H Feasibility and Design of a Prototype Multi-level Industrial Building in Cleveland, Ohio U.S. DEPARTMENT OF COMMERCE/ECONOMIC DEVELOPMENT ADMINISTRATION Feasibility and Design of A PROTOTYPE MULTI- LEVEL INDUSTRIAL BUILDING in Cleveland, Ohio prepared for the City of Cleveland by William A. Gould and Associates August 1970 This technical assistance study was accomplished by professional consultants under contract with the Economic Development Administration. The state- ments, findings, conclusions, recommendations, and other data in this report are solely those of the Contractor and do not necessarily reflect the views of the Economic Development Administration. \o I TABLE OF CONTENTS INTRODUCTION AND CONCLUSION p. 1 CHAPTER 1 PRELIMINARY RESEARCH AND PROGRAMMING A. Objectives p. 1-1 B. Study Method and Findings p. 1-2 1. Evaluation of Employment Factors p. 1-3 2. Evaluation of Community Support p. 1-9 3. Selection of Industries p. 1-11 4. Preliminary Building Program p. 1-22 5. Selection of Site p. 1-26 6. Evaluation of Developer Potential p. 1-55 C. Conclusions p. 1-58 CHAPTER 2 DESIGN DEVELOPMENT PROTOTYPE BUILDING ONE - FOOD INDUSTRY A. Objectives p. 2-1 B. Study Methods and Findings p. 2-2 1. Identification of Tenants p. 2-3 2. Site Analysis and Plan p. 2-4 3. Soils Analysis p. 2-12 4. Structural System Analysis p. 2-12 5. Mechanical and Electrical Systems Analysis p. 2-13 6. Material Handling System Analysis p. 2-13 7. Building Design p. 2-14 8. Construction Cost Analysis p. 2-32 C. Conclusions p. 2-34 CHAPTER 3 PROTOTYPE BUILDING ONE PRELIMINARY CONCLUSIONS AND PROGRAM REVISIONS A. Objectives p. 3-1 B. Study Methods and Findings p. 3-2 1. Financial Analysis p. 3-2 2. Development Considerations p. 3-6 3. Management Considerations p. 3-7 4. Evaluation of Food Industry as Tenants p. 3-8 5. Evaluation of Building Program and Design p. 3-10 C. Conclusions p. 3-13 TABLE OF CONTENTS (Cont'd.) CHAPTER 4 PROTOTYPE BUILDING TWO - FOOD INDUSTRY A. Objectives B. Study Methods and Findings 1 . Definition of Building Program 2. Building Design 3. Financial Analysis 4. Development Considerations C. Conclusions CHAPTER 5 PROTOTYPE BUI LDI NG THREE A. Objectives B. Study Methods and Findings 1 . Site Analysis 2. Building Program 3. Building Design 4. Financial Analysis 5. Development Considerations C. Conclusions p. 4-1 p. 4-2 p. 4-2 p. 4-3 p. 4-14 p. 4-17 p. 4-19 p. 5-1 5-3 5-3 5-4 5-5 5-19 5-22 p. 5-28 APPENDIX 1 PRELIMINARY RESEARCH AND PROGRAMMING Section A Section B Section C Section D Section E APPENDIX 2 Characteristics of Selected Neighborhoods Community Support Selection of Industries Preliminary Building Program Selection of Building Site PROTOTYPE BUILDING ONE - DESIGN DEVELOPMENT FOOD INDUSTRY Section A Section B Section C Section D Section E APPENDIX 3 Soil Analysis Structural Analysis Mechanical and Electrical Systems Analysis Material Handling Analysis Building Program and Design PROTOTYPE BUILDING ONE - PRELIMINARY CONCLUSIONS AND PROGRAM REVISION p. Al-1 p. Al-7 p. Al-12 p. Al-29 p. Al-39 p. A2-1 p. A2-3 p. A2-6 p. A2-8 p. A2-15 Section A Financial Analysis Section B Development Considerations Section C Market Survey p. A3-1 p. A3-13 p. A3-15 TABLE OF CONTENTS (Cont'd.) APPENDIX 4 PROTOTYPE BUILDING TWO Section A Building Program and Design p. A4-1 Section B Financial Analysis p. A4-11 Section C Development Considerations p. A4-29 APPENDIX 5 PROTOTYPE BUILDING THREE Section A Building Program and Design p. A5-1 Section B Financial Analysis p.A5-23 APPENDIX 6 BIBLIOGRAPHY p. A6-1 INTRODUCTION AND CONCLUSIONS A. STUDY BACKGROUND B. STUDY OBJECTIVES C. SCOPE OF WORK D. STUDY CONCLUSIONS E . ACKNOWLEDGEMENTS INTRODUCTION AND CONCLUSIONS STUDY BACKGROUND In April, 1967, this project was undertaken to study the planning, architectural, engineering and economic feasibility of constructing a multi-level industrial building on an urban site in Cleveland, Ohio. It was a direct outgrowth of an earlier study entitled An Evaluation of Vacant Industrial Land and Buildings and Their Potential, which was completed by this firm for the City of Cleveland as a Technical Assistance Project sponsored by the Area Redevelopment Administration. In order to fully understand the objectives of the present study, it is necessary to summarize the major conclusions of the 1965 study. STUDY BACKGROUND In the 1965 study, the characteristics of vacant industrial buildings in Cleveland were defined in order to determine if this City is in a favorable position to retain and house industries that would be displaced by urban renewal, highways and other public improvement programs. The major conclusions of that report can be summarized as follows: Cleveland, in 1965, had a growing number of industrial buildings tending toward functional obsolescence because their design restricted industrial efficiency and flexibility. Some of these functionally obsolete buildings were vacant, but many were still in use, which suggested that the problems would become more critical in the future as firms find that they need more efficient facilities. - The real estate market for industrial firms which can use these aging structures is limited to smaller, locally oriented firms, new operations needing "incubator" space, or large operations which require a central city location and find these functionally obsolete buildings as their only choice. As smaller firms outgrow this type of space and larger firms find they can no longer operate in such facilities, they will find that their alternatives are limited to a predominance of poor quality space within existing industrial buildings and a limited supply of good vacant industrial land for development, often at prohibitively high costs. a. There is evidence that the cost of renovating older facilities by adding conveyors, ramps, elevators, etc. cannot generally be justified on the basis of building investment alone, since the cost of renovation is seldom reflected in a comparably higher building value. - 1 - INTRODUCTION AND CONCLUSIONS STUDY BACKGROUND b. It is not logical to expect larger firms to move from one functionally obsolete building to another since this condition is what has caused them to move initial ly . c. There is little opportunity to build new industrial facilities in Cleveland since this is a built up city with little vacant industrial land left for such development, What land is available is often prohibitively high in cost. These factors will adversely affect the industrial climate of Cleveland, since they raise doubts as to whether the industrial firms presently occupying older facilities will be able to remain headquartered in the City of Cleveland when faced with the need to move. This , in turn, suggests that the residents of the central city will be adversely affected by a loss of job opportunities when and if such firms move out of their present location. It was concluded that high density urban industrial needs differ from those of suburban areas. While a sprawling, one story industrial building is appropriate for low density suburban use, the central city is at a disadvantage when it tries to encourage the development of this type of building because there is less urban land available and it generally costs more than suburban industrial land. The 1965 report states that "Solutions to urban industrial problems must be met with honest evaluations regarding land coverage, density and servicing not in terms commonly associated with suburban developments". Within the context of the 1965 study, a schematic design for a large multi-level industrial building was developed to provide a framework for the evaluation of a maximum number of design variables and costs. The analysis indicated that the multi-level approach could offer a high density solution to the problem of using limited amounts of urban industrial land. STUDY OBJECTIVES The multi-level industrial building concept, as identified in the 1965 report, thus offered an avenue for further study as a high density method for using urban industrial land. Using the conclusions of the 1965 report as a starting point, the broad objectives of this present study have been defined as follows: - 2 - INTRODUCTION AND CONCLUSIONS STUDY OBJECTIVES To develop high density industrial facilities which would permit intensive use of high value urban industrial land. To evaluate the planning, architectural and economic feasibility of these solutions in order to identify a specific project which can be executed. a. To identify potential sites for the development of a multi-level industrial building . b. To develop planning and building programming criteria. c. To make a preliminary survey of the potential support for execution of this project among financial, industrial, business and government leaders of the community. d. To study construction and development cosh and tenant rental costs as they presently exist. e. To examine the technical problems affecting location, design and use of the building . To determine the extent to which a multi-level industrial building would be a significant factor in retaining employment opportunities for inner city residents. To investigate the influence of a multi-level industrial building in retaining local industries which must relocate or improve their present facilities. a. To determine the advantages of being located near an available labor supply within the inner city. b. To ascertain the types of industries which could function within the proposed building. c To select industries representative of those now located in Cleveland which have a potential need for new facilities. These broad objectives have been further refined to form the framework for conducting this study. These specific objectives, which have been defined for each phase of the project, are set forth at the beginning of each chapter in this report. A research approach has been used, with each new stage of work proceeding on the basis of knowledge gained from the previous stage and building up a new source of data. This research approach can be defined as follows: -3- INTRODUCTION AND CONCLUSIONS SCOPE OF WORK Definition of objectives sought to be accomplished. Definition of the method of approach and execution of the work. Evaluation of the findings and formulations of conclusions relating to each objective. Each phase of the work program has been executed using this step-by-step analytical approach with the findings and conclusions of each stage forming the basis for the objectives of the next phase of work. SCOPE OF WORK The scope of work is defined in Contract No. 7-35284 between the City of Cleveland and the Economic Development Administration of the United States Department of Commerce. Work began initially under the original contract in March, 1967 and involved these major phases: Preliminary Research and Programming: This stage involved the evaluation and selection of industries as potential tenants for this prototype building study; the evaluation and selection of possible sites for the development of the building; and determination of general planning and building program data (see Chapters 1 and 2). Prototype Building One: The next stage involved the design of a 13-level prototype building for the food industry, a market test of this building and a detailed pro forma financial analysis (see Chapters 3 and 4). Prototype Building Two: Based on the findings of the market test, the food industry facility design was to be modified to meet the needs of the current tenant market. The market test results indicated a tenant market and requirements which were substantially different from those programmed for Prototype One. Therefore, the decision was made to redesign the prototype to meet these requirements (see Chapter 4). Presentations were made to private developers to test the development feasibility of Prototype Two. Prototype Building Three: With the completion of the original work program, several major conclusions were defined relating to the project's financial feasibility and tenant markets. The development costs and cash flow requirements of Prototype Two resulted in a rental rate which would be in excess of the current market for industrial space. A potential tenant market was defined within the food industry, but its size and financial -4- INTRODUCTION AND CONCLUSIONS SCOPE OF WORK resources appeared limited. It became apparent that some form of federal and local government financial assistance would be necessary to achieve rental rates competitive with the current rental market. Correlative issues arose as to the form and amount of assistance, how it should be used, and whether this would be justified for the use of a limited segment of the food industry. Discussions with developers, and other interested parties explored the possibilities of alternative tenants for the building and of a multi- industry facility. Two specific possibilities which were defined were a food cold storage facility and space for newly formed Negro-owned businesses related to the automotive industry. Since these factors were fundamental to the ultimate conclusions of this study, the Economic Development Administration authorized an amendment to the contract for building modification studies. The resultant design and feasibility analysis of Prototype Three reflects the interplay of these factors and their resolution (see Chapter 5). -5- INTRODUCTION AN D CONCLU SIONS STUDY CONC LUSIONS STUDY CONCLUSIONS Through a process of developing and evaluating three different multi-level building designs, it has been possible to define the constraints for actual development of a multi-level industrial building on an urban site. These have been evaluated under conditions prevalent in Cleveland, Ohio at the time this study was conducted (1967 to 1969). It should be recognized that the conditions are defined as they existed in Cleveland, and they may vary from one city to another and from one time to another. Since a multi-level industrial development is inherently more expensive than single level construction, its use would be limited to the following situations. When the demand for industrial space in the Region is adequate to support the higher development costs of a multi-level industrial building within the framework of private or quasi-public enterprise; or When innovative structural, material handling and building service systems are advanced to the point where they can effectively be used in a multi-level building at a cost com- petitive to single level building; or When either local or federal governments must subsidize or develop the project as a means of achieving a benefit for the public, such as retention of employment oppor- tunities, removal of slum and blight to revitalize an industrial area, or maintaining the tax base. 1. The study process has identified factors which make multi-level construction inherently more costly than single level: The stacking of industrial space in a vertical structure necessitates the construc- tion of floors with heavy load bearing capacity. Services, such as truck docking, building stairways and automobile parking, must be provided on structure. Building systems are more complex because of the need to run horizontally and vertically. Vertical material handling must be provided in addition to horizontal movement. -6- INTRODUCTION AND CONCLUSIONS STUDY CONCLUSIONS Fireproofing, sprinklers, emergency stairs and exits must be provided to comply with safety and code standards. All of these factors contribute to the higher cost of multi-level construction and result in a higher construction cost per square foot, a smaller percentage of rentable space in relation to gross constructed space and a higher rental rate for the tenant. 2. From an architectural design and engineering standpoint, it is possible to design multi- level industrial space which meets the functional requirements of a range of tenants engaged in light industrial processing, warehouse and distribution activities. Industrial space can be designed to accomplish this by incorporating the following features: Broad expanses of floor area which can be subdivided to meet the needs of various size tenants. Base structural, mechanical and electrical systems flexible enough to accommo- date the requirements of various industrial operations. Basic shell space in which the tenant can develop leasehold improvements to meet his operational needs. The characteristics of industrial operations best suited for multi-level tenancy are: Minimum to moderate amount of material handling, preferably of low bulk goods. Light manufacturing with high value added. Moderate truck delivery requirements so that dock use can be scheduled. 3. The development of a multi-level industrial building is not economically feasible in Cleveland under existing real estate market conditions, since the space cannot be rented at a rate which is competitive with the current market. Analysis of three building designs shows that the rental rate is not competitive (a) even when the most favorable financing package for private developers is used or (b) when a combination of direct federal grants and low interest loans with only 10% private equity is made available. -7- INTRODUCTION AND CONCLUSIONS STUDY CONCLUSIONS From industry's point of viev/, there is no advantage to multi-level construction. While certain industries are adaptable to multi-level tenancy, they seem to prefer single level facilities. There appear to be few industrial operations which require a multi-level building because of the nature of their processes. Under the present conditions in Cleveland, the only direct benefits of multi-level industrial construction would accrue to the City in the form of the higher tax return from a given piece of land and the potential for higher density use of limited amounts of land. In terms of unemoloyment and the move-out of industry, it is recognized that the construction of one multi-level facility will not, by itself, reverse existing trends. It would, at best, be a defensive move, retaining firms which require a central city location, or offering space at a low enough rental rate to attract tenants despite environmental deficiencies. 4. This study has identified certain variable economic conditions which act to directly affect feasibility. These are: Land Cost and Availability: The land cost did not form a significant percentage of the total project cost. So long as there is enough vacant industrial land in desirable locations in suburbs to accommodate single level industrial structures, there will be no market for new multi-level space. As the price of land goes up and it becomes scarce, multi-level construction may become a more economical alternative. Construction Costs: This factor is constant as between Cleveland and its suburbs. In multi-level facilities, construction costs form the largest single factor in the project cost because of the need to provide space and services on structure and the complex utility requirements. With the existing relation- ship between land cost and construction costs, it is more economical for the owner to bgild single level facilities on large acreage of land so that the total project cost is lower. Rental Rate: Industrial space in Cleveland currently is available at 65c to $1.00 per square foot in older buildings, with factors such as surrounding environment, age, condition, location and building services determining the rental range. New suburban industrial space is available for SI .25 to SI .75 per square foot, generally on a gross rental basis with the tenant paying his own operating and maintenance costs. Therefore, an acceptable rental rate for new multi-level space would have to be no higher than the upper limit of the current suburban market. -8- INTRODUCTION AND CONCLUSIONS STUDY CONCLUSIONS Market for New Industrial Space: A need for new space was identified in the 1965 report, A Study of Vaca nt I ndustrial Land ond Bui ldin gs a nd T heir Potential which was part of the basis for this present study. Presumably, this need still exists and has probably become more acute as buildings have become older and more obsolete, and as industrial firms expand their operations. This study did not include an in-depth market test to determine the nature and extent of the market for new industrial space. However, evidence of such a need was seen in the machinery, food, fabricated metals and printing industries, especially among small and medium size firms. It appears that firms which operate on a low margin of profit tend to gravitate toward central city locations where the rental rates are lower because the space is older. As is shown in this study, the combination of land cost, construction cost, rental rate and market conditions as they exist in Cleveland create a situation which is not conducive to construction of new multi-level industrial buildings. It is recognized that these conditions do change from one time to another for a particular city. The existence of privately built multi-level facilities in New York City and in European cities illustrates that such a devel- opment is economically feasible under certain conditions. A test of these factors should be made in several cities for one or more of these three designs to determine the conditions under which multi-level construction is economically sound. 5. Certain trends of the food industry have been identified which appear to be character- istic of other industries. Firms which serve a regional market have moved to suburban locations. Free- ways have given the suburbs quick access to the central city as well as outlying regional markets. Firms which locate in suburbs remain part of the Greater Cleveland area and economy. All recent construction has been of single level facilities, because of land availability, the lower construction costs, and ease of arranging production flow. A small number of firms continue to require a central city location. Some of these operate at minimal or low levels of profit and use poor quality, low cost space. They have a need for new and better space, but many cannot absorb a higher rental rate within their existing financial structure. -9- INTRODUCTION AND CONCLUSIONS STUDY CONCLUSIONS Deterioration of the surrounding environment detracts from a site v/hrCn other- wise has attractive locational advantages. Suburban locations have a more attractive environment than the central city. To the extent that these factors are characteristic of other industries, they explain the reasons for the industry's moving out of Cleveland, and their preference for single level space . RECOMMEN D ATIONS While this study has been oriented toward the design and economic feasibility of a multi- level facility, consideration has also been given to the effect of such a project on socio- economic problems of the City. The problems which originally motiviated the undertaking of this study remain as conditions which the City government must combat. To summarize briefly, these have been identified as: Industries are moving away from the central city. Central city residents are losing employment opportunities. Central city population is declining. The City is essentially built up with existing old buildings and little vacant industrial land remains. As a result of these factors, the City is not receiving the income it needs to support and expand vital services, school programs and redevelopment projects for its citizens. Because of the scope of these problems, it is recommended that the City undertake forward moving industrial redevelopment program, which would accomplish the following specific goals: To maintain and increase the City's tax base. To maintain and increase employment opportunities for residents. To improve the overall environment of central city neighborhoods. To maintain and increase the City's industrial base of small and medium size firms. -10- INTRODUCTION AND CONCLUSIO NS STUDY CONCLUSIONS To provide incubator space for new Negro-owned businesses. To sustain certain marginal businesses because of the service they perform. To attract new businesses to the central city. It is apparent from the findings of this report and the scope of the problems facing Cleveland that the development and implementation of such a plan will involve a commitment of large amounts of time and money by the City and the federal government. It is recommended that this redevelopment program include the following elements: General industrial land use plan aimed at giving the City the most efficient use of industrial land by providing for both single level and multi-level buildings. A plan for assembly and staged replacement of obsolete industrial facilities and relocation of firms operating in them. Provision of off-site improvements, truck holding areas, utilities, automobile parking facilities, and other amenities needed to attract industry, as recommended in Prototype Three. Provision of police and fire protection and adequate City services. If construction of a publicly owned multi-level industrial building becomes desirable as a defensive measure within this redevelopment effort, the recommended design scheme is Prototype Three (see Chapter 5). The Prototype Three design concept meets the criteria necessary for a publicly owned facility by providing services to its tenants as well as the surrounding area. The financing package permits participation by City and federal governments as well as private interests. -11- INTRODUCTION AND CONCLUSIONS ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS This report has been prepared by William A. Gould & Associates, Architects and City Planners, under subcontract to the City of Cleveland. The City has provided general administrative and review services and various departments have assisted in data col- lection and have acted in an advisory capacity. We wish to thank the following for their assistance: The Honorable Carl B. Stokes, Mayor Office of the Mtayor, John Keever, Project Director Board of Zoning Appeals Cleveland City Planning Commission Community Development Department Department of Human Resources and Economic Development Department of Finance Department of Public Service, Division of Engineering and Construction Department of Public Safety, Division of Traffic Engineering and Parking Fire Prevention Bureau Mayor's Committee on Model Cities Application William A. Gould and Associates has been assisted in this study by the following consultant firms: Ernst & Ernst - financial analysis, market testing and analysis, and material handling systems analysis R. M. Gensert & Associates, Structural Engineer -structural analysis JohnE. Flynn, A. I. A. - mechanical and electrical systems analysis David V. Lewin, Engineering Counselor -soils analysis Dr. Samuel Mantel, Professor of Economics, Case-Western Reserve University - economic and financial analysis Stanley V. Michota, Vice President, University Circle Research Center Corporation - management and financing analysis Alan M. Voorhees & Associates, Transportation and Planning Consultants - analysis of on-site transportation and off-site traffic systems -12- IN TRODUCTION AND CONCLUSIONS ACK NOWLEDGEMENTS Edward Howard & Company - community relations Turner Construction Company - construction cost analysis Byers, Urban, Klug & Pittenger, Consulting Engineers - mechanical and electrical systems cost analysis We wish to thank the following persons for their assistance in this project. William L. Batt, Jr. Robert Dyke United States Department of Agriculture Meat Inspection Bureau Meat Facilities and Equipment Group, Technical Services Division Marketing Service In addition to the Principal and Associates, the following members of the firm of William A, Gould & Associates participated in this project. Nino Arsena Ruby Chatman James Gibans Marlene Goldheimer Ian Gordon Peter Henderson Thomas Herron Maureen Jelinek James Jensen Barbara Kleckner William Lindow, Project Director Denis Potiris Alice Rosenblatt Carol Rubin Vivian Solganik R. Van Petten James Urban -13- CHAPTER 1 PRELIMINARY RESEARCH AND PROGRAMMING A. OBJECTIVES B. STUDY METHODS AND FINDINGS 1. EVALUATION OF EMPLOYMENT FACTORS 2. EVALUATION OF COMMUNITY SUPPORT 3. SELECTION OF INDUSTRIES 4. PRELIMINARY BUILDING PROGRAM 5. SELECTION OF SITE 6. EVALUATION OF DEVELOPER POTENTIAL C . CONCLUSIONS CHAPTER 1 OBJECTIVES The initial step in the work program was to make a preliminary evaluation of the feasibility of a multi-level industrial building in order to determine whether the detailed industrial design studies and financial analyses should be undertaken. This first phase involved a general examination of the economic and environmental factors affecting a decision to build a multi-level industrial building in Cleveland. The specific objectives were: 1 . To make a preliminary evaluation of the direct and indirect impact of the proposed project on employment and on Cleveland's industrial base. 2. To make a preliminary evaluation of the attitudes and interests of those sectors of the community from which support for the project may be required. 3. To determine the representative industries in Cleveland which could utilize a multi- level industrial building as tenants. 4. To develop preliminary program and planning criteria for a multi-level, multi-tenant building. 5. To identify potential sites for the development of the proposed building. 6. To evaluate the development potential of the proposed building. 1-1 CHAPTER 1 STUDY METHODS AND FINDINGS The methods of approach used during this initial phase involved research with written source material, personal interviews and field survey of existing condition. The sources of data as related to each objective can be summarized as follows: ] . Written statistical source material provided the data on employment trends for the City of Cleveland and its poverty areas or selected neighborhoods. This provided an overview of employment trends, especially in the manufacturing industries. 2. Personal interviews were held with representatives of the business, industrial and government sectors of the community in order to assess their opinion of this project and Cleveland's current industrial situation. 3. In order to select a tenant-subject for this study, an investigation of Cleveland's industries v/as made through research into written material, personal interviews and field trips. The purpose was to determine the importance of the particular industry to Cleveland, its locational and building requirements, and whether a need for new space exists within the industry. 4. Program data v/as developed from written source material, from the personal interviews with representatives of industry and field trips to local companies. The purpose was to establish the building requirements for the industries studied, to determine if these could be met in a multi-level building and to establish criteria for later design studies . 5. Site selection involved a field survey of Cleveland's industrially zoned areas and data collection from the office of the Cuyahoga County Auditor. This data was mapped for detailed analysis to evaluate sites for possible use in this study. Building concept studies were conducted to test the application of the building program to specific sites. 6. The alternative possibilities for development were set out by our economic consultant. Personal interviews were held with developers to ascertain their reaction to this project and to Cleveland's industrial situation. 1-2 CHAPTER 1 STUDY METHODS AND FINDINGS EVALUATION OF EMPLOYMENT FACTORS Findings Related to Objective 1 As stated in the Introduction, one purpose of this entire study is to seek methods to maintain Cleveland's industrial base and thereby retain employment opportunities for residents of the City. Within the limitations of time and budget of this study, we have attempted to evaluate the impact of a new multi-level industrial building on employment. This survey has been based on research of existing statistical data from federal and state sources. Within the context of this survey, certain limitations in available data have been discovered relative to the capabilities, status, and in-and-out migration trends of the unemployed and under-employed. In addition to the general employment trends of Cleveland, the City's selected neighborhoods are of special interest. The selected neighborhoods are the poverty areas of Cleveland as defined by the Bureau of Census for the Office of Economic Opportunity in the Special Census of Cleveland, Ohio, April 1965. These areas represent a prime source of labor, since there is a large number of unemployed residents. Since most urban renewal and economic development efforts are being directed toward these areas, coordination with these projects is desirable. RECENT EMPLOYMENT TRENDS Industrial employment trends in Cleveland point toward declining central city density both in population and industrial use. These trends have been accompanied by rising unemploy- ment rates in the urban core. Exhibit E-l shows a comparison of 1 960 to 1 965, in absolute numbers, of employment and population. It is significant that the per cent of decrease in manufacturing employment is higher than the per cent of change in all other categories (except unemployment), for the Cleveland area . The same is true for the selected neighborhoods. This indicates that, in addition to population shifts, factors such as automation, technological changes in production process, and changes in product line have influenced the decline in employment 1-3 CHAPTER 1 STUDY METHODS AND APPROACH While it was impossible to conclusively assume that unemployment in the selected neighbor- hoods was totally or largely a function of decreasing manufacturing and related industrial activity, each of the selected neighborhoods was examined with regard to (1) industries in which employment significantly decreased between 1960 and 1965; (2) industries in which employment was maintained or increased during the same period; and (3) the available occupational skills (as deduced from the skill levels of the currently employed and the median educational level of the neighborhoods). The specific findings are summarized on Exhibits E2, E3 and E4 with details given in Appendix 1, Section A. The factors that these neighborhoods hold in common are more significant than those which make them different. All of the selected neighborhoods, except Broadway and Glenville, appear in need of a pronounced economic stimulus, since unemployment rates are higher than the rest of Cleveland, and median family income has actually dropped in some of these areas. Numerous workers in each area have lost jobs in each of the five industries considered. - The retention of the employment opportunities within the five industries in Cleveland is a significant objective and could be a factor in arresting the decline of employment which characterizes much of the City, and is magnified within the eight selected neighborhoods . In light of the decline in population in the selected neighborhoods, it is significant to note two trends: The unemployment rate is still increasing, which would suggest that jobs are being lost to these workers at an even faster rate than workers are leaving the area. There are no statistics to indicate whether the outgoing work force is leaving these poverty areas because they are jobless and must seek work elsewhere, or because they have jobs and can afford to live in better neighborhoods. The median years of school completed has gone up in all areas. (See Exhibit El in Appendix 1 .) The unemployed group is also declining in absolute numbers, though increasing substantially as a percentage of the population for all these neighborhoods. It is concluded that the decrease is part of an out-migration which encompasses both the employed and unemployed worker. The work force decrease is substantial, and it is in this light that the significance of the rising unemployment percentages may be identified. In the period between 1960 and 1965, industrial employment opportunities in the central city fell by more than 22%. 1-4 CHAPTER 1 STUDY METHODS AND APPROACH The composition of the labor force has changed little in spite of both population a"nd job losses in these selected neighborhoods. Those employed in manufacturing accounted for about 40% of the total employed in 1960 (see Exhibit El). The total number employed decreased by 25,357 by 1965; the number employed in manufacturing decreased by 21, 391 . The proportion of manufacturing employment to the total labor force decreased within all of but two of the selected neighborhoods (see Exhibit E3). This would suggest that manufacturing industries account for a significantly large share of central city job losses. 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O^ fc LO CM LO n0 O CM -Nt CO o LO O 00 -n? fc "Nf -o ^f rv LO LO LO lO • c o CO D O X c a> U c U c o E i2 D TJ _C ,r 0) i o "O O w LO > •v -o O O 8 O ^ ca « o o o "5 o LO-£ ■p'.2> y— Z. x-a ._ c o u u- o £ O t- O E E o U c a> E i_ 8. Q LO LO On a. < o IE O Tl C _o > o o _c .? z o _o 4) O0 o O O U u o _Q i CHAPTER 1 STUDY METHODS AND FINDINGS PROJECTION OF DIRECT IMPACT ON EMPLOYMENT Without detailed specifications as to the industry or industries to be included in the proposed multi-level structure, it was difficult to estimate the direct effect this project would have on employment. But, for most of the proposed industry-site combinations discussed later in this chapter, direct employment is estimated as including 1200 to 2500 employees in manufacturing operations. More employees would be required for service work and maintenance depending on the requirements of the establishments utilizing the building. The importance of this project, however, does not rest on the employment of up to 2500 workers. It must be measured by its long-term impact on maintaining industrial activity and employment levels in the central city which would otherwise be lost. This is the essence of the "holding action" or defensive concept. The 1965 study, An Evaluation of Vacant Industrial Buildings and Land and Th^ir Potential established that there are a large number of functionally obsolete buildings still in use in Cleveland. As the companies occupying these buildings develop a need for new space, their choice will be limited in that there is little new industrial space available in Cleveland. These industries will find it necessary to relocate outside the City. This represents a loss of revenue to the City and a possible loss of employment to those who are unable to get to a suburban area because of transportation. The parameters of this study did not permit exploration of this in great detail. However, enough of a trend has been established showing a loss of manufacturing employment (see Exhibits El through E4) to show the need for defensive action . This project thus represents a "holding action" or defensive concept in retaining employment opportunities in Cleveland. Its goal is to provide a new alternative for space to Cleveland industrial firms before more move out of the City. The characteristics of Cleveland as a built up city with limited amounts of vacant industrial land and were defined in the 1965 study. In addition, the existence of surrounding suburbs precludes the City's acquisition of more land. While these characteristics are not universal, they are shared by many other cities. The demonstration effect of this proposed building can be significant. Should it be successfully developed, the probability is increased that many industries would find multiple tenancy in the central city a plausible alternative to the suburban industrial park, especially for those industries whose efficiency is increased by proximity to downtown suppliers and markers. The impact on the City, in terms of employment, urban renewal and taxes must be considered significant in the long term. 1-3 CHAPTER 1 STUDY METHODS AND FINDINGS The need for retention of manufacturing employment to improve the economic base of the central city is evident upon examination of available data concerning inner-city neighborhoods. Success of the proposed project can be a significant factor in meeting this need over the long term. PROJECTION OF INDIRECT IMPACT ON EMPLOYMENT Because of the fact that industrial employment generates jobs in industries and services which support the base industries, any project which increases direct employment (or slows its rate of decrease) will have indirect employment effects. Research done by the Federal Reserve Bank of Philadelphia by lames R. Weskott ( Employment Multipliers for the Philadelphia Metropolitan Area) indicates that in the five selected industries considered in this report, expected indirect job generation rates ten years hence will average between 1 .54 and 2.12 jobs for each direct job held. This assumes that national growth will remain stable, and that the Philadelphia area's growth parallels the nation's. In this present study, it was not assumed that such calculations were directly applicable to the Cleveland area due to different industrial composition. However, this indirect employment factor is significant and at least represents the importance of the multiplier concept. The Development Department of the State of Ohio has gathered statistics indicating that 100 manufacturing jobs in a community generate 84 other jobs in non-manufacturing fields, $463,531 .00 in retail sales and $129,218.00 in bank deposits as well as $724,776.00 in personal income each year. Again, while not directly applicable to inner-city industry, it reflects the relative importance of manufacturing jobs to the community. Accordingly, the loss of jobs in manufacturing, if allowed to continue, will account for a greater employment loss to Cleveland than direct losses would indicate due to the reverse impact of the multiplier effect. EVALUATION OF COMMUNITY SUPPORT Findings Related to Objective 2 During the early stages of this project, interviews were held with persons representing a cross- section of the community. Those interviewed represented the following sectors, and their 1-9 CHAPTER 1 STUDY METHODS AND FINDINGS reactions to certain basic questions are summarized below: Real eslate Construction Industry - Foundations and quasi-public organizations Utilities Railroad State government - City government EVALUATION OF THE EXTENT TO WHICH REPRESENTATIVE COMMUNITY LEADERS FEEL THAT THE PROBLEM OF LOSING CENTRAL CITY INDUSTRY IS IMPORTANT AND WARRANTS SOLUTION All persons interviewed were generally of the opinion that Cleveland's loss of industry is a problem which should be solved. They viewed this particular project as representing the kind of effort and imaginative approach needed. Representatives of industry felt that small and medium size industrial operations have been neglected in terms of public and private support. There is general agreement that active support of the City government is necessary for the success of this project or for any efforts aimed at industrial development. Any industrial development effort would have to be incorporated into a program of environmental improvement which would combat problems such as vandalism, pilferage, lack of parking, street congestion, and the general deterioration of the urban environment in Cleveland. EVALUATION OF THE EXTENT TO WHICH REPRESENTATIVE COMMUNITY LEADERS FEEL THE OBJECTIVES OF THIS PROJECT ARE IMPORTANT. Generally, interviewees gave their support to the conduct of this study and many offered their assistance or expressed interest in the results. However, their support of the development of a specific multi- level building would depend on its economic feasibility. Further, they felt that this project would have to be placed within the context of the City's total needs and commitments in other economic, social and urban development programs. At the same time, some of the interviewees such as railroads, utilities and real estate interests, have financial commitments in suburban areas, which might tend to influence their thinking about this project. 