My First Start-Up

I realize I've been slacking a bit with the blogging (to your utter dismay I'm sure), but I have a good reason. I'm putting together the requisite materials to open my own business. What will it be, you ask?

NoCoToCo will offer excursions based upon differing themes throughout the Midwest (and beyond, eventually). Interested in beer, perhaps? Have a free weekend and want to get away? Well, consider this:

Three days, a chartered bus with all the amenities. Start at the eminent Great Lakes Brewery in Ohio City, where we lay out the itinerary and enjoy a toast to the weekend fun to come. First stop is Ann Arbor (the enemy's lair, I know) for lunch and a tour of Jolly Pumpkin Brewing Company, then on to Kalamazoo for dinner and a rendezvous at my beloved Bell's. An evening free to your leisure, overnight in a three to four star hotel, and on to Munster, Indiana in the morning. There we visit Three Floyd's Brewing Company, crafter of the immensely popular Dark Lord Imperial Stout. After some lunch and a few libations, it onward to Chi-town for some fun at Goose Island Brewing Company and a Cubs game. After the game enjoy a free evening in Chicago and another night at a superior hotel. Sunday we board the bus and roll home sweet home by 5:00 p.m.; refreshed and rejuvenated. Sound good? I thought so too.

There will be other themed trips available as well, for antique lovers, oenophiles, or sports fans. How about a trip with 15 of your closest friends to an away Browns game and a designated ride all the way home? As I said, I'm working on the details, and will have more information in the near future. I would certainly appreciate any feedback you might provide; shoot me an email if you're so inclined.

Also, in a related note, there is a Future of Cleveland party this evening (April 22nd) at the beautifully restored Fenn Tower on the campus of Cleveland State University. Cool Cleveland, the sponsor of the event, bills the event as follows:

"While enjoying open bar and tasty appetizers, you'll discuss Cleveland's future with eight of CSU's executives-in-residence - top experts recruited from business, law, technology, politics, education and more - where you can pick their brains for career advice and make valuable connections."

See and be seen!

Med Mart Projections; MMPI Dreaming?

Artist rendering of the proposed Medical Mart & Showroom on the Mall in Downtown Cleveland

The heated debate over the proposed Medical Mart and Showroom in Downtown Cleveland has run the gamut from where the site should be located, what kind of terms should be offered, and when can construction begin to the much more apropos question (at least in my mind), should we even build it to begin with?

I know the arguments of Med Mart proponents; namely that the economic influx of dollars from convention attendees will bring a boom to the area, as well as establish Cleveland as 'THE' pre-eminent medical technology and supplier city in the United States.

Forgive me, but I'm skeptical...

Why? For one, the proposed deal itself. I would ask the reader to consider if the money was coming out of your own pocket (which essentially it is if you live in Cuyahoga County), if it would be something that you would consider investing in. For that reason, I'll identify the parties involved as Medical Mart Properties Incorporated (MMPI), the developer, and 'You', the County of Cuyahoga, whose economic hopes are pinned on this project. Here goes...

First, you would need to purchase the land for the Med Mart & Showroom. Estimates place this at $17 million. You'll also hire a number of consultants to provide you with planning and building estimates. These will also come out of your pocket to the tune of $750,000.

You, as the potential investor, would then pony up $425 million to provide, as a loan, to MMPI for the construction of said Medical Mart & Showroom. This will come in the form of annual loans to MMPI of $40 million. MMPI will then use $36 million per year (of that) to pay you back (keeping the $4 million difference to use as they see fit).

Once completed, MMPI will not have to pay you any money in property taxes for the length of the lease. Oh, by the way, once you finished building the Med Mart, you will give it to MMPI out of the goodness of your heart (for zero dollars). Also, MMPI gets to keep 100% of any profit it makes from the facility. Finally, MMPI will graciously accept from you another approximately $7 million a year to assist with their operating costs.

So, what do you think!?!?

MMPI insists that the economic benefit to Cleveland lies in the hordes of attendees and visitors who will swarm upon downtown for the dozens and dozens of conferences and conventions each year. However, this too has me skepically number crunching:

* Based on Jim Nichols Plain Dealer article on March 17th, 2009

So what does the above say? It says that MMPI, the company that stands to reap untold millions in profits from both you and the public estimates nearly $1 billion in economic profit to greater Cleveland. However, as the very interesting article by Jim Nichols from the Plain Dealer points out, these projections may be (and likely are) WILDLY INACCURATE. If that's the case, and the billion suddenly becomes $73 million (in a good year), where's the benefit? Where's the profit? Take out the losses of property taxes, the increased burden of taxation on the people of Cuyahoga County because of the raise in sales tax, and the potential difficulty of getting people to come to Cleveland for conventions in the months of November through April, and it makes me wonder.

Is this another boondoggle that we're rushing into headlong; seeking that magic bullet to bring us back to prosperity? For all our sakes, let's hope not...