010 to see how far this group of motivated business leaders can climb in the name of Portage County.

Here’s a few of the organizational work products produced in the first couple of months of Portage Development Board’s existence.  And don’t let yourself be jaded into thinking that this is another layer of bureaucracy because they produced a quarterly report and strategic plan framework — that’s just the first order of business as a new organization, their focus forward will always be what will it take to grow and attract more jobs, not plans and reports. 

2010 Portage Development Board Quarterly Report

Portage Development Board Strategic Framework

Portage Development Board Mission, Vision, Values Summary