1-10 CHAPTER! STUDY METHODS AND FINDINGS SELECTION OF INDUSTRIES Findings Related to Objective 3 One of the initial steps involved the selection of one or more industries as a tenant subject for this study. The general criteria for selection were: Industries which can function in a multi-level, multi-tenant building. Representative industries, presently located in Cleveland, which would be of long term benefit to the City. - Industrial groups which include smaller, locally owned and managed firms which help make up Cleveland's industrial base and are a valuable industrial resource. Representative industries which are important to the employment of inner city residents. Representative industries which have a need for new space or facilities. Using the Directory of Ohio Manufacturers as a basis for grouping like industrial firms, Cleveland industries were generally analyzed as to the following factors: - Size and number of firms in Cleveland. - Number of employees . - Employment patterns. - Locational patterns to determine whether the industry tends to cluster and where such clusters are located. Patterns of relocation following displacement. Extent of functional obsolescence. From these studies, five industries were selected as possible tenant subjects. Detailed data on the above factors was obtained through research and personal interviews and is summarized in Exhibits E5 through E14. (See Appendix 1, Section C.) The five selected industries were: Food and Kindred Products Fabricated Metal Products Apparel and Related Products Printing and Publishing Machinery (except electrical) 1-11 o CM U CO I co I— co Q Z co U l— co a: UJ I— U < < u _c Z> ~0 co o CD 4> O O o 4) 1 O (1) > o 4> 1 1 o c p J> o E O O u- T> 4> u. 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D d) — In VI d> 'E s. E o o 1— c 0> o > c 0) E E o u 3 VI 5 v> d) d) -*- C a> u d> -*- 3 C C o d> D) 2 VI 1 — ^ o >. _C o > 4) > 0> v> C — d> C > , i o VI 3 d) k. O o o >. d> u 0) ll> d> O •- 3 CO (1) *- .*_ v> -£) c j5 "O o c c _c o 3 c IE _D c o E 3 C 0) k> l_ d) o c ^ < VI J— VI c Z o U d> *~ c k- VI d> c U JD d> Ic c d) LU X E d> .4— U a. v> VI IS o VI C d> 0) d> v> 3 o *> k- c a> VI O VI D E VI c 1c "> o VI 1— u. o o o o VI In o o E U o a> v> C E >^ _o c o o a. ic V) .2 15 o v> d> 8 o O d) Q. VI co C> c _d> o c o Q- E D) d> c ^O d> (J 8. .s d» y in IE O O d> -*— VI o> o 0) r a) d) J (J d) ■*" 1— co LU 1— U 3 O O D U _Q E 3 c -*— to o i— _o d> _E CO vi d> 0> o o c _E 0) c O 1— o E 1_ d) o c 14- o -4— c _d) o o o -ft— 3 -o 8 c 01 E 2 < X u in o k. d> 2S c d> E 0) 0) o E 0) '5 8 c 0) k- 0) _c 1— .2 "5. Q. 3 VI 1 d) c o d) d) _E 1— d5 *-4- d) k. Q. d) d) E d) E 0> d) c o d) k2 3 o VI d> < n U LU LU U X X u < ID o > o —I Q- LU CM O •O CN O iO cn'co' CO CM O CM CO I >o «. cs I\ •— CO ^ CO o u~> V o in r— CO 2> I.? u o LL. :*. Cti o z i— u < LL. 3 z < o I— z LU u LU Q_ o o Q d -^ z < CM — _l LU VI > ^- .2 O V. ^ LU —1 sP: z ^3- CM &- 00 Q LU CO r— Q r- <) 3 1— CM •— CO LO VI -o 5 O q; o k. o -Q .c D) 'o z d) E o o _c o -o o ^_2 •— 0) O CO z k^ 5 o 2 o CM 0) k. . o o E LO o 2% o o o£> TO o ^O £§ ^ £5 CM £§ _ £S o •o co ^^ CM "^co 8 » c: _^ u c c o Z 3 o Q O < < > I* in d) »p 0) o i5 •~ < VI ,»_ d> o> k. 0) _3 -C O CO D kjl c- 3 C o O "c 2 0) > q c _c ^~ O ^ 0) "o Q. x O o ct o ■— d) 8 Qi 5 d> u k. 3 O CO O CM CHAPTER 1 STUDY METHODS AND FINDINGS PRELIMINARY BUILDING PROGRAM Findings Related to Objective 4 The preliminary building program was developed from several sources of information. Code requirements, interviews with entrepreneurs in each of the selected industries, and research of published data on industrial planning and construction provided the basic criteria for the building program and design. (See Appendix 1, Section D.) Information was gathered and tabulated for each of the five selected industries. This formed the basis for the general building program which is given in Exhibit E15. These general criteria are such as would apply to a multi-level building for any industry. Preliminary building concept studies were carried out to analyze the existing conditions of each site and to test the building program. These studies were limited in scope, but did help to define general building characteristics and areas which would require further study. These are summarized in the next section of this chapter. The specific program for Prototype One was developed from these studies and is described in Chapter 2 and Appendix 2. 1-22 EXHIBIT E15 PRELIMINARY PROGRAM FOR A MULTI-LEVEL, MULTI-TENANT INDUSTRIAL BUILDING A. EXTERIOR ENVIRONMENTAL IMPROVEMENT AND CONTROL 1 . Aesthetically pleasing visual image 2. Proper location of access roads and control of traffic congestion 3. Control of smoke, dust, fumes 4. Sufficient lot size to prevent encroachment by unrelated uses 5. Location of parking areas, building elements and service areas with respect to characteristics of adjacent uses B. PHYSICAL SITE REQUIREMENTS 1 . Separate and adequate entrances for truck, automobile and pedestrian traffic 2. Separation of internal site functions a. Adequate off-street truck docking and holding areas b. Adequate off-street automobile parking area 3. Unity and balanced functional use of land 4. Establish staging system for future expansion on the site 5. Municipal code requirements, zoning, urban renewal, etc. 6. Tenant safety considerations a. Enclosed, easily accessible controlled parking areas b. Adequate lighting c. Controlled truck docking C. PHYSICAL BUILDING REQUIREMENTS 1 . Flexibility and adaptability to v/ide range of tenant uses a . Production areas 1) Uniform floor loadings of 200 pounds per square foot to permit relocation of equipment and adjust production flow 1-23 EXHIBIT E15 (continued) 2) Adequate and uniform bay size of 30' x 30' - maximum economic span for heavy floor loads, flexible for equipment layout and production flow. 3) Uniform minimum ceiling heights of 12' clear to allow for stacking of pallets two high and for overhead chain hoists. 4) Use of grid or similar system for mechanical and electrical systems to facilitate access to all parts of the building and modifications without disruption of production flow. b. Truck docking and holding areas. 1) Floor loads of 250 pounds per square foot to accommodate large tractor trailer trucks. 2) Bay size of 30' x 60' to allow for truck maneuvering. 3) Clear ceiling height of 14'-6" to allow for adequate clearance for tractor trailer trucks. c. Car parking areas . 1) Floor loads of 75 pounds per square foot. 2) Bay size of 30' x 30', adequate for car maneuvering and parking layout. Flexibility for expansion a. Adequate structure and floor loading capacity to receive heavier equipment. b. Use of combination long and short term leases. c. Modular structural systems and partitioning systems to permit horizontal modifications and expansion. Efficient location of employee facilities. a. Adequate facilities in close proximity to major production areas to permit control and avoid time losses. b. Possible use of some common facilities such as toilers and lockers by groups of tenants, providing a cost savings. c. Size of typical tenant firm would be 20 to 50 employees, resulting in need for 300 to 500 square feet per employee per work shift. 1-24 EXHIBIT E15 (continued) . 4. Provision for central facilities such as lobby- reception area, cafeteria, medical facilities, storage areas, to permit cost economies and internal building efficiency. 5. Provision for common support facilities such as secretarial and duplicating service, truck maintenance and repair, to make these accessible to firms which could not afford them on an individual basis. 6. Tenant safety considerations a. Controlled building entrances b. Central building security D. MATERIAL HANDLING REQUIREMENTS 1 . Rail spur immediately adjacent to building 2. Dock area for loading and unloading a. Able to handle tractor - trailer units up to 65 feet long b. Should be 15 feet wide c. Should be covered d. Easily accessible to freight elevators 3. Use of elevators for vertical material handling and fork lift trucks for horizontal movement 4. Central building management service to operate all facets of material handling system, including scheduling of truck and rail docking, loading, unloading, and internal circulation. 1-25 CHAPTER 1 STUDY METHODS AND FINDINGS SELECTION OF S 1TES Findings Related to Objective 5 The selection of potential sites was carried out concurrently with the selection of industries, and generally was executed in these stages: Identification of areas within the City which have potential for meeting the industrial development requirements and overall objectives of this project. Identification of areas within the City which represent several types of industrial environments in order to evaluate the proposed building concept. Identification, within those significant areas, of specified sites which reflect the requirements of the industries and with significant development potential. Information was mapped and evaluated and served as the basis for selecting three areas for detailed analysis . (See Appendix 1, Exhibits E22 through E24 .) These are identified as Gladstone, Downtown and Lakeside. (See Exhibit E16.) The three areas were studied in detail for the purpose of selecting a site which would meet the requirements of this project. The analysis was carried out in the following manner: Field survey was made of each area, by which data was gathered as to the apparent exterior building conditions, existing land use, extent of land and building vacancy, rail facilities, public transit. Aerial photographs were used to verify the field survey data. Ownership data was assembled from county records, with particular regard to ownership patterns and public ownership. All data was recorded on a survey form specially prepared for use in this study. (See Appendix 1, Exhibit E25.) Relevant data was recorded on base maps for each area. These maps are reproduced in this chapter as Exhibits El 9, E20, E28, E29, E36 and E37, and in Appendix 1 as Exhibits E26 through E31. 1-26 CHAPTER 1 STUDY METHODS AND FINDINGS Based on the analysis of each industry and the evaluation of the three geographical study areas, it was determined that potential does exist for the development of a particular type of building within each area: A printing and graphic arts building in the Downtown area. A food processing and distribution building in the Gladstone area. A machinery and fabricated metals manufacturing building in the Lakeside area. Detailed study of possible sites within each area resulted in the selection of a primary site for development in each of the three areas. In order to test the building program and the holding capacity of these sites, preliminary building concept studies were made. These matched the program requirements of each particular industry with the site believed to be appropriately located for that industry. The data for each site is summarized in the set of exhibits which follows: Downtown Site - Exhibits El 7 through E25 Gladstone Site - Exhibits E26 through E33 Lakeside Site - Exhibits. E34 through E41 1-27 CO - Q S ' *p a: UJ l— U c 0) CD c _0 a. o ir "D * D Q. O * 3 O E _ o (J o c D 4) CD C _C "3: O -D c o D o > o '■c P *. Q. C o C "O ■£ -C _i 3 E o p 1_ Q. O i_ Q. CL O U a; > o cd 0) c _ o D cr u o C c .£ i> *: 1— c o c o p to z o V) o _c o z u 0) i _c p> c a> u c o u to o E C CD c o E > o x c o c o a. x C o o 8. E > o cd c Q. J> O O i_ Q. D C O o Q C o T3 c c o l\ u o fN. a) 8 p _L c o u c o J- C < ~o c a> a; c o Q_ to C o 1— o O Q. to E c c o R o CS o E a> c o to 8 o to .2 o 'a. 2 -a • 8 '>- o > .8 t/> __L '^£ p a -o i— o ^C t_ 0) c o to U c u. Z> 3? CO -a 15 . D E o u t-l- to "D _D U c o to to 4) C 00 1 5 o o 8 o o w o C o 0) u c p j5 p D T3 to 0) to to D -Q p 4- £ c V) 1^ 'q. o Q. a "5 1_ O) -o i_ .O) "U 1— o _o L. 0) > o **- 8 8 z p c 0) u '0 c -o p Q. O c > u. o t4_ C p > o D E to O CD to O _o o _0 0) to 0) to D p L- c o o to p c o E o u c p to to o> o to C D -Q 4— 0) ft) D _x "a p to D c c 0) u c o E (0 > c D U O u o > 0) to _x u ~a ■ CT) c V u o CSI to C — C -o p p _0 u to c t^2 c o to > 6 s - a Q. o o ^ o u 0) E to to u ID 0) c p o p o Q. t2 0) c to to o (J u < to N 3 Q. to c o u o E o o o to 0) 0) J *■ ^^ 73 1 < N u t>o 1— o o ^ OO O o on o I _<"g)f.-1 J * r -. • V , ' ' . i» 'ftr% * <' S . ' • . 1 ! v ' ■ -1 * v ' * '-„••' ^ > . ■*,' r v % i 11 ■ > ■ . t -. . / , , $ ■ C ft \v, . J ..-■•■ - '- , \\ fie* I * ' , < . ; - > II - ■ • ■■ 1 Kui*« . V \ 1 V I > _l < z < LU H-; I/O 00 CQ X X i 1 1 i. r A ti; u I f . . - i :> ■■ f^J ., ... I «AH«OAOO>VNt«SHIP EXHIBIT E19 LAND OWNERSHIP AREA 'A* - DOWNTOWN 1-31 6-i 4C\ 2 VACaNI EXHIBIT E20 VACANT LAND & BUILDINGS A.y .ii-iiv V/.CANHU1101NC AREA 'A' - DOWNTOWN 1-32 6 : As- EXHIBIT E21 DOWNTOWN SITE BUILDING CONCEPT STUDY EXISTING SITE CHARACTERISTICS AND ANALYSIS: Access to site available from three sides off St. Clair Avenue, West 9th Street and Superior Avenue. The site slopes from east to west in several steps, dropping some 80 feet from West 9th Street to the Cuyahoga River. Railroad tracks go through the site from north to south. Soil conditions set the maximum building height at 6 to 8 stories. USE: Printing/graphic arts and supporting services including retail and wholesale. DESIGN CONCEPT: The basic design concept identified several major elements including a series of levels descending from the West 9th Street elevation to the river for parking and for heavy production. The lowest two levels (levels 4 and 5) with rail and river access could be utilized for warehousing and paper wholesaling. Rising above the West 9th Street elevation are several smaller floors for light production and service uses. The West 9th Street elevation could be used for employee service and retail operations, and a landscaped deck. Internal truck ramps and auto ramps for each of the levels could minimize the need for vertical transportation. Upper floors served with elevators to the West 9th Street level. PARKING: Parking decks are provided at both the north and south ends of the project, with entrances located at West 9th (with possible entries at St. Clair) on the north, and West 11th on the south. Combined car and truck entry and exit drives' are on West 9th Street. Two parking levels correspond to one tenant level, thereby providing convenient horizontal pedestrian flow to and from the tenant space. RAIL: Existing rail lines are located on the west side of the site, one level above the Cuyahoga River. The rail siding and docking facilities could, therefore, be provided at the two lowest levels, and ramp connections could be provided to the various tenant levels. Fork lift trucks would be used to distribute materials throughout the building complex via these interior ramps. VERTICAL CIRCULATION: Passenger elevators would be required for vertical movement between all levels. For the five levels below West 9th Street grade, a series of ramps would provide material handling and truck movements. Material handling elevators would be required for distribution from level 1, at West 9th Street grade to the upper floors. 1-33 EXHIBIT E22 BUILDING CONCEPT SUMMARY DOWNTOWN SITE LAND AREA AMOUNT OF LAND REQUIRED Streets Other Total 10 1/2 75,000 382,000 acres square feet square feet 457,000 square feet DEMOLITION REQUIRED Number of Buildings to be Demolished 21 NUMBER OF ENTRY DRIVES Auto Truck Combined Total RAIL SERVICE Number of Sidings Car Capacity TRUCK SERVICE Truck Capacity Area Allocated Number Floors with Direct Truck Service Area Per Level PARKING Capacity Area Allocated Number of Levels Area Per Level BUILDING COVERAGE Area Per Cent of Land Area varies varies approxima tely 30 89,000 3 1,000 per floor square feet varies 360,000 5 and 3 square feet upper lower 50,000 36,000 square feet square feet 354,000 77 square feet per cent RENTAL SPACE Number of Floors Area Per Floor Total Area variable square footage 1,269,000 square feet 1-34 DfteOIT - SumiOt BPIDGf *~ CO Z S u z o u o z a 5 co CO I < u X o. < o o z Q- z ! z o Q i :< SS> 02- DSHOH - SUPlHOt B=ID&[ CN "* w o Z | 1— CO Q X X LU u z o u o z 5 CO < x O- < Of o o z a: Q- z o z o Q I :< S3 n i }ti^vmt\i||j||||ti||||j||j| h i r —»-•-*■?. ; i ?oay.jpiiiij mi V *"*y* ~— — -t quTfi'vp o z Is cc Q X X 3 to t— or < y x a. < on O O z z o »— z o Q I :< UJ IV CO I o D 0) • .p "a 4> CD D o o a> _Q O o E ~o E _Q D O _o — i •"^ o <4- 3 o ' o "5 > 4) O _3 D 13 C C »«• 2 > lA "O JD <4- 0) c 4) E 4> D 4) > O E o o 4) 4> ■4— 4) 3 o "O > O Q- Q. . k. o jO J ; i Q. 4— p 22 E 3 o o E o 3 D O O 0) < > _p _D_ 4) k- a. o o I) o Q- o D c 4) o i_ _C 14— c v> c _^: £ j£ "O o o O c o •»— • — c 0) c E 4> Q. o o (J c o k- o a o O "5 D O 4) E o o _s o _o C "D o o 0) 4) p 4- o Q. o 4> a. a. 4> 1— C > o 4) C c o O O M- o 3 _c ^ "O UJ to • -D 3 o -a k. 0) o i 3 o o C o l_ o 4) UJ z o 3 E D C o (A c 4) 3 o 1— 1A c _c u O 1— to , Q o< • c ^o c c o a «- O •4- O 4> _c 3 o m 0) O c c 4> 3 P — to x — 3 o k. o -o a> o 8. X 4> P 4W C 4) U UJ H- -o 4) 4) • — o_ to UJ t— u < < X u c D C -o V D O _o e 1— 'o w a. a) 3 (A 3 T3. C 3 3 M- o _4) _Q _D O > E E p 4) _Q _o O > O "c 4> O o_ O V) •4* 4) 4) k. v> 8 1/1 c E "q. S o 4* ^3 O « 4> E J 8 p V) o 3 O 8 k. D m 4> c tZI 5 D o ? 4> "D 14- 5 -5 3 C '' 4> w O O C _o 4) > 4> o d 4— E o P 8 k> o O c P •— O O k. J8 O 4- _c "5 v. P c U ~5 o o 4> 'o t- Q. u -a > 4— 3 J2 o _o -Q O c O O u- M— o c o o "c o c "5 c *i 5 i- "D O o u_ o o c a> c ■D O p Q. 3 o o o U u- O u _£> 4) C o i C3) C IE p 'o E E o P O o c o c o ft 4) c V) 3 "5 c p O _4> 4> v> 44- o 4) C o c 22 3 _Q _o "5 8 0) U JQ O -) t) c _o ■o o o o O o 1 o o c 4> _Q c w» *; ** E *x o k. o o o o o _J o (/) 4) o o < V «/> C °o c o U en 8 o o u < o 4> 4— 4) 4) c UJ w o_ o -5 4) U O < O v> O < -o p o (J o 4> o u. 3 -o C o o '5 to *x o a. 00 CO I f, I " t i a r" ; fA .**~z * *M eg J ■ •: 1 v ,<,: ,.***- CO 1 £ • < 4 z i < I to I*. 1< '"•, n%r r --j i i *£* i*r3 cc pwe»ax- £i i • , -t ' j 3 x I X •' *< A •£ w r " -V ' *•* . *» •* '- • ii^ir- *i . ' v~> ■','■ ■•V ■ ' ' '«. - - I 'V- • ii f . ■ i i ■ ■ " * t i *1 • '.' I * | ■ ■■" *>'■„ ■■ ■■ '■■ ■ ->■■■ 1 »- * ■ 1 z m o ■'.' | 3 1 * > i CO . "' / 1 C£ h~ i CO 'J Q 1 °<3 r 1 O Z „;% to to ••^i I y ,« Ml JU. - f— H C | ' : ~J w ' -■ ■■".■mJmm&»- as* ' v '"' ' 1 1 ; b ".-rift t V' r s I I j I p«* 1 r-i lis f--r { , r* r 4 ^ I ' .t £. . J 1 /," ' 33 ^ "y o ': ^ Sf i O 1 o UJ fr z ' o : ? 1 = UJ l— to ri 4 ■.. < ' v.- EXHIBIT E30 GLADSTONE SITE BUILDING CONCEPT STUDY SITE CHARACTERISTICS AND ANALYSIS: The site Is essentially flat and rectangular in shape. Major access for vehicular and pedestrian traffic is from Woodland Avenue. Rail spurs are available for extension into the site from the south. Preliminary soil analysis indicates that maximum building height would be about 10 stories. These studies indicated that some modification of the urban renewal disposition and a new street and rail plan would be required to develop adequate land use modules for off-street truck holding and maneuvering areas, and appropriate building and service relationships. The site is located only several blocks from the southern portion of the proposed redevelopment under the Model Cities program. USE: Food processing, storage, distribution and supporting services including retail and wholesale. DESIGN CONCEPT: The basic concept of the design was to permit the efficient movement of goods between rail and truck as required by food operation as well as the flow of goods from both rail and truck to production or storage areas. Central cooling equipment could be used to serve tenant areas as well as a. central cold storage warehouse facility which may be included in the building. Other support facilities such as a restaurant or branch bank could be included to serve the entire facility. PARKING: Below grade parking would be located under the truck loading areas. The parking entrance would be on Woodland Avenue and exit on the new street east of the facility, as proposed in the Gladstone Urban Renewal Plan. RAIL: Rail spurs located in the center of the site would divide the building into two equal units. The location of the rail spur is revised somewhat from the location shown on the Gladstone Urban Renewal Plan. Part of the area adjacent to the rail docking facilities could be assigned to warehouse use and for transfer to trucks. TRUCK: Continuous truck docking space would be provided along the entire west and east side of building at grade. Sufficient holding and maneuvering areas would be located on site. The second floor level would also be used as a truck loading area. This would handle small trucks, would provide a second dock area for shipping and receiving. This level would be accessible by a ramp on the Woodland Avenue side of the building. 1-42 EXHIBIT E30 (cont'd.) GLADSTONE SITE BUILDING CONCEPT STUDY VERTICAL CIRCULATION: Vertical circulation facilities serving tenant space and dock areas could be developed on each side of the rail spurs. Material handling facilities could include freight elevators, continuous drag chains and similar devices to provide direct flow between the dock area and tenant storage space. Passenger elevators would serve the tenant space and extend into the parking area below. WASTE REMOVAL: This is a major problem in any food facility. Therefore, a conveyor system at the base of all loading docks is proposed to carry waste to a central waste removal facility. Similar means could be installed to carry waste from upper levels within the vertical circulation elements. 1-43 EXHIBIT E31 BUILDING CONCEPT SUMMARY GLADSTONE SITE LAND AREA 9 1/2 acres AMOUNT OF LAND REQUIRED Streets Urban Renewal Land Total 39,000 350,000 square feet square feet 389,000 square feet NUMBER OF ENTRY DRIVES Auto Truck Total RAIL SERVICE Number of Sidings Car Capacity Area Allocated for Rail Service 2 14 20,000 square feet TRUCK SERVICE Truck Capacity Area Allocated Number Floors with Direct Truck Service Area Per Level approximately Upper Lower 100 250,000 2 38,900 210,400 square feet square feet square feet PARKING Capacity Area Allocated Number of Levels Area Per Level Upper Lower 1,315 526,000 1 and 2 368,000 158,000 square feet square feet square .feet BUILDING COVERAGE Area Per Cent of Land Area 221,000 50 square feet per cent RENTAL SPACE Number of Floors Area Per Floor approximately 3 221,000 square feet Total Area 624,100 square feet 1-44 <* ! MIIIIMIIIIIIIIIIlflTT^) «.>say i m 11 1 i n CM CO O Z I on a u z o u O z o 5 CO CO 5E x z o CO a: t— in Q o z «/> m U-l U O a. O O z o I— o < in i 1 i CO CM CO CO .. UJ O z % - 2s Q X X UJ ►- Q. UJ U z o u „ o > O > z z o u o 3 3 u CO z o I— 'Z3 co on t— to o O Z CO to UJ U o a. Q O o z o ►— to a < o I 1 CO UJ O to LU V CO LU 5 ± i .o o ~~ T VI — o £ — E ■u V o l_ -Q .2 C o o c o o E v I s & _1 'e C > 0) lO O "D w- c a> -a o o o u c c o o o _i N • — _D o CD C JD > T3 jU &_ GJ (U ■*- vi VI o ^_ u to > o X c o TO 4) «*_ o E a. o TJ c o £ CD c -Q D C O -a c i J= D E 0) a. i> o o a. < o a> E •o 9) O tj i— ■D C o t_ o c O _¥ 3 o ■D C o X o i Oi *. o a. x •^ •= £ f c2 8. « c o iz u o E o s. E C -C X — TJ iC O .5 £ * c CD 'e K I 8 0) i. u Q. « c 5 V) o VI _o > ^ 8 o CL u CD c c •*- c 12 VI %n Im vt "" 00 ■u O o c _o > U '-5 CD c i VI C 1 o '5 E o "5 c u- 4- ■D O 3 C c 0) «4- 2> *E IE 0) ^ u a u c c J VI '5 «/) c CD D o O VI _x _c o 'i i o — c o o 4) u D O o E 1 o Q. VI VI C VI c o o 1) ^ "■■ C 2 *J v> .22 L. VI 3 c 9) u N IE t? c o %n VI a> s D a. VI ■5 c o u T3 C < o 5 o u u < 3 3 O. Of *o to f i '• ■ [ V^*. Eg | mm 'WffiSSj,,,. I - >» . * fl '" ^ to go > < z < in CO LU - • ■• • , j f if I * i i: 4 * '■ ? / ,.,,- >-......-' SI * >>'."- * J .*£; is^fciMiiilhWdM. X X o z < z < UJ Q LU t— < U CO < U_ > u 9 LU 5 i o LU I/O irn;r-T m Ur EXHIBIT E38 LAKESIDE SITE BUILDING CONCEPT STUDY SITE CHARACTERISTICS AND ANALYSIS: The site has a "Z" shape and is essentially flat except for a steep slope down to South Marginal Road, along the northern edge of the site. The elevation change is about 40 feet. Railroad tracks run along the southern edge of the site; a spur runs through the middle of the site. Major access is provided by Marquette Street along the eastern edge of the site and along South Marginal Road to the north. Soil conditions indicate the maximum building height would be about 6 to 8 stories. USE: Machinery and fabricated metal products and related industries, and services including retail, wholesale and warehouse uses . DESIGN CONCEPT: The building concept included three basic building elements: (1) a general manufacturing element parallel and above the Marginal Road; (2) a heavy manufacturing element immediately north of the rail spurs and connected to the general manufacturing element by a series of ramps; and (3) a parking deck south of the rail spurs connected to the other building elements by use of air rights over the rail tracks. The lower floor of all three elements would be for truck and rail shipping and receiving and warehouse space. Retail and service uses might be included on the first or ground level to serve building tenants and the surrounding area. PARKING: Three levels of parking would be provided in the south element of the building complex. This location would be accessible from Marquette Street, which in turn connects to the Marginal Road and the Shoreway. Visitor parking would be below the general production building with direct access from the Marginal Road. RAIL: The existing rail siding would remain and provide rail docking access to tenant warehouse space. Part of this space, as well as the building area located over the rail siding, could be assigned to production space for tenants who may require direct access to the rail docking area. TRUCK SERVICE: Continuous truck docking areas would be provided between the general production and heavy manufacturing elements to serve both. This area is accessible from Marquette Street. Direct movement of goods between rail and truck would be possible on the south side of the truck area. VERTICAL CIRCULATION: Vertical circulation cores located within the central areas of each of the major elements of the building provide access from tenant space to warehouse areas and rail-truck docks. The detailed size and arrangement of these cores would depend upon final tenant requirements. 1-51 EXHIBIT E39 BUILDING CONCEPT SUMMARY LAKESIDE SITE LAND AREA 10 AMOUNT OF LAND REQUIRED Streets (air rights) Other Total DEMOLITION REQUIRED Number of Buildings to be Demolished Total Size NUMBER OF ENTRY DRIVES Auto Truck Total RAIL SERVICE Number of Sidings Car Capacity TRUCK SERVICE Truck Capacity Area Allocated Number Floors with Direct Truck Service Area Per Level PARKING (EMPLOYEE) Capacity Area Allocated Number of Levels Area Per Level • • BUILDING COVERAGE Area Per Cent of Land Area RENTAL SPACE Number of Floors Area Per Floor Total Area acres 46,400 389,200 square feet square feet 435,600 square feet 1 10,400 square feet 6 2 2 12 100 119,600 1 115,000 square feet square feet 900 396,000 4 .99,000 square feet square feet 342,400 78 square feet per cent 3-4 243,400 square feet 958,000 square feet 1-52 MtB^jem si. I "UPr. s Sa c . x 1 y 12 *~ o o m z it ° E X U z o u o z Q _J 3 CO O z a; t— U < 3 Z < < u CO < >- at. UJ Z X u < o UJ < CO m i U UJ O z is z o u o" z o CO O z ►- u. 3 Z < 2 o UJ o eo < UJ z X 3. o UJ < I y UJ to i CHAPTER 1 STUDY METHODS AND FINDINGS EVALUATION OF DEVELOPER POTENTIAL Findings Related to Objective 6 A preliminary analysis of methods of ownership and management was made in order to set the guidelines for the financial analysis and for discussion with developers, tenant subjects during the market test. SOURCES OF FINANCING Several possible alternatives for ownership and financing have been defined. Tenant Stockholder Corporation: Under this system, a group of tenants of the building could form a separate corporation to develop the project. They could provide the required funds by directly purchasing the land and making other necessary expenditures; by purchasing stock; by making loans; or by any combination of these methods. To the extent that this would require substantial capital funds, it did not represent a realistic possibility, since many of the potential tenants considered have limited financial resources. However, if the equity requirement is small or if a large tenant becomes involved, this type of a tenant stockholder corporation could be a possibility. Cleveland industry: Funds could be borrowed by a tenant stockholder corporation from Cleveland industry through long-term debentures. These presumably would have to be sold as a civic undertaking, but would have to be justified as an economic matter. Such an offering would be subject to the requirements of the Securities Exchange Commission (S .E .C). Private investors: An offering of long-term debt, convertable long-term debt, or common stock could be made to private investors in the Cleveland area by a tenant stockholder corporation. This method would have the disadvantage that such a group would be unwilling to advance funds without, at least, the option to acquire a substantial equity interest. Or, a private developer or group of private investors might take on some portion of the development and provide its own equity funds, without the involvement of a tenant stockholder group. There appears to be a question as to whether such an offering would attract sufficient investor interest. Such an offering would also be subject to S . E.C. requirements and restrictions. 1-55 CHAPTER 1 . STUDY METHODS AND FINDINGS Public offering: A public offering of stock or debentures could be made in the Cleveland area, on a civic basis. However, the underwriting and registration cost might run 15%; and there would be a serious risk of bad publicity if the persons purchasing at a public sale were later to suffer a financial loss. This type of offering would be faced with the same problems of marketability and S.E.C. control. Guaranteed bank borrowing: Under the foregoing alternatives, the funds could also be provided by a bank or other financial institution and guaranteed by one or more of the groups mentioned previously. Civic improvement aspects of this project might have appeal to local banking interests. Howevei , there would be a problem of the banks providing long-term money (up to 20 years) and sufficient guarantees might be difficult to obtain. City of Cleveland: The City's ability to directly finance this type of project is limited by its financial resources, its prior commitments and public policy. Under the Federal Urban Renewal Law, it is proper for a local public agency to lease land in urban renewal areas rather than sell it. If otherwise feasible, this could eliminate the need to acquire the land; hov/ever, Cleveland has never done this. Since it is doubtful that the Gladstone urban renewal plan contemplates such a lease, the City might have to tie up some of its urban renewal funds allocated to other projects in order to do this. Other areas of participation by the City might be in providing the off-site improvements. County revenue bonds: The Greater Cleveland Growth Corporation is the designated Community Improvement Corporation for both the City and Cuyahoga County. Such a corporation may acquire property, and construct and equip buildings for sale or lease. It can also make loans through the issuance of County revenue bonds. Interest paid on such bonds is exempt from federal income tax, thus reducing the interest rate on borrowing. There is a precedent for this, since the County did issue such bonds for the construction of a private industrial plant, which local banks purchased. However, there is no commitment from the County Commissioner to issue such bonds and no evidence from local banks that such bonds would be an attractive investment for them. 1-56 CHAPTER 1 STUDY METHODS AND FINDINGS DEVELOPMENT ALTERNATIVES The proposed building concept would be, in essence, a multi-story industrial park. As a minimum, building management would be required to take care of maintenance, leasing and general management. The proposed central and common facilities would also fall under the supervision of the central building management. The material handling system, as conceived for Prototype Building One would involve some form of central management, either by a firm which specializes in material handling management or by the building's central management service. The overall building management could be provided by the building owners directly or by the use of a professional building management service. A preliminary assumption was to treat this as a private development, with ownership assumed to be in one person or a small private group. Within this context, investigation could be made of construction cost, methods of financing and current industrial development trend in order to determine whether a multi-level industrial development would be profitable for a private developer. Several private developers and representatives of railroads were contacted with respect-to this project in order to determine the potential for the development of a multi-level building on the private market and to get their reaction to the project. Their reactions can be summarized as follows: Some potential for utilization of the proposed building appears to exist among industries which require a central city location. - i There are difficulties involved in a central city industrial development, because of complex procedures required for rezoning, parking expansion, and urban renewal", as compared to the relative cost of similar procedures in suburbs. Active participation by the City in supporting this project would encourage further industrial development in the City. Tenant incompatability presents a potential problem, unless the building is planned for related industries which already tend to group. Many developers and railroads have extensive suburban holdings which they are promoting. Further, there is concern over the deterioration of the urban environment. Thus, they are hesitant to actively lead in supporting or developing this project. 1-57 CHAPTER 1 CONCLUSIONS On completion of the preliminory research and programming, it was concluded that the study should proceed to the next stage--in depth building programming and design. It was generally concluded that the direct impact on the City of Cleveland caused by the construction of one new industrial building would, of course, be limited. However, the long-term effect of the prototype design and the concept of centrally located multi-story facilities could be signifi- cant for Cleveland and serve as a model for similar developments in other cities. Thus, there appeared to be a basis for detailed analysis of the building's feasibility. The conclusions which formed the basis for this decision are summarized below: EVALUATION OF EMPLOYMENT FACTORS Conclusion to Objective 1 The basic impact of a new multi-level facility is viewed as being defensive, to retain existing employment opportunities in Cleveland. Manufacturing employment is a significant income producer in the central city, but is decreasing more rapidly than other types of employment. This trend is more pronounced in the selected neighborhoods of Cleveland. Since employment in general, and manufacturing employment in particular, is decreasing at a faster rate than the population is decreasing, part of the reason for job loss appears to be due to technological change, and part to a move out of industrial employers. In order to maintain its industrial flexibility, Cleveland must develop suitable space for small and medium sized industrial firms. There is a need for industrial space in the inner city among firms which require a central location. The proposed project could provide a valuable source for the relocation of displaced firms, provided the rental rate is within their reach. EVALUATION OF COMMUNITY SUPPORT Conclusion to Objective 2 While there is general recognition of the City's industrial problems, the degree of importance given this problem varies with each sector of the business community. The nature and extent of an individual's business interests appears to affect his outlook toward Cleveland's industrial development. 1-58 CHAPTER 1 CONCLUSIONS Support for a multi-level industrial building from representative community leaders did exist but was of a tentative nature. They were interested in the feasibility study and its results. However, their backing for actual execution would depend upon: The economic feasibility of the project. The existence of backing by the City government. The existence and execution of an overall plan to improve the urban environment of Cleveland, making it more attractive to industries. The priority of this project must be established and coordinate with similar projects. SELECTION OF INDUSTRIES Conclusion to Objective 3 There exists a demand and need for industrial space within the central area of Cleveland. Specifically, this report has identified such a need in the foods, printing, fabricated metals, and machinery industries as being representative of Cleveland's present situation. Industrial operations in a multi-tenant building should be related in terms of locational needs and building requirements in order to realize maximum cost savings and building efficiencies from high density multi-tenant solutions. Thus, it appears that the best potential exists in developing a building to serve a particular type of industry rather than a broad range of industries. Of the four industries which provide the greatest potential for continued utilization of inner city industrial facilities, all exhibit relatively strong interdependence and location patterns related to markets, suppliers or particular service requirements. The application of archi- tectural program, site, building and planning requirements indicated that each site has potential for development for one of the industries. The three sites share certain common advantages; each is suited for a particular industrial group and offers potential for develop- ment. A comparative analysis of the Gladstone, Downtown and Lakeside srtes is made in Exhibit E-42. PRELIMINARY BUILDING PROGRAM Conclusion to Objective 4 The general programming and planning criteria appeared to present standards which can be 1-59 CHAPTER 1 CONCLUSIONS achieved in a multi-level, multi-tenant building. Detailed program data for food-tndustry tenants remained to be developed in the prototype building design phase of this study. In addition, other areas were identified which would require further study. Site development factors: Zoning restrictions and the urban renewal plan and standards for Gladstone as to parking building height, setbacks and street locations appear to require modification. Building design factors: a. Building code requirements, in some cases, are subject to reevaluation because of improved construction methods and industrial processes. This includes fire wall requirements, certain material specifications, and sprinkler requirements. b. The lack of contemporary research into vertical material handling and multi- level building design and technology presents limitations. c. More detailed soil analysis is necessary to establish soil bearing limitations. Financing and operational factors: Detailed construction cost data is needed to determine rental rate and development costs. SELECTION OF SITES Conclusion to Objective 5 While a disproportionate weighing of any one factor could alter the complexion of the analysis, the Gladstone site appeared to offer the widest range of potential assets for the successful development of the proposed building. (See Exhibit E-42) In keeping with the overall objectives of this project, the Gladstone site has been recommended for use as the site for the prototype building study, with the food industry as the tenant subject, based on these key factors: Land is immediately available from one owner; there is flexibility for expansion of the site area through urban renewal. Land cost is most favorable among the three sites, at $2.00 per square foot. There is opportunity to give impetus to an existing urban renewal project. The site is favorably located as to public transit providing easy access for inner city residents; it is also within walking distance of a large labor market. 