The article is published as part of an exclusive content-sharing agreement with neo-trans.blog.
When hearing a government official prattle on about his vision for his jurisdiction, a wag once said “Don’t tell me what you support; show me your budget.” Similarly, for several years, Cuyahoga County officials have talked and planned about Transit Oriented Development (TOD). But now they’re putting their money where their mouths are.
Yesterday, the Cuyahoga County Department of Development announced a new TOD Loan Program utilizing existing loan funds, but designed to catalyze mixed-use, high-density development projects located near high-frequency public transit.
The goal of the program is to enable real estate projects that strengthen transit accessible communities, promote reinvestment in neighborhoods, and enhance the county’s long-term economic vitality.
In a written statement, Cuyahoga County Executive Chris Ronayne said he supports TOD because it helps create affordable, connected neighborhoods by strengthening local ties, boosting our economic and transportation infrastructures, and ensuring resources are within reach of all of county residents.
“It’s just the beginning,” Ronayne told NEOtrans. “We’re building the Cuyahoga competitive advantage with transit. Cuyahoga County’s history as a community built along transit corridors gives us a foundation for return. Back to the future.”
TOD isn’t just any building built or renovated near a bus or train stop. It should be mixed-use, create new density, have a strong street presence with windows and entries facing the street, and built next to sidewalks with parking de-emphasized but not eliminated. TOD activity reached a five-year high last year, county officials said.
TOD Loan Program funding may be used for comprehensive real estate development projects that create or preserve jobs and involve new construction, major renovations, or substantial building improvements within the TOD program zone.
The competitive program offers gap financing through subordinated, fixed-rate loans from $150,000 to $2.5 million based on the number of jobs to be created. As a gap-financing program, it is intended to address capital shortfalls for projects that align with the county’s integrated development and sustainability goals.
Projects are funded primarily through owner equity and private bank financing, with Economic Development Loans available for gap financing. For now, the program offers loans-only — no grants. And the loan principal amounts are relatively small.
Ronayne acknowledged he is looking to grow the program. But he and other officials said it was time to turns more plans into bricks-and-mortar projects with real resources.
“This is about enhancing the existing assets of Cuyahoga County,” said Annie Pease, Ronayne’s senior advisor on transportation. “The more jobs that can locate near public transportation, the more opportunities we are providing the people of Cuyahoga County.”
The TOD Loan Program builds upon the work of the Cuyahoga County Planning Commission’s Countywide TOD Zoning Study. The study identified policy barriers to enabling development near high frequency transit corridors, created model legislation to help communities advance TOD, and surveyed developers of TOD.
“Several communities in Cuyahoga County are actively working on zoning updates to allow for more dense, multi-modal, and mixed-use development in areas served by frequent transit,” said Mary Cierebiej, Executive Director of the Cuyahoga County Planning Commission.
“In addition, this new loan program signals to the development community that we are listening,” she added. “One of the top three barriers to TOD, identified through our developer survey, was the inability to secure financing or align within capital stack, so this is a great first step!”
“The TOD Loan Program provides a great opportunity for entrepreneurs to access the capital they need to grow their organizations, attract customers, and create jobs in dynamic, accessible communities,” said Vaughn Johnson, the county’s deputy director for economic development.
“By empowering businesses to build and grow around transit, we are supporting our region’s economic growth, and creating resilient, interconnected neighborhoods,” he explained.
Greater Cleveland has made a huge investment in transit. If it was to build its rail rapid transit system from scratch today, it would require a $4 billion investment, said officials at the Greater Cleveland Regional Transit Authority (GCRTA).
It continues to invest in that rail system with a $450 million railcar replacement program plus many other capital projects. It also is expanding its bus rapid transit system with its MetroHealth Line on West 25th/Pearl.
As a competitive program, TOD project loan applications will be measured by a scoring process using the identified TOD criteria. A TOD Loan Program Guide and Eligibility Form is available here. For additional information, please email TODprogram@cuyahogacounty.gov.
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