Cleveland City Council recently commenced the process to create a new nonprofit development agency, known as a New Community Authority (NCA), to administer land and community facility acquisition and development, as well as related services for its downtown lakefront with the passage of an Emergency Resolution acting on the City’s own Petition to create the NCA in Ordinance No. 1060-2024. Council subsequently started the legislative process to establish the North Coast Waterfront New Community Authority (NorthCo NCA) under the authority of Ohio law with Ordinance No. 1061-2024.
NorthCo NCA is to be initially managed by the North Coast Waterfront Development Corporation d/b/a North Coast Development Corporation (NCDC). As delineated in the Petition within 1060-2024, the key goals of the NorthCo NCA’s Development Program are to:
- improve access and connectivity to the lakefront;
- create a resilient and welcoming destination that belongs to everyone; and
- unlock economic development opportunities by repurposing vacant and underutilized land.
Notably, the Petition contemplates flexibility in its Development Program in the event that the Cleveland Browns change the location of its pre-season and home games.
Located along and near downtown Cleveland’s Central Business District, the current size of the proposed NorthCo NCA district is about 69 acres. Within the NorthCo NCA footprint, the City, NCDC, an Ohio port authority or a private developer may construct, manage, operate, and finance improvements. Following is the NCA parcel map from the file for Ordinance 1060-2024:
NorthCo NCA Parcels Map
The next map, also taken from the file for Ordinance 1060-2024 illustrates the boundaries of the larger NCA Initial Development Area (IDA).
NCDC IDA Map
As implied by the NCDC IDA map and stated in the Regulations for NorthCo DevCo, the City anticipates adding several landmark uses to the IDA including:
- Great Lakes Science Center and Parking Garage
- Rock and Roll Hall of Fame
- Burke Airport
- Cleveland Browns Stadium
- Nuevo Restaurant
- Harbor Verandas luxury apartments
Conceivably, the NorthCo NCA would be expanded to encompass these additional named sites as well as other sites in reasonably close proximity. Interestingly, NorthCo NCA would have the potential to leverage current and planned road, rail, trail and nautical infrastructure within the current and potential development area into significant connectivity gains that could exponentially amplify already conceived and potential development opportunities and transform the area into an even larger year-round regional-level activity node. The potential of the opportunity here warrants tight planning, coordination and execution by City, County and regional stakeholders, especially since the City and NCDC expect that the North Coast Lakefront Master Plan will be complete in ten (10) years, but also anticipate that it will take “multiple decades” to develop the contemplated NCDC district.
What is a New Community Authority?
An NCA is a legal entity established under Chapter 349 of the Ohio Revised Code to promote economic development and community growth within a designated area. It provides a framework for property owners and lessees to collaborate in funding public improvements and services that benefit the community. Through voluntary opt-in charges or assessments, NCAs help finance infrastructure projects, amenities, and services, fostering a cohesive approach to regional development. In Ohio, NCAs have most commonly been created to develop new, greenfield areas.
Cleveland City Council intends NorthCo NCA to develop and oversee development within its boundaries. Its primary purpose is to implement a comprehensive and well-balanced development program that integrates industrial, commercial, residential, cultural, and recreational facilities, promoting growth and revitalization in the area.
Community and Economic Impact
City Council’s NorthCo NCA legislation is part of a broader strategy to enhance Cleveland’s public spaces, attract private investment, and create jobs. By improving facility and parking management as well as connectivity to lakefront amenities, the City aims to boost the year-round appeal of its lakefront, which should help drive economic activity and enhance the overall user experience in the district.
Powers and Responsibilities
The NorthCo NCA would have several key responsibilities, among them entering into intergovernmental agreements to execute development activities, levying charges to support district improvements, and managing funds. By design, it aims to collaborate with public and private stakeholders to ensure lakefront development aligns with Cleveland’s broader urban planning and economic goals. R.C. 349.06 lists the numerous powers and authorities available to NCAs under Ohio law. While development is listed as one of the NCA’s powers, instead of conducting development within its organization, NorthCo NCA may coordinate or contract with private developers, perhaps through an RFQ/RFP or other selection process.
NorthCo NCA’s Governance Structure
NorthCo NCA will be governed by a nine-member Board of Trustees. The Board’s composition will include four citizen representatives, one local government representative appointed by the City Council, and four real estate development representatives appointed by the Mayor. To ensure continuity and balanced governance, initial board members will serve staggered terms of one or two years.
Financial Aspects
NorthCo NCA expects to generate funds for its operations through the use of Community Development Charges, which NorthCo has significant latitude to create and collect Community Development Charges within the NCA footprint. Ostensibly, the NCA could develop specialized fees or charges targeted for any number of items or activities. The usage of district-specific fees, charges, assessments, and taxes to fund development in special districts is widespread across the country and NorthCo NCA can study the successes and failures to develop its Community Development Charges.
NorthCo NCA’s Community Development Charges could be used to pay for operating, maintenance, and administrative expenses and as revenue for the payment of bonds or notes issued to pay for development or other costs. Such bonds or notes could be issued by NorthCo NCA, the City, the Cleveland-Cuyahoga Port Authority, or another government entity or agency working with NorthCo NCA. Cooperating with another government entity or agency would significantly enhance the value of NorthCo NCA’s development finance efforts.
Development funding obtained through NCA mechanisms could be stacked with other funding sources to significant effect. For example, NCDC could work with the City or a developer to apply for low-cost, long-term financing from the United States Department of Transportation for transit and transit-oriented development projects. Alternatively, NCA finance could be used to build on the recent $60 million Infrastructure for Rebuilding America (INFRA) Grant for the North Coast Connector and the Ohio General Assembly’s $20 million appropriation through the One-Time Strategic Community Investment Fund to fund the construction of a land bridge connecting downtown with the lakefront. In a creative situation, the City’s recently created Core to Shore TIF could also be used to finance a part of or key pieces of various City infrastructure networks connecting to the NorthCo NCA development. Numerous other future scenarios involving other local, county, state and federal programs could be possible. The presence of seed or matching revenue sources that may become accessible through use of the tools available to the NCA may help garner funds from additional sources.
Parking Aspects
The legislation in Ordinance No. 1061-2024 provides that parking revenue, excluding charges imposed by the Authority, would continue to fund municipal parking operations, traffic regulation, and debt service obligations. To maintain financial transparency, separate accounts would be established for each parking facility, ensuring proper allocation and oversight of funds.
As part of this ordinance, amendments to Cleveland’s Codified Ordinances (Sections 131.78, 455.09, and 455.10) update parking fee structures for municipal facilities. The Authority is also granted the ability to impose additional parking charges within its district, separate from City fees. Updated fee structures apply to facilities such as Willard Park Garage, Canal Basin Lot, North Coast Municipal Parking Lot, and West Side Market Parking Lot, with specific rates outlined for daily use, overnight parking, monthly permits, and special events.
Momentum continues to build for Cleveland’s lakefront development, the rest of the City and the Northeast Ohio region. Success on the lakefront can be achieved by persistent coordinated efforts.
KJK’s Economic Development & Incentives attorneys can help provide more insight into New Community Authorities, for more information please contact KJK’s Economic Development & Incentives Team Rich Morehouse (RAM@kjk.com; 216.736.7292), Collin Harrington (CHarrington@kjk.com; 216.736.7211), or Jace Libman-Phelps (JDL@kjk.com; 216.736.7269).