1-60 CHAPTER 1 CONCLUSIONS The site is in close proximoty to the Model Cities area and to Cleveland's selected neighborhoods, and would tie in with existing economic redevelopment programs. The extent of functional obsolescence within many food industry facilities indicates a need for new space . The food industry exhibits more of an ability to capitalize upon common facilities such as cold storage and government inspection, and to utilize related services such as packaging and distribution. Potential for growth of the food industry seems possible. There is an opportunity to tie the proposed building into the existing complex, of facilities in and around the Northern Ohio Food Terminal . Soil conditions were most advantageous of the three sites studied. Certain limitations to this site and industry have also been discerned, within the context of this study: The area has an existing image of vandalism and blight; much of the urban renewal area has been in a partially cleared state over a period of years. A somewhat limited market exists within certain segments of the food industry. Certain of the firms which appear most likely to make use of the new facility are somewhat specialized in character. Scrap metal yards now exist in the area and may adversely affect the potential for quality development. Such uses are, however, difficult to relocate. EVALUATION OF DEVELOPER POTENTIAL Conclusion to Objective 6 Several possibilities for private development appeared to exist, including a tenant corporation, a private individual or group. Private developer interest exists but is of a tentative nature, since developers presently have suburban interests and are not sure of the marketability of a multi-level facility. There appeared to be sufficient developer interest to justify pursuing the line of investigating the feasibility of this project as a privately financed operation. Much would depend on the financial analysis of the building to be designed in the next phase of work, as well as the market test of the building. (See Chapter 3 and Appendix 3) 1-61 EXHIBIT E-42 COMPARATIVE SITE EVALUATION SITE A SITE B SITE C Downtown Gladstone Lakeside Printing Food Mach. -Metals SITE OBJECTIVES Land Availability Status Area for Expansion Land Cost Soil Factors Expressway Access Rail Access Bus Access Rapid Transit Access "Walking Distance" Access Support to Current Renewal Effort Potential Tie to "Model Cities" Image of Site for Prototype INDUSTRIAL OBJECTIVES Industrial Need Need for Common Facilities Existing Complex of Related Activities Growth Potential Preliminary Tenant Interest Potential Tenant Market Potential Impact on Community x x x x x x x x Indicates objective is substantially fulfilled Indicates objective may be only partially fulfilled 1-62 CHAPTER 2 DESIGN DEVELOPMENT PROTOTYPE BUILDING ONE - FOOD INDUSTRY A. OBJECTIVES B. STUDY METHODS AND FINDINGS 1. IDENTIFICATION OF TENANTS 2. SITE ANALYSIS AND PLAN 3. SOIL ANALYSIS 4. STRUCTURAL SYSTEM ANALYSIS 5. MECHANICAL AND ELECTRICAL SYSTEMS ANALYSIS 6. MATERIAL HANDLING SYSTEM ANALYSIS 7. BUILDING DESIGN 8. CONSTRUCTION COST ANALYSIS C. CONCLUSIONS CHAPTER 1 CONCLUSIONS achieved in a multi-level, multi-tenant building. Detailed program data for food-industry tenants remained to be developed in the prototype building design phase of this study. In addition, other areas were identified which would require further study. Site development factors: Zoning restrictions and the urban renewal plan and standards for Gladstone as to parking building height, setbacks and street locations appear to require modification. Building design factors: a. Building code requirements, in some cases, are subject to reevaluation because of improved construction methods and industrial processes. This includes fire wall requirements, certain material specifications, and sprinkler requirements. b. The lack of contemporary research into vertical material handling and multi- level building design and technology presents limitations. c. More detailed soil analysis is necessary to establish soil bearing limitations. Financing and operational factors: Detailed construction cost data is needed to determine rental rate and development costs. SELECTION OF SITES Conclusion to Objective 5 While a disproportionate weighing of any one factor could alter the complexion of the analysis, the Gladstone site appeared to offer the widest range of potential assets for the successful development of the proposed building. (See Exhibit E-42) In keeping with the overall objectives of this project, the Gladstone site has been recommended for use as the site for the prototype building study, with the food industry as the tenant subject, based on these key factors: Land is immediately available from one owner; there is flexibility for expansion of the site area through urban renewal. Land cost is most favorable among the three sites, at $2.00 per square foot. There is opportunity to give impetus to an existing urban renewal project. The site is favorably located as to public transit providing easy access for inner city residents; it is also within walking distance of a large labor market. 1-60 CHAPTER 1 CONCLUSIONS The site is in close proximoty to the Model Cities area and to Cleveland's selected neighborhoods, and would tie in with existing economic redevelopment programs. The extent of functional obsolescence within many food industry facilities indicates a need for new space. The food industry exhibits more of an ability to capitalize upon common facilities such as cold storage and government inspection, and to utilize related services such as packaging and distribution. Potential for growth of the food industry seems possible. There is an opportunity to tie the proposed building into the existing complex, of facilities in and around the Northern Ohio Food Terminal. Soil conditions were most advantageous of the three sites studied. Certain limitations to this site and industry have also been discerned, within the context of this study: The area has an existing image of vandalism and blight; much of the urban renewal area has been in a partially cleared state over a period of years. A somewhat limited market exists within certain segments of the food industry. Certain of the firms which appear most likely to make use of the new facility are somewhat specialized in character. Scrap metal yards now exist in the area and may adversely affect the potential for quality development. Such uses are, however, difficult to relocate. EVALUATION OF DEVELOPER POTENTIAL Conclusion to Objective 6 Several possibilities for private development appeared to exist, including a tenant corporation, a private individual or group. Private developer interest exists but is of a tentative nature, since developers presently have suburban interests and are not sure of the marketability of a multi-level facility. There appeared to be sufficient developer interest to justify pursuing the line of investigating the feasibility of this project as a privately financed operation. Much would depend on the financial analysis of the building to be designed in the next phase of work, as well as the market test of the building. (See Chapter 3 and Appendix 3) 1-61 EXHIBIT E-42 COMPARATIVE SITE EVALUATION SITE A SITE B SITE C Downtown Gladstone Lakeside Printing Food Mach. -Metals SITE OBJECTIVES Land Availability Status Area for Expansion Land Cost Soil Factors Expressway Access Rail Access Bus Access Rapid Transit Access "Walking Distance" Access Support to Current Renewal Effort Potential Tie to "Model Cities" Image of Site for Prototype INDUSTRIAL OBJECTIVES Industrial Need Need for Common Facilities Existing Complex of Related Activities Growth Potential Preliminary Tenant Interest Potential Tenant Market Potential Impact on Community x Indicates objective is substantially fulfilled Indicates objective may be only partially fulfilled 1-62 CHAPTER 2 DESIGN DEVELOPMENT PROTOTYPE BUILDING ONE - FOOD INDUSTRY A. OBJECTIVES B. STUDY METHODS AND FINDINGS IDENTIFICATION OF TENANTS SITE ANALYSIS AND PLAN SOIL ANALYSIS STRUCTURAL SYSTEM ANALYSIS MECHANICAL AND ELECTRICAL SYSTEMS ANALYSIS MATERIAL HANDLING SYSTEM ANALYSIS BUILDING DESIGN CONSTRUCTION COST ANALYSIS CONCLUSIONS CHAPTER 2 — OBJECTIVES Based on the findings in the preliminary research and program phase of this study (see Chapter 1 and Appendix 1), the determination was made to continue this study by developing detailed design drawings and cost data. The primary objective was to design a multi-level, multi-tenant industrial building for food industry tenants on the selected site in Gladstone. From this, certain secondary objectives evolved which are as follows: 1 . To define the food industry tenant subjects in order to develop a more precise building program. 2. To develop a plan for the site which includes land use, circulation, linkage with the surrounding area, land acquisition and thoroughfare planning. 3. To develop a central system of internal material handling which would meet the needs of the tenants, with operation by a central management service. 4. To ascertain the soil characteristics as a basis for determining the practical limitations of the site. 5. To develop mechanical and electrical systems which will efficiently meet building and tenant needs. 6. To determine the structural system which is most economical and adaptable to multi-level construction. 7. To design a multi-level industrial building which meets requirements of the tenants, and the criteria set forth in the building program. 8. To develop the construction costs for this building as a basis for financial analysis. 2-1 CHAPTER 2 ST UDY METHODS AND FINDINGS The methods of approach used in the design of Prototype One involved work by specialized consultants in order to complete the building program and to define building systems best suited for a mulfi- level structure. This represented a continuation of the research done in the preliminary phase of the project. The set of criteria for the building and the site were based on the needs of the tenant, the functions to be performed in the building, the capacity of the site and code requirements. The sources of data related to each objective can be summarized as follows: 1 . A hypothetical group of tenant subjects from the food industry was identified by Gould & Associates and Ernst & Ernst. This permitted a more precise definition of tenant needs . 2. A detailed city planning analysis of the site and its surrounding area was made by Gould & Associates, involving field survey, mapping and data gathering from various city agencies. 3. The materia! handling requirements for rail, truck and internal circulation were developed by Ernst & Ernst based on the needs of the hypothetical tenant-subject group. 4. Soil borings of the site were made by David V. Lewin, engineering counselor, to determine the physical nature and limitations of the site. 5. Mechanical and electrical requirements for food industry tenants, as adapted to a multi-level building, were defined by John E. Flynn, building systems consultant. 6. Various structural systems were analyzed by R. M. Gensert Associates, structural engineer, to define the one best suited for multi-level construction. 7. The building program and final design were executed by Gould & Associates. 8. Construction costs were estimated by Turner Construction Company, based on a projection of 1969 and 1970 construction costs. 2-2 CHA PTER 2 STUDY METHODS AND FINDINGS IDENTIF I CATION OF TENANTS '^~ Findings Related to Objective 1 Based on the evaluation of representative industries in Cleveland, the food industry was established as the use of Prototype Building One. It was then necessary to determine the sub- industries which would be most appropriate as tenants in order to have a more precise deiinition of tenant needs for the building program. Food processors were initially selected as the prime group of tenant prospects for these reasons: They potentially have more ability to pay higher rents because there is value added to the food product. Their turnover of material would be less frequent. Their shipping and receiving would be less susceptible to high peaking factors. A list of food operations which could function in a multi-level building was compiled based on these factors: Present need for new industrial space. Growth potential of the industrial group. Prevalence of the industry in Cleveland. Size, as found in the Directory of Ohio Manufacturers. Ability to utilize and adapt to space in a multi-level structure. Similarity of material handling requirements. From this large list, six groups of processes were determined as being most appropriate. An approximation was made as to the percentage of space each group would occupy in the Prototype Building according to the actual business profile in Cleveland. Group 1 - meat and fish, 20% Group 2 - sausage, 15% Group 3 - vending and catering, 25% Group 4 - frozen products, 10% Group 5 - snack foods, 15% Group 6 - prepared foods, 15% 2-3 CHAPTER 2 STUDY METHODS AND FINDINGS This grouping and space allocation became the basis for the material handling study as well as the selection of interviewees for the market analysis. S ITE ANALYS IS AND PLAN Findings Related to Objective 2 The City's plan for the Gladstone area calls for its development as an industrial area, making it appropriate as the site for a multi-level industrial building. Much of the area is already under City ownership and has been cleared for development. A system for staged development was defined because of market considerations and building size. This system would permit future expansion of the development in accordance with the demand for industrial space. Prototype Building One would be the first of four stages (see Exhibit E7, this chapter) with each subsequent stage consisting of a similar facility. The eastern portion of the site was selected as the location for Prototype One, placing it in proximity to the Cleveland Board of Education Woodland Job Center. This would provide for interaction between the two facilities, with the Woodland Job Center being a potential labor source and the food industry firms participating in the training program. A detailed planning analysis of the area was made through field survey, research into the Gladstone Area Urban Renewal Plan and related economic and redevelopment programs, and discussions with various departments of the City government. The detailed findings are set out in Appendix 2, Section E, and are summarized in the drawings which follow: Exhib Exhib Exhib Exhib Exhib Exhib r El General Land Use Structure t E2 Community Programs t E3 Road and Rail Access t E4 Public Transportation t E5 Access Analysis t E6 Site Analysis In evaluating the building and the site within the context of the area, certain street improvements were proposed to serve Prototype Building One and the Gladstone area. By making these improvements at an early stage, the City would derive a cost savings and, at the same time, provide a stimulus for further development of the area. 2-4 CHAPTER 2 STUDY METHODS AND FINDINGS The suggested street improvements include the widening of Woodland Avenue and East 40th Street; a new depressed street with a one-way traffic movement would be located to the south of the proposed building. The access ramps to the new street would be in East 40th Street and the exit ramp would be just to the west of East 51st Street. All of the ramping and the depressed street have been located in new or widened street rights-of-way. Access to the site would be separate for pedestrian and vehicular traffic. Pedestrians would enter a plaza from Woodland Avenue and from this, enter the building. Automobile access would be from Woodland Avenue into a multi-level parking garage. Truck access would be from the new depressed road into the building levels designated for truck holding and docking. Rail access would be provided on two enclosed sidings which would serve the entire facility. Common docking and warehouse space would be adjacent to the sidings. 2-5 © O ec a. o a 5 2 «•» O UJ z cr < r) -ij- o _i = " > — < o o ~ 1 !f f « z 2 H> ~ en < O O a: a. o o 3C O ^ «^ X « * £ Q a. tu z 3 •— "J O _J O — ' -j uj 5 i|2 o» - _. ^ CO CO LU o o < < a: a < o or <; * «■ * => " * _ Mf -~ sM ij ; uj _ j o a a. l*j z z >- >- — < •— -« o _j O — ' — ■* LU > o I ^ -■ w o I or o < tr o _i CD a to to O J O J to ! ■■■ ■ > — < h- »*• a _j O -J — • Urn 5 igS O. h. _l W -J < I i LJ O O < A A U v\ 3 - * C 5 3 «■ o a. lij 2 2 I- 1*1 o ^ © -■ -; ^ © i 12: -I < * = = WO 00 00 >- _l < < h- 00 i 4 £ = ° *"■ ■** l£ ii|M | * z H | _ w ^ o ^ 3 ^ r: - £ * * t *~ < * - © ^ ""J *-» ° » *" ° ■ > ■*. £ o ■« - B- ■« U4 O ^ ■ 2 CHAPTER 2 STUDY METHODS AND FINDINGS SOIL ANALYS IS Findings Related to Objective 3 Conditions indicate that soil bearing pressures in the order of 3,000 to 4,500 lbs. per square foot may be sustained within the sand strata. A combined or raft type of system could be considered, depending on the distribution and magnitude of the loads. This type of system may also offer a method of economically dealing with the possibility of hydrostatic uplift on the lowest level floor slab. Caissons are not indicated due to the absence of any high bearing capacity stratum within reasonable depths. The depth to rock makes the use of end bearing piles prohibitive. Friction piles may offer a means of supporting high load concentrations but present serious problems in maintaining total and differential settlements within tolerable limits. Their use was not recommended for this application. The detailed procedure and findings of the soil analysis are given in Appendix 2, Section A. STRUCTURAL SYSTEM ANALYSIS Findings Related to Objective 4 Precast concrete, steel frame and poured-in-place reinforced concrete systems were evaluated as to cost and suitability for possible use in the prototype multi-level building. The structural steel frame system has been eliminated because of the cost of fireproofing, load bearing capability and problems of vibrations. Precast concrete was determined to be inappropriate because of difficulties in providing floor elevation changes, problems in stability of a high rise building, the difficulty of achieving distribution of concentrated floor loads, and the problem of adding to the height and volume of the building in order to meet mechanical requirements. Separate structural analysis was made of the processing levels and the material distribution areas. For processing levels, a 30'0" x 30'0" bay was established as being most flexible for a variety of tenant needs. Because of the need for flexibility and food industry mechanical requirements, a continuous horizontal duct and pipe chase has to be provided, necessitating a split beam and column structural system in certain areas. Therefore, a one way joist and beam system was analyzed. Mechanical ducts and piping may be placed between beams and the space covered by a panel attached to the bottom of the beams. 2-12 CHAPTER 2 STUDY METHODS AND FINDINGS The material distribution areas require a structural design to support heavy live and heavy concentrated loads. A slab- beam girder framing system was analyzed. Different bay sizes are required to provide adequate maneuvering space for the truck driveways and docking areas . The three sizes analyzed in detail were 30'0" x 30'0", 30'0" x 60'0" / and 60'0" x 60'0". The detailed procedure and findings of the structural system analysis are given in Appendix 2, Section B. MECHANICAL AND ELECTRICAL SYSTEMS ANALYSIS Findings Related to Objective 5 In order to minimize the tendency toward functional obsolescence, it was determined that the building design would provide space arrangement concepts within which future distribution networks could easily be installed by individual tenants to meet their specific needs. Linkage between the building and major utility service outlets would be by a system of service troughs or tunnels. Within the building, there would be one or more central service distribution centers to serve as ending and starting points for certain services. From these distribution centers, a network of horizontal and vertical service ducts would distribute throughout the building. A split column and beam structural system would be used to provide space for these service ducts. This would allow space for future changes and maintenance with minimal disruption. Each service would be capped at each floor. From that point, it would be the responsibility of each tenant to install and maintain his own services. The detailed procedure and findings of the mechanical and electrical systems analysis are given in Appendix 2, Section C. MATERIAL HANDLING SYSTEM ANALYSIS Findings Related to Objective 6 The most efficient rail facilities would be two tracks, each having direct access to a loading platform. The number of truck docks was projected as one for every 5500 square feet of useable building space; an additional holding area, located away from the docking area, should have a capacity of about double the number of dock spaces. 2-13 CHAPTER 2 STUDY METHODS AND FINDINGS In analyzing the internal material handling system, several mechanized and automated systems were evaluated as to speed of transporting materials and operating cosh. Automated systems such as conveyors, chain-veyors, monorails, etc. were investigated and eliminated because of their low speed, low volume of pounds transported, high maintenance cost, and limited flexibility. The recommended internal material handling system is a combination of industrial fork lift trucks with standard wood pallets and high speed (300 feet per minute) high volume (6 ton or 4 pallet capacity) industrial freight elevators. This would best fulfill the requirements of a multi-level industrial building, having a large volume flow of commodities which require flexible rapid horizontal transportation and high speed, economical vertical movement. The detailed procedure and findings of the material handling study are given in Appendix 2, Section D. BU ILDING DES IGN Findings Related to Objective 7 The building design evolved as an answer to the criteria set out in the building program. The sources of data for this were: The research carried out during the early phase of the project in which the tenant industry and site were defined. (See Chapter 1 , Appendix 1 .) The work of consultants, as described in previous sections of this chapter, which give further definition to the building program. The building code, zoning ordinances, and Gladstone Urban Renewal plan. (See Appendix 2, Section E.) The building program requirements and the design solution are given in Appendix 2, Section E, and are summarized below. A preliminary test of the building program was carried out through a series of modular studies. These involved a two dimensional statement of the building program and provided a visual method of organic ing the individual parts of the site, building, and tenant. 2-14 C HAPTE R 2 STUDY METHODS AND FINDINGS The tenant module was used to establish the minimum self-contained work space which could be multiplied within the structural system to provide larger tenant spaces. The tenant module consisted of three major functions: administration, production, and storage. The building module was used to establish a workable solution to the individual functional requirements (truck docks, vertical cores, etc.) as well as the overall relationship of all of the individual parts . The site module set the workable pattern and relationship for the ma- jor elements of processing, commercial, service, and parking spaces as well as on-site pedestrian and vehicular circulation. It provided a means of uniformly coordinating the site plan with the building design. The actual design of the Prototype Building One evolved through a process of formulating design alternatives and evaluating these against the building program. This involved not merely the selection of the alternative which best met the program, but incorporation of the advantages of the different alternatives into the final design concept. A summary of the design concept is given below and illustrated in Exhibits E7 through E20. BUILDING DESCRIPTION The total facility contains approximately 1,090,000 square feet of space. Of the total area, 35% would be rentable floor space for industrial and commercial use and the balance would be for building service, material handling and car parking. (See Exhibit E20.) Of the 380,566 square feet which are rentable, 84% is used as warehouse and processing space, housed in a processing tower. The remaining rentable area is designated for office, retail and restaurant facilities. The automobile parking facility consists of three levels of covered parking and one level of rooftop parking, for a total of 495 parking spaces. This does not meet the zoning requirements because it was believed that many employees would walk or use public transportation, Each level of parking would have direct pedestrian access to the processing tower. In addition, levels 3 and 4 would have access to the processing tower for light trucks. These trucks could circulate through the two processing levels for direct loading and unloading, providing an ideal situation for catering and vending operations. 2-15 CHAPTER 2 STUDY METHODS AND FINDINGS At the main entrance to the facility, a concrete canopy would extend 30 feet from the building. A vestibule v/ould lead into the main entrance lobby, where there would be access to four passenger elevators which v/ould serve the processing tower. Adjacent would be the entrance and lobby for the office structure, with two additional passenger elevators for office personnel and visitors. The processing tower consists of 13 levels, two below grade and eleven above grade. The two sub-grade levels v/ould be for truck holding and docking, with trucks entering the first level below grade, where holding space is located, then going to the level below where 54 docking spaces would be located. The dock area v/ould be 33,880 square feet and would be used by all trucks for all tenants. The material handling elevator core would be in the center, from which all material would be distributed throughout the building. There would also be minimal area for warehouse and building storage space. Level 1 would provide lobby-reception area space, commercial and restaurant area, rail docks and warehouse, and access to automobile parking. Level 2 would provide office and cafeteria space and access to car parking. Levels 3 and 4 would provide office and processing space and access for light trucks from the parking garage, and access to car parking. Levels 5 through 10 would each provide processing space. Level 11 would be the mechanical equipment penthouse. STRUCTURAL SYSTEM Building construction would be poured-in-place, reinforced concrete at all levels. Ceiling heights would vary with use; office and commercial space, 9'0", processing levels, 12'0", material distribution levels, 14'6". (See Appendix 2, Sections Band E.) MECHANICAL AND ELECTRICAL SYSTEMS Utilities and services would be provided to access points within the building. Each tenant would be responsible for bringing the utilities and services he needs from these access points to his ov/n space. All such tenant installations would have to be executed to building 2-16 CHAPTER 2 STUDY METHODS AND FINDINGS standards and be approved by the building ov/ner. Generally, plumbing lines would be brought to each floor. This includes hot and cold water, storm water stacks, and steam. Fluid waste risers would be brought to each floor from which lines could be run to tenant space; dry waste would be collected at each floor through a separate shaft, for incineration. Gas service, electricity and power, and telephone service would be brought to each floor. For purposes of environmental control, two fan rooms would be located on each floor. One half of each would be used for basic environmental equipment (air handling and fan coil devices); the other half for additional processing systems that may be needed by tenants. Air distribution from the fan room would be by a supply duct system, with each tenant responsible for installing his own ducting and variable volume air diffusers. (See Appendix 2, Sections C and E.) MATERIAL HANDLING SYSTEM The material handling system would consist of high speed elevators and fork lift trucks utilizing standard wood pallets. A central management service would operate the material handling system, including scheduling the docking of all trucks, loading and unloading of train cars, and delivery of material to and from tenant floors. There would be immediate access to the high speed freight elevators from the truck docks and the train loading areas. Of the nine freight elevators, eight would each serve only one processing level (3 through 10) plus the sub-levels and ground level. 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L rm n t «...!..».. i f tt ;i UJ z > S Tt T^TTT EXHIBIT E 19 SUMMARY OF BUILDING CHARACTERISTICS I. SITE A. Land Area 4.3 acres B. Building Coverage at Grade 85.8 % C. Gross Floor Area Ratio 5.8 II. BUILDING (see Exhibit E20) III. SERVICE FACILITIES A. Car Parking Spaces 495.0 B. Truck Docking Spaces 61 .0 C. Truck Holding Spaces 102.0 D. Railroad 1 . Sidings 2.0 2. Car Spots 18.0 E. Freight Elevators 9.0 F. Passenger Elevators 6.0 IV. DENSITY (No. of Employees) A. Industrial (300 s.f. /person) 1,060 B. Commercial (100 s .f ./person) 624 Total Number of Employees 1 ,684 2-30 o o 2 S >; X < x 2 5 < o u-> in o CO Tf CO CO CO CO 03 ai CO CO OJ o CN CM CO CN in r^ rs r^ r^ l\ i*n rx o o o ■■*■ r^ CO CM CO ~~ r ~~ >"" , ~ ""■ '" o CN -- CN CO _ CO O o rx r^ N. i\ rv r\ CO CN I— O -o •tf o in CM CO CO CO CO CO CO CM CO mi ii jj ' ' Vj> JN o o o O o o o CUJ^JDJ rx l\ o- K o o o o -O CO co J°D in >n o in CO CO CM CM o O in ■ o O CO co |o.uuo3 - uo|40JadQ O o o ■vf o ■* ■* ^J- CO ■<* xf -J- ■* o o Tf "pnj^ CO m ** CM o o IT) o in t\ in ■* CO "•"5 6uip|OH ■* CN •o CO CO CM >P n 'l CO o m CO UOIJISOJ 6uipDO"| o o o CM o - > ) Dnj l CO ■* o co o o CM o co >P0Q CO CM o >pru]_ CO o. CO CO ■* o -o CO >pO(] 5 ^o pDOJ| IDy CM CM r ~ ' 4i.ionja6ouD\Aj 6u; p| jng o co o o co o - U — •— o o f\ o o *> LO 360.104$ 6uip|jng o o in <».E o HI in o o o o o o o O o o 3 ^i- ■ — o t53> -5f >o Tj- -* CM o CM CM CM CM CM CM CM -* Z> — IOJ 1 J'DBI j CO CO Tf >n CO o o o o O o CN O o OO CO |03|UDLpOW CN -* — — CM in CO CO uoi|D|noj|3 o ^r o ■* 3 ■* •* ^=1- M- ■ CO CM CO CO id o l ' 'o o m CO iq o m o in CN 33 WO cn o CM o o o o o o o o o o o 3 ■St ■*J- ^J- ^t ■* ■* t CO > > — CM CO ■'J' lO o r-x co CN ■ — • — o o *: o D d 3fc =5fc ^fc =tt= : lfc ^Jfc =lfc Tt = > > > > > > > > > > _a o D D o 11 01 11 (!) u D u 11 11 o D o£ Q CO —I _1 —I _J _J _J _l _j _I 1 1 CO V- CL. t~ CHAPTER 2 STUDY METHODS AND FINDINGS CONSTRUCTION COST ANALYSIS Findings Related to Objective 8 An estimate of construction costs for Prototype One was necessary for the financial analysis (see Chapter 3) and was made by Turner Construction Company, using the following procedure: A tenant fact sheet and a complete set of building drawings (Chapter 2, Exhibits E8 through E18, and Appendix 2, Exhibits E9 through El 2) pr /ided a complete description of the base building systems and materials. Based on experience and knowledge of construction costs and techniques, an estimate of unit material and labor costs was made for a projected 1969-1970 construction date. An estimate was made of the quantities of building materials which would be needed and the appropriate unit costs were applied to arrive at the total construction cost estimate. OFF-SITE IMPROVEMENTS Excavation and Site Preparation $425,000.00 Retaining Walls 195,000.00 Paving on Grade 30,000.00 Bridges 50,000.00 $700,300.00 Indirect Costs and Fees 84,000.00 $784,300.00 The off-site improvement cost includes only the portion of the depressed service street directly to the south of Prototype One, a two-way access ramp from the depressed street to East 51st Street to the east, and the widening of Woodland Avenue. It does not include the remainder of the depressed service street extending west to East 40th Street or the improvement of East 40th Street. (See Chapter 2, Exhibit E6 . ) 2-32 CHAPTER 2 STUDY METHODS AND FINDINGS BUILDING AND SITE IMPROVEMENTS Truck & Train Sub Levels 1&2 Parking Levels 1-4 Rentable Levels 1-11 Total Building $ 979,290.00 S 300,260.00 $ 823,450.00 S 2,103,000.00 1,155,000.00 1 ,260,000.00 3,853,500.00 6,268,500.00 - 153,000.00 1,156,000.00 1,309,000.00 267,000.00 135,000.00 532,000.00 934,000.00 - - 846,000.00 846,000.00 780,000.00 100,000.00 5,576,000.00 6,456,000.00 180,000.00 $2 90,000.00 ,038,260.00 1,200,500.00 1,470,500.00 $3,361,290.00 $13,987,450.00 $19,387,000.00 370,000.00 224,000.00 1,540,000.00 3,134,000.00 Structural Frame Exterior Work Interior Work Elevators Mechanical Electrical Indirect Costs and Fees $3,731,290.00 $2,262,260.00 $15,527,450.00 $21,521,000.00 *The total cost of the site work and foundation is pro-rated over the three major building elements in direct ratio to the area of each. One of the major objectives of the cost and financial analysis has been to identify the methods of developing and financing this project. The initial premise was to test the feasibility of a totally private development. At the same time, we could not prelude the possibility of using several sources of financing, including federal or local government. Therefore, the decision was made to show the costs separately for the major building elements and to follow the same format in the financial analysis (see Chapter 3, Appendix 3). This allows for more detailed analysis of the construction costs and for the possibility of applying different sources of financing to various parts of the project. 2-33 CHAPTER- 2 CONCLUSIONS IDENTIFI CATION OF TENANTS Conclusion Related to Objective 1 The selected tenant subject group appears to be anble to function in a multi-level, multi- tenant building. SI TE ANALYSIS AND PLAN Conclusion to Objective 2 The Gladstone site and general area is well suited for the development of this type of project. The total site is large enough to accommodate a long range development of up to 16 acres. A mutually beneficial relationship could be established between the food industry tenants and the Northern Ohio Food Terminal as well as other existing industry in the area. If a multi- level industrial building were to be developed in Gladstone, changes would be necessary in zoning and urban renewal requirements, since this concept was not anticipated when these requirements were adopted. SOIL ANALYSIS Conclusion to Objective 3 Soil conditions place economic restrictions on the height and depth to which a building is constructed. The soil conditions of the Gladstone site required a floating slab foundation for the processing tower portion, because of its heavy loads and the limited bearing capacity of the soil. Height would be limited to 13 levels. In order to have two sub-levels, dewatering of the site would be required, because of water level being 18 feet below grade. STRUCTURA L SYST EM AN ALYSIS Conclusion to Objective 4 Structural members are required to be fireproofed, whereas in single-level buildings this re- quirement is only minimal. Columns have to support heavy floor loads of 250 pounds per square foot for industrial processing and vehicle maneuvering and stacking areas. In single level construction these facilities are provided for on structural slabs on-grade and the only structure supported on columns is the roof which has light loads. 2-34 CHAPTER 2 CONCLUSIONS MECHA N ICAL AN D ELECTRICAL SYSTEMS AN ALYSIS Conclusion to Objective 5 The mechanical and electrical requirements of food processors are very demanding because of the need for waste disposal, exhaust, and refrigeration equipment. Utility services are also complex in the sense that vertical risers and vertical-to-horizontal junctions must be developed. Floor space must also be utilized for this purpose, thus decreasing building efficiency. The provision of environmental services to interior bays requires in high oc- cupancy areas to compensate for inherent ventilation difficulties and humidity problems. In single-level construction, mechanical and electrical systems are less complex because they only need to run in one direction, horizontally; and heating and ventilating systems can be ducted through the roof, without the need for an extensive system of horizontal and vertical ducting. Therefore, multi-level systems are more costly. MATER IA L HAN DLING SYSTEM ANALYSIS Conclusion to Objective 6 Material handling in a multi-level building is complex, requiring both vertical and horizontal systems. Therefore, it is better if the material produced is of low bulk and with minimal movement within the building. The material handling industry has not developed any means of vertical material handling flexible enough for various sizes of bulky goods that is an improvement over high speed, large capacity freight elevators. The need to provide for transfer from vertical to horizontal circulation becomes very costly. This cost increases as material movement increases and as the goods become larger and more bulky because of the difficulty in handling. 2-35 CHAPTER 2 CONCLUSIONS BUILDING DESIGN ANALYSIS Conclusion to Objective 7 It is possible to design a multi-level building to meet the program requirement of food industry tenants. Sufficient flexibility can be provided to allow for a variety of tenant needs and growth. However, building efficiency is only 35% or approximately 378,500 square feet out of a total of 1,090,000. The factors which contribute to this low ratio are: Need for stairways Need to provide complex utility systems Need to provide truck docking, holding and maneuvering space on structure Need to provide vertical and horizontal material handling facilities Need to provide automobile parking on structure ' CONSTRUCTION COST ANALYSIS Conclusion Related to Objective 8 The cost of constructing a multi-level building is higher on a square foot basis than single level construction. For Prototype One the construction cost per square foot of space is $19.76. By comparison, it was estimated that the cost of single level construction is $10.00 to $12.00 per square foot. The factors which affect the cost can be summarized as follows: Material handling: In a multi-level building, a vertical material handling system must be provided in addition to a horizontal system. Material handling elevators are relatively expensive with the cost for one elevator being about $65,000.00. Structural: There is a need to put essential site services on structure such as parking, truck holding and truck docking. This means that the structural system must have the capacity to bear heavier loads of up to 250 pounds per square foot. By contrast, a single level building can have slab on grade and a steel frame which carries only light roof loads, with parking, docking and holding provided on grade for the cost of land plus paving . 2-36 CHAPTER 2 CONCLUSIONS - Mechanical and electrical systems: These systems become more complex in a multi-level facility because they have to run vertically as well as horizontally. For example, heating and ventilation in a single level building can be provided by ducting through the roof. In this facility, provisions have been made to mechanically circulate tempered air throughout the building in an internal duct system. Building code: The requirements for fireproofing, fire escapes, stairways and sprinklers in multi-level buildings are costly. 2-37 CHAPTER 3 PROTOTYPE BUILDING ONE PRELIMINARY CONCLUSIONS AND PROGRAM REVISIONS A. OBJECTIVES B. STUDY METHODS AND FINDINGS 1. FINANCIAL ANALYSIS 2. DEVELOPMENT CONSIDERATIONS 3. MANAGEMENT CONSIDERATIONS 4. EVALUATION OF FOOD INDUSTRY AS TENANTS 5. EVALUATION OF BUILDING PROGRAM AND DESIGN C. CONCLUSIONS CHAPTER 3 OBJECTIVES With the completion of the Prototype One building design and the construction cost estimate, the next step in the work program was to test its economic feasibility and market potential. Throughout this phase, the basic premise was to test the feasibility of developing this building as a private enterprise. Within that context, the objectives were: 1 . To evaluate the financing considerations relative to Prototype Building One. 2. To evaluate considerations relative to the development of Prototype Building One. 3. To evaluate management factors relative to operating Prototype Building One. 4. To evaluate food industry firms as potential tenants in Prototype Building One. 5. To develop general conclusions regarding the program and design of Prototype Building One and identify the necessary revisions. 3-1 CHAPTER 3 STUDY METHODS AND FINDINGS The testing of the economic feasibility and market potential of Prototype Building One were set up and guided by Ernst & Ernst, the economic and marketing consultants for this project. One part involved a complete financial analysis; the other was a market survey consisting of a series of personal interviews with representatives of Cleveland food industry firms and developers. These are discussed in this chapter and Appendix 3, with the procedure summa- rized as follows: 1 . A complete pro forma financial analysis was made to determine whether the building would be economically feasible as a private development. 2. Personal interviews were held with private developers to get their reactions to the building design and cost factors. 3. Personal interviews with food industry tenant prospects formed the basis for evaluating the building management factors. 4. Personal interviews with food industry firms provided the basis for evaluation of their potential as tenants. 