Top Of The Hill Project Gets Financial Approval

CLEVELAND HEIGHTS, OH — Cleveland Heights City Council unanimously approved the final financial package for the Top of the Hill project in the Cedar Fairmount neighborhood. Development at the site should start in April.

"Last night's unanimous vote by City Council sends a clear message that Cleveland Heights is open for business," said Mayor Jason Stein. "We have listened carefully to our residents over the past several years, and the input from our residents has resulted in positive changes and improvements to the project. We believe that when all is said and done, the long-term benefits to the city and our school district will be realized by our residents and businesses."

The Top of the Hill project will be located on Cedar Road and Euclid Heights Boulevard, just up the hill from University Circle. The city said the estimated $83 million project is expected to include 261 market-rate luxury apartments, up to 11,000 square feet of first-floor commercial space, up to 25,000 square feet of green space and a parking garage with 550 spaces.

Council approved establishing a Tax Increment Financing (TIF) district and the issuance and sale of economic development bonds, not to exceed $26 million, as well as $1.85 million in economic development non-tax revenue bond anticipation notes. The latter bonds will cover a portion of the costs associated with construction.

What is a TIF district?

"A TIF is an economic development tool provided in the Ohio Revised Code to local governments to assist in financing new development," Cleveland Heights Economic Development Director Tim Boland told Patch. Here's how Boland described the tool:

A TIF has two basic components: the property tax generated before the site is developed (existing base value); and the property tax generated after the improvements are made (increased value). A TIF allows the future revenues from the increased value of the site as a result of the proposed improvements to be used upfront to help finance the project. The projected stream of future revenue from the increased value is borrowed against by issuing bonds and the tax payments that would have been made as a result of the improvements are instead directed towards payment of the debt service for the bonds.

Cleveland Heights' ultimate commitment to the cost structure of the project is 2 percent, accoding to officials. The developer is responsible for all other costs.

A Gateway Link

Flaherty & Collins will construct the mixed-used "gateway" linking University Circle to Cleveland Heights. City officials said they want the project to include a pedestrian-friendly commercial district, a symbolic entrance into Cleveland Heights, improve existing parking, incorporate greenspace and encourage the inclusion of minority-owned and female-owned businesses.

City officials also said there will be a commitment to paying a prevailing wage and hiring local workers.

In a statement on Facebook, the Cedar Fairmount special development district said it welcomed the coming Top of the Hill project and shouted out Nighttown's owners for spearheading efforts to keep the development moving and friendly to the existing neighborhood.

"As a highly visible property at the gateway between the Heights and University Circle, developing this property has been a long-time goal of the city," Tanisha Briley, Cleveland Heights city manager said. "The Top of the Hill development is the largest and most substantial development in our City in decades. Careful planning and analysis have taken place over the last few years and the result is a robust private development that will bring growth and vitality to our City and drive economic benefits throughout Cleveland Heights. We are excited to get the shovels in the ground early this spring."

Residents expressed a mixed reaction to the development on social media. Some called it a great idea. Others asked for a renewed focus on the Severance shopping plaza, while others suggested a different style of architecture for the coming project.