5. Personal interviews with food industry firms provided the evaluation of the building program and design and the basis for revisions. FINANCIAL ANALYSIS Findings Related to Objective 1 The preliminary analysis of sources of financing and developer interest (see Chapter 1) indicated that there was private developer interest of a tentative nature and that given the economic feasibility, sources of financing would be available. Therefore, after completing the building design and construction cost analysis (see Chapter 2), it was necessary to determine the financial feasibility of Prototype One. OPERATIONAL ASSUMPTIONS A basic assumption was that private equity, and management know-how would be supplied by a real estate developer or group who would own the building, manage the property and negotiate the leases. The property management concept was unique in that the building would provide tenants with facilities and services not available in suburban industrial facilities, thus giving the tenant more for his rental dollar. This concept of uniqueness resulted in the inclusion of cost factors based on the following building services: 3-2 CHAPTER 3 STUDY METHODS AND FINDINGS Central management would provide routine maintenance for tenant areas; general repair, cleaning and maintenance for common building areas (meeting rooms, lobby, employee cafeteria, public circulation areas); and external maintenance of the building and grounds. Property tax, insurance, normal utility costs and general building overhead costs would be paid by the building owner. The tenant would pay for such costs as leasehold improvements and utilities in excess of normal requirements. A management service would operate, maintain and coordinate the various elements of the material handling system, truck docking and truck holding and the automobile parking garage. Approximately 35% of the total constructed area is for use by tenants as industrial or commer- cial space and the rest for common services, utilities and public circulation. Thus, a net rental concept similar to that used in office buildings would apply that is, each tenant receives ancillary services and utilizes common supporting facilities, all paid for as part of the rental rate. Although the net lease concept would require greater rental rates, it appeared to have the following potential advantages for tenants: Central management of building services, maintenance and material handling should reduce each tenant's total operating costs. Tenants in similar businesses such as food processing could benefit from economies of common cold storage facilities and food inspection. Availability of common facilities such as meeting rooms and an employee cafeteria would relieve tenants of the initial capital burden of constructing such facilities as leasehold improvements. FINANCING ASSUMPTIONS Preliminary financial analysis of Prototype One indicated that with about one- third of constructed square footage available for rental, rental rates would have to be very high to recover capital and operating costs, and the margin of profit for a developer would necessarily bo quite narrow. Therefore, in evaluating possible sources of capital, three criteria were considered: 3-3 CHAPTER 3 STUDY METHODS AND FINDINGS As much public funding as possible should be obtained to minimize the amount of private investment which would have to be recouped. With capital costs high in relation to rental income, the investment required from private developers would have to be minimized with a high ratio of long-term debt to equity investment. Some form of public guarantee or matching public funds would be necessary to attract private long-term lenders and to minimize interest costs on the substantial debt required. After evaluating possible sources of financing (see Chapter 1) according to these three financing criteria and investigating the possibility of commercial bank loans (see Appendix 3, Section A), the following financing package was assumed to be the most realistic Fund Source Per Cent of Total Private equity (tenant corporation and/or independent developer) 10% Economic Development Administration direct loan @ 4 3/4% interest 65% Commercial bank mortgage loan @ 7 1/4% interest 25% TOTAL FUNDING 100% The commercial banking mortgage loan was assumed to have a rate of 7 1/4% (in keeping with 1968 interest rates) with earlier maturities (five to ten years maximum) and the E.D.A. loan was assumed to have all of the later debt maturities. The debt package of E.D.A. and commercial bank loans has a composite rate of 5 3/4% and a maturity of 25 years, Since Prototype One represented unique design and management concepts, there was no data on operating and maintenance costs which was directly comparable. However, the projected Prototype One construction costs together with published data on office building operating costs did permit a reasonable assessment of the accrued costs and cash outflows that might be expected with this building. (See Appendix 3, Section A.) The following basic approach was used to develop the pro forma analysis. Project costs, financing packages, and cash disbursements were assembled by major building segment 3-4 CHAPTLR 3 STUDY METHODS AND FINDINGS (truck and rail, parking, rentable levels, etc.) in order to identify all of the cash outflows and to summarize them on the basis of net rentable square feet. From this analysis, the rental rate required to break even was determined. Then pro forma profit and loss statements were prepared by segment to show the favorable federal income tax shields which would arise from accelerated depreciation in the early years. (See Appendix 3, Section A.) PRO FORMA STATEMENTS It is significant to note the following factors which relate to the financial analysis. (See Appendix 3, Section A, Exhibits El through E8.) It has been anticipated that the City would provide the off-site improvements. Therefore, this cost is shown as part of the project cost, but is not included in the cash flow analysis. The cost of land is included as part of the project cost to be assumed by the developer. As the financial picture developed from these statements, it became apparent that the rental rate would be above the current competitive market. Therefore, the rents shown represent the amount needed to reach a break-even point; a return on investment for the developer has not been included. It should also be noted that this pro forma analysis accounts for all the costs to be considered by the owner in operating such a building. An individual owner or developer may elect to make various leasing arrangements whereby the tenant assumes the direct responsibility for the maintenance, taxes or other costs. The complete financial analysis is given in Appendix 3, Section A, and general findings are as follows: Costs Total Project Cost $26,449,300.00 Total Project Cost Per Constructed Square Foot $24.27 Total Project Cost Per Square Foot of Rentable Space $ 71 .92 Annual Cash Requirement for Mortgage Payments and Operations $ 3,077,750.00 Annual Cash Requirements Per Square Foot of Rentable Space $8.37 Rentable space refers to actual usable commercial or industrial space which amounts to 367,750 square feet or 35% of the total constructed square feet. 3-5 CHAPTER 3 STUDY METHODS AND FINDINGS Land costs for this urban renewal area were S2 .00 per square foot in early 1968. This is only 1 1/2% of the total project cost. Construction costs represent 95.5% of the total project cost. These high construction costs are the result of multi-level construction i.e. the need to put essential services on structure, the need to provide for complex material handling, structural, environmental and utilities systems. The breakdown of major building parts is as follows: a. Automobile parking - 10% of total project cost. b. Truck docking and holding areas - 16.5% of total project cost. c. Levels 1-11 (excluding parking) - 69% of total project cost. DEVELOPMENT CONSIDERATIONS Findings Related to Objective 2 In discussions with three private industrial developers, the reaction to Prototype Building One was negative insofar as its development potential is concerned. The basic reason is the low level of building efficiency (i.e. per cent of rentable square footage to the total constructed square footage). As building efficiency goes up, the project costs are spread over a larger amount of space which results in a lower rental rate per square foot. One developer stated that 80% is the minimum standard for building efficiency; however, the efficiency of Prototype Building One is 35%. This is best illustrated by comparing the total project cost per constructed square foot of $24.27 to the total project cost per square foot of rentable space of S71 .72 . One major cause of low building efficiency is the amount of space needed for truck docking and holding and the automobile parking area. These areas must be provided for on structure because of the limited amount of vacant urban industrial land. By contrast, with a single level facility, automobile and truck areas can be provided at grade for the cost of land plus paving; this is much less costly per square foot than SI 1 .05 for the truck levels or $9.51 for the car parking areas. 3-6 CHAPTER 3 STUDY METHODS AND FINDINGS MANAGEMENT CONSIDERATIONS Findings Related to Objective 3 The recent trend in industrial development has been toward single level buildings on sub- urban sites. From the developer's point of view, the total investment must be minimized by keeping construction and land costs as low as possible. Construction costs are kept down by building single level space. Although more land is required to hold a sprawling structure, the savings on construction is more than enough to offset the cost of additional land. In addition, the cost of suburban land is generally lower than that of an urban site in the Greater Cleveland Area. The general practice is to lease space on the basis of gross area. In addition to the rent, the tenant pays for utilities, building maintenance and possibly all or part of the property taxes. In early 1968, rental rates for suburban industrial space were in the range of $1 .00 to $1 .50 per square foot. The rental rate for Prototype One was too high to be competitive with current rents, even if they included complete building maintenance and other overhead costs. In keeping with the unique design concept of the building, the original management concept involved the use of a central building management service which would be responsible for the following: 3-7 CHAPTER 3 STUDY METHODS AND FINDINGS Leasing arrangements to allow for growth and expansion by tenants through proper combinations of long and short term leases. Building maintenance and repair to provide a high standard so the building would remain an asset to the investors, the City and the community, and to relieve the tenant of certain responsibilities in the care of his space. Scheduling of truck holding, docking and loading and internal material handling to permit an orderly flow of goods into and out of the building. Management of central building support facilities such as lobby - reception area, lunchrooms, infirmary, conference rooms, etc., to provide security and services which the tenant might not be able to afford individually. Food industry interviewees saw benefit in having central and support facilities available. The idea of central management over material handling was not well received by some food industry interviewees especially the food distributor operations for the following reasons: They prefer to retain close, personal observational control over the scheduling of trucks and loading and unloading. Many firms must be able to respond quickly to customer requests and they fear they would lose their flexibility to deliver rush orders under a centralized system. The interviewees' evaluation of the multi-tenant concept is discussed later in this chapter as it relates to their specific requirements and the building design. EVALUATION OF FOOD INDUSTRY TENANTS Findings Related to Objective 4 In conducting the market test of Prototype Building One, the main purposes were to ascertain specific reactions to this building and to determine if a market exists in the food industry for space within a multi-level building. The market test was conducted as a series of personal interviews with thirty-five persons representing twenty-nine different companies, or agencies. An explanation of the project and its background was given, illustrated by drawings, a model and a written tenant fact sheet. (See Appendix 3, Section C.) 3-8 CHAPTER 3 STUDY METHODS AND FINDINGS Food processors were originally defined as the prime tenant subjects to be interviewed (see Chapter 2). During the early stage of interviewing, it became apparent that the processor market had substantially shifted from the City of Cleveland to the suburbs. The market test group was redefined to also include food distribution operations such as jobbers, purveyors, meat processor-wholesalers and commission merchants. These operations presently occupy space in the Gladstone area adjacent to the proposed site. Interviewees were selected based on these factors: Firms which are presently located in Cleveland. Firms which lack adjacent land for expansion. Firms which have few relocation possibilities open in the City. Firms which are presently occupying physically or functionally obsolete facilities. The findings which deal with food industry potential as tenants are summarized below. (See Appendix 3, Section C for detailed discussion.) Many of the major food firms have moved their facilities to suburban locations, or plan to do so, including four major chains, a large wholesaler, a large automatic merchandising operation, and a large prepared foods processor. Thus, many of the firms which might have led in establishing the Gladstone area as Cleveland's food industry center are no longer in the City. The remaining tenant market consists of meat wholesalers, commission merchants, purveyors, and jobbers. Smaller and medium size food operations in Cleveland have traditionally paid rental rates in the range of S.75 to SI .25 per square foot. This does not include operating and maintenance. Most of those who form the potential tenant market occupy old facilities which are physically and functionally obsolete. New federal meat and poultry inspection laws will force many firms to upgrade their facilities which may cause some to relocate. Many may not be able to afford a move to new quarters. Most interviewees have incomplete records which do not accurately reflect their cosh of operation in their present facilities. They could not easily make comparisons of the costs they would incur in the proposed new building versus those presently incurred. Many are paying as much for maintenance as they pay for rent. Further 3-9 CHAPTER 3 STUDY METHODS AND FINDINGS there are many inefficiencies which result from operating in obsolete facilities. They could not accurately predict what various firms in the industry could absorb as a new rental structure, but it was generally felt that the broad range of $2.00 to $3.00 per square foot would be the maximum most could afford under forseeable conditions. Most of the small food businessmen have not been able to build up capital reserves adequate to meet expansion needs for a growing market. Because of their very low profit margin on sales and the pressure of larger firms gaining an increasing share of the market, these small firms are not good prospects for bank loans. Therefore, they continue to occupy the same obsolete facilities and have established themselves in a tradition of operational inefficiency. Food industry labor wage scale starts at $3.00 an hour with fringe benefits of $.70 to $.80 per hour. There is no provision for an apprentice system. Therefore, small or medium operations cannot afford to hire non-skilled workers who would not be immediately productive. Generally, the small and medium firms have not been enlarging their labor force substantially over the past several years. EVALUATION OF BUILDING PROGRAM AND DESIGN Findings Related to Objective 5 The market test, as described above, also resulted in reactions to the Prototype Building One design and program. These comments provided the basis for revisions in the design. (See Conclusions of Chapter 2; Chapter 4.) The interviewees' reactions are summarized here and given in detail in Appendix 3, Section C. REACTION TO THE MULTI-LEVEL DESIGN CONCEPT It is difficult for interviewees to visualize the need for multi-level industrial facilities as a part of long range industrial land planning. There is a definite preference for single level facilities, as evidenced by recent moves to new facilities and as expressed by persons presently occupying space in multi-level buildings. In addition, the interviewees could not visualize how a modern multi- level facility could function efficiently. 3-10 CH APTER 3 STUDY METHODS AND FINDINGS Interviewees indicated a preference for a two or three level building with rruck access to all levels and docking space on each level, immediately adjacent to tenant areas. Indications are that 250,000 to 400,000 square feet could be marketable, if an acceptable lease rate could be developed. Concern was expressed over certain conditions inherent in occupying rented or leased space in any building. This included costs of leasehold improvements, problems of expansion, and problems such as odor and industrial waste control, which might result in incompatibility among tenants. The building was designed to uniform engineering standards and specifications to provide for maximum tenant flexibility. However, some tenant prospects felt that their needs did not warrant this type of construction and the resultant costs. Interviewees felt it would be difficult to consolidate the various material handling methods used by many tenants into one program for a multi- level building. Interviewees recognize that the amount of truck docking and holding space offers a better alternative than exists in their present facilities and would produce a more orderly traffic flow. However, they are concerned over the amount of time a truck might have to wait before being loaded or unloaded and over congestion at peak hours in use of elevators . REACTION TO LOCATIONAL FACTORS The availability of rail sidings adjacent to the building is an advantage to those presently using rail, but is not an attraction to those presently receiving goods by truck. Accessibility to public transportation is not a significant advantage. Employees prefer not to ride public transit in the area, especially those arriving or leaving in the hours after dark. Larger food processors have little need to be located in proximity to competitors. Jobbers, commission merchants, purveyors and meat processor-wholesalers continue to find it important to be located near their competitors as part of the conduct of daily business. 3-11 C HAPTER 3 STUDY METHODS AND FINDINGS The Gladstone area has good potential for new facility construction, because of its locational advantages with regard to rail and highways, its central location within the city, and the scarcity of well located vacant industrial land within the city. However, the historical image of the area is not favorable because of congestion, the potential for vandalism, pilferage and crime, and the lack of progress in the Gladstone Urban Renewal Program. Availability of an unskilled labor market is not an attraction to most food businesses, because of wage scale factors. Also, many of these firms are ethnic in nature and only hire a small number of inner-city residents. Proximity to the Woodland Job Center was not a positive factor, since most interviewees would rather train employees under their own supervision. It would be desirable to have a cold and frozen food storage facility located in any food industry grouping, since interviewees stated that they presently use a number of such facilities located in various buildings throughout the central city. The Gladstone location continues to be desirable for commission merchants, purveyors, jobbers and some meat processor-wholesalers who serve buyers located in the City. However, it is no longer attractive to food processors with a regional Northern Ohio market. With the interstate highway system accessible from both the City and suburbs, larger companies with a regional market find a suburban location to be more advantageous for their total market area. Four of the five major food chains have moved their major distribution, storage, and processing facilities to suburban locations; a catering operation is planning to move to a suburban site; and a large automatic merchandising company has decided to build a new suburban facility. 3-12 CHAPTER 3 CONCLUSIONS F INANCIAL ANALYS IS Conclusion to Objective 1 The total project cost of Prototype Building One coupled with the low ratio (35%) of rentable space to total space put the rental rate at a level (over S8.00) which is not competitive with rental for suburban industrial space (SI .00 to $1 .50). In light of the existing land and construction costs in Cleveland, it is most important to keep construction costs at a minimum for the required space, because construction cost was the primary factor in the total project cost. In order to make a multi-level industrial facility economically feasible in the private development market, building efficiency must be increased so that costs and rental rates per square foot can be reduced to make it competitive with single-level industrial facilities. The major factor in causing the high rental rate of $8.00 per square foot is the need to devote space on structure to truck areas, automobile parking and material handling. This means that construction costs are inherently higher, financing costs are higher and building efficiency is lower. The higher costs are spread over a smaller proportion of actual rentable space and the individual tenant must bear a higher cost. Increasing the building efficiency would result in making the rental rate per square foot lower and ease the burden on each tenant. The overhead, operating and maintenance costs which are reflected in the lease rate are costs which the tenant prospect is currently paying for as separate items, without the benefits and efficiencies of central control and large volume rates. Prototype Building One is not economically feasible as a private development. The question of whether any multi-level facility is feasible as a private enterprise remains to be answered in light of the modifications to be made in the building design. DEVELOPMENT CONSIDERATIONS Conclusions to Objective 2 Private developers are not presently interested in the multi-level, multi-tenant building concept in Cleveland. Developers, builders, and realtors generally look on suburban 3-13 CHAPTER 3 CONCLUSIONS industrial development as being a better investment because taxes are lower, land is less costly, the general environment is more attractive and there is adequate space for single level construction which is less costly. The concept of a net lease package (as defined in the Financial Analysis, p. 3-2 this chapter) is not generally in use in the industrial rental market. It appears that this concept is not understood by potential tenants. Any marketing effort would have to include a complete explanation of the net lease package and its advantages to the tenant. The need exists for some sort of central development or promotional force to actively promote or back a multi-level building. This could be an industry, a private developer, the government, a non-profit corporation or a railroad. Many of the objections voiced by interviewees or tenant prospects could be overcome by the enthusiasm generated by such a sales effort. MANAGEMENT FACTORS Conclusion to Objective 3 The general nature and limitations of management of a multi-level, multi- tenant building could not be ascertained within the limits of this project. However, the following factors regarding Prototype Building One were apparent: Leasing of tenant space, and central building maintenance could be handled by a central management firm for the entire building. Food industry tenant material handling demands and delivery needs make central material handling management impractical for this industry. EVALUATION OF FOOD INDUSTRY AS TENANTS Conclusion to Objective 4 Generally, the food industry is not a good tenant subject for Prototype Building One for the following reasons: 3-14 CHAPTER 3 CONCLUSIONS Food processing is one of the mojor industries fending to move out of the central city . Those firms which serve a regional market find suburban locations with access to the interstate highway system more advantageous. It appears that the market for central city space within the food industry is limited. The potential tenant market (for central city space) consists of purveyors, meat processor-wholesalers, commission merchants, and jobbers. This group is presently paying very low rent (about S.75 per square foot), and is limited in the amount it can increase its rent because of its low margin of profit. Although the Gladstone area offers many locational advantages to continue as the major fresh produce market center for the metropolitan area, the large food firms which might have historically provided leadership in developing Gladstone as a food industry center have moved out of the City of Cleveland. Food industry tenants handle large volumes of materials within a short period of time which results In the need for extensive trucking, rail and vertical and horizontal material handling facilities. This contributes to the low building efficiency. The mechanical and electrical requirements which are needed for this industry such as industrial waste disposal and exhaust systems add to the construction cost of the building . The general trend in the food industry is toward single level facilities. The presence of aging vacant multi-level space and the continued use of functionally obsolete space make it difficult for interviewees to visualize the efficient operation of a new multi-level building. Many of the firms interviewed do not know how much it costs them to operate their present facilities. While some can afford to pay higher rent for modern, efficient facilities, they cannot say how much because they are unwilling to commit themselves until they are ready to move and because their operating cost records are incomplete. The present rental rates of the food industry firms generally range from $.75 to SI .25 per square foot. The calculated rental rate of Prototype Building One is in excess of $8.00 per square foot. The financial situation with the food industry potential tenants is such that they cannot afford this great an increase in rent. 3-15 CHAPTER 3 CONCLUSIONS EVALUATION OF BUILDING PROGRAM AND DESIGN Conclusion to Objective 5 Program and building revisions were necessitated by the following factors which were brought to light during the market test. The tenant market changed from food processors to commission merchants, purveyors, meat processor-wholesalers and jobbers, with a minimal amount of space for small processors . The new tenant prospects indicated their desire for direct control over the scheduling of their own trucks, without the need to share docking space with other tenants, or use elevators for internal material handling. Because the rental rates were beyond the reach of the prospective tenants, the following changes were considered for Prototype Two in order to decrease construction costs, increase building efficiency and decrease the rental rate. a. Material handling elevators would be reduced in number by providing truck docking space on all levels. b. The building height would be reduced to two levels above grade and one sub-grade level. This removes the need for the floating slab foundation and for dewatering the site. c. Mechanical systems would be made less complex because food processors are no longer the primary tenant group. d. Warehousing and processing space would be placed in the interior of the building, making concrete block walls adequate because there is also no longer the need for an expensive facade as there had been on the processing tower of Prototype Building One. e. Common building services would be removed from the building to reduce initial construction costs. However, provision could be made for their later air rights development on Prototype Building Two. f. The rentable area on each floor would be larger than in Prototype Building One, thus being less restrictive in terms of tenant size and expansion capability. The details of Prototype Building Two are discussed in the next chapter and in Appendix 4. 3-16 CHAPTER 4 PROTOTYPE BUILDING TWO - FOOD INDUSTRY A. OBJECTIVES B. STUDY METHODS AND FINDINGS 1. DEFINITION OF BUILDING PROGRAM 2. BUILDING DESIGN 3. FINANCIAL ANALYSIS 4. DEVELOPMENT CONSIDERATIONS C. CONCLUSIONS CHAPTER 4 OBJECTIVES As a result of the evaluation of Prototype Building One, several major factors became apparent regarding its design, the potential tenant market and the development potential. There was no large market for industrial space in the central city among food processors, since most of those who might have been suited foi tenancy had already moved to a suburban site or were committed to such a move. A potential tenant market was defined within the food industry which consisted of distributors, i.e. jobbers, purveyors, commission merchants and meat processor- wholesalers. The major space requirements of this group were also identified, and it was concluded that Prototype One did not answer their functional needs. The financial analysis showed that the rental rate of Prototype One would be far beyond the current market and it pointed out the need to reduce rental rates by increasing the building efficiency and reducing construction costs. As a result of these findings, it was determined that a new facility should be designed rather than merely modifying the existing design. The major objective was to design a multi-level industrial building to meet the requirements of food distributors which would be rentable at rates competitive with the current market as a private development. Secondary objectives were as follows: 1 . To define the building program based on the requirements of food distributors as tenants. 2. To develop a site plan, building design and construction costs. 3. To determine, through a pro-forma financial analysis, whether the redesign effort achieved the necessary economies defined in Chapter 3. 4. To evaluate the considerations relative to development of Prototype Two. 4-1 CHAPTER 4 STUDY METHODS AND FINDINGS The research and data collection for Prototype Building Two was somewhat less extensive than that of Prototype One, because much of the material remained applicable. Basic information which had been obtained from consultants (see Chapter 2, Appendix 2) was used along with the input from the market test of Prototype One (see Chapter 3, Appendix 3) . DEFINITION OF BUILDING PROGRAM Findings Related to Objective 1 The findings of market analysis conducted for Prototype One (see Chapter 3, Appendix 3, Section B) delineated the characteristics of the potential tenant group within the food industry consisting of jobbers, commission merchants, purveyors and meat processor- wholesalers. These can be summarized as follows: Locational needs: Near Northern Ohio Food Terminal; in close proximity to downtown area to serve their customers; close relationship to like businesses because of customer buying practices. Present facilities: Many are in functionally obsolete buildings, have inadequate space, and have inadequate truck docking or holding facilities. Some businesses may be forced to move or upgrade their facilities because of urban redevelopment projects and federal meat and poultry law enforcement. Financial situation: Many of these firms operate on a low margin of profit and presently pay rent of approximately $.75 to $1 .00 per square foot. At the same time, they are also indirectly paying a penalty for inefficient operations, because of the poor quality of their facilities. Some may be able to absorb a higher rental, but the range is difficult to estimate. Functional requirements: Specific areas of concern which were expressed by interviewees can be summarized as follows: a. Truck docking facilities should be adjacent to tenant production areas to give each tenant control over scheduling, loading and unloading. b. Material handling system should not be centralized because of possible schedule conflicts and the desire to have personal control over the flow of goods . 4-2 CHAPTER 4 STUDY METHODS AND FINDINGS c. Industrial space should be flexible enough to accommodate operations which range from warehousing to complex processing. d. Mechanical and electrical systems should be adaptable to specific tenant requirements without overdesigning the basic building.. SITE AND BUILDING DESIGN AND COST Findings Related to Objective 2 The new building design evolved as an answer to the criteria set out in the new building program. This was the result of the input of data from the market test, the consultant studies and other research conducted earlier in the project. (See Chapter 2, Appendix 2, Chapter 3, Appendix 3.) SITE ANALYSIS AND PLAN The use of this site is industrial, in keeping with the City's plan for the Gladstone area. A plan for staged development of the site was defined because of market considerations and building size. This plan would permit future expansion of the development in accordance with the demand for industrial space. Prototype Building Two is proposed as the first stage of development. Future stages could include the construction of a high rise facility such as Prototype One, a second three level building, and air rights development over Prototype Two. This latter possibility might include a restaurant, motel or other commercial businesses. It was determined that Prototype Building Two should be placed on the western portion of the site, adjacent to the Northern Ohio Food Terminal. This is based on the need of the tenants to be near like businesses. It would allow their customers, who generally use competitive buying techniques, to have access to both the N.O.F.T. and Prototype Two. In addition, it permits a continuation of the practice of inter-buying among competitors in the event they run out of merchandise. In evaluating the building and site for the design modification, certain street improvements were proposed (see Exhibit E3). These include widening the existing streets, Woodland Avenue and fast 40th Street. A new three level street is provided to the south of the building. All ramping and the multi-level access street have been located in new or widened street rights of way. 4-3 CHAPTER 4 STUDY METHODS AND FINDINGS Access to the site is provided by separate pedestrian and vehicular entrances. The major pedestrian entrance is from Woodland Avenue, with a secondary entrance from East 40th Street. Automobiles would enter and exit from Woodland Avenue, onto and from a ramp leading to the rooftop parking area. Trucks enter and leave the building from the new three level road. Ramps would give access to each level of the building. Covered rail facilities are provided by extending two rail sidings into level one of the building, with common irain docks adjacent. The detailed planning analysis which was made prior to the design of Prototype One formed the basis for this site plan as well. The findings are summarized in Chapter 2, Exhibits El through E5. (See also Appendix 2, Section E and Appendix 4.) BUILDING DESCRIPTION Prototype Building Two is designed as a three level facility with a total of 859,050 square feet. Space is allocated for industrial, building service, material handling, and car parking (see Exhibit E7). Approximately 35.5% of the space is rentable; all of this is industrial space for processing and warehouse use. Automobile parking is provided on the roof with a capacity of 470 cars. The main building entrance is on Woodland Avenue with a secondary entrance on East 40th Street which relates to the Food Terminal. The entrances lead into a central core from which passenger elevators and stairways give access to all levels of the building. (See Exhibits El and E3.) The sub-grade level provides industrial space for warehousing or processing, and truck docking and maneuvering areas. (See Exhibit E2.) Level one provides industrial space for warehousing, or processing, truck circulation and docking areas, and rail sidings with dock areas. (See Exhibit E3.) Level two provides industrial space for warehousing or processing and truck circulation and docking space. (See Exhibit E4.) Roof level provides car parking, mechanical equipment penthouse and space for air rights development. (See Exhibit E5.) 4-4 CHAPTER 4 STUDY METHODS AND FINDINGS Trucks can get to each building level via ramps from East 40th Street. Each tenant has his own private truck docks for loading and unloading and controls his own material handling. The building has a total of 184 docks and 26 holding spaces. Each tenant's docking space would be in direct proportion to the amount of industrial space he rents. An internal ramp system for fork lift trucks is provided for movement of materials between train docks and all building levels. (See Appendix. 4 , Section A.) The basic structural system is poured- in-place, reinforced concrete. Bay sizes are 30' x 30' in production and dock areas, 30' x 60' and 60' x 60' in truck maneuvering areas. (See Appendix 4, Section A.) Utilities and services would be provided to four access points on each level. Each tenant is responsible for bringing the utilities and services he needs from these access points to his own space. All such tenant installations would have to be executed to building standards and approved by the building owner. Generally, plumbing lines for cold water stacks would be brought to each floor for tenant use; hot water lines would go to toilet rooms and janitor spaces only. Industrial waste would be collected at two locations on each floor for incineration. Gas, electricity and power and telephone service would be brought to each floor. For purposes of environmental control, fans would be located in the mechanical penthouse. Tempered air would be distributed through a supply duct system to the vertical mechanical shafts, with each tenant responsible for installing his own ducting and variable volume air diffusers. Individual tenants would provide their own supplemental heating system, if required. Ventilation would be provided through fans located in the mechanical penthouse. (See Appendix 4, Section A.) The building management functions of Prototype Two are greatly reduced as compared to Prototype One. There would be no need for central material handling or truck management service. The remaining functions are maintenance of the exterior and interior common areas and leasing operations. These could be carried on by a professional management service or an individual hired on a fuli-time basis. 4-5 UJ —J o ft. UJ mm a - o o 9- > — < =» yj ►— UJ Q — ■ a e o 3 1- © -J -J UJ > - o UJ ee ™ UJ oi. to ^_I ^ Ob |_ —J w o o -1 < o * " m o o z i 2 2 & -I UJ > UJ CD CO K w * u I - >• — i~ u O © _j _i 5 '1 OS.. a. *. -i -i < S = o i CVI UJ > UJ : %. * 2 o « < O O uj * t> o > £5 n i s. 7' 1 ! I ^" I n — i W 8. ,,.,,„, 1 ill EE i — n i — n W rff ' r — ■ — ::z ; i i|e: i m 3 a i i$ <■*« UJ u. o o eg a: Q <: EXHIBIT E6 SUMMARY OF BUILDING CHARACTERISTICS I. SITE A. Land Area 6.9 acres B. Building Coverage at Grade 92.6% C. Gross Floor Area Ratio 2.9 II. BUILDING (see Exhibit E7) III. SERVICE FACILITIES A. Car Parking Spaces 470 B. Truck Docking Spaces 184 C. Truck Holding Spaces 26 D. Railroad 1. Sidings 2 2. Car Spots 16 E. Freight Ramps 2 F. Passenger Elevators 7 IV. DENSITY (NO. OF EMPLOYEES) Industrial (400 s .f. /person) 750 4-11 O =~r. 1 k X < x 2 O o ■ittv. ■■as* * "" ' "■" ■ ■" i -»""' ■ - O O O O m O in m in "o CM in Si O CO 1— O -0 CM m pnj| CM ■* 8 oo~ CO U> c r — 00 c 6uip|o H >pn.n rx — in e Feet rial Ha in 10 cm" m inl Squar Mate CM 6uipDO"| 00 in CO CO 00 CM CO >)Dnj| o~ rC m CO- O ^1- in M3 >porj >|onj| i >|DO(] " r>- pooj|iDy m m =r:r ,, =3=*=^ -.-== =r: CO =r^- ^ *JL ,-^- ~" — - .... - sra. - .. 1 ju9iu96txJDy\/ 0) 6u;p||ng 9604045 U 6uip|ing UJO 00 0" CO a." "* ~ 1 B * n " naos JL =*fc "" <1) 0; c "5 > _» "5 > 1 % CM =lfc a. E 1— O O ~ > J. ou U O D 0) . — ■j=r.=s=m CM 4 i -2 CHAPTER 4 STUDY METHODS AND FINDINGS CONSTRUCTION COST ANALYSIS An estimate of construction costs for Prototype Two was a necessary prerequisite to financial analysis and was made by Turner Construction Company, using a procedure similar to that used for Prototype One. Costs are shown separately for each major building element . This allows for more detailed analysis of the construction costs and for the possibility of applying different sources of financing to various parts of the project. Off-site improvement cost includes all of the East 40th Street improvements (widening and access ramps), the new three level service street (from East 40th Street to East 51st Street) and the widening of Woodland Avenue (Exhibits E2, E3, E4 this chapter) Excavation and Site Preparation Retaining Walls Paving on Grade Raised Roadways and Bridges Sub Total Indirect Costs and Fees TOTAL Building and site improvements Rentable $ 498,240.00 $ 164,840.00 $ 481,880.00 $ 675,450.00 $1,820,410.00 $ 236,690.00 $2,057,100.00 Truck & Rail ' Site Work and Foundation Structural Frame Exterior Work Interior Work Elevators Mechanical Electrical Sub- Total Indirect Costs and Fees Total Parking Total $ 605,420.00 $1,060,810.00 $ 29,040.00 $ 1,695,270.00 1,700,010.00 303,320.00 699,000.00 160,000.00 610,200.00 297,000.00 2,835,000.00 169,720.00 325,300.00 120,000.00 1,065,600.00 378,640.00 118,440.00 2,960.00 21,870.00 42,300.00 14,800.00 4,653,450.00 476,000.00 1,046,170.00 280,000.00 1,718,100.00 690,440.00 $4,374,950.00 $5,955,070.00 $229,410.00 $10,559,430.00 568,720.00 774,140.00 29,810.00 1,372,670.00 $4,943,670.00 $6,729,210.00 $259,220.00 $11,932,100.00 ' The total cost of the site work and foundation is pro-rated to all three of the major building elements in direct ratio to the area of each. 4-13 CHAPTER 4 STUDY METHODS AND FINDINGS In designing the building, steps were taken to reduce construction costs, as compared to Prototype One, in the following manner: Support and common services have been eliminated from the base building. Mechanical and electrical services can be installed without the need for a split beam and column structural system, since ceilings in this building are higher than those used in Prototype Building One. The cost of dewatering the site has been eliminated by having only one sub-level which does not reach the water level. The height of the building has been reduced, thereby, lowering the load requirements and eliminating the need for a floating slab foundation. Freight elevators have been eliminated from the building. Automobile parking is on the roof and utilizes the existing structure rather than a separate structure. The extent of mechanical and electrical systems has been reduced within the basic building. It should be noted that these savings are offset somewhat by the higher cost of truck facilities, since these are provided on each level of the building. FINANCIAL ANALYSIS Findings Related to Objective 3 A detailed pro forma financial analysis was made for Prototype Building Two, based on design specifications and construction costs as projected for 1969-1970. The summary figures are presented in this chapter with detailed back-up material given in Appendix 4, Section B. OPERATIONAL ASSUMPTIONS This analysis was carried out in the same format as established for Prototype One. (See Chapter 3, Appendix 3, Section A.) Therefore, the basic assumption of giving the tenant certain unique services and facilities (see Chapter 3) remains, but the nature and extent of 4-14 CHAPTER 4 STUDY METHODS AND FINDINGS these services have been modified in keeping with the market test findings and financial analysis of Prototype One. The rentable area is still defined in terms of net usable area, excluding parking, docking, holding, mechanical systems, elevators and public circulation areas such as stairways. This figure is used to compute the rent required to meet the annual cash requirements . A cost provision is made for a central building management service which would take care of leasing arrangements, building maintenance, taxes, insurance, etc. The central management responsibilities are somewhat reduced, since there is no central internal material handling and the central support facilities have not been included in Prototype Two. Modifications have been made in the building systems and design (see Chapter 4, Appendix 4) which are reflected in a lower construction cost per square foot. The concept of a multi-level development has been retained since the objective is to find an efficient way to use urban industrial land. However, the building height has been reduced to three levels, with truck docks adjacent to the production areas to meet the requirement of the potential tenant market. FINANCIAL ASSUMPTIONS The same financing package has been used for Prototype Two as was used for Prototype One (see Chapter 3). The financial picture did not change during the period between the preparation of these two sets pro forma statements. This financing package consists of 65% E.D.A. loan, 25% commercial bank mortgage loan and 10% private equity. Project costs, financing packages and cash disbursements were assembled by major building segments following the same procedure as previously used. (See Appendix 3, Section A.) This permits detailed identification of all cash outflows and summarization on the basis of net rentable square feet. From this analysis, the rental rate required to break even was determined. 4-15 CHAPTER 4 STUDY METHODS AND FINDINGS PRO FORMA STATEMENTS Within the framework of these assumptions and the format established for Prototype One, some variations have been made in this financial analysis in order to test certain cost factors The costs of off-site improvements and land (which had been reduced from $2.00 to $1 .25 per square foot) are included as part of the total project cost in Exhibit El of Appendix 4. However, neither of these costs is included as part of the cash flow analysis. The purpose is to test the effect on the rent, if the land is contributed by the City. A special addendum (see Exhibit E2, Appendix 4) shows the difference in rent when the land cost is included in the cash flow analysis. A special addendum (see Exhibit E10, Appendix 4) was prepared to show whether a private developer could get better financing by acquiring land at $1 .25 per square foot under urban renewal, but securing financing based on the value of the land at $2.50 per square foot. This would remove the need for the developer to put up his 10% equity; but that savings is offset by higher financing and real estate tax costs resulting from the write-up in land value. A special addendum (see Exhibit Ell, Appendix 4) was prepared which projects the annual tax revenues to the City from Prototype Two. The total is estimated at $332,600.00 annually from real estate, personal property and city income taxes. The general findings of this financial analysis can be summarized as follows: Total Project Costs $16,489,760.00 Project Cost Per Square Foot of Constructed Space 19.20 Project Cost Per Square Foot of Rentable Space 54.05 Annual Cash Requirements for Mortgage Payments and Operations 1,828,600.00 Annual Cash Requirements Per Square Foot of Rentable Space - Including Land Cost, Breakeven @ 100% Occupancy 6.11 Not Including Land Cost, Breakeven® 100% Occupancy 5.99 4-16 CHAPTER 4 STUDY METHODS AND FINDINGS The rental rate is beyond the rate which food industry tenant interviewees can afford. Land costs, at $1 .25 per square foot in Gladstone, comprise about 2.4% of the total project costs. These land costs are low for Cleveland becuase this site is within the Gladstone Urban Renewal area. However, these prices are still higher than current prices for suburban industrial land. The rental rate is about $.12 per square foot less than the rental rate which includes the land cost. (See Exhibit El and E2, Appendix 4.) This amounts to less than 2% of the total rental figure. The cost of the off-site improvements is 12.5% of the total project costs. Construction costs of the building represent 85.1% of the total project cost. The high construction costs are the result of multi-level construction the need to put essential services on structure, the need to provide for adequate material handling facilities (train and truck docks), and the need to provide heavy floor load capabilities The breakdown of major building parts is as follows: a. Automobile parking - 1 .8% of total project costs. b. Truck docking and holding areas and train docking areas - 48.1% of total project costs . c. Rentable areas - 35.2% of total project costs. DEVELOPMENT CONSIDERATIONS Findings Related to Objective 4 The financial analysis showed that Prototype Two is still too costly for private development and would require some form of government financial assistance. Therefore, discussions were held with federal and local officials as well as private developers and other interested parties to determine if there would be support for a joint effort. These discussions have brought out several factors which should be considered in the development of this facility . There are private developers who are interested in central city industrial developments. They recognize the City's need to retain industry and employment and are willing to work cooperatively as an advisor or as the developer with federal and local governments to develop this or similar projects. 4-17 CHAPTER 4 STUDY METHODS AND FINDINGS The upsurge of economic activity in the Negro community represents an avenue for possible development. The Hough Area Development Corporation is an organization which is oriented toward the establishment and growth of Negro owned and operated businesses and has been given an O.E.O. grant to pursue its goals. This multi-level building is a possible home for such industrial operations as may be established. Their participation would depend, in part, on federal funding of the multi-level facility. Another important factor is their need for advisory assistance in establishing and managing these operations and in training personnel. However, their interests lie in working with the automotive industry, because there are many opportunities for establishing Negro owned and operated businesses within the framework of this industry (e.g. retail parts outlets, manufacture of radios, small parts, etc.) and these businesses offer a potential for future growth. This represents a long term possibility which could not be explored in depth within the limits of this report. In addition to the previously identified need for space to replace that presently occupied by food distributors, there is a market for a cold storage facility in the Gladstone area. This was indicated in the Prototype One market test and by a private developer. This facility could be a major tenant in a multi-level facility, since it is essentially a warehouse operation and its material handling needs are more subject to regular scheduling. While this might not directly generate employment opportunities, it could serve to attract other tenants to this facility and to the Gladstone area. By increasing the total area of each building level, the tenant market can be opened to larger tenants who can occupy one level within the building instead of two. 4-18 CHAPTER 4 CONCLUSIONS DEFINITION OF BUILDING PROGRAM Conclusions Related to Objective 1 This study has identified a potential market for new industrial space in the central city among food distributors the commission merchants, jobbers, purveyors and meat processor- wholesalers. This group is limited in size and financial resources and does not employ large numbers of people, but it does carry on an important function in the Cleveland area. The scope of this study did not permit an in-depth economic analysis of this element of the food industry and its future in Cleveland. However, it appears that many of the firms within this segment of the food industry cannot absorb a higher rent structure if they are forced to move to a new facility. These operations are relatively unsophisticated in their method of operation and could probably operate in older buildings, if adapted to their needs. A move to an area outside of Gladstone would be difficult for these firms to undertake on an individual basis, because the locational requirements of doing business dictate that they remain clustered. The center of the present cluster is the Northern Ohio Food Terminal; so long as this complex remains in Gladstone, the surrounding clusters of merchants and distributors will have to do likewise. it appears that this group is limited in its potential as a tenant market for this space, since there is not a large number of them and some are limited in their ability to absorb higher rent. The tenant group should be redefined to be larger in scope, and to include other Industrial groups. BUILDING DESIGN Conclusion Related to Objective 2 From the point of view of the food distributor tenant market, Prototype Two presents a functionally workable solution to the tenant requirements. However, it has not been possible to appreciably increase building efficiency despite the elimination of freight elevators and support and common services. The primary reason for low efficiency of Prototype Two is the provision for truck maneuvering space and docks on structure adjacent to the tenant's processing space. However, in light of the financial and developmental considerations, the design of Prototype Two appears to be limited for the following reasons: 4-19 CHAPTER 4 CONCLUSIONS The building does not meet the automobile parking or truck holding needs of the surrounding area, but is adequate only for those who would be tenants of the building. The building is designed for one industrial group and its market potential is limited. The need for a joint effort by the public and private sectors and the resultant financing considerations makes it desirable to identify the public segment of the project. This would permit private development of the industrial or production areas and government financing of the areas for public use (e.g. parking, docking, holding). Therefore, it appears desirable to determine whether a prototype can be designed which would better meet these newly developed criteria. FINANCIAL ANALYSIS Conclusions Related to Objective 3 Private development of a multi-level facility, which includes the full range of necessary services is not economically feasible at this time in Cleveland, since a private individual cannot build and operate this facility competitively in the current market and make a profit. However, the alternative of government assistance remains to be explored. It appears that the rental rate for the production areas could be brought down to a competitive level, if government funds would be used for a portion of the project. If this is true, then private parties might be able to develop and lease the production areas while government funds are used to develop the public circulation areas. Further analysis of alternatives for financing appear to be warranted and should consider the following factors: Develop more sources of public funding that will pay for truck and rail facilities as part of the off-site street improvements, thereby eliminating substantial capital costs from the rental rates. Develop design and construction concepts for the rentable levels which provide maximum cost efficiencies consistent with the needs of prospective tenants. 4-20 CHAPTER 4 CONCLUSIONS DEVELOPMENT CONSIDERATIONS Conclusions Related to Objective 4 The private developers are essentially profit oriented and cannot, within their financial limitations, undertake ventures which will not provide a return on their investment. A project such as this one appears to be beyond the financial limitations of most private developers. It appears, however, that there is interest in working in conjunction with the government where such a cooperative venture is possible. The development problem is therefore one of bringing together the appropriate combination of private, quasi-public, and government interests which will be able to finance construction The change in direction from a purely private development to an enterprise financed in part by government funds has made it necessary to determine whether there is a broad, public purpose to be served which would justify this expenditure. Several factors have been identi- fied throughout this study and can be summarized as follows: The need to retain employment opportunities for Cleveland residents. The need to stimulate private industrial development in Cleveland and particularly in the Gladstone area . The need to give assistance to existing businesses and new firms who need newer, more efficient industrial space, but cannot afford the cost. The need for automobile parking and truck holding facilities in the Gladstone area to serve existing businesses and alleviate congestion. The need to maintain the City's tax base. A facility which would house just one industrial group appears to have only limited market potential. However, the expansion of this facility to serve a larger, mu I ti- industry market has more potential for development. 4-21 CHAPTER 5 PROTOTYPE BUILDING THREE A. OBJECTIVES B. STUDY METHODS AND FINDINGS 1. SITE ANALYSIS AND PLAN 2. BUILDING PROGRAM 3. BUILDING DESIGN 4. FINANCIAL ANALYSIS 5. DEVELOPMENT CONSIDERATIONS C. CONCLUSIONS CHAPTER 5 OBJECTIVES As a result of the Prototype One and Two studies (see Chapters 2, 3, 4), the following major conclusions were defined: New multi-level industrial space is not economically feasible as a private development, because it cannot be operated competitively at a profit. Some form of financial assistance from federal and/or local government would be needed in order to develop a financially viable multi-level facility. If government funds are to be used, then the facility must serve the public interest. Such an interest encompasses the following elements: a. To retain employment opportunities for Cleveland residents. b. To stimulate industrial development in the Gladstone area . c. To give assistance to existing business and new firms who need newer, more efficient space, but cannot afford the cost. d. To serve existing adjacent businesses and alleviate congestion in the area by providing automobile parking and truck holding facilities. A broader tenant market should be defined, since the food industry is limited as a market for potential tenants. Most of the food processors are already committed to move to new suburban space. The distributors who cluster around the Food Terminal are faced with the possibility of having to move out of their present space, while their ability to select new space is limited by financial and locational factors. Based on these conclusions, the major objective for the next stage of work was defined: Todesign a multi-level industrial facility which would accomplish the public goals and be suitable for use by a broad range of tenants, and to define the financial conditions in which it could be rented at rates competitive with the current market. From this, the following secondary objectives were defined: 1 . To develop a site plan which would enable the facility to serve the surrounding area. 2. To define the building program in terms of a broader tenant market. 3. To bring the rental rate for industrial space down to a competitive level by the following methods: a. Minimizing construction costs . 5-1 CHAPTER 5 OBJECTIVES b. Using government funds to finance development. c. Increasing building efficiency. 4. To determine the financing requirements through a pro forma financial analysis. 5. To identify methods of development and implementation consistent with the financing requirements . 5-2 CHAPTER 5 STUDY METHODS AND FINDINGS SITE ANALYSIS AND PLAN Findings Related to Objective 1 [he proposed site plan involves the entire 16.9 acres rather than a portion of this as was done in the earlier studies. (See Exhibit El, this chapter.) In developing this site plan, consideration was first given to the truck holding and automobile parking areas, because of the congestion which exists in the area. An initial assumption or criterion was that these facilities should serve firms adjacent to the site, including the Northern Ohio Food Terminal as well as the new prototype facility. As conditions presently exist, there are virtually no holding or parking areas to serve the businesses in the area. It appears that the provision for such facilities, with the possibility of expansion in the future, could be a key factor in the development of this building as well as in stimulating the redevelopment of the entire Gladstone area. As will be seen from the site plan, this necessitates devoting a large portion of the project site to truck holding and automobile parking areas. A second factor was building and space economies. In order to realize full economies of space and construction costs, it is necessary to develop the entire site. The various elements of the site plan can be summarized as follows. (See Exhibits El and E4.) Truck holding area: This is located on the western portion of the site, to be accessible to both the Northern Ohio Food Terminal and Prototype Three. In addition, the holding area could be increased in the future by the addition of land to the south so that this central area could serve future developments as well. Direct access from the holding area to the N.O.F.T. would be necessary. In order to provide this without crossing traffic, it is proposed that 40th Street be depressed so that trucks can pass from the holding area to the Food Terminal on a bridge over the street. Automobile parking: This is to be located adjacent to the Northern Ohio Food Terminal, Prototype Three and a proposed commercial - office and retail facility. This, along with the holding area, form a core from which the rest of the site and possibly the surrounding area may develop. 5-3 CHAPTER 5 STUDY METHODS AND FINDINGS Industrial space: This is located on the eastern portion of the site. Office-commercial facility: The plan provides for such a facility to be located adjacent to the site. It could house retail outlets, offices, restaurant and other commercial operations. Since such a facility could be built by private developers, it has not been included as part of the financial analysis and detailed design studies. Street improvements are recommended in relationship to the new demands created by this project. East 40th Street would be depressed for the flow of north-south traffic. A bridge at grade would permit direct access from the holding area to the N. O. F.T. Woodland Avenue would be widened to provide extra lanes for turning movements into the facility. Access to the site is provided by separate pedestrian and vehicular entrances. The major pedestrian entrance would be from Woodland Avenue; pedestrian bridges would link the parking garage with the prototype building. Automobiles could enter and exit the parking structure from Woodland Avenue and East 40th Street, respectively; a secondary, two way access point would be on East 40th Street. Trucks would enter the on-site access road from Woodland Avenue and could proceed from there to the holding area, the N.O.F.T. or Prototype Three. Rail access would be provided at grade level by running a siding in an existing right of way on the east side of Prototype Three. The detailed planning analysis which was made prior to the design of Prototype One forms the basis of this site plan as well. The findings are summarized in Chapter 2, Exhibits El through E5. (See also Appendix 2, Section E and Appendix 5 .) BUILDING PROGRAM Findings Related to Objective 2 Although the tenant mix was not known, certain broad categories of use were defined as a result of the Prototype One and Two studies. (See Chapters 1 , 2, 3 and 4.) Distribution operations which require direct access to and control of truck docks, and a minimum of internal material handling. 5-4 CHAPTER 5 — ■ STUDY METHODS AND FINDINGS Cold storage, general warehousing and other operations which handle bulky goods and require direct truck access to docks . Light manufacturing operations involving high value added, with small bulk goods which can be transported in a vertical material handling system, and whose delivery requirements are relatively light. BUILDING PES iGN Findings Related to Objective 3 The design of Prototype Building Three evolved in response to tenant requirements (see previous discussion) as well as the overall objective of reducing the rental rate for the industrial space. In order to reduce the rental rate, the following general determinations were made: Truck holding and automobile parking should be in separate structures. This would allow for use of these facilities by others in the area, as previously discussed. It would also permit investigation of separate financing and development of these facilities, thus removing a cost element .Tom the rental figure. Since a certain amount of government funds were known to be needed, it was decided that these should be applied to an identifiable area of the building. This area should contain the building services which would be commonly used by all tenants. In the final building design, this area is referred to as the central building core. By providing these systems, the building design concept would be comparable to a single level development in that each floor would be like a horizontal tract of land with all utilities and services available on one level. The design concept of Prototype Three, which evolved as a result of these considerations, is summarized below and illustrated in Exhibits E2 through E6. Major functions are housed in four separate but inter-connected facilities: Automobile parking garage. Truck holding area. Industrial building. Central building core. 5-5 CHAPTER 5 STUDY METHODS AND FINDINGS AUTOMOBILE PARKING GARAGE The automobile parking facility has 10 levels two below grade and eight above. Irs total capacity would be 218.8 cars. This figure has been based on the number of employees estimated for Prototype Three and the present needs of the N.O.F.T. for additional parking. In addition, it would serve the proposed commercial facility. There would be direct linkage between Prototype Three and the parking garage by a pedestrian bridge and the commercial structure would also be directly connected. The N.O.F.T. would be within easy walking distance for employees or customers. (See Appendix 5 for detailed description.) TRUCK HOLDING AREA The truck holding area consists of three slabs — one at grade, one ramping down to sub- level one and one ramping up to level two. Its total capacity is 186 trucks. This combines the circulation and holding areas on one structure making construction more economical. It also permits use of the holding area for both the Food Terminal and Prototype Three. Trucks would enter the site from Woodland Avenue. From the access road, trucks can either go directly to the N.O.F.T. by traveling through the holding area at grade, or to a designated holding space, or to a dock in the central building core. There is access from the holding area to the Prototype Three docks at sub- level one, level one and level two. On-site truck circulation would be controlled by a central management service. There would be a control station located near the truck entrance, manned by a person having electronic communication with each holding and dock area. PROTOTYPE BUILDING THREE Because of the broadly defined potential tenant market, the building program recognizes that the detailed requirements of each tenant would differ and are unknown. Therefore, the building must be flexible so that each tenant can achieve his unique requirements. This building provides basic shell industrial space with provisions for the tenant to make his own leasehold improvements. 5-6 CHAPTER 5 STUDY METHODS AND FINDINGS There are five levels in this building; one below grade and four above. The central building core will contain freight and passenger elevators and mechanical and electrical utility risers. The actual industrial space would be constructed around the central building core. The total amount of rentable industrial space is 1 ,745, 900 square feet which is 56% of the total usable surface area of all functions. (See Exhibit E8.) Truck docks are provided in the central building core on sub-level 1 , level 1 and level 2. Each dock area is directly accessible from the adjacent production area and from the holding area, but there is no internal truck circulation between levels of the building. The truck docking system has been designed to meet a variety of tenant requirements previously described in the building program. Sublevel 1: Cold storage and general warehousing were thought to be possible uses for this level. Truck docks would serve the tenant in the adjacent area and would be under the tenant's control. Level 1: The assumption has been that tenants on this floor would require flexible scheduling and direct access to truck docks because of handling bulky goods or frequent truck deliveries and shipments. One specific tenant group anticipated for this floor is the 40th Street Merchants. Provision has been made for docks for small trucks at grade along the outer western side of the building in addition to the docks in the central building core, giving tenants in this part of the building truck access on two sides. This if for tenants with exceptionally high service requirements such as the food distributors. Each tenant would be directly responsible for scheduling the use of his docks. Level 2: Tenants who sell or manufacture a small product and whose truck dock use can be easily scheduled would be located on levels 2, 3 and 4. The truck docks in the central building core at level 2 would be for their common use with scheduling handled by a central management service. A rail spur track could run along the outer eastern side of the building. Because the nature and extent of use is unknown, the docks have not been provided as part of the building or its costs. However, there is space for docks to handle up to 13 railroad cars. The major building systems can be summarized as follows: 5-7 CHAPTER 5 --_ STUDY METHODS AND FINDINGS Structural: Building construction would be poured-in-place, reinforced concrete at all levels. Generally, shell space is provided so that each tenant can make the improvements necessary for his use, with appropriate finishes and materials. Bay sizes, ceiling heights, and floor loads have been determined so as to permit the maximum flexibility in use of space for processing and warehousing, considering such factors as storage of materials, production flow, and size of equipment. Bay sizes are 30' x 30' in production and dock areas, 30' x 60' and 60' x 60' in truck maneuvering areas. Mechanical and electrical systems: All major utility lines will run within each of the 5 vertical shafts located in the central building core, with access points at each floor. Each tenant would be responsible for bringing the utilities and services he needs, horizontally from the access points to his own space. All such tenant installation would have to be executed to building standards and be approved by the building owner. Material handling system: Vertical movement of goods within the building would be by freight elevators which are located in the vertical shafts in the central building core. There would be ten freight elevators each serving all levels of the building, for these purposes: a. To connect level 2 truck docks to tenants on levels 3 and 4. b. To move goods between the train area and all levels. c. To connect those tenants where inter-buying relationships exist. Horizontal material handling would be accomplished by use of fork lift trucks using standard wooden pallets. STAGING PLAN It is recognized that there may not be an actual market for this amount of space or that financial considerations may limit the initial investment which can be made. Therefore, a plan for staged development has been defined. 5-8 CHAPTER 5 STUDY METHODS AND FINDINGS Holding area: It is recommended that the entire three levels of holding be constructed. This would alleviate the congestion which presently exists in the area. Further, it is anticipated that staged construction of this segment of the project could not be accomplished efficiently, since construction of later stages would disrupt use of the existing holding area. Parking garage: As shown in Exhibits E2 and E3, the two sublevels of the parking garage are below the grade level holding area and adjacent to the sublevel of holding. Since the holding area is above part of the two parking sublevels, these parking levels would have to be built as part of the first stage of development so as not to disrupt the holding facility at a later date. The number of levels to be constructed above grade would be determined by the actual market created by the industrial space as well as the market in the surrounding area. Industrial space and central building core: Several alternatives for staged development exist and would be compatible with the stages for the parking and holding areas. a. Construct the sublevel and either one or two levels above grade. Air rights could then be available for future development of industrial space, which could utilize the services provided in the central building core. b. Construct up to five levels of either northern or southern half of the building including the access from the holding area to the truck docks. The central building core would be built proportionately to serve the industrial space. c. Construct up to 5 levels of the western half of the building including the access from the holding area, with the building core built up proportionately to serve the industrial space. 5-9 o- "* z z h- UJ Q _^ O — • *-• LU S-i|S o. , . v^ -• < •S I— — Z < _l a. LU h- *- > - < »— •*• a _| O — • — • uy| -O I __ uj to z o t- o Ul to 3 £ * «/t S u _ u o > 3 5 ° Z 5*V*8ft*?3 Of- uj _> o ca a. w 2 z >- > - < h- «*i a ~2 O — * — I LU S « - a. JI -j «~» UJ > LU CD (0 a * i= 2 u c o o w 1 4 £2 :s s. I. 2 tAS -sJ y> CL Ul 2 >» >• — t— **» o © -« -w > Ul 5 * k P o * S ■ 2 o o gi _ o o > % I ° 2 * _• ° ** C * = = ... 3 : i Z3 J I 1 < s 2 ? I ° • • * ° * ° O • • o • ° ° • ° _^_ • _ca L )>131«lt H10» IS*] UJ —J O Q °- tM Z Z >■ > — < »— "J O _J O -* -• uj *T i S > fi£ ™ — i O. , . V^ _J < W > — "i a _j o s IO O — • -J i*j X fc 2 'S 2 1 A. £ «. W e Ul > — i < © UJ . Atf «■ -1 *« ■ w u 5 i> o > I * I go 5 o • © o s. s. X. s* I. r i Beg r - i ....!,.. 1 ! 1 1 E3 1 1 : ij-4. i 1 ...' ' ' ..._. 1 •':!- 2. '_^ J r ., i,. 2'..'4'.. v d , ! : : •■ .!..!■ ., 1 , Jill ii'ii I'!'! ''1 !'ij i(:i' : .iiUi. ■If ' "" 4 4 """ J g„i ..:.;. ■ 1 „_4 i ■ ' ; p« 1- — i ( n i ni lo 1 '- ' 1 * I .' ': .it '•■! » . 11.1.^,1. ,; .. r .. -H 1 □a - EX ,|jil J r » 1 r""' r™ ; i ■ ;. I |i hi; ,i 'I'V !i l! ' ■;":■ W-B. ' i "■ i * , .r ji|!: \m | ■■p - -■■■-■■ ''"", i; | ,::,... lilt 1 ''I .-Ht / .... •--■ .;,::!:. ,.!.... - .. ..:.:.. .-.. •-- ..... 1 1 12 EXHIBIT E7 PROGRAM SUMMARY I. SITE A. Land Area B. Building Coverage at Grade C. Gross Floor Area Ratio II. BUILDING (see Exhibit E8) III. SERVICE FACILITIES A. Car Parking Spaces B. Truck Docking Spaces C. Truck Holding Spaces D. Railroad 1 . Sidings 2. Car Spots E. Freight Elevators F. Passenger Elevators: Central Building Core Parking Garage IV. DENSITY (No. of Employees) A. Industrial (500 s .f ./person) 16.9 acres 81.3 % 4.1 2188 202 186 1 18 10 4 4 3491 5-16 o z m 1- LU () i— 1— CO (Y J. a. X > o o O O O O O O O o> 1 O ■O O in O O O O O r-N O CN O O O O O — UL -tf O CO CO CO 00 r-N 00 is 00 O CN CN a 10 CM O in in CO in CO •n -O o cr O •— K in <* «* i— co i == «s«= === CO CO =^^ O O O 0- -N 3 U oi O O O • c O O O CN O CO CO CO CO CO CO 00 00 t ■<* *— CN CN 10 10 m in in in in in O l/-> (X. 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E 4UDjno4say r-v rv 00 1 ■* CO I'Djey r-N CO 1 *° m- CN ~o Guisssoojj -0 -0 85 O n2 c> -N? -O puD in U- vi n CO On D uoi4nqu4siQ ^r CN ■nT -0 8 ^f <* ,'"° CO CO ,' c 'ssnoijajD^ , 3te < j_ > _i < < < < 0) LL- 0) U o ,?L CN CN CO CO >* ■Nf cr a> J. > ^ifc > site CD > > > CD > =tfc CD > _c: c O J. g-s " u "5 o 3 Q) a> _l _j _l _J 1 _l _J _J 0. 1 uo 00 h- D_ (_ ra»« -.■■ ,'BHW straj ran -. . .".TJ— 1 --,■' -..;-:.- ■-■ .-„ .- :---• -ira MMsacra u u X < CHAPTER 5 — - STUDY METHODS AND FINDINGS CONSTRUCTION COSTS Construction costs have been established for each major segment of the project using a system similar to that used in the earlier studies . (See Chapter 2.) Off-site improvement costs include the depression of East 40th Street and the bridge over the depressed street to connect the holding area with the Northern Ohio Food Terminal and the widening of Woodland Avenue. Excavation and Site Preparation $387,800.00 Retaining Walls 22,900.00 Paving on Grade 144,800.00 Bridge 25,000-00 $580,500.00 Indirect Costs and Fees $ 75,500.00 $656,000.00 Industrial space, central core, car parking, holding areas costs are shown separately below. The breakdown given below is not directly comparable to that used in earlier studies, because of the differences in the design concept. The land cost shown for each segment is based on the cost for the land occupied by only that function. Industrial Space Central Building Core Holding Area Parking Garage Total Site Work and Foundations $ 2,385,000 $ 526,000 $ 406,000 $ 606,000 $ 3,923,000 Structural Frame 9,481,000 1,390,000 633,000 3,470,000 14,974,000 Exterior Work 2,284,000 - 13,000 101,000 2,398,000 Interior Work 3,335,000 258,000 63,000 646,000 4,302,000 Mechanical and Electrical 3,679,000 2,873,000 221,000 1,369,000 8,142,000 $21,169,000 $5,047,000 $1,336,000 $6,192,000 $33,739,000 Indirect Costs and Fees 2,756,000 657,000 199,000 805,000 4,417,000 Sub Total $23,920,000 $5,704,000 $1,535,000 $6,997,000 $38,156,000 Land Cost 430,000 144,000 198,000 151,000 923,000 Total $24,350,000 $5,848,000 $1,733,000 $7,148,000 S39,079,000 5-18 CHAPTER 5 STUDY METHODS AND FINDINGS FINANCIAL ANALYSIS ~~^ Findings Related to Objective 3 Based on the findings of the previous studies, it was known that government funds would be needed to finance a portion of the total project costs. The characteristics of the project are such that it could qualify for a loan or direct grant under the Economic Development Act of 1965, as amended. FINANCING ASSUMPTIONS Certain assumptions were made as to sources of financing and ownership for each segment of the facility (see Exhibit El, Appendix 5), based on the E.D.A. requirements for local government participation and the goal of achieving combined federal, local and private involvement. A combination of direct E.D.A. grants to the City of Cleveland, E.D.A. loans at 4 3/4%, City bonds, and private sources have been arrived at as the method of financing construction. a. It was initially hoped that the industrial space could be developed using the financing package consisting of private equity, commercial bank loan and E.D.A. loan. However, a preliminary analysis of project costs showed that this package would result in a rental rate above the market level. Therefore, it was determined that construction of this portion of the project would be financed by a package consisting of 90% E.D.A. loan and 10% equity from local sources. b. Construction of the parking garage is to be financed by the City using revenue bonds or general obligation bonds. c. Construction of the holding area and central building core would be financed by direct E.D.A. grant to the City of Cleveland. Costs of operating and maintaining the central building core would be borne entirely by Prototype Three tenants. 5-19 CHAPTER 5 STUDY METHODS AND FINDINGS Seventy-five per cent of the costs of maintaining and operating the holding area would be borne by Prototype Three tenants and the rest by outside users, possible through payment of a fee. The cost of land for each segment of the project is computed as part of the project cost for that particular segment. The parking structure has been analyzed as a separate self-supporting operation, to show the cash requirements necessary to service the debt. The cost of off-site improvement would be borne by the City as part of its contribution to the total project. These costs have not been included in the financial analysis. PRO FORMA ANALYSIS The major findings of the pro forma cash flow analysis are summarized below, with details given in Appendix 5, Section B. Central Industrial Building Holding Parking Building Cere Area Garage Total Project Costs $27,220,000 $6,533,000 $1,917,000 $7,987,000 Total Constructed ■, Square Footage 1,745,900' 326,500 165,600 674,600 Project Costs Per Constructed Square Foot $15.59 $20.01 $11.58 $11.84 Annual Cash 9 9 Requirements $2,911,000 $ 275,000 z $ 37,000 z $ 930,000 Annual Cash Requirement Per Square q q Foot of Rentable Space $1.82 - - $35.00/ month/parking space This figure is the gross industrial space and is the basis for computing the rental rates 2 Does not include financing costs, since this is direct grant. 3 Is included in industrial building rental rate. 5-20 CHAPTER 5 STUDY METHODS AND FINDINGS The financial analysis of the industrial building rentable levels, central building core, and truck holding and circulating area indicates that annual rentals of $1 .82/square foot would have to be charged in order to provide annual cash flow requirements for operating, maintaining, and managing the proposed facility. This rental rate assumes 100% occupancy which is probably unrealistic; however, it provides a bench-mark by which to measure any level of occupancy since the rental rate required to break even is in direct proportion to the occupancy level. The following table shows the annual break-even rentals at various occupancy rates: Annual Rental Average Rented Space PerSquare Foot 100% Average Occupancy 1,745,900 square feet $1 .82 90% Average Occupancy 1 ,571 ,310 square feet $2.02 85% Average Occupancy 1 ,484,015 square feet $2.15 A return on investment factor was not included in the rental rate, since 90% of the funding will be in the form of a federal loan, and the remaining 10% provided by local, presumably non-profit, sources. The feasibility of constructing a 2,188 car parking facility has been evaluated on the basis of required annual cash disbursements, without benefit of an accompanying market demand study. Utilizing this approach, determination has been made of the minimum revenue that must be generated in order to service the debt and cover normal operating cash disbursements, Possible financing arrangements were discussed with a local financial organization to determine which approach would offer the most favorable terms, given the existing money market conditions. Based on these discussions, three schedules are given using both City of Cleveland General Obligation Bonds and Revenue Bonds. (See Appendix 4, Exhibit E4.) Cash requirements have been converted to a charge per space basis which represents the minimum amount of revenue that must be generated to cover annual cash disbursements. Included in these cash requirements is a management fee of $25,000.00. 5-21 CHAPTER 5 STUDY METHODS AND FINDINGS At a break-even point, the charge per space per month ranges from a high of $37700 to a low of S35.00, depending on the mode of financing used. This means that each of the 2,188 spaces must generate at least S35.00 per space every month. The competitive condi- tions existing in the Gladstone vicinity have parking rates at $.30 the first hour, S.20 each additional hour; $1 .00 per day; $20.00 monthly permit. Revenue expectations would seem to be less than the minimum required to achieve this break-even point, but this is difficult to evaluate without the benefit of a market demand study. DEVELOPMENT CONSIDERATIONS Findings Related to Objective 5 Discussions were held with an industrial developer and an industrial realtor to ascertain their reactions to the Prototype Three rental rates within the context of the current market. Both felt that the rental rate is too high to be competitive with both suburban and central city space. The developer indicated that a rent of $1 .50 per square foot at 80% occupancy would possibly be marketable. The realtor thought that a rental rate of $.90 per square foot would be necessary to attract tenants to the Gladstone area. Both pointed out certain relevant factors about the current situation in Cleveland: There is a large amount of vacant land available in suburbs for industrial development. There has been little or no multi-level industrial construction during the past several years because this type of construction is too costly and the conventional type of multi-level building does not lend itself to the efficient operation of most industrial processes. The Gladstone area is not attractive to industry because of environmental problems. Those who are presently located there generally are either paying a very low rent or have a specific need for that location. The current (1969) rental market in the Greater Cleveland area is $1 .25 to $1 .75 per square foot for new suburban space and $.65 to $1 .00 for space in older existing buildings in the central city. An upward trend in rental rates for new space has been identified because of rising construction costs and higher interest rates. 5-22 CHAPTER 5 STUDY METHODS AND FINDINGS With private development eliminated from consideration as a result of the Prototype Three financial analysis and the earlier studies, the focus here is on development possibilities within the previously defined limitations of the financing requirements. It appears that further steps toward implementation would involve: Test of conditions in other cities. Possibilities for development in Cleveland. CONDITIONS IN OTHER CITIES The original reason for this study was to test the multi-level building as a high density use for urban industrial land. While this building concept is not economically feasible in Cleveland, it remains to be tested in other cities. Certain variable conditions have been identified which would have to be tested in other cities in order to determine whether Prototype Three, or any other of the design studies would be feasible under a different set of conditions. These are: Construction cost. Current rental rates. Market for new industrial space. Relationship of the central city to surrounding suburbs in terms of land cost, land availability, proximity and access, and labor force. If the above conditions are such as to make multi-level industrial construction economically feasible, there are benefits to the City in terms of more efficient use of land and a higher tax return. An analysis was made of the annual tax revenues to Cleveland from the Gladstone site (see Exhibit E9). This compares the tax yield from a single level building to the Prototype Three facility using current local tax rates. The Prototype Three figures are based on the design specifications and financial analysis previously described. The single level facility is based on the currently used standard of 40% building coverage of the site, and a construction cost of SI 1 .00 per square foot. Both assume one employee for every 500 square feet of industrial space with an average salary of $8700 per year. The multi-level building gives the City tax revenues of approximately $1,000,000 more than the single level building. 5-23 o 1— > o o o Z > u o {2 i z -^ g: o £ z X < < I— oo o o o o o o CO CM CM o> tf> Os < < UJ oo| C£ oo o o o CO CM o* oo a> o C o oo C II a) E a. _o ■*- CO In* u- O) O .£ a) 51 o o CM On OO O O O O IT) tN, "«t •— "" IT) "* vp vp c>- o^ CM — CO r^ o co -* c*5 oo o o CO lO o o o CO CO O r~ On V io in o 2 " ® @ o 2 Lj ~5 o _c O IT) CM O Q. Q- U 6 X < 5 O u z E m o £ D C CO > O o^ - S _Q O I— Z UJ £ < r— I— o o^ CO c D 0) U- > — o O -C o 8> 0) J2 £.9- 0) o o x U£ 14- O) O y) U_ " .9- o 0) t- Q) 8 8 o Pun£ i_ s. O a>_ > S3. 0"" _c j- 00 X p-> c o a. "5 c o O- CO 0> u O o a x ° C-8 o vo 2 Q — ■d ro = 8 *. »•> *- ■ o o x o — "^ <" ?£ Si* 8 : >v E .- "O "O O) O fl) " 5 » * > — *: _q < u_ o z o oo an o u CM I o o CM CO o o o CM o o o CM 3 o c II 4) II ^-^. E o o_ o o LU lO >o UJ CM <" l« v at r->. Q^2 X X vo «o^ < o •*■" r— UJ h- Q> oo^- Q- UJ _d ed^ > I— < o > O) O c o H- X ^^^ .= o OO o ~o 12 _2 1— UJ »— c •— D o ac _J u^ o o —J o3^ O- OL t— o o O o 0> a. o o O O Mj IN. ^t tx ■>- s «» s •fc 4) o CO 00 CM J? IX o 00 (fi 00 CO r— «d S"co" *& o *o OO oo «jO o o IV. UJ o o o CO 3 o o CO CO V z ■O D) *> V i— o ^ o CO Ox CO 00 ^2 UJ > UJ at "S g II o^ VO II c> -^ o^ Number of Employees: Annual Total Gross Pa City Tax Revenues @ X < »— c> o ■M V) o) a> CM ■~" CO _i a> o) K @ >. w O i_ _Q 13 M3 CO 8 8 o. o_ J> CO CO CM X < UJ CO X < I— >- at UJ a. o at O- oo d X o o < z z < Q UJ ■«cr @ o o Co > CM MJ OO lumber of employ Estimated avera c o o es5 ~o o _c U O _c o o u z timated timated timated _i < z o CM o oo UJ _i < h- o O O !_ a> a> H ^ o oo o £ JjiJjiIj oo at UJ OO X o UJ 4) U u a. >— •— CM CHAPTER 5 STUDY METHODS AND FINDINGS DEVELOPMENT IN CLEVELAND The concepf of allowing for the possible combination of manufacturing, food processing and warehousing activities with a distribution system in a single facility, and marketing this facility at a rental rate that is competitive with existing rental rates is a unique marketing challenge. While in-depth market testing and demand analysis is beyond the scope of this feasibility study, the decision to proceed with the implementation of this project is dependent upon the willingness of major tenants to commit support, interest and an intent to lease space. Therefore, an in-depth market testing effort including the presentation of the Prototype Three design, along with the presentation of financing and management methods might be undertaken at an early date to serve as the primary basis for a decision to proceed with construction. This would involve contact with major employers in the area as well as smaller operations with a need for space. The objective would be to determine the nature and extent of the market and the financial ability and willingness to participate in development of the project. It is apparent that a combination of tenant commitments will be needed before the decision to proceed with construction can be finalized. Alternative considerations relating to the identification and/or selection of a developer have been reviewed. The criteria for evaluating these alternatives is based upon a combination of factors, including: The capability to engage and to control project contractors in a manner most responsive to tenant requirements; The advantage of combining all stages of implementation with an on-going responsibility for marketing, management and general operations; The acceptance needed to improve the probability of attracting one or more major tenants; and, The eligibility to receive substantial federal assistance. The possible alternatives are summarized below. There are, of course, other alternatives and combination of alternatives that might be organized; however, the financing package placed certain restrictions on the considerations. 5-25 CHAPTER 5 STUDY METHODS AND FINDINGS In accordance with Public Law 89-136, Section 202, there are fewer alternatives available when extensive federal assistance is involved: "Such assistance shall be extended to applicants, both public and private . . . which have been approved for such assistance by an agency or instrumentality of the State or political subdivision thereof in which the project to be financed is located, and which agency or instrumentality is directly concerned with problems of economic development ..." Within these limitations, the alternatives below are broad enough to span a wide spectrum of probability. Private development group: This could be composed of tenants or other interested parties. Such a group may have the best capability to engage and control project contractors, be the most logical group to combine all stages of implementation, and to gain the acceptance needed to attract tenants and to influence tenant participation in management of operations. However, it would not be eligible to receive the federal assistance needed to implement this project, thus making it impractical to consider a private group as a principal developer. Existing economic development corporation: There are presently two such bodies in existence, the Greater Cleveland Growth Corporation and the Hough Area Develop- ment Corporation. Formation of a new economic development corporation: The City of Cleveland could designate a new development corporation comprised of tenants, a developer, the City and other interested parties. City of Cleveland: There is some precident for City ownership of the facility based on its ownership of port facilities, parking facilities, the airport, etc. The methods which involve the City and/or an economic development corporation qualify for receipt of federal funds. Their possible weakness is a lack of experience in coordinating all phases of implementing a project of this magnitude including design, marketing, construction and operation. Attracting one or more major tenants will require professional real estate experience which may not be available within a public agency. It appears that this expertise can be achieved by hiring experienced staff personnel or contracting with a private development and management group. This would provide capability for all stages of implementation including continued management of the facility. 5-26 CHAPTER 5 STUDY METHODS AND FINDINGS In accordance with Section 101 of Public Law 89-136 ". . . The amount of supplementary grant under this section for any project shall not exceed the applicable percentage established by regulations promulgated by the secretary, but in no event shall the non-federal share of the aggregate cost of any such project (including assumptions of debt) be less than 20 per centum of such cost ..." Based upon the financial program developed in this feasibility study, local project financing will be needed for the following project elements to the following extent. 1. 10% Equity for Rentable Industrial Space $ 2.70 million 2. Parking Facility 8.00 million 3. Off-site Improvements .15 million* TOTAL $10.85 million or 23% of the total project cost * 1/4 share of estimated off-site improvements within the urban renewal project cost. Several alternative methods may be utilized to provide local project financing. (See Appendix 5, Section B.) Rentable Industrial Space: In addition to the 90 per cent loan and/or loan guarantee, local funds may be obtained from tenants as a participant in the organization of an economic development corporation or a foundation loan to such a corporation which would be unsecured. Parking Facility: Construction may be financed entirely by General Obligation or Revenue Bonds issued by the City of Cleveland. - Off-site Improvements: May be financed as a part of the Gladstone Urban Renewal project. Marketing Activities: Cost of initial marketing may be paid by a potential developer on a speculative basis; paid by a major tenant who may wish to assist in the organization of a new economic development corporation; paid by the Greater Cleveland Growth Corporation as a portion of its program which is assisted by the Economic Development Administration; or financed by a private grant from Cleveland NOW or a foundation. The City's role would be decisive in the implementation of this project, regardless of where the ownership or development responsibilities are placed. 5-27 CHAPTER 5 _^ CONCLUSIONS The specific conclusions relating to the Prototype Three building design and program are summarized below. Since the conclusions relating to financing and development represent overall conclusions to the entire feasibility study, they are discussed in the CONCLUSION section at the beginning of the report. CONCLUSION RELATED TO PROTOTYPE THREE PROGRAM AND PES IGN Given the assumption that the facility should serve the existing adjacent buildings, the site plan takes on a different character than in previous studies. The on-site land use relationships change in that automobile parking and truck holding areas become relatively more important elements because they serve the area. Within this concept, these are best treated as separate structures rather than as part of an interrelated building unit. A new facility will work more efficiently if it helps to solve existing traffic congestion problems rather than operating as an independent unit. Because of the size of Prototype Three and the constraints of the existing market for industrial space in Cleveland, it is better to program a facility for a broad potential tenant market. This should be oriented toward the characteristics of the operations (e.g. distribution, light industry, warehouse) rather than specific industrial categories (e.g. food, printing). The Prototype Three design does successfully accomplish the objectives of providing space for a wide range of industrial tenants, identifying the government financed areas of the project, and serving the adjacent area as well as building tenants. It is desirable to provide separate facilities for each major function such as automobile parking and truck holding. From a design point of view, these could be included as part of a single building concept. However, from a cost point of view, the inclusion of these facilities increases construction costs, decreases building efficiency, and results in a high rental rate. The design of separate facilities for these functions permits their financing and development by different sources and results in a lower rental rate for each industrial tenant. Even with the use of government grants and low interest loans to finance construction and development of this facility, the cash flow requirements for Prototype Three result' in a rental rate which is above the current market in Cleveland. It appears that this space would not be marketable at this rental rate. If a public need should be identified which justifies further government financing of a new multi-level facility (e.g. rent subsidies for tenants), then development can be accomplished by the methods described in Chapter 5. 5-28 CHAPTER 5 CONCLUSIONS Of the three design solutions which have been tested and are described in this report, (see Chapters 2 and 4) Prototype Three presents the best solution to the study problem. With public financing necessary in order to bring the rental rate near the current market, Prototype Three offers the most logical method of combining private, City government and federal interests. It appears that implementation of this design plan would be possible in the following circumstances: If a group of private firms have a locational requirement or recognize a social need great enough to justify their participation as tenants. This would involve their furnishing the necessary equity j n a tenant corporation, and Implies the ability to absorb a rental rate of $2.00 to $2.50 per square foot. If the City or federal government recognized a need to retain an industrial group in the Central City because of its contribution to the City's economy through taxes and employment or to stimulate the City's economy, this would also involve formation of a tenant group, but the equity would probably come from other local sources such as a non-profit foundation. 5-29 APPENDIX 1 PRELIMINARY RESEARCH AND PROGRAMMING SECTION A - CHARACTERISTICS OF SELECTED NEIGHBORHOODS SECTION B - COMMUNITY SUPPORT SECTION C - SELECTION OF INDUSTRIES SECTION D - PRELIMINARY BUILDING PROGRAM SECTION E - SELECTION OF BUILDING SITE APPENDIX I - SECTION A CHARACTERISTICS OF SELECTED NEIGHBORHOODS Data on Cleveland and its selected neighborhoods provides an overview of employment trends and existing social and economic characteristics. The data is based upon an analysis of cen- sus information from the 1960 Census of Population, the Special Census of 1965 and the sub- sequent publication by the Bureau of the Census in 1967, Characteristics of Selected Neigh- borhoods in Cleveland, Ohio, April, 1965. Some controversy may exist concerning the ac- curacy of the survey data from the Special Census of 1965 due to the limited size of the sam- ple and relative difficulties in securing information within central city areas. It was felt, however, that the basic trends and relative changes within the central city would be reason- ably reflected by data available. The findings are summarized in Exhibits El through 5. Al-l o o _c o co c g 10 o on years years 12 8 8 8 >N o N >N. On On CO CO J2 e 8 8 >N X CO CO On O j/> e S2 k. e e IA k. o o o 5 8 8 o 8 8 8 8 >v >N. >» >N >N. >N, x >s X >N •— U o 3 8 o u. CO On NO CM N H> V n *» •O r— o o rv On CO rv CO to •— «■— > c o CD D o X 5? 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CO CO O CO CN i I -<* i 1 CO 1 U Ci — cZUI w — — •— CO ml CN O MD CO >0 CO ■— o CO O CO CM o -o o m Tf CM — •— o — o CO O) 3 o X c 4> c 4> u m m o CM CO MD m CN CN o CO CO C> CN -<* I C> in CN i c> ■^f o t^ r^ CO MD CO o CN CO CO MD CN *-" "# ^ £ o OI m oS in I — " in o o co" "?, *5 »w o Vl- O _c 4) >*— «-£ X-D c o E La ^O io o .2 "O m 4) ° — O) 0^ 4) c O O O 8-g o •- *• 4) I— z. Q- < O ^: o s T3 C 4> 4> u U 4) C c >— u- T3 O O O o 4» _c D) v Q> 4) z "O E 4> E 1) 4) u (1) •-*- t^ u u- *- O c 4) U E -*— ^_ i_ i— 4) r"» o o • l/> u j: • U 3 i» u l_ D O to MD < APPENDIX 1 - SECTION B COMMUNITY SUPPORT In the early stage of this project, it was determined that the attitude of community leaders would be relevant to the execution of this study and to the ultimate success of a multi-level industrial building. A series of personal interviews were held with community leaders re- presenting Cleveland's business, industrial, and government sectors. The individuals sel- ected for interviews represent a broad cross-section of interests and ideas so as to give a reasonable representation of current thinking with respect to the proposed project. A total of 15 interviews, which are summarized below, were held with individuals representing the following community sectors: - Real estate - Construction - Industry - Foundations and Quasi-Public Organizations - Utilities - Railroads - State Government - City Government BANKING Two banking executives representing 75 years of collective experience in financing in- dustrial expansion in Cleveland expressed concern regarding: - The possible loss of image by an industry in not having a separate building. - The growing tendency toward ownership in certain industries. - The necessity to assure the compatability of tenants. - The limitation of the project within the City, rather than the entire metropolitan area. They also indicated that a major factor in developing support for the building would be its relationship to good public and commercial transportation. They expressed recognition of the impact of deterioration of the central city economy on the metropol itan area . At least one major bank has expressed a definite interest in being informed of and involved in the project. A 1-7 APPENDIX I - SECTION B COMMUNITY SUPPORT FOUNDATIONS The Executive Director of the Cleveland Associated Foundation represents an organization which is deeply committed to seeking solutions to urban problems in Cleveland and which funds many projects directed at this effort. He felt that the development of a new industrial facility related to the disadvantaged areas of the central city would be helpful in improving and maintaining the economy in these areas. He pointed out that the major effort of the community leadership is currently directed toward education, housing and related sociological problems. The local government must be a major supporter of the project in order to generate support from other sectors of the community. GREATER CLEVELAND GROWTH BOARD The Executive Director and his assistant provided valuable assistance in assessing the specific industrial needs of the City. They noted that detailed financial aspects of the multi-level building in terms of rental rates and construction costs would be critical in generating enthusiasm for the project. They supported the continuation of this study. In an effort to retain industries in the City, the Growth Board had been working with several groups of industries on the formation of "block club" type improvement associations, and are encouraged by the enthusiasm for this effort. They also have considerable interest in the "walk- to- work" concept afforded by a central city location. GREATER CLEVELAND GROWTH CORPORATION This is an economic development co/poration formed to stimulate and encourage industrial and economic development within the City. It is currently under contract to E.D.A. to perform specific studies in this area. Knowledge of these programs and goals has been important to insure that efforts would not be duplicated and to develop a coordinated plan. Its Executive Director expressed interest in the central city industrial concept and offered to provide assistance in the detailed study of potential markets in Phase II. Interest has been expressed in remaining involved in the project and this organization could possibly serve as the actual developer. Al-8 APPENDIX I- SECTION B COMMUNITY SUPPORT INDUSTRIAL DEVELOPMENT Two executives in industrial development indicated that some potential would appear to exist for utilization of the proposed building for industries which prefer a central location. Concern was expressed about the potential incompatabilities which could develop in a mutli-tenant situation, unless the building were planned for related industries vh ich already tend to group together. Concern for industrial development in the City was expressed with regard to the somewhat complex procedures required for rezoning, parking expansion, and urban renewal, as compared to the relative ease of undertaking development in the suburbs. It was felt that the type of project proposed, if actively supported by the City, would en- courage development within the City. Each indicated a desire to work further with the project in Phase II and suggested their hope that this could lead to a new prospect for in- dustrial development. INDUSTRY A number of executives within the five industries analyzed were interviewed. The pri- mary purpose was to identify basic physical and economic characteristics of each industry. The over-all objectives of the proposed project were presented for their evaluation and their assessment of support within the total industry. Reactions ranged from somewhat doubtful interest to consideration of possible relocation to the proposed building. In gen- eral, nearly all felt that small and medium sized firms in the five industries have been somewhat neglected in terms of private and public support and they viewed the project as the kind of effort required to maintain the industrial base of the city. All offered to assist further in the project and requested to be kept informed. RAILROADS Several major railroads in Cleveland were contacted concerning the extent and location of their land holdings in the City and the availability of such land for development. Such holdings represent an extensive potential land resource within the community. Only one of the companies was able to furnish definitive information concerning their real estate in Cleveland. The majority seemed hesitant to commit themselves to support an inner-city development in terms of promotion. This is attributed to concern for the deterioration of the AI-9 APPENDIX I - SECTION B COMMUNITY SUPPORT urban environment and the fact that some railroads are actively promoting developments in outlying areas. It appeared that the railroads would work with other developers in the provision of appropriate rail service to industrial development areas within the City. The use of air rights over rail rights-of-way could be explored in depth in conjunction with detailed engineering feasibility in Phase II. REAL ESTATE AND CONSTRUCTION A major industrial realtor and the president of a large construction company expressed the opinions that the need for such facilities in Cleveland was minimal in light of the available vacant land in the suburbs and available vacant industrial space in the City. While each had a particular interest in industrial relocation or development, they could identify little need for remaining in the City. Further conversations with representatives of the same realty firm gave indications of interest in the project and willingness to assist in the development of rental rates and market test data. UTILITIES Several meetings were held with representatives of the major utility companies serving Cleveland. Each has its industrial development and promotion agencies within its organi- zations. It was hoped that these companies could provide assistance in identifying industrial location requirements and in suggesting potential industries for the proposed building. In terms of industry, most of the services provided by the utilities are related to large firms seeking new locations within the metropolitan area. It appeared they had little data on firms having to relocate within the central city. In general, interest was expressed in the project. However, it was clear that more detailed feasibility would have to be established to generate their total support. STATE GOVERNMENT A review of the proposed building was held with representatives of the Ohio Departments of Public Works and Development. Both expressed interest in the concept in terms of promotion and development. Al-10 APPENDIX I - SECTION B COMMUNITY SUPPORT CITY GOVERNMENT The government of City of Cleveland is deeply interested in retaining its industrial base. There is realization of the employment needs of the City's residents and the City's need to maintain tax revenue from industries. At the same time, the City is deeply involved in other urban renewal and economic redevelopment projects and this particular project must be evaluated in light of these commitments and the City's other needs. Also, the project must be economically feasible or must have potential for a significant return on investment to warrant the City participating in it financially. AMI APPENDJX I - SECTION C SELECTION OF INDUSTRIES In making the initial selection of an industry to serve as tenant subject for this study, the general approach was to make a broad study of Cleveland industry to define the general industrial categories appropriate for study; then to narrow this to a smaller group of five industries for more detailed study; and finally to select one industry as the tenant subject for the prototype building study. SELECTION PROCEDURE The specific procedure involved the following: 1. Identified related firms by processes using Standard Industrial Classification (S.I.C.) codes. Certain industries such as petroleum, primary metals and chemicals were automatically excluded because they are not suited for tenancy in a multi-level facility. 2. Ranked four digit S . I. C. codes by size of employment and number of establishments in the County and City (Directory of Ohio Manufacturers.) 3. Arrayed the establishments within four digit S.I.C. codes as to size of employment and identified the average, median or modal distribution. 4. Determined the four-digit manufacturing S.I.C. codes within the County that were disproportionately located within City limits according to the following standards: a. Where all county firms were located in the City; b. Where only one or less than ten per cent of the establishments in the county were outside of the City; c. Included all S.I.C. codes having fifty or more establ ishments in the county regardless of where located. 5. Contrasted the above S.I.C. codes with those known to have projected relocations and included all manufacturing S.I.C. codes with projected relocations from the 1965 report, An Evaluation of Vacant Industrial Land and Buildings and Their Potential 6. Identified, by location on working maps, all establishments that met the previously described criteria. Selected from these maps the four digit S.I.C.'s that exhibited clustered or predominantly central business locations. Also identified related groups of four digit codes which clustered or exhibited similar locational patterns. AI-12 APPENDIX 1 - SECTION C SELECTION OF INDUSTRIES 7. Listed and ranked, by number of establishments (along with median employment) complete listings of four digit S.I.C. codes meeting the criteria above. 8. Analyzed the locational patterns of these industries with respect to the "selected neighborhoods" or those areas of Cleveland identified as poverty areas in the Special U.S. Census of 1965. 9. Based on this general analysis, five basic industrial categories were identified for further analysis and study. These were: Food and kindred products - S.I.C. 20 Apparel - S.I.C. 23 Printing and publishing - S.I.C. 27 Fabricated metal products - S.I.C. 34 Machinery (except electrical) - S.I.C. 35 EVALUATION PROCEDURE Basic guidelines were established to provide the framework for more detailed consideration of the development potential of the five selected industries. Procedurally, these steps were involved . 1 . The number of establishments within the basic industrial category (two digit S.I.C.) and the distribution of firms throughout the industrial category by sub-group (four digit S.I.C.) was examined . Within each two digit code, several four digit codes were eliminated due to the existence of only a few industries or where employment was concentrated in a few large establishments (see Exhibits E6, E8, E10, E12, E14). 2. The five selected industrial groups were each mapped to show location of the establish- ments (see Exhibits in Chapter 1, E6, E8, E10, E12, E14). More detailed location maps for these industries were studied along with location maps of all major manufactur- ing industrial categories in Cleveland to evaluate existing locational trends. 3. Reference was made to the 1965 study in which each industry was analyzed as to its tendency to relocate within the City following displacement. This study showed that 86% of 105 displaced industries remained within the City. The printing and machinery manufacturing industries show particularly high tendencies to remain in the City. The other three groups, each with a relatively small number of relocations, Al-13 APPENDIX I - SECTION C SELECTION OF INDUSTRIES showed no greater than an average tendency to relocate within the City. The 1965 study also noted that the greatest number of firms in each category appeared to prefer a new location near their previous location. 4. The distribution of establishments of various sizes within each industry was studied (see Exhibits E7, E9, Ell, El 3 and El 5). This is an indication of the employment patterns of the industry. 5. Interviews were conducted with representative industrial entrepreneurs within the five selected categories. The purpose was to develop basic ba_Kground data and information concerning locational, operational and functional requirements of the industry for purposes of preliminary architectural programming The findings of these interviews are incorporated into the building program data and into the summary of the interviews in Appendix I, Section B. The interviews were conducted with the following objectives in mind: a. Seek information for the entire industry rather than specific characteristics of the establishment operated by the interviewee. b. Develop an understanding of relationship between the industry and suppliers and customers. c. Determine key locational factors for the industry. d. Determine relationship of the industry to labor in terms of the skill levels required, the turnover, the importance of labor in the value added and in total operational costs, and the extent to which the labor force is a factor in the location of the industry. e. Determine the general relation of the industry to extra-industrial factors such as distribution systems, market considerations, etc. f. Determine the basic internal functional needs of the industry and the characteristics of key factors which may be identified (e.g. material flow, storage, etc.). g. Identify growth characteristics of the industry and the relationship of industry growth to actual physical expansion. AI-14 APPENDIX I - SECTION C SELECTION OF INDUSTRIES h. Identify ancillary service requirements such as industrial and maintenance services, blueprinting, etc. ?. Identify new trends in the development of the industry. j. Identify basic cost factors in the industry such as rent, labor, distribution. k. Ascertain the general attitude and potential problems of operating within a multi-tenant situation. 6. The extent of functional obsolescence within the selected industries was examined. In the 1965 study, this was identified as being of substantial magnitude within existing industrial buildings. The findings of the interviews described above indicated that owners and managers in the selected industries located in older buildings are generally faced with significant problems of building obsolescence. Several of the interviewees suggested that they were unable to move to better facilities, not only because suitable space was unavailable elsewhere, but also because prospective purchasers of their present buildings were unable to get suitable financing. AI-15 EXHIBIT E6 NUMBER OF ESTABLISHMENTS AND TOTAL EMPLOYMENT IN CLEVELAND FOR FOOD AND KINDRED PRODUCTS (SIC 20) Number of S.I.C. Selected Categories Establishments Employment 2011 Meatpacking 2013 Sausages and Other Prepared Meat Products 2022 Cheese, Natural and Processed 2024 Ice Cream and Frozen Desserts 2026 Fluid Milk 2033 Canned Fruits, Vegetables, Preserves, Jams - Jellies 2035 Pickled Fruits and Vegetables, Vegetable Sauces and Seasonings 2037 Frozen Fruits, Fruit Juices, Vegetables and Specialties 2051 Bread and Other Bakery Products Except Biscuits, Crackers and Pretzels 2071 Candy and Other Confectionary Products 2086 Bottled and Canned Soft Drinks 2087 Flavoring Extracts and Flavoring Syrups 2099 Food Preparations not Elsewhere Classified TOTAL 140 7,894 13 523 19 530 2 42 5 134 15 1,997 4 83 4 23 7 462 26 2,196 11 186 14 947 3 77 17 694 Source: Directory of Ohio Manufacturers, 1965 AI-16 - 2 o i cm • i U ,_ — j o CM U 1 Z> Q lO O Ct£ Q_ o o W> LU VI 1 a: 0) Q o Z _o *" — i^ 0. E Q LU o z o o < t_ 1 Q CO o E o z o u_ CO QC 1 o ^o u_ CO LU o LU «o >- 1 &9 ^ Q_ t=5 CO lli o Xu. t LU v " / CM or LU CO £ o 3 CM Z — >- CO CO LU 0£ »— co ID Q z Q U co o CM m — CM CM — ■— CO TO c 'Ji o o o 0) 5 CM «n co CM — I CM CM — I CM — CM CO CM r— CO CM -<* >o CO f— ^— CM CM CM CO o o O O O O CM CM CM CM CM CM li 5% -o | H o 2 co cu c o "o G> D <*• o Z -o » 4) tt) « 5 § is c o *: «> x: o CM J) 2 a, ■DO)? C TO.E O U c «. > o E =£ U 81 2 TJ -°.0 u. H2 > C 4> «i C O) C O 4) § "• ft) 0) CO 4> ■»- a> "ft O) 3 CM CO co o CM c o *: to 2>.S> a. > co u_ C a> a> n u 2-5 o 'o 0) Q. CO CM CM lO CO O CM fc\-5 o _2 a> -* o S " w co ^ .LI CO *^ U 4) IB *r v. _c o_o_ ©Si £ c c ° o o 4) o 2 *- J" f 1 CO O- vJ CO >o o CM I o a> c o O ^t o °-§ -o 2 0°" T> O C C o o < o CN u U Q o a. Q z z < Q o o u. ^° y "- Si So LU CO '3 z >- co I— Q z O LU ^- U LU _l LU CO o o CN CO o o o CN I 10 o u-> I o o o T CO o 00 o o o I CN o CN I 3 TO C -o 0) o _Q> a> CO CN CN r-x o p^r L) */» c .— O Q. 1/1 L. -*- X LU 3 ■O O 80 c c "" 0) -gjf w *C i_ _C O > > 8.8 O V S» U_ Q_ 0) 2 o 3 C o 2 o >N 2 V 4> 0> O 1- 8 CO EXHIBIT E8 NUMBEITOF ESTABLISHMENTS AND TOTAL EMPLOYMENT IN CLEVELAND FOR APPAREL AND RELATED PRODUCTS (S.I.C. 23) Number of S.I.C. Selected Categories Establishments Employment 2311 Men's, Youth's and Boys' Suits and Coats 2328 Work Clothing 2335 Women's, Misses' and Juniors' Dresses 2337 Women's, Misses' and Juniors' Suits and Skirts 2339 Women's, Misses' and Juniors' 4 157 Outerwear 2391 Curtains and Draperies 9 145 2394 Canvas Products 21 491 2399 Fabricated Textile Products not _4 101 Elsewhere Classified TOTAL 60 7,368 Source: Ohio Directory of Manufacturers, 1965 7 3,980 1 228 9 1,901 5 352 AI-19 CO CM 4> -*- o 4) CO — CM I CM CO CM o co ~o c o C "c J2 5 & I CM I CO I I I I co «r> CM CO CO CO CM CM -a c o c _o o 2 — c 52 0) o Q. *- c 81 U o CM o CO CO CM o» — -3- CM CO CM o CO CM o in T> C 0) _ § T1 0) o_ trt QJ <-J- o » rs */> 8 h •" Q t3 •- Vtl.2 c o > c Wone Junio el sew o o U U I — I I — I I I I CO CM O O CO CM o M3 CM lO CO O CM I CO CM CO — 0) • — u> X 0) o o => c o IE o u- o 0) o «- o EXHIBIT E10 NUMBER OF ESTABLISHMENTS AND TOTAL EMPLOYMENT IN CLEVELAND FOR PRINTING AND PUBLISHING (S.I.C. 27) S.I.C Selected Categories Number of Establishments Employment 2711 Newspapers - Printing, Publishing 2721 Periodicals - Print, Publishing 2741 Miscellaneous Publishing 2751 Commercial Printing except Lithographic 2752 Commercial Printing - Lithographic 2753 Engraving and Plate Printing 2761 Manifold Business Forms Manufacturing 2789 Bookbinding and Miscellaneous Work 2791 Typesetting 2793 Photoengraving 2794 Electrotyping and Stereotyping TOTAL 24 4,049 13 1,118 6 106 129 2,395 65 1,418 7 114 6 190 18 195 24 252 11 238 5 122 308 10,197 Source: Directory of Ohio Manufacturers, 1965 AI-21 CM U X O on LU CO Z> z >- CO co LU o o < u . o CO CM s — * o o z o CM X 1 CO ^"* »o 13 ^— co Z> o. o CO Q v> z ^_ < >s o o. o Q. z E z LU o o o Oi 1 O- CO Qi E o D u_ z o CO CO 1 UJ r— LU ■o ^£ H-9 _ _l o CO o_ vO ^5 1 CM CM CM lO CM CO CM o. CM CM «0 Os CM I CM $ CO CM — co I I — I I CM I I — CM I I I I IT) I I CM I I — "tf CM CO co o CM CO c CD c co c vt .2 IE 35 o 15 — Q_ CO if o_ o_ O v> CO CD o U £.£ v» c (1) c 0) 8\E O U c _o Q- l_ £0- z § o_ "5 o c 2 IE co.E C i_ LU O- I I lO CM CO c *c VI -j c E £ o o co CM 0) O _v "S-o o J» co_2 c u -5 « 1 = i i i i i i in o CO c 0) o_ CO — CO CN CN rx i\ CM CM CO c *> o CO c o o CO CM CM c o Mi u £ LU co CM CM I CO 2 o c o o IE o o >^ £ o o w D o co EXHIBIT E12 NUMBER OF ESTABLISHMENTS AND TOTAL EMPLOYMENT IN CLEVELAND FOR FABRICATED METAL PRODUCTS (S.I.C. 34) S.I.C. Selected Categories 3423 Hand and Edge Tools 3429 Hardware 3432 Plumbing Fixtures and Fittings 3433 Heating Equipment 3441 Fabricated Structural Steel 3442 Metal Doors, Sashes 3443 Fabricated Platework 3444 Sheet Metal Work 3446 Architectural Ornamental Metal 3451 Screw Machine Products 3452 Bolts, Nuts, Screws 3461 Metal Stamping 3471- Electroplating - Polishing 3479 Coating - Engraving 3481 Miscellaneous Fabricated Wire Products 3491 Metal Shipping Containers and Barrels 3494 Valves and Pipe Fittings 3498 Fabricated Pipe Fittings 3499 Miscellaneous Fabricated Metal Products TOTAL 485 27,737 Number of Establishments Employmen 12 461 8 823 20 2,616 10 2,561 20 1,772 19 237 12 597 40 1,536 16 382 57 2,226 22 5,814 73 3,805 87 1,442 21 273 39 1,730 5 365 11 787 7 68 6 242 Source: Directory of Ohio Manufacturers, 1965 A 1-23 2 < u on CO < Li- as: o u_ co 2 2 o UJ CO co Z> ^>- ■ i l "^ O o < U LU coU z-. UJ i/> 2u LU o. o CM CM I m o «o t» « i 0) »— X o _o Q. E LU 8 o w T JS CO E 3 z o °p «—■* >o o ? CM O 7 CM CD CM CM O CN CN O CM •f) On CM I I CM I I I CM • CO CM CM CM CM •O — CM CO o CM CM CM Q "«t 3 3 CO CO V CO «n V «/> J2"5 _c 0) o o £ • — O h- % M o *~ V to £ E U) v c LU 3* o OV— «/> t ^ m o U si S o c -v o 0) and and Kcept M nd Hand 2 i "2 o lumbing ittings a co x o o xu a. ll. CM CO CO CO c o E u CO 5 u 2 CO 0) «— *o *o •So. «_ 8 ° -° 5 « x o - X « 4* to 9 CO -C l/l o o Q O) Z. .£ O TJ <- «— 4> O 55 i_ o O — CO CM o Z 4) o 5 0> CO o "gfi 2i o 3 O o c 2| "a CM — r^ • — i — i I • I CM I —If) i — i I CM CM — CM — CM "«t — CM • U 3 "8 0) c o o If) co CO — CM if) U"> co co u i. o 2 2* CM I *• "~ • >■ o o .- co co a; u Z) Q O Q- Q LU I— < U ct: CO < o >- o Z~ lu *■ * 1 1 1 £-i £Z x> CO LU Of o o < LU CO CO co U <• o CN O o CM I o 8 o _o O- E o LU O _Q E Z CO o CO 1 o I o I CN o CN CO co CO CO CO CO o CD O) 0) c o 'El U £ o CO o 0) o ^~ 0) V ■*— CO 5 co — i in r^ — CM CO o CN 3 CO .E £ o.E II 2 ti .__o UUQ.U o CO c O) o o>^ .5-d o CO CN CO CO CN CN CO CO O D *- O U §"8 5<: IT) CO Z. CO o 5 r-v -o i i CN CN — 't o o CO CO CO o co Q. c o O) c u. O o M- 3 C o o «- o o 0) o D o CO EXHIBIT E14 NUMBER OF ESTABLISHMENTS AND TOTAL EMPLOYMENT IN CLEVELAND FOR MACHINERY, EXCEPT ELECTRICAL (S.I.C. 35) Number of Establishments Employme 4 234 6 529 3 444 5 402 6 2,743 8 3,266 3 250 178 4,164 S.I.C. Selected Categories 3522 Farm Machinery and Equipment 3531 Construction Machinery and Equipment 3535 Conveyors and Conveying Equipment 3536 Hoists, Industrial Cranes - Monorail Systems 3537 Industrial Trucks, Tractors, Trailers 3541 Machine Tools, Metal Cutting 3542 Machine Tools Metal, Forming Types 3544 Special Dies and Tools, Die Sets, Jigs and Fixtures 3545 Machine Tool Accessories and Measuring 25 2,225 Devices 3548 Metalwork Machinery except Machine Tools 3555 Printing Trades Machinery Equipment 3559 Special Industrial Machines 3563 Bearings Made of Bronze 3564 Blowers Exhaust and Ventilating Fans 3565 Industrial Pctterns 3566 Mechanical Power Equipment 3567 Industrial Process Furnaces and Ovens 3569 General Industrial Machinery and Equipment (not elsewhere classified) 3589 Service Industrial Machinery (not elsewhere classified) 3599 Miscellaneous Machinery (except electrical) TOTAL 551 27,540 Source: Directory of Ohio Manufacturers, 1965 A 1-26 9 1,619 7 945 19 1,588 6 2,415 7 466 30 611 15 1,393 14 588 9 899 5 346 192 2,413 < u u ^ >o co *n >o 00 CO u 1 — X LU 1 ^ > on CN LU z X O O u CN i 1 IO an o u_ O co «/> LO LU o> •~~ LU >- 0) _o 1 O o Q_ _J CL E 5 CO LU LU O O O Lull. %m T -o a) 00 So: E _ LU D I^ z x5 CO ■ LUZ) 1 z ^0 >- CO to >o LU 1 Q£ ^ O O LU u LU _l LU LO z CO t— z X "O to co mU <_* 1— ~ to ^ CN o CN I o a> o U •D 0> •*- u CO CO CO co CN cs 1 1 CN CN I *o CN CO CN CN LO CO C o CN CO CO CO o a 5^ 4> E Q. D o- LO CO CO CO I >s > c o o CO CO CO — CN CO LO CO E-z g-g o > c o u c a> E 9. o- V V c E e *- *- 10 w> 2 3 X -O co 1— C _ _ v e L. **- V) a» w» c D 73 *o "O X 5 C 1— LO CO a> 5 4) C O) IE.E 2u 9 CO CO o 4) 5 0) o_ 1 — X 1— a> c O) c 5 1 u_ CN O CO LO CO o o »--o -o £ c o o "> ■5-1 0) 0> y co Q u_ CN CO O CD r> c ^ o CN I CO LO CO '"t ^ CO CO CO CO a> c IE "0 1— 5 c en • — c _c 15 w 5 2 J_ a. 0) 5 X 0) u X > X u CeC O U- lo LU LU >- o —I o_ O LU V CO si UJZ co co x co LU Q£ o o < U CO z . I Zlo* uu — 1< _l Qi CO H- < r— _Q 00 E D z CO 1 O IX o o 1" CM O CM I CN I I co — — CO t I •<• cn «o I I cs CM CO CN CM CN LO LO co c IE o o I I CN ">t — CM CO CO CM O CM o en o "O LO LO co co LO co «o s 8 ■o o CD c la o u co X o) LU c c E O--O i§ LU O) - 25-- £ I cJ o _ — 5 «o CO •I i .2J8 w_2 o q, co> c *- D Q- 2 S-o _c 5 ^ a- « — c .2 M So 11 •o LO co v> i_ 4) 4> c _c iJ Hi l_ *■■" * 4- . 4> TJ_o O U CO O CO LO CO 0) o it o o O o .fc id «/» v. -a -c £ ? — a) CM LO O CM CO O CN CN LO CO 0) r 1L o o LO >o CM CO o o CM LO CO go (l> z o 5 > o < £ 5 8 FOOD 2 £ o < s o o o CATION S.l.C. D • 20 BIT El 9 +. >ei — no e nal o-o.lab'e s t O ~2 U 3 1 4 C 5 C 6 7 8 9 10 It 12 13 1 14 1 IS S 16 T 17 EVALUATION OF INFORMATION RELATIONSHIP pnai-tiilj to + 4- +■ • + 4- + at • Okiditone, Clevetond LABOR ■kill f»o»imiry 4- 4- • • 4- • Ion 4- • • high, medium ( low city LOCATION urban suburban + + + + + + + + 4 + + 60% 20% 9 + + urbon TOPOGRAPHY Hot .lope + + + +- 10=, + • 4- + + + • Imp • • generollv fkr, bui not criticcl SITE SHAPE Other • • • + drc. 4- • • • 4- + • not imp. 20' tide 15- i de generally recrcngulcr, but no* critics. SPECIAL REQUIREMENTS • • PEDESTRIAN tronjpo'talton 9 public tronsportction neceitcry VEHICULAR no. roodi rood width 2 • • 1 30' 1 30' 1 30- 1 30' SERVICE no. roods rood width • 2 • 1 30' 1 30' 30' • • • 2 30' o • • 50' loodg londic . hecvy loodg SERVICE roll type hock + + + + ■put + "* + loop _ — — + • u« • • roll service necesscry, preferrcbly loop with team itorcge rr:,t«u SUE AREA ceres 133 no 16 70.6 52.0 10. 9 • • • 7.4 5.8 • e • • PARKING ocret ^coverage 3.7 .28 • 4.1 25.6 2.0 3 .9 2 .7 6 • * • 3.7 50 7.4 100 BUILDING F.A.R. %ccveroge .08 .03 43 • .03 .31 • • o 2.0 50 2.4 100 • • 100% 70% 40% ■lor. Gladstone Cod* 40 % maximum coverage BLDG. PRKG. RATIO ground coverage 3.62 • 1.7 4 4 6.6 3.5 • • • 4.0 2.4 • • KS. N-v.r • 4 square feet of building to 1 tquore feet of porting EMPLOYEES - 230 ISO 400 550 1800 500 night 150 55 7 300 incl. Iruck • • 1-10 • • • 1 - 10 employees pet firm, median, Cleveland source CARS «*. 400 • 450 180 100 87 • • • 800 800 PARKING DEMAND con/ employee 1.74 • 1.1 33 .18 58 • • • • • • 1/. 5 .5 plus Gladstone Code 2 employee per 1 oar STRUCTURE concrete iteet + + + + + +■ • • • 4- • • "l"l 0t ..p. 1 A • • concrete best tuited for multi- story heovy loading COST $/iq.ft. • o 14.15 • • • 1.20 • • 10.25 10.00 2.18 • IB 00 • • S 10 - $20 muitl-ttory Industrial building HEIGHT no. itoriei 5 2 1 6 4 2 1 3 • 10 5 50% mull, Itor, • limit ns'Ki moa . 60'ht city code 5-10 stories, toll rector , Cleveland Code 115 feet height limit TOTAL AREA square feet 442831 157845 300375 • 58700 14900 I20O0 5000 • 660000 600000 e • mo«. 100% 1 °5 'hi 70% max . 40% AREA PER STORY square feet vot. «,. 300375 vo,. «r. vor . 12000 5000 • 67000 «,. • » 100% 70% 40% AREA PER PERSON tquore feet 1920 1050 750 • 326 997 343 715 • • • 500 400 • e 400 tquore feet per employee FUTURE EXPANSION % 100 50 • • 50 • 175 50 50 ft 20 25 - 50 % expansion SANITARY line • 12" • • • • • • • • City code 5.1953 • • City, State, and Federal Codes STORM ti*ot ELECTRICITY demand 69Kv 5500 5000 Kvo 20HP 440 . NAT. GAS p«f hour + + WATER proceu potable • • • • • • • • • • + + • • COMPRESSED AIR pretsure 100 p.,.lj 125 p.i.I. • • • • 100 p.l.l. • • 125 p.s.f. HEATING hot water AIR CONDITIONING central individual olf. only 2.5% totol - « • • 50% • • • • - • • SPEC. SERVICES fuel wOltt • • • • • • msnl fefrig. • • lot. • $!io "■''X O • DOCK AREA »*. 15 9 6 24 • 16 3 42 • ■ £. 50000C 50000C X) If minimum 8 docks per 500,000 tquore feet of building DOCK AREA bldg. or«o/ dock totio 295X 175X 50000 • • 9340 7500 • 15700 • * • • * • [RUCK DEMAND Ireqvency • • • • • • • • • a eotiy A.M. • • • refrigeration ond ventilation Al-37 IDENTIflCATION FOOD EXHIBIT E20 +. ,e. — no * nit o. S.I.C. 20 slloble S 1 O 2 U 3 > 4 c 5 E 6 7 8 9 10 11 12 13 1 14 1 15 s 16 T 17 {VALUATION OF INFORMATION TRUCK TYPE vor, • + • +■ • + + • 100 del', hxc'* + + • eel.. • • • .. ww4>H- lTUCk 'YP" o z TRUCK SPECS. turn i rig fad. holding Oreo ifof 14.45 berth 50' 5'l.5^ lire < o truck specs. floor load RAIL no. docks type frock 4 docii 26,1=. 2 1 dock +■ • + lien -•* • • SECURITY 9 °" 1 office + I • ly). + • • P"- E.J" pi... pol.ee • + + >.i ,c - • ..'•civrdixl den r^tem end priv-cte police service P DOCK 1 eve lee conveyor lift truck + + 1 r • • + !« 4- + • 4- + • • possibly X production elevator convener +- + 4- * * • + + • t + • 4/ thofl • /et yes < S ~ I lilt truck PRODUCIIOM | hopper cot 1 hcna trvek + + I +■ 4- coble + • • ye» z OfFICES gioop conference . + foe. Z £ I < AREA square feet 12000 1x00 320O0 8700 32500 • 1200 500 • 600000 1 AREA % total floor orea 2.7 6 3 10.7 • 5.5 • 10.0 10.0 20.0 9.1 5.0- 10.0 • • ! • • 10 S overage < LOCATION central departmental • • • • + • + • + + • 7' : • fence 1 6' fence uj o et -:fh 1 ^. - " • - - I part. • 1 III — < vending j 7'"" 1 DINING ' mochinim. | 1 25 l£So. 130 cop. • • - " - • - - • 2 nil 1-75' • i uu ° s UJ 1 i ' RECREATION room, • 1 !•!• • 1-rjn I.3W - - • " - ~ • 1 • i • • >«°™ \~:z: \§>'M'\ • ! • • 156 + ' - - • ~ ! ~ 1 • • ! ' • i -J >- o a. - S ui LOCKER ROOM no. lock.,, j 1 Ti; no. vhowen ! | T J ^ "r 4 MC ICO • j • • I f MEA j >30 1 I5":0 32;v) 4500 • • -^-1 " • • • j • • I' 3 1 S rofol 1 | AREA | (U», „„ | 9 | I 3 7 j • 3.2 -■» 5 , = » ! 2.8 *b average ( UI m u z ►- z | ..(„» i A*£A tquor* fewt v><5 •*t5 2C;9 • 1;X • • • • Tf < s 1 *o lotol *" A [ No-.,- 1 2 2 1 .9 7 • 25 • -.;. 5 • 1 • | • 9 j 2.3S average A I- 38 APPENDIX 1 - SECTION E SELECTION OF BUILDING SITE The selection of the building site was carried on concurrently with the study and selection of industries and much of the data is closely inter-related. The general procedure involved first the identification of geographic areas which might contain a site; second, selection of areas for detailed study; third, the identification of several specific alternative sites from which one site for use in the feasibility study could be selected. IDENTIFICATION OF GEOGRAPHIC STUDY AREAS 1 . A base map of the City was prepared from maps provided by the City Planning Com- mission. This base map describes the major street patterns and freeway system, and was used for recording of all pertinent data. 2. Utilizing transparent base maps, information concerning the following was assembled and mapped: a. "Poverty areas" or selected neighborhoods as defined in Special Census of 1965. b. Current extent of industrial zoning in Cleveland c. Existing and proposed inter-state freeway system d. Public transportation services to selected neighborhoods e. Commercial transportation services to selected neighborhoods f. Current redevelopment projects within the City, including urban renewal, "Model Cities" and public housing developments 3. The work maps illustrating this information were overlayed and analyzed with relation to the various areas of the City and with respect to the maps describing industrial location (see Chapter 1 , Appendix I, Section C). In addition, the pattern of industrial land and building vacancies in Cleveland identified in the 1965 study was reviewed in conjunction with this analysis. The basic information developed for the work maps is reproduced in Exhibits E21 through E24. AI-39 o CM X X I CO 3 I o M < I— CO Z) 2 O 5 z V \ A j \\ \ r \ -t*rrz3- CO LU y Q£ O Q_ CO Z < C£ h— a g __, i 5 5 * < U 8 = > 2 Z * « S *> *" Q£ z ^ c 2 s o z e « - c o 5 £ 5 5 5 £ >- G s ^ IIDIII x O & u CO I APPENDIX I - SECTION E SELECTION OF BUILDING SITE SELECTION OF AREAS The original work program contemplated the identification of a single area within the City for site evaluation and selection. It became evident that the range of development pos- sibilities, and the apparent need for various types of industrial space warranted a more ex- tensive evaluation of possible areas. The following criteria were applied in the selection of the study areas. - Proximity to strong areas of related industries or similar activities to the industries under consideration. - Accessibility to suppliers and markets for the industries under consideration - Proximity to poverty of disadvantaged areas of the City. - Proximity to projected areas of industrial displacements. Industrial zoning - Relationship to current and proposed public improvement projects, including urban renewal and Model Cities. - Highway and rail accessibility - Public transit access from selected neighborhoods - Land and building vacancy patterns (1965 report) - General image of the area - Consideration of basic alternative industrial environments available within the City Based on the above criteria, three geographic areas of the city, known as Gladstone, Down- town, and Lakeside, were selected for further study. IDENTIFICATION OF ALTERNATIVE SITES A detailed survey and analysis of each area was conducted with the objective of selecting an appropriate site in each, for possible use in the study. This involved the following steps: 1 . Development and use of a survey form for recording data concerning each parcel of land within the study area, including parcel identification number and ownership in- formation. This form is reproduced as Exhibit E25. A I- 44 APPENDIX i- SECTION E SELECTION OF BUILDING SITE 2. Recording of ownership patterns within each study area. Tax maps and ownership data were assembled from the Cuyahoga County Auditor's office, noting public ownership, railroad ownership, ownership of two or more contiguous parcels by the same owner. 3. Complete field survey (exterior) of each area, recording use and name of establishment, apparent building conditions, and extent of vacancy for each parcel. Aerial photographs were also used for verification of the survey. 4. Mapping of field survey and ownership data on base maps prepared for each study area. Base maps were prepared from City Planning Commission and County Auditor's information. Within each area, several sites were found which might be appropriate. These were evaluated using the criteria listed below and data was mapped (see Exhibits E26 through E31 , this appendix, and Chapter 1, Exhibits El 9, E20, E28, E29, E36, E37) . Public ownership of land, including urban renewal disposition parcels. Large areas of private ownership or areas which could be assembled through a minimum number of separate owners. High incidence of land and/or building vacancy. Adjacent industrial or related land use plan. Site accessibility in terms of major streets, mass transit, rail freight, and pedestrians. Industrial zoning. Image of the site in terms of visual impact and quality of surrounding environment. Genera! soil conditions. Strength of surrounding area and potential for relationship with adjacent uses in terms of direct market and supply relationship as well as provision of common services for the area. Potential for relationship with proposed physical and economic renewal in the Model Cities and other redevelopment programs. One site in each area was identified as being most suitable for further evaluation and testing with respect to the feasibility of construction and the holding capacity of the site for the proposed multi-level building. Based on the analysis of industrial development A I- 45 APPENDIX I - SECTION E SELECTION OF BUILDING SITE potential and the detailed evaluation of the three study areas, it was concluded That each area was best suited for a particular industry. The recommended sites and industries are: - A printing and graphic arts building on the Downtown Site. - A food processing and distribution facility on the Gladstone Site. - A machinery and fabricated metals manufacturing building on the Lakeside Site. The characteristics of these sites are summarized in Chapter 1 of this report. A 1-46 EXHIBIT E 25 EDA # 66-77 ( 10085) Prototype Industrial Deck - Cleveland Contract No. 03-6-09056 Site Selection Analysis STUDY AREA FIELD SURVEY LOCATION: USE: Address Tax identification number Census tract Owner LJ Residential D Office Building I I Retail Commercial I — I Whoesale Commercial I I Institutional D Public I I Vacant LJ Parking I ! Warehouse I — I Open Storage I I Transportation terminal I I Railroad I | Industrial BUILDING TYPE: L_ Enclosed ^J Partly enclosed r~j No structure BUILDING CONDITION: LJ Sound LJ Deteriorating I I Dilapidated Map Page Parcel Name and/or Description Stories LJ Building Va ng Vacancy A I -47 # ^ + * ■ iy///A so. mo ESS3 DtfMIOfcMINO DK-PID 1.0 EXHIBIT E26 BUILDING CONDITIONS AREA *A' - DOWNTOWN 4#\ ■*• — \ AI-48 IAKI lllf IN J ,ST«I . Gum ' " ,:|M ° T«ANWO«1»TlON IEKMINAL COMMt«CIAl INiflTuriONAL I I BiSlttNIin EXHIBIT E27 EXISTING LAND USE AREA *A' - DOWNTOWN LP* v AI-49 APPENDIX 2 PROTOTYPE BUILDING ONE DESIGN DEVELOPMENT FOOD INDUSTRY SECTION A - SOIL ANALYSIS SECTION B - STRUCTURAL ANALYSIS SECTION C - MECHANICAL AND ELECTRICAL SYSTEMS ANALYSIS SECTION D - MATERIAL HANDLING ANALYSIS SECTION E - BUILDING PROGRAM AND DESIGN APPENDIX 2 - SECTION A SOIL ANALYSIS P R OC E D U R E An investigation and evaluation of existing soil conditions of the Gladstone site was conducted . The structural engineers indicate that maximum column loads in the range of 2,000,000 to 4,000,000 lbs. per column may be anticipated depending on the number of column supported floors, eight to twelve, required. The above is based on an approximately 30 foot square bay column spacing. Man-deposited fill material was encountered to depths of 6 to 10 feet below the existing grade. Strata of fine to medium coarse sand with varying amounts of silt and silt and clay seams extend from the bottom of the fill to a depth of 58 and 47 feet respectively in Borings B-l and B-2. This material is in turn underlain by strata of silt and clay in descending order. Well points were set in each test hole to permit observation of ground water levels over an extended period of time. Water was observed to be standing in the test holes at depths of 22.8 and 18 feet below the then existing ground surface approximately two weeks after completion of the drilling. The lower water levels reported immediately after completion of drilling and setting of the well points may be attributed to temporary changes in the permeability of the soil caused by mudding up of the sides of the hole during drilling. Reported water levels are an indication of conditions existing at the time and point of observation only. Some fluctuation may be anticipated depending upon the season and amount and rate of precipitation. FINDINGS Dewatering of the site will be required for construction work at depths in excess of 18 feet, approximately, below the present grade. The presence of seams of relatively impervious material within the sand stratum may require multi-stage dewatering. If floor levels are to be placed below the existing ground water level, some consideration must be given to a permanent dewatering system or to incorporate resistance to hydrostatic pressure in the design of the floor, walls and foundation system. A2-1 APPENDIX 2 - SECTION A SOIL ANALYSIS The granular soil on the site above the water table may be temporarily stable on a slope of approximately 1-1/2 horizontal to 1 vertical. A braced or anchored retaining structure will probably be required. The overall stability of the site during excavation and construction will be evaluated at a later date. The gray clay stratum encountered beneath the site is a plastic, compressible material demonstrating low unconfined shear stresses. This stratum will influence the allowable soil bearing pressures and type of foundation system which may safely be used. The degree of this influence will depend in large measure on the site and proximity of foundations to the clay stratum. The probable magnitude of settlement will be evaluated after the shape of the structure, its exact location, and load, are established. Soil bearing pressures in the order of 3,000 to 4,500 lbs. per sq . ft. may be sustained within the sand strata. Depending upon the distribution and magnitude of the imposed loads, consideration can be given to a combined, or raft type foundation. This type of system may additionally offer a method of economically dealing with the possibility of hydrostatic uplift on the lowest level floor slab. Caissons are not indicated due to the absence of any high bearing capacity stratum with reasonable depths. The depth to rock makes the use of end bearing piles prohibitive. Friction piles may offer a means of supporting high load concentrations but present serious problems in maintaining total and differential settlements within tolerable limits. Their use is not recommended for this application. A careful review of the building locations, requirements, and load distributions should be made as soon as this information has been defined. A program of field investigation and analysis to determine the pertinent engineering criteria for substructures should be done at that time. A2-2 APPENDIX 2 - SECTION B STRUCTURAL ANALYSIS PROCEDURE The purpose was to make a structural framing study for the prototype building, specifically of a poured in place concrete framing system for a typical bay required for varying load and span conditions. Separate analysis was made of the manufacturing and processing areas located on upper floors, and material distribution areas, located on lower floors. In the manufacturing and processing areas two bay sizes were studied, 30'-0" x 30'-0" and 30'-0" x 60'-0". The 30'-0" x 30'-0" bay was established as being most suitable. (See Exhibit E9 and E10). Because of flexibility requirements for the mechanical system, a con- tinuous horizontal duct and pipe chase has to be provided, necessitating a split beam and column structural system in certain areas. Therefore, a two way framing system was not con> sidered and a one way joist and beam system was analyzed. Mechanical ducts and piping may be placed between joists and the space covered by a panel attached to the bottom of joists. The material distribution areas require a structural design to support heavy live and heavy concentrated loads. A slab, beam girder framing system was chosen and analyzed. Three different bay sizes were required to provide adequate maneuvering space for the truck driveways and docking areas. The three structural bay sizes analyzed in depth were: 30' x 30' , 30' x 60' and 60' x 60'. A2-3 APPENDIX 2 -SECTION B STRUCTURAL ANALYSIS FINDINGS The live load requirements for various types of occupancy can be summarized as follows: 75 psf parking and for passenger vehicles 100 psf offices, public assembly, restaurants, corridors and lobbies, light manufacturing 125 psf commercial, light manufacturing, libraries 150 psf vehicles having a gross weight of 3 to 10 tons; manufacturing, light storage 175 psf manufacturing, storage - 200 psf vehicles above 10 tons, except trailer trucks; heavy manufacturing, storage - above 200 psf special heavy manufacturing, storage, trailer trucks The possibilities of a structural steel frame and a precast concrete system were investigated and determined to be inappropriate for the following reasons: Structural Steel Frame Fireproofing - ceilings, in most areas will not be used, thus any fireproofing material will be exposed. The most economical type of steel fireproofing is a sprayed on material. However, this material will cause dusting, which is not acceptable in food processing areas. The only method of fireproofing would be pouring of concrete around beams and columns, which is expensive. Concentrated loads are expected to be pieced on the floor. A poured in place concrete floor system is capable of distributing concentrated loads better than a steel frame. Some of the machinery may cause vibrations in the building. A poured in place concrete floor system has a better dampening capacity than a steel frame. Precast Concr e t e System Truck loading areaswill require changes in floor elevations in order to provide docking facilities. This is difficult to accomplish with precast concrete. A2-4 APPENDIX 2 - SECTION B STRUCTURAL ANALYSIS Due to mechanical requirements, precast beams and slabs would have to be placed on top of girders, thus increasing the height and volume of the building considerably. Stability of a building of this height would be difficult to achieve. A precast concrete floor system is not well suited for the distribution concen- trated loads. A2-5 APPENDIX 2 - SECTION C MECHANICAL AND ELECTRICAL SYSTEMS PROCEDURE In making the mechanical and electrical study, certain objectives were initially determined. The performance specifications for major industrial and environmental processes were defined through code search and general research. This included the public services presently available on the site and/or readily brought to the site, and building service systems required to serve the human occupancy needs and industrial process needs of the proposed building. Design priorities and evaluation of potential solutions were established keeping as goals the prevention of functional obsolescence, minimum interference to building tenants when future changes are made, and the need for competitive low cost space. Utilities and mechanical services were classified in regard to the following distribution categories: Basic services to the boundary of the site only. Basic services that are brought to the building or structure. Basic services that are brought to each floor or structural unit. Basic services that are brought to each service zone on the floor. Basic services that are brought to the end use. FINDINGS Within the general industrial context, the "end service" will vary quite significantly with the individual tenants. To minimize the tendancy toward "functional obsolescence" it is visualized that there should be no "end service" provided in a multi-tenant building of this type. The building design should be limited to the provision of space arrangement concepts within which future distribution networks can easily be installed by individual tenants to meet their specific needs. A2-6 APPENDIX 2 - SEC TION C MECHANICAL AND ELECTRICAL SYSTEMS A system of one or more service tunnels or troughs would be used to link the building with the major utility service outlets located within the public right-of-way. These would permit maintenance and physical changes without the need for disrupting excavations. There would be one or more central service distribution centers within the building. This would serve as a termination point of some services and the starting point from which other services would be distributed to each floor. (See Exhibits Ell and E12 ) in order to facilitate easy distribution of these services from the distribution centers, a well- defined and easily accessible service network of horizontal and vertical service ducts should be provided. A split column and beam structural system would be used to provide space for the required service ducts. This network would provide space for future changes and maintenance with minimal disruption. The services to be distributed throughout the building would be capped at each floor. The tenants should be responsible for installation and maintenance of the services within their own area, from these major distribution locations on each floor. Access to the top deck or roof would be included in the service network. A future tenant could then be allocated space for special roof-mounted equipment including water pressure control for process water and fire control, electrical service equipment, air handling units and ventilators, refrigeration systems, and liquid storage related to his process. After the required utilities and services were selected and the distribution network established, the extent of services provided as part of the base building and the locations of these services in the building were determined. The actual mechanical and electrical systems as determined for Prototype Building One is discussed in Chapter 2 and in Appendix 2, Section E, dealing with the building program and design. A2-7 APPENDIX 2 - SECTION D MATERIAL HANDLING REQUIREMENTS PROCEDURE The purpose of this study was to establish guidelines for material handling requirements which are applicable to any size multi-level building used for the food processing operations. The procedures followed in this study are outlined in a series of charts included in this section. There are basically two major divisions to this study: The first involves facilities for receiving and shipping; the second involves internal material handling systems. Initially, assumptions were made as to the types of tenants of the building, its size, and available space (see Chapter 1). Data was gathered from interviews with food processors, from United States government statistical sources, from railroad and trucking companies, from food industry observation and surveys. A projection was made as to annual tonnage processed within the building (see Exhibit El) and this became the basis for establishing the railroad car spots, truck dock spaces and internal material handling requirements for a building of the size we assumed. All of these required material handling facilities are in direct ratio with the total useable square footage; therefore, if the size of the final designed building is smaller, or larger, the material handling requirements would be reduced or increased proportionately. FINDINGS - RAIL It was concluded that 38 railroad car spots would be needed to adequately serve the 7-story building which was the basis of this study (see Exhibit E2). Rail spots should be provided adjacent to covered platforms, preferably inside the building. Three alternative trcck- platform configurations were proposed: Two rail tracks 950 feet long, each with a 19 car capacity, each track having direct access to a loading plutform. This was recommended as the most efficient method. Four tracks, 500 feet long, each with a 10 car capacity, requiring through-car loading and unloading on the inside of two tracks. This method is about half as efficient as the first. Use of an open, team track area at ground level with cars loaded and unloaded from that point. This would be the least efficiert method, and not appropriate for a multi-level building. A2r8 APPENDIX 2 - SECTION D MATERIAL HANDLING REQUIREMENTS FINDINGS - TRUCK «*? If was also determined that 97 truck dock spaces would be required (see Exhibit E3). However, an additional holding area, located away from the loading-unloading docks, was suggested. The recommended capacity is twice the number of docks or approximately 200 truck spaces. FINDINGS - INTERNAL SYSTEM In determining the internal material handling, several mechanized and automated systems were evaluated in terms of speed of transporting materials (pounds per minute) and operating costs (dollars per pound of product moved). Automated systems such as conveyors, chain-veyors, monorails, etc. were eliminated because of their low speed, low amount of pounds transported per minute, high maintenance cost, and limited flexibility. The recommended internal material handling system is a combination of industrial fork lift trucks with standard wooden pallets and high speed (300 feet per minute) high volume (6 tons or 4 pallet capacity) industrial freight elevators. This best fulfills the requirements of a multi-level industrial building which has a large volume flow of commodities requiring flexible, rapid horizontal transportation and high speed, economical vertical movement. After determining the number of elevator round trips per day, two material handling methods were considered to determine the number of elevators needed to satisfy the requirement (see Exhibit E4). The recommended number of 1 1 elevators is based on the need to minimize waiting time during peak shipping and receiving periods and to insure continued service in case of unscheduled overloads, breakdown and maintenance. Each elevator would serve a specific floor. However, the number serving each floor would depend on the operating characteristics of the tenants. Within this general context, two alternative plans are suggested: One elevator would serve each of the first and second processing floors; two elevators could serve each of the third through sixth floors; the all floor elevator would serve each floor as needed. Install 13 elevators and provide each processing floor with two elevators, plus the one all-floor elevator. A2-9 APPENDIX 2 - SECTION D MATERIAL HANDLING REQUIREMENTS The following are the recommended elevator characteristics: Located to permit entry from opposite sides; centrally situated to minimize travel distance from railroad cars and truck docks. Able to accommodate pallets side-by-side to allow movement of each pallet without distu:bing others. Speed of 300 feet per minute or more, depending on manufacturer's suggestions. Minimum car capacity of 8,000 pounds, with floor size at least 8 1/2 x 10 feet. Overhead, lift type, counter-balanced doors across entire width of car, at both ends. (Self-opening and closing doors, activated by pressure -sensitive switches or photo-electric cells would be ideal but would triple the installation cost and double maintenance cost.) Self leveling features. Gap between car floor and building floor no more than one inch to allow for use of 6 inch diameter wheels on pallet-handling trucks. The pallet storage area walls should be located on column centers to minimize lost space. Ceilings should be at least 12 feet high to permit two-high stacking of pallets, or 14.5 feet high to permit three-high stacking. If fork lift trucks are to stack pallets at right angles to the aisles, aisles must be at least 10 feet wide. The above conclusions and recommendations have been used as the basis for determining the material handling system in Prototype Building One, with modifications made based on the final building design. The material handling system is discussed in the context of the building description in Chapter 2 of the report and in Appendix 2, Section E. A2-10 V u 1— O) n □ c I ■ <> t- h- T_ n .1) Q£ l» ~o u r o () H n Z o I - •> o rs o CM o CM o o 9 g Si o r ^_ o CO on 00 o -o °— 5 E oJ5 ■=.;"<-> X 0) •y 2 ■t C O E Jig 2 d, i "S - J 2-3 3 J} "° O 4- C "O O Z o I— —I < r> Z Z < u. O z o I— - xo o U • c „ O S.2 J! 5 o u *■ C w- •£ O 5> <" Tn 2 .£-$ c? .- O "O -Q 8~ o 2 o {J i— -o~S ° ego O £ Q. J5 c o - u o> D E CD Q. H o e 3 o ID t 0J O CJ o 0) 0) "O -) "U S S- t) *. u 3 fl) c c § 2 I : o > sz a. ~ Q) q) "S : J2 ots3 Peaking Factoi-4 Actual Rail Spots Needed 3 Vending and catering 2,378 16 149 .48 2.0 .96 Meat and fish 25,240 12 2,103 6.74 3.0 20.22 Sausage 17,090 14 1,221 3.91 2.5 9.78 Prepared foods 2,850 12 238 .76 2.5 1.90 Bakery-noodles 1,140 8 143 .46 1.5 .69 Frozen food-ice cream 2,996 10 300 .96 4.0 3.84 TOTAL 51,694 4,154 TOTAL 13.31 14.00 37.39 38.00 1 . Average load tons for each industry were developed from railroad car loading statistics and from interviews with railroad operations personnel. 2. Tonnages to be handled by rail were converted to number of railroad cars by dividing by the average load tons per car for each industry. 3. Assumed six day per week operation or 312 working days per year, and one rail spot per car per day. Divided number of cars needed for each industry by 312 days, giving total minimum of 13.3 rail spots. 4. Peaking factors, which would place additional demands on physical rail facilities at certain times, were determined from an analysis of actual rail-served food industries and from interviews with railroad personnel. a. An imbalance exists in that 4/5 of railroad tonnage is inbound and 1/5 outbound. Empty cars must be removed from docks before inbound loaded cars can be spotted. b. Railroad cars'arrive at and must be removed from the facility at specific times according to train schedules. c. Receiver has 48 hours to unload inbound cars starting from the first 7 a.m. following notification that cars are ready for unloading. Car turn-around is longest for receivers of agricultural products and railroad refrigerator cars. d. 48 hours of additional holding time is allowed on any car that is to be loaded for shipping. e. Time for loading and unloading depends on availability of and productivity of personnel and railroad car switching crews. 5. Based on application of peaking factors to minimum daily rail spots required. A2-12 ■P -Q < 3 o IS O 13 S o o u o> u CM o o CM — " _*v{> .2^. •- u> <1> oo - Trucks bound a, ufbound CO (O -o O i. <• o * "8 .o O CO "o '5 C J; 2_S "- u ■a 2 g «J -° ?r .£ J> <- C o o -c > <.5 o 5 3 CM a E CO o t- a~2 .2 "2 co a o ^5 "3 o (U c C0T3 5 o cot; c c c o c '^ "U o> H) e D s o c ~n -V 0) I" > c o o o. O E CD * : 03 C o c — g c i ~C 3 t - > •- oS? — o o •.- .2 Q. o 8 ■° a v. o .i: ; s 8., o £ c •- a ° ■£■2-8 s.s • | " J a>-2 -c S n . c O 3 O P. J, ,-q U "O T) " o g ai « 5! '" ~ „2 il! ° a E ~o <: _c -2 CO .1. o. 3 i— o. °-o c 3 o o o -^? c u c t, -f o 4> £ ._ c o U u N « r: "o -O-n 0) 3 a s o E c oj u .- O 3 -Q *: o 8-0' 5^ i 1) i- o i) — . •- E o *- T3 co^ .S o T3 C » r 3 J-Z I o < 00 o (i-> o ° £ lj!.ig°a m $«■;: _ 5 >- 1- - r -o IX o < — IX -> CN co CM to CO CO <> ■sj- ix CO CO CN ?> 11 3 | (!) J" S -," ■v u'j ^ 2 ' /:. V, CO > E o 3 C I— 3f) . o o. o S o °- !■- I- '"' O d ■i; o £.2- o o *■§ o. p J: D- « o G o o ;x ..c o. _o () *~ o. -o o 5 -c) (!) o o t: s ° .6 > o O 0) o Coo "O (u — £=-o: ; P 8..S - o d '? 5 "-.'.: ■■■■ o "O ro > " .i? ■?• _° '■'•') (3) Q o <: "- .. o •:- r>. o > o o t: o (!) o 2. 2-c "5 r*~ 2>« I a _« o ■fid::; r. o. r • 0) .'•>. o <■- c. a e> «> '? • ■- a a -!• •- e o 5 P o Oj) oj a .O 0) > > A 6 X.o APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN In the section which follows, the program and design of Prototype One are discussed, setting forth the food industry tenant requirements and the suggested design solution. The design criteria are general in nature so that the resulting tenant space could be used by many types of food processing operations. The text covers the following: General Planning Requirements Physical Site Requirement Building Description Physical Building Requirement GENERAL PLANNING REQUIREMENTS This has developed from a thorough investigation of existing characteristics of the site and the surrounding area so that a program of land use functions, linkages, land acquisition, and thoroughfare planning can develop within a realistic framework. Following are the individual factors which were considered: Examination of the general land use structure of the surrounding area: This identified the compatability of the proposed use with its surrounding industry and indicated its proximity to support uses such as residential enclaves (employment market), and the central business district (product market). (See Giapter 2, Exhibit El) Relationship to existing urban renewal and economic redevelopment programs: This project's proximity to these programs indicates it could give additional impetus to the revitalization of this deteriorating area of the City and that these programs can lend mutual support to eachother. (See Chapter 2, Exhibit E2) Inventory and recording of existing area and site conditions: The evaluation of land and buildings indicates that a large portion of area is vacant land; many of the existing buildings are vacant or partially vacant and have been purchased or will be purchased by the City which plans to raze them. (See Chapter 1, Exhibits E27, E28, and 29). Evaluation of land assembly and flexibility for expansion: Since the entire selected site is owned by the City of Cleveland, no work has to be done to assemble the land for a redevelopment project. In addition, this site is large enough for future expansion of the proposed redevelopment project. (See Appendix 1, Exhibits E28 and E29). A2-15 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN Land Costs: Land costs of this Gladstone site are lower than the other two selected sites, and generally lower than other industrial sites in Cleveland. Originally, the resale cost of the land was approximately $2 .25 per sq. ft. In 1968, the City reduced the cost to SI .25 per sq. ft. Evaluation of locational advantages of the site. (See Chapter 2, Exhibits El and E2.) a. Five minutes from downtown Cleveland. b. Central location for greater Cleveland. c. Adjacent to related food industry. d. Adjacent to potential labor market in the selected neighborhoods. e. Close proximity to Model Cities area. f. Adjacent to proposed Cleveland Board of Education Woodland Job Center. Evaluation of accessibility to the site. (See Chapter 2, Exhibits E3, E4, and E5.) a. Expressway: The site is within a half mile from a major freeway interchange. b. Rail: Rail access is available from spur tracks located immediately to the south of the site. c. Public transportation: There is excellent public transportation to the site. The site fronts on Woodland Avenue on which there are five different bus routes; in addition, there are many other bus routes on adjacent streets in the area. At 55th Street there is also a rapid transit stop for both the Cleveland and Shaker lines. Evaluation of relationship with the surrounding area: (See Chapter 2, Exhibit El and E2.) a. Pedestrian linkage: Prototype One is proposed to be located on the eastern portion of the site, adjacent to the vocational training school so that they could assist eachother in job training programs. The major pedestrian entrance to the building is on Woodland Avenue to relate to bus stops, car drop-offs, and public housing across the street. b. Adjacent land uses and buildings: The building is designed so that the tall processing tower is recessed from the property lines; the lower support facilities A2-16 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN extend to the property lines. This is done in an effort to keep the building in scale with the surrounding buildings which are two and three stories. In addition, this also minimizes the problem of casting shadows on the residential enclave located directly across Woodland Avenue. c. Control of smoke, dust, fumes, and odors: The mutual effects of the proposed facility and the surrounding area on eachother were considered. The prevailing winds are from the northwest in the Cleveland area; therefore, any of these nuisances, of which there are few, from the surrounding industry would not be detrimental. On the other hand, nuisance from the food industry tenants of the building would not be a problem, if waste collection and disposal are adequately provided as part of the building's mechanical system. Evaluation of vehicular circulation for the site and surrounding area in order to alleviate traffic congestion: (See Chapter 2, Exhibit E5, E6 and E7) . a. Major thoroughfares: Woodland Avenue should be widened in front of the proposed facility in order to accommodate both right and left hand turning lanes for cars into the parking garage, a drop-off lane in front of the major entrance to the building, and right and left hand turning lanes into East 40th Street for the trucks. b. Minor thoroughfares: East 40th Street should be widened in order to accommodate heavier volumes of truck traffic serving the area and north and south bound access ramps to the proposed service road south of the site. c. Service roads: A depressed service road for trucks has been designed, located south of the proposed facility. This wiU eliminate the possibility of the truck traffic congesting and inhibiting the automobile traffic in the area. This will not only serve this first stage of development, but will serve later developments on both sides of the roadway. The new depressed service road is designed for one-way traffic movement with the entrance ramps from East 40th Street and the exit ramp discharging the outward bound trucks onto East 51st Street. . PHYSICAL SITE REQUIREMENTS The site requirements are functionally and visually part of the general planning requirements and have been related to the surrounding area. The objective is that each foot of urban land be designated for a specific functional use such as construction, parking, circulation, or A2-17 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN landscaping. Through investigation and analysis of the relationship of these activities, the site plan creates a proper balance of land use for a pleasing environment as well as a workable blending of functional activities. Following are the factors which were considered: Staging system: (See Chapter 2, Exhibit E7). If the ultimate proposed facility is large in scale, as it is in this situation, it is important that it can be built in stages so that each stage is in proportion with the market needs and developer capabilities. In this case, the 13 level Prototype One facility is the first part of a four stage development Each subsequent stage would consist of facilities similar to those in Prototype One, with commercial, office, truck, rail and automobile facilities in the lower levels and processing areas located in a high rise tower. Separation of individual functions: The individual functions to be carried on within the site are: a. processing b. office c. retail d. parking garage e . rail facilities f . off-street holding, maneuvering and docking space for trucks These should be separated so that they do not interfere with each other, yet they still have to be connected so that the entire facility functions as a whole. - Maximum site unity (functional and balanced use of land): In order to make sure that the site functions properly, it is important that all functional uses be in balance with each other, adequate to meet the need of the tenants and advantageously located on the site to insure maximum efficiency. Adequate circulation system: a. Separate entrance lanes for trucks and cars: It was felt that it would be advan- tageous to separate the two different types of traffic so that each would not restrict the flow of the other. The Gladstone Urban Renewal Standards state that trucks cannot enter a terminal or depot directly from Woodland Avenue. Therefore, it was felt that Woodland would be an ideal location for the entrance to the automobile parking structure. The elimination of truck entrances from Woodland Avenue is also in accord with our plans of eliminating as much con- gestion as possible from this major artery. All trucks would enter Prototype A2-18 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN Building One from the new depressed service road which has its access off East 40th Street. b. Off-street holding, maneuvering, and docking space for trucks: In order to fulfill the trucking requirements of the facility, the lowest two levels of the facility are designed entirely for truck uses. With these functions within the building, congestion in the streets is minimized; this eliminates a condition which presently exists since many food industry firms have loading docks adjacent to the street. c. Parking for employees and guests: The zoning ordinance requires one parking space for every two employees. However, the accessibility of public transit and a near-by labor market were modifying factors in planning the parking facility, since it was believed that many employees would walk or use public transit. Therefore, the final parking provision is for 495 cars in a four-level parking structure. d. Rail facilities: Many food industry firms need rail facilities for receiving produce, meat, etc. Therefore, provision has been made for rail facilities. There are two existing rail spur tracks at the eastern edge of the property. It is planned to make use of them by situating the facility adjacent to the tracks, roofing over the tracks and providing loading docks for tenant use. Zoning and urban renewal standards: This study used the Cleveland Zoning and Building Codes and the Gladstone Urban Renewal Project Plan dated May, 1957. During the course of the study an Amendatory to the Gladstone Plan was being prepared and was submitted for approval in June, 1968. Since neither the original Gladstone plan or the Amendatory contemplate use of multi-level industrial facilities, many of the restrictions would have to be modified in order to permit meaningful development of a multi-level industrial building: a. Setbacks: The setback on Woodland Avenue is 10 feet; East 40th Street, 25 feet and the side and rear yards 15 feet. With the widened right-of-ways as proposed in this study to handle the increased vehicular and pedestrian movements, it is suggested that this new facility be allowed to build right up to the property line. b. Building coverage: The Urban Renewal Documents state that no structure shall occupy more than 40 per cent of the net site unless it is erected solely for warehouse use and then the coverage shall not be in excess of 60 per cent of the net site. In A2-19 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN order to rake advantage of scarce urban industrial land, a new multi-level structure, which will include parking and truck maneuvering and docking space, would have to cover almost 100 per cent of the site. c. Building Heights: Along Woodland Avenue, the height limitations are 115 ft. The rest of the selected site is 175 ft. In this study, it did not cause any » difficulty with the first stage of development, because the high processing tower is away from the street. However, in the future stages it could be a limiting factor. d. Parcel ization: In the Gladstone Renewal Plan, the land parcels are small to encourage development by smaller companies. In order to give access to the small parcels, new streets are proposed as part of the Gladstone Renewal Plan, which would limit the size of a development. This concept of parcelization limits the use of multi-level structures as contemplated in this study. e. New Streets: New streets will have to be designed in such a manner that large tracts of land are available for efficient multi-level facilities. Adequate utilities: The utilities to the site including water, sewer, gas and electric, are adequate to meet the building's needs. Safety and security: In order to insure the safety of the tenants, the following features were provided: a. Controlled building entrances b. Central building security c. Enclosed and controlled car parking for employees and guests d. Enclosed and controlled truck docking e. Enclosed and controlled train docking Pleasing aesthetic form: The facility has to be designed in such a manner that it has the following features: a. Pleasing aesthetic form that is sympathetic to its surroundings. b. Identity or visual image that is representative of its use. A2-20 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN BUILDING DESCRIPTION The building structure contains approximately 1, 110,000 sq. ft. of which 35% is rentable floor space for industrial and commercial activities. a. The structure consists of 2 sub-grade levels and 11 other levels. (See Chapter 2, Exhibits E8 through E18). The 2 sub-grcde levels are primarily for truck distribution, holding, docking and air circulation plus a minimal area for warehouse and building storage space. Level 1 provides car parking, warehouse, rail sidings, c< ercial and restaurant space. Level 2 provides car parking, office, and cafeteria space. Level 3 provides car parking, office and -processing space with light truck access. Level 4 provides roof parking for cars and light trucks and processing space with light truck access. Levels 5 through 10 are processing space. Level 11 is the mechanical equipment penthouse. b. Main entrance: A concrete canopy extending 30 feet from the building is provided. A vestibule leads into the main entrance lobby where a directory is furnished and access to the 4 passenger elevators and stair is provided. Adjacent is the entrance and lobby for the office structure, with 2 additional passenger elevators for office personnel and visitors. A2-21 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN PHYSICAL BUILDING REQUIREMENTS The physical building requirements recognized the fact that the detailed requirements of each tenant would differ, and are unknown. Therefore, the building has to provide flexibility to enable the tenants to achieve their unique requirements. Following are the factors which have been considered: General Requirements: a. Adequate space for the uses: The amount of industrial ^pace was determined for Prototype One based on the anticipated food industry market. From this, the amount of space required for the supporting functions such as material handling, truck maneuvering and docking, train docking, office and commercial space, and car parking was determined. b. Satisfactory relationship of the elements: The facility is designed so that all of the elements work well independently and together with adequate circulation to connect all of the related spaces. (1) Vertical pedestrian core inter-connects processing, office, commercial, automobile and truck areas. (2) Vertical material handling core inter-connects processing, truck and train areas. Specific Requirements: a. Flexibility and universality: Within each functional area of the building, the space should be uniform and adequate in design so as to meet the needs of potential tenants or uses of the area. (1) Adaptable to various sizes of tenants or uses: (a) Each of the typical processing floors has a total rentable area of 30,000 square feet. A tenant can rent any amount of space from 1,000 sq. ft. up to one complete floor. The processing floors are most efficient with one tenant per floor, two one-half-floor tenants, or three one-third-floor tenants. (See Exhibits E5 through E8, this Appendix). When a floor is broken down more than this, it is necessary to provide a perimeter corridor. A2-22 1*1 -J o o >- >.— < HUJO j O -• -• Mi 5 1 12: z < I- z < z UJ : : I to CO H »- ^ w o ■- CM < i — i — r < UJ I A' mxzn i A A 2o - °-£ *S xp i — f — r CM < UJ mmt O O O, tU z z >" > — < ►- uj o _; S igS e. _ _, ^ -j < z < Z < Z UJ i- [ : I ■ 2 ■ £ o " * . •« -rt ° ^ ae •* ; | S " * z ■ " £ » « — «i ^ 9 *~ — « Z s *> _■ ° v< 5 !*-£ £3 LZXU - 3 I i J v/ ^- ^ IZ] I , JDJUSS3iQMd I ! ! I H' a ?1-i i — -> — A ^ v a asyaois Mil I I V <£- sovaois' A /\ IT H ise V' OTd.HS ^ aoisje a b.Aiaaaa ' N aois s ONiddlHS > > L -M °o 111 ,0NISS3D0ad ' D G IS [a Kl I V A Doaa jdiO T 7 — T I II 9 I I l' » ) 1 ■ o CM < APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN (b) Off-street parking: Parking spaces are provided in a multi-level parking structure. Level 1 is at Woodland Avenue Grade and there are three parking levels above. Levels 1 through 3 are open on the exterior wall to provide fresh air ventilation. Level 4 is roof parking. The garage is concrete construction and has a total capacity of 495 spaces. Each level of parking has direct access to the main building structure. (See Chapter 2, Exhibits E 14, E 15, E 16, and E17.) (c) Truck facilities: 1. Distribution level: All trucks enter at sub-level 1 off the depressed road into designated traffic lanes. When dock space is available on sub-level 2, the truck drivers will be instructed to proceed down a ramp to a specific dock for loading or unloading. On this level there is holding space for 102 large trucks or more smaller ones. (See Chapter 2, Exhibit E 12). 2. Docking Level: On sub-level 2, there are 54 docking spaces; each space will have built-in levelers. The dock is common to all trucks and is 33,880 sq. ft. In the center of the dock is material handling elevator core, from which all materials are distributed throughout the processing building above. There are seven additional truck docks on sub-level 1. (See Chapter 2, Exhibit E 13). 3. On levels 3 and 4 of the processing building, there is the capability of having direct access for small vending trucks up to 3 tons gross weight. Trucks enter the building off the depressed street and travel up to and down from levels 3 and 4 by using the car ramps in the parking garage. Trucks can circulate through the processing space for loading. (See Chapter 2, Exhibit E 16 and E 17). (d) Commercial and office areas: 1. Common facilities needed by all tenants as part of their daily business A2-27 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN a) Reception area In lobby. b) Central switchboard. c) Conference room. d) Employee lunch room. e) Medical facilities. 2. Support facilities which each tenant can utilize and which would be available to residents of the area. (See Chapter 2, Exhibit, E 14, E 15 and E 16). a) Offices for food brokers, meat inspectors, etc. b) Duplicating services. c) Drug store. d) Bank. e) Restaurant. f) Cafeteria. g) Mechanical equipment and truck repair shop. (e) Train facilities: On level 1, there are two enclosed rail sidings provided which will serve the entire facility. These two sidings have a capacity of 18 rail car spots. Adjacent to the rail sidings is a common docking and warehousing space. (See Chapter 2, Exhibit E 14). (2) Adequate floor loads: (See Exhibits E 9 and E 10, this Appendix) (a) Processing areas are uniformly designed for live loads of 200 lbs. per square foot to permit all types of equipment, to provide the ability to relocate equipment to adjust production flow, and to permit concentrated storage of materials. (b) Truck maneuvering - 250 Ibs./sq. ft. (c) Truck and train docks - 200 Ibs./sq. ft. (d) Car parking - 75 Ibs./sq. ft. (e) Processing - 200 Ibs./sq. ft. A2-28 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN (0 Office and commercial - 100 lbs. /sq.ft. (3) Adequate and uniform bay sizes: (See Exhibits E 9 and E 10, this Appendix) (a) In processing areas, a 30'-0" x 30'-0" bay was selected as one which will permit flexibility for all types of tenants. The bays are large enough that columns will not restrict production flow or material storage, but still economical for the heavy floor loads that may be required. The 30'-0" x 30'-0" bay is flexible for divisions into 2, 3, 5, 6 or 10 foot modules for partition locations within the tenant space. (b) Office and commercial: 30'-0" x 30'-0" which is very flexible for office layout. (c) Parking garage: 30'-0" x 30'-0" which is economical and efficient for 90% parking for which the facility was designed. (d) Truck docking: A 30'-0" x 60'-0" bay which is necessary for maneuvering of large tractor trailor trucks into docks was used. Also, in some of the truck maneuvering areas, a 60'-0" x 60'-0" bay was required for a turning radius. The truck dock itself has a 30'-0" x 30'-0" bay which is adequate for maneuvering of fork lift trucks and stacking of pallets. A2-29 TYPE EVEL DING LAND DUST I r -1 -J; [l 1 |H||S g © — 1 — J w * CD 3* PROT MULTI - STRIAL BUI IN CLEV HE FOODS PRO STRUCT TYPICAL t*» FOR THE CITY OF CIEV AL ASSISTANCE GRAN 0EVE10PMENT ADM US. DEPARTMENT OF ECT NUMIER : ( o SE o j . 1 ; | ; i : : 2 ^ >- 1 * *'°. i « 0' .;-S 1° 'ii: o*S | 1 *■# , 1 >- S| n * °t : : ob , 1 ' ' ^ ■ ? i. *•« ^7"^ - 1 §3 I> 1 ! .-..T I \>i » •is C t «'o i i'l 4j o a O-' id* "-S . « 3 O 1 | jrtJ! B 1 .,-llx •-'*- <"> ': s s 's i s r i V S el ? ? - s . ; .'►:•■.♦' •! ; : o >>>>>>>>>?. » • s ■ 3 -* -• ,o-,o« _JL «L J,L_. 1, \ 1| +--.--&==——-&=: _ji ii "jczniiziL" s ][:i:z-;i]p tl][i:::i:][> _ ii ir _ et "^11^^= zr rr zz ~~r[lr — - _jl j n_ L •t a-; 3 ;S * i. •• - I' Elf I I. is si 5 * ' mJiLal ; 1*1 _f o o °- "* z z >->■—< H- Ul O j O — ' ^ uj o I CO — ^ -■ w —I < % *— _ 9 O <' tr ; H' O tr H 1 ^EF^ ^F 1: ~i r~ J_. i r f ^ E w 1/ p >- < 00 p o 1 o o « to — ' * p o X ►• u w O ',0 3 10 a \ ■ b 3 3 b 3 3 m < ^nu: i L_ N3 r JlL 1 [— . _j |. — n r : ! = !==«=] t "i i .J L_ o n r- APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN (4) Adequate and uniform ceiling heights: In all of the processing areas, the ceiling height is 12'-0" to facilitate the stacking of materials two pallets high, placement of large equipment, and installation of overhead conveyor or chain hoists as may be needed for the meat industry. (a) Sub-levels: 14'— 6" minimum clearance - adequate clearance for large tractor frailer trucks. (b) Offices and commercial: 9'-0" - adequate height for pleasing work space. (c) Parking garage: 8'-0" minimum clearance - adequate clearance for small vending trucks. (d) Penthouse: 15'-0 - adequate clearance for large equipment. (e) Typical processing floors' elevator lobby, toilet rooms and corridors: 9'-0". (5) Floor to floor heights: (a) Sub-levels 1 and 2: 2T-0" (b) Office and commercial: 12'-0" (c) Parking garage: 12'— 0" (d) Processing levels: l6'-0" (e) Penthouse level: 17'-0" (6) Suitable materials and finishes: (a) The entire building would be constructed of poured in place reinforced concrete because of the heavy floor loads, need for a fireproof structure, to minimize vibration transmission, and minimize noise and odor transmission. (b) Generally shell space is provided in each area so that each tenant will be able to provide the finishes which are most suitable to his needs. A2-32 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN 1. Public spaces (lobbies) a) Floor-terazzo b) Base - terazzo c) Walls - concrete, masonry (brick or structural facing tile) d) Ceiling - lay-in-grid, mineral fiber panels 2. Toilet rooms a) Floor - ceramic tile b) Base - ceramic tile c) Walls - ceramic tile d) Ceiling - lay-in-grid, mineral fiber panels 3. Parking garage a) Floor - concrete with hardener b) Walls and columns - exposed concrete c) Painted and electrified traffic control 4. Processing space a) Floor - exposed concrete b) Walls - concrete block wall in core areas only c) Ceiling - exposed concrete 5. Office and commercial space a) Floor - exposed concrete b) Ceiling - exposed concrete (c) Doors, door and window frames, and glass: 1. Main lobby entrance and exterior commercial window walls. a) Entrance doors - aluminum frames with duranodic finish b) Exterior door and window frames - aluminum with duranodic finish c) Glass - clear plate A2-33 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN 2. Processing, truck, mechanical and garage levels: (On the processing floors, the only doors and door frames provided are in the core areas). a) Doors - hollow metal with enamel finish b) Door frames - hollow metal with enamel finish (d) Exterior wal Is: 1. Office and commercial area: Poured in place concrete frame with duranodic aluminum framed window wall. 2. Parking garage area: Concrete frame with masonry spandrel. 3. Processing levels: Poured in place concrete frame and masonry wall panels with duranodic aluminum sash or insulated wall panels. 4. Penthouse level: Masonry wal Is with aluminum louvers. (7) Adequate toilet room facilities: Separate men and women executive and employee toilet rooms are provided on each processing level. These toilet facilities provide only the basic building code requirements. Employees' toilets are so laid out that a tenant, at his own expense, may add locker and shower rooms, if required. (8) Passenger elevators: The processing tower is served by four automatic elevators which stop at each floor. Two of these also stop at sub-levels 1 and 2. (a) Cab capacity - 4000 lbs. (b) Door size - 3'6" x 7'0" (c) Travel speed - 350 feet per minute The office structure is served by two automatic elevators which stop at each floor. (a) Cab capacity - 2500 lbs. (b) Door size -3'6" x7'0" (c) Travel speed, 200 feet per minute A2-34 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN (9) Adequate and flexible material handling system to meet all types of potential tenant needs: (a) Material handling management facilities: All of the material handling for the entire building would be controlled and operated by a building management service. This means that the management service would be in charge of scheduling all trucks to and from the truck docks, loading and unloading all trucks, scheduling all train cars to be spotted, loading of all train cars, and delivery of al I materials to and shipment of all materials from the individual tenant floors. In addition to coordinating all of the shipping and receiving, this management service would also eliminate the potential of individual tenant disputes over who should use the elevator, truck docks, or train dock. . (b) Material handling elevators: 1. Eight elevators each serve one processing floor plus Level 1 and the two sub-levels. 2. One elevator serves all processing floors for emergency or overload, plus level one and the two sub-levels. 3. General material handling elevator specifications a) Rear entrance for loading and unloading on sub-level 2 in six elevators b) Platform size - 8'6" x 10'0" x 10'0" high c) Capacity - 10,000 lbs. d) Doors - 8'0" x 9'6" e) Travel speeds: 3 to 5 levels 200 f.p.m. 6 to 8 levels 300 f.p.m. 9 or more levels 350 f.p.m. A2-35 APPENDIX 2 - SECTION E BUILDING PROGRAM AND DESIGN (c) Special material handling equipment: Space is provided in the mechanical shaft adjacent the material handling elevators for any tenant's special material handling system he may wish to install at his own expense. (10) Use of a "grid" or similar system for flexibility and ease in locating mechanical and electrical systems. The building is designed with a split beam and column system in alternate bays running in an east-west or transverse direction of the building. In the north-south or longitudinal direction, the central bay of the processing tower is smaller than the others. Therefore, the depth of structure in this bay is less, providing space for overhead utility runs. (11) Central mechanical and electrical system with adequate supply lines for all required utilities which could be extended to the individual tenant spaces as required. (See Exhibits E 11 and E 12, this Appendix) All of the tenant service installations must be approved by the building owner. Following are the utilities and services which are designed info the building: (a) Plumbing 1. Water: Hot and cold water service is supplied to all public toilet rooms and janitor spaces. For tenant use, there are cold water lines available at three locations on each floor. If a tenant requires water, he would provide a valve the same size as his intended service line. This valve should be located at the tee just beyond the main shut-off valve in the shaft, so his water could be turned off without interference to other tenants. The tenant would also provide a water meter, and then he would be free to run a line as necessary to and within his space. All of this would be included in the tenant improvements. Where possible, lines should run within the utility space provided on the ceiling in the narrow central (longitudinal) bay and in the 'split beams' that run in a transverse direction. 2. Hot water: If a tenant requires hot water beyond the toilet room service provided by the building, he would provide an electric or gas hot water heater in his space and connect this to his own water supply. A2-36 O o z >->» — < t— •** O .J O -* — I uj as . M _i o. _ _. « : o Vj ~» 5 3E 2 "^ ° ■*> t- t- o o S£i iSJ :U» -\i —7\ CO CN < w «J O O O. ^ 3E 3E I— l** O _J O —* — J uj S ig£ o. >_ _. ^ v» a- (0 z LU 2 O ° n O 0. > -i I ct X UJ < u to £ Crt««ffl-« Z -^ Z .. Z) o. ' i • ' ° < o > ' I.- j U z ;,; o. r ■ (5 >- u z < 1 - o 'A z rv; 9 uZ ^ < 3 n to I'J < ^ o - -El _c c v» m o p j U g^ ~o '5 i r crC c „ < c ■*- • J2 ' Ql < ci o - o — o5° oU o . <* IB T3 -5 *: o> c - n o c £ O- w. >. 5 o o u < OS II. (\. is 8 1 « ;^ ' < p ^ j> z Li o o £<-> = '/> o e<3 ^- IT) I I— * o - S) u .2 (U \ ° 1 S^s t, n "O v " T, - £ E "O •- z o «U1 c >v D 0) - a. 5 x c: J: u "6 OJ y p "2 aj w c o 5 3 O o u J V- ^-2 > -1- o IB > 1_ lu £» -Q E o. Z-~ OJ o 0) rj V. •*- > o J2 .i-J-o o *- £ 0- E 5 — o o § h ?) 2> E c <•> .2. « U — (I) o o- S 0>_5" o ,2 c ~T3 3 D H) "O ° c E O ov- T 1 o °- a ID i, X f < Ji o. a. U) S4~ O — o o D O l\ CO O U -o o ° o o f3 IT) ■— *" E ,. - c^l t-o a. o o) o ""°. c 0^ >» a" *• '■t: m - Tl o -o O ■£ g v -~ E 6 §■« -o _ J3 0" o- >~~ cS O " o c. . IT) *- a o IU 1 0) c 3 <-j. 0) o 0) o ^. E o c^ 3 o V 0) 0> §•1 3 D- 0) e u 1 X 9 R o _c — - c o z EXHIBIT 2 PROTOTYPE BUILDING ONE PRO FORMA CASH FLOW ANALYSIS Sub Levels # 1 and *2 Levels # 1- # 11 Levels *l-*4 (Excluding (Car Parking) Car Parking) Totals Project Cost Square feet of construction Project cost per square foot Hnancing and Equity Alternatives " . Conventional Bank Mortgage - 7 1/4%, 20 years, 75% - Equity required, 25% . EDA Financing Package - 5 3/4%, 25 years - EDA Mortgage, 65% - Commercial bank mortgage, 25% Subtotal, 90% - Equity required, 10% Annual Cash Disbursements Based on EDA Package Mortgage Interest and Principal Taxes - $5.5l/$100 @ 40% Insurance Operating and Maintenance Management Total Cash Disbursements oross Annual Rentals Required to Cover Cash Outflow' $4>760,290 337,550 14.11 3,570,200 1,190,090 3,094,200 1 , 1 90, 090 4,284,290 476,000 $2,652,260 238,000 11.14 1,990,000 662,260 1,725,000 662,260 2,387,260 265,000 i $18,252,450 514,352 35.49 13,700,000 4,552,450 11,872,550 4,552,450 16,425,000 1,827,450 $25,665,000 1,089,902 23.55 19,260,200 6,404,800 16,691,750 6,404,800 23,096,550 2,568,450 $ 323,450 $ 180,000 $ 1 ,240,000 $ 1,743,450 105,000 58,500 402,300 565,800 2,000 3,000 23,500 28,500 160,000 60,000 395,000 615,000 50,000 25,000 50, 000. 125,000 $ 640,450 $ 326,500 $ 2 110,800 $ 3,077,750 $ 640,450 $ 326,500 $ 2 110,800 $ 3,077,750 Notes: Annual rentals show only a break-even point, with no allowance for cash flow return on investor's equity, This is realistic in these projections because per square foot rentals required for just a break-even are far in excess of competitive rates. A3-5 EXHIBIT 3 PROTOTYPE BUILDING ONE SUELEVELS # 1 AND # 2 PRO FORMA COSTS, FINANCING AND CASH DISBURSEMENTS Project Cost Land Cost - 185,000 sq. ft. @ $2.00 $ 370,000 Building Cost - 337,550 sq. ft. @$1 1 .05 3,731,290 Architects, Engineers, other fees — 8% of building cost 298,000 Interest, insurance, other construction costs - 4% of building cost 149,000 Management Administration 100,000 Contingency - 3% of building costs 112,000 TOTAL PROJECT COST $4,760,290 Financing and Conventional EDA Equity Alternatives Bank Mortgage Package 1. Commercial Bank- 7-1/4% 75% $3,570,200 20 years Equity required 25% 1,190,090 2. EDA Package - 5-3/4%, 25 years EDA Portion 65% $3,094,200 Commercial Bank Portion 25% 1 , 1 90, 090 Sub- Total 90% $4,284,290 Equity Required 10% $ 476,000 EDA Annual Disbursements Financing Mortgage interest and principal $ 338,650 $ 323,450 Taxes - $5.51/5100.00 @ 40% 105,000 105,000 Insurance 2,000 2,000 Operating and maintenance 160,000 160,000 Management 50, 000 50, 000 Total Disbursements $ 655,650 $ 640,450 This annual cost will add $1 .74/sq. foot to rental rates for levels 'l-'ll A3-6 EXHIBIT 4 THIRTEEN LEVEL PROTOTYPE BUILDING ONE LEVELS # l-#4 (CAR PARKING) PRO FORMA COSTS, FINANCING AND CASH DISBURSEMENTS Project Cosi Land-air rights, lease, etc. Building cost-238,000sq. feet @ $9.51 Architects, Engineers, other fees - 8% of building cost Interest, insurance, other construction costs - 4% of building cosi Management, administration Contingency - 3% of building cost TOTAL PROJECT COST -0- $2,262,260 180,000 90,000 50,000 70,000 $2,652, 260 1 Financing and Equity Alternatives 1. Commercial Bank - 7-1/4% 20 years ' 75% Equity Required 25% 2. EDA Package - 5 3/4%, 25 years EDA Portion 65% Conventional Bank Mortgage $1,990,000 662,260 EDA Package Commercial bank portion 25% $1,725,000 662,260 Sub Total 90% $2,387,260 Equity Required 10% 265,000 Annual Disbursements Mortgage interest and principal $ 189,000 $ 180,000 Taxes - $5. 51 /SI 00. 00 @ 40% 58,500 58,500 Insurance 3,000 3,000 Operating, maintenance 60,000 60,000 Management 25,000 25,000 Total Di« bursemenfs $ 335,500 $ 326,500^' 1 Average project cost per car space = $5,360 ($2,652,260 * 495) 2 $326,500 ■» 495 cars = $660/car space/year $55/month or $2.50/week day 3 This annual cost will add $.S9/sq. foot to rental rates for Levels "]-"]] A3-7 EXHIBIT 5 THIRTEEN LEVEL PROTOTYPE BUILDING ONE LEVELS # 1-*11 (EXCLUDING PARKING) PRO FORMA COSTS, FINANCING AND CASH DISBURSEMENTS Project Cost Land-air rights, lease, etc. Building cost - 514, 352 square feet @ $30.20 Architects, Engineers, other fees - 8% of building cost Interest, insurance, other construction costs - 4% of building costs Management and administration Broker fees (start up cost) Contingency - 3% of building cost TOTAL PROJECT COST Financing and Equity Alternatives 1. Commercial bank 7-1/4% 20 years 75% Equity required 25% 2. EDA package 5-3/4%, 25 years EDA portion 65% Commercial Bank Portion 25% SUBTOTAL Equity Required 90% 10% -0- $15,527,450 1,250,000 625,000 200,000 150,000 500,000 $18,252,450 Conventional Bank Mortgage EDA Package $13,700,000 4,552,450 $11,872,550 4,552,450 $16,425,000 1,827,450 Annual Disbursements Mortgage interest and principal Taxes - $5.5 1/S 100.00 @ 40% Insurance Operating and maintenance Management TOTAL DISBURSEMENTS $ 1,300,000 402,300 23,500 395,000 50,000 $ 2,170,800 $ 1,240,000 402,300 23,500 395,000 50,000 $ 2,110,800' Building rentals for levels *1 - *1 1 will have to average $5.74/square foot per year to cover costs and mortgage payments, plus $1.74/square foot for sublevels *1 and ff 2 and $.89/square foot for Parking Levels *1 - "A. A3- 8 EXHIBIT 6 PROTOTYPE BUILDING ONE PRO FORMA PROFIT AND LOSS ANALYSIS EDA FINANCING PACKAGE ONLY Sublevels *1 and #2 Levels *l-^4 (Car Parking) Levels #1-#11 (Excluding Car Parking) Total GROSS ANNUAL RENTALS TO COVER CASH DISBURSEMENTS $640,450 $326,500 OPERATING EXPENSES Taxes 105,000 58,500 Insurance 2,000 3,000 Operating and Maintenance 160,000 60,000 Management 50,000 25,000 TOTAL OPERATING EXPENSES $317,000 $146,500 OPERATING INCOME $323,450 $180,000 $2,110,800 $3,077,750 402,300 565,800 23,500 28,500 395,000 615,000 50,000 125,000 $ 870,800 $1,334,300 $1,240,000 $1,743,450 OTHER EXPENSES Interest-Average of First Five Years (a 5 3/4%, 25 Years 1 Depreciation-Double Declining, 45 Year Lite, Average of First Five Years TOTAL OTHER EXPENSES NET INCOME (LOSS) BEFORE .TAXES ADD: Average Depreciation First Five Years DEDUCT: Average Principal Payment, First Five Years 234,350 130,400 178,550 107,860 $412,900 $238,260 ($ 89,450) ($ 58,260) 178,550 107,860 89,100 49,600 898,500 1,263,250 742,240 1,028,650 $1,640,740 $2,291,900 ($ 400,740) ($ 548,450) 742,240 1,028,650 341,500 480,200 NET ANNUAL CASH FLOW $ -0- - -0 1 2 See next page for explanation of notes and A3-9 EXHIBIT 6 (cont'd.) Sublevels #1 and # 2 Levels * 1-^4 (Car Parking) Levels # Mil (Excluding Car Parking) Total NOTE 1 ACTUAL INTEREST AND PRINCIPAL Year 1: Year 1 : Interest Principal $244,300 79,150 $135,900 44,100 $936,550 303,450 $1,316,750 426,700 Year 2: Year 2 : Interest Principal 239,620 83,830 133,300 46,700 918,630 321,370 1,291,550 451,900 Year 3: Year 3 : Interest Principal 234,680 88,770 130,540 49,460 899,660 340,340 1,264,880 478,570 Year 4 : Year 4: Interest Principal 229,430 94,020 127,620 52,380 879,570 360,430 1,236,620 506,830 Year 5: Year 5: Interest Principal 223,880 99,570 124,530 55,470 858,290 381,710 1,206,700 536,750 NOTE 2 ACTUAL DEPRECIATION Year 1 $195,120 $117,900 $811,210 $1,124,230 Year 2" 186,450 112,650 75 5,150 1,074,250 Year 3 178,160 107,630 740,700 1,026,490 Year 4 170,250 102,850 707,800 980,900 Year 5 162,700 98,275 676,330 937,305 A3- 10 EXHIBIT 7 PROTOTYPE BUILDING ONE CALCULATION OF AVERAGE INTEREST AND PRINCIPAL - FIRST FIVE YEARS EDA FINANCING PACKAGE ONLY 5 3/4% FOR 25 YEARS Annual Total -Monthly Payments of Interest and Principal First Five Year's Calculation: Amount Financed (90%) Monthly Payment - Interest and Principal (.006291064 x Original Loan) Less: Interest in 1st Month (.00479166 x Original Loan) Principal Repaid in 1st Month Principal Paid in Five Years (69.3236021211 x 1st Principal) Total Payments in Five Years (5 x Annual Total) Interest Paid in Five Years (Total Paid-Principal Paid) Average Annual Principal (Total Principal L 5) Average Annual Interest (Total Interest ; 5) Sublevels *1 and*2 Levels * 1-^4 (Car Parking) Levels # Mil (Excluding Car Parking) Total $ 323,450 $ 180,000 $ 1,240,000 $ 1,743,450 4,284,290 2,387,260 26,953 15,018 20,529 11,439 6,424 i 3,579 445,335 248,109 1,617,250 900,000 1,171,915 651,891 89,100 49,600 103,331 78,703 24,628 341,500 16,425,000 23,096,550 145,302 110,671 34,631 1,707,302 2,400,746 6,200,000 8,717,250 4,492,698 6,316,504 480,200 $ 234,350 $ 130,400 $ 898,500 $ 1,263,250 A3- 11 EXHIBIT 8 PROTOTYPE BUILDING ONE PRO'FORMA DEPRECIATION-DOUBLE DECLINING BALANCE FOR FIRST FIVE YEARS EDA FINANCING PACKAGE ONLY Project Cost: , Beginning Balance Depreciation-Double Declining 1st Year Book Value 2nd Year Book Value 3rd Year Book Value 4th Year Book Value 5th Year Book Value Total Depreciation Five-Year Average Sublevels § \ and # 2 Levels $ 1-^4 (Car Parking) Levels # Mil (Excluding Car Parking) 195,120 4,195,170 186,450 4,008,720 178,160 3,830,560 170,250 3,660,310 162,700 3,497,610 117,900 2,534,360 112,650 2,421,710 107,630 2,314,080 102,850 2,211,230 98,275 2,112,955 $ 892,680 $ 539,305 $ 178,550 $ 107,860 811,210 17,441,240 775,150 16,666,090 740,700 15,925,390 707,800 15,217,590 676,330 14,541,260 $ 3,711,190 $ 742,240 Total $4,390,290 $2,652,260 $18,252,450 $25,295,000 1,124,230 24,170,770 1,074,250 23,096,520 1,026,490 22,070,030 980,900 21,089,130 937,305 20,151,825 $ 5,143,175 $ 1,028,650 NOTE: Includes costs of building, architects, engineers, construction insurance and financing, management and contingency; excludes land costs of $370,000.00 which are not depreciable. A3- 12 APPENDIX 3 - SECTION B DEVELOPMENT CONSIDERATIONS In addition to the test of the tenant market, separate discussions were held with representatives of the City Administration and with private developers. A full presentation was made, similar to that given to the potential food industry tenants (see Appendix 3, Section C) and the discussions are summarized below. CITY GOVERNMENT Presentations were made to members of the Mayor's staff and department heads, in addition to regular progress reports and meetings with the City's project director. They generally felt that the City's involvement in implementing this project would depend on its economic feasibility. That is, the prime mover would have to be a private developer or group or the federal government. One official stated that if the City were to participate, it would have to be able to get its money back over a period of years. Another felt that the City would participate by making the site and utility improvements if it has some assurance that this is a i reasonable venture; however, the actual financing could not be undertaken by the City. There was recognition of several problems which face the City. Many food industry firms are faced with the threat of going out of business, because they cannot afford to upgrade their facilities in keeping with the requirements of the new federal meat inspection laws. This may mean a loss of jobs for Cleveland residents and a loss of industry and income to the City. The question was also raised as to whether any extensive industrial development would be possible in the City without federal subsidy in light of the limited amount of land and the high cost of multi-level construction. It was pointed out that this project must have national significance in order to merit federal financing. The major considerations which would justify the development of Prototype One would be its social, economic and community benefits to Cleveland and its value as a national prototype or pilot project. PRIVATE DEVELOPERS The representative of a large development company with interests in several midwestern states, stated that his firm's major concern would be with the building efficiency. In order to be considered for development, a building has to have an 80% efficiency, based on net rentable area. The total project cost is not a deterrent in and of itself, since many of their A3- 13 APPENDIX 3 - SECTION B DEVELOPMENT CONSIDERATIONS developments are in excess of $12,000,000.00 to $15,000,000.00. As far as tenants are concerned, this developer would require a guarantee that the tenants would pay at the required rental rate; letters of intent would be required from potential tenants with good credit, who could carry a mortgage for tenant improvements. In discussing the food industry, he recognized that there are certain facets of this industry which tend to group; however, he does not feel it is possible to put all food industries together In one location. While he acknowledges the existence of the problems involved in developing a building in Gladstone and on urban renewal land, he stated that his company's major concern is purely economical. Further, he stated that the management of such a facility would be beyond his company's capability; if they would develop this project, they would work out an arrangement with a management service. A local realtor-developer was of the opinion that the Gladstone area is not competitive with suburban industrial areas. He saw proximity to like industry or markets and proximity to a large market of low or semi-skilled labor as being the major attraction of the area. Cleveland's higher real estate tax rate and higher land costs were identified as major disadvantages. He agreed with the idea of a multi-stage development, starting with one complex and proceeding to develop the entire Gladstone area in planned phases. However, he favors the development of single level buildings, possibly all under one owner. He identified the current rental market as being $1 .25 to $1 .50 per square foot. At the same time, he pointed out that land cost would have to be about $25,000.00 per acre or $.50 to $.60 per square foot. His reaction to the multi-level concept was negative and he said the current trend is toward one or two story buildings. He was also not in favor of the central building management for truck docking and building activities. A3- 14 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS PURPOSE The objective of this study was to assess the overall market demand for a multi-level building for food industry tenants. This was achieved by a test program which involved interviews with a broad cross section of food industry entrepeneurs. The most important output from the market test was to ascertain realistic reactions to the proposed project and to determine the value of the thirteen level Prototype One to the tenant prospects and to the food industry as a whole. To accomplish this, factual discussions were stimulated which brought out opinions as to the opportunities and problems offered by the multi- level concept. These interview findings, together with data gathered from other research, were analyzed to form the basis of evaluating Prototype Building One. SCOPE OF MARKE T TEST Because of the complex nature of this project, it was determined that in-depth personal interviews would be the test method. The possibility of a mail survey to a larger number of contacts within the community and/or the industries studied was considered but appeared to present several limitations. First, there would be no control over the position of the person within the firm who would complete the form. Second, a lengthy written statement would be required to explain the project and there was greater possibility of misunderstanding. Third, the number of responses which might be anticipated from such a survey was unknown, but would most likely be quite small. Finally, a mail survey would not permit the flexibility of a personal interview; there would be no opportunity to follow up a specific line of questioning and it would not permit an accurate assessment of the interest of the interviewee. Personal interviews would best expose the project to the selected market, and provide background information. The primary target firms were considered to be those who presently lack adjacent land for expansion, who have few relocation possibilities open in the City, and who face deterioration, functional and physical obsolescence in their present facility. A preliminary tenant prospect profile was developed. This was used as the basis of the financial analysis, material handling data and market determination. This preliminary list of tenant prospects included the following categories: Automatic merchandising service companies who sell food through vending machines Industrial and social caterers A3- 15 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS Meat and sausage processor - wholesalers (excluded meat packers-slaughter houses) Fish and poultry processor - wholesalers Bakers and snack food producers Prepared foods processors and wholesalers Frozen food distributors A series of preliminary telephone interviews were conducted to develop a better understanding of the kinds of food industry tenants that would be most able to use multi-level space. Based on the information from these interviews and other research data, certain categories were eliminated from consideration. Bakeries, dairies and bottlers of soft drinks require special process layout in terms of manufacturing and they also have large fleets of trucks which are most efficiently and economically loaded directly adjacent to the end of their production lines and/or storage areas. In a multi-level building, neither of these needs could be efficiently met. These three industries account for approximately 60% of the total food manufacturing employment in Cuyahoga County. The prepared frozen foods category, which employs about 400 people in Cuyahoga County, is dominated by one firm - Stouffer Foods Division of Litton Industries. This firm is the largest local manufacturer in the food processing industry and employs about 90% of the 400 employees. They recently have completed a large new food processing and storage facility in a southeastern suburb which is capable of producing 80 million pounds of convenience foods per year. The large food chain operations in the area were not considered as tenant prospects, since they all have moved or plan to move their processing and warehousing activities to the suburbs. The very large space requirements of the chains did not match the specifications of the multi-level building. The move to the suburbs has been dictated by the fact that large acreage tracts with good rail and freeway access were available at prices far below central city land. In addition, these distribution operations serve areas larger than the metropolitan market and, therefore, do not require a central city location. Lower taxes in these suburbs also contributed to these moves. The prototype building design provides about 30,000 net usable square feet on each processing floor. Because of the strong tendency of food manufacturers to operate on one level, the size of a single floor in the designed building precluded the need to market test with very large space users . A3-16 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS Before the market testing began, it was determined that interviews with food processors would be emphasized. This was based on the rationale that processors have a better ability to pay higher rent because there is value added to the food, their turnover of material would be less frequent than those who do not process, and their shipping and receiving would be less susceptible to the high peaking factors of the jobbers, purveyors, and commission merchants who have locally oriented markets. It became apparent during early days of testing that the test should also include contacts with representative food jobbers, purveyors and commission merchants. During the entire market test, thirty-five persons representing twenty-nine different companies and agencies were interviewed. The interviews included discussions with 20 executives, usually the president or vice president, in large, medium and small size food operations; six different private developers; representatives of the City of Cleveland, the Greater Cleveland Growth Association, and the Greater Cleveland Growth Corporation. Specifically, the types of tenant prospects interviewed are as follows: ' Two automatic vending and catering operations One catering operation Two food purveyors (including frozen food and general line food) Three commission merchants (fresh produce) - One fish processor-wholesaler One meat processor-wholesaler Two bakery-snack food operations One major chain store operation Seven meat processor-wholesalers In addition to those actually interviewed, twelve other contacts were made by telephone, but only limited information was obtained. Of these, four had appointments scheduled but were unable to attend a personal interview. A 3- 17 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS CONDUCT AND FORMAT OF INTERVIEWS In making preliminary outlines of content and format, certain assumptions were made. It was hypothesized that the proximity of the site to the major food distribution terminal area in Cleveland would have some positive effect in stimulating certain food processors to select the area as a desirable site alternative if there was a need to relocate. Since relocation to a new building would increase the overall space costs for most food firms, it was decided that the interviews would stress the specific benefits and overall cost saving advantages of the proposed building; the actual rental range per square foot would be de-emphasized. - The basic premise in the interview presentations and in the discussion period was to present as many descriptive facts about the proposed project as possible, without acting in the capacity of promoters (who would normally try to obtain a specific tenant commitment). Since it was impossible to meet with every food business categorized under our selection criteria, the attempt was made to obtain reactions and information that would broadly represent opinions of the firm represented and similar firms. The selected tenant prospects were initially contacted by telephone and personal interviews were arranged. All but four of the market test interviews were held in the offices of William A. Gould & Associates, thereby accomplishing these objectives: Display of a comprehensive graphic presentation of the project area and the engineering and design scheme, thereby allowing for better understanding and discussion. Use of the scale model of the proposed building and its surrounding environs. Minimizing the interruptions and achieving full participation in the discussion. For purposes of those interviews which were conducted at the interviewee's place of business, a set of slides and related drawings were used. The general format of the market test interviews was as follows: Review of the findings and conclusions of the 1965 study of vacant industrial land and buildings and their potential. Review of the findings of Phase I of this study. Review of the status of the Gladstone Urban Renewal project. A3- 18 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS Review of the reasons for this study, involving the desire of the City of Cleveland and the Economic Development Administration to find solutions to the industrial move-out trends in Cleveland and other central cities of major metropolitan areas. Review of the present food industry situation, the reasons for its selection as the basis of this study. Review of specific objectives which were sought for the food industry, for Cleveland and for application in other metropolitan areas with industrial land scarcity. Review of the roles and responsibilities of the City of Cleveland, the Economic Development Administration of the United States Department of Commerce, William A. Gould & Associates, and its consultants. Graphic presentation of the proposed project, including the building design, and related off-site improvements. Use of a Tenant Fact Sheet which gave the basic ibuilding data . Discussion and questions period. MARKET TEST FINDINGS AND CONCLUSIONS Five broad questions were formulated as a basic framework for the market test. These questions are listed below with all relevant findings and conclusions. WHAT IS THE REACTION TO THE BASIC MULTI-LEVEL DESIGN CONCEPT FOR THE CLEVELAND FOOD INDUSTRY IN THE GLADSTONE LOCATION? The concept of a multi-level industrial facility stimulated the most discussion and the general concensus was that the market demand for such a facility is limited among Cleveland area food processing firms. The interviewees expressed several reasons that accounted for this. Interviewees expressed a preference for single level facilities. This was expressed by firms presently occupying two or three level facilities and by firms leasing one floor in a multi-level facility. Two automatic merchandising firms indicated that their businesses operated most efficiently on one level. Another large automatic merchan- dising operation who was using 75,000 square feet was regarded as an excellent prospect early in the study, but they later decided to move to a suburban location. With isolated A3-19 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS exceptions, those food industry companies which have made facility moves in the past few years have gone to single level space. Because the Gladstone area now encompasses some 70 acres of vacant industrial land, it was difficult for interviewees to visualize the principles of long-range land planning because of the eventual scarcity of industrial land in the central city. They did not recognize the need for multi-level industrial facilities and stated preference for developing the area with single level structures. Management of smaller firms desire close personal control over incoming and outgoing trucks, physical loading and unloading, with the ability to observe these operations. The multi-level facility as originally designed would eliminate this possibility. A caterer suggested that a lower level floor of the building be designed to accommodate small delivery trucks which could enter the floor and actually circulate through the processing space to load the truck most efficiently. Concern was expressed, by certain processors, that odors, waste control problems and other special characteristics of their operations would not be compatible with other tenants. The question of flexibility for expansion was of concern to larger tenant prospects who might be able to initially lease an entire floor. There was adverse reaction to the possibility of future expansion to a floor above or below. - Some were concerned over expansion in a multi-tenant facility. This could be alleviated by a competent building management and a flexible leasing program. The building is designed to uniform engineering standards and specifications in order to provide for tenant flexibility. However, some tenant prospects felt their needs did not warrant this type of construction. Concern was expressed about having to make relatively large expenditures for special equipment and built-in improvements in a leased space, where a physical move later on would be extremely costly. The Gladstone location continues to be a desirable central location for food distributors such as commission merchants, purveyors and jobbers. However, it no longer is attractive to food processors whose geographical market area covers all of northern Ohio or more. Four of A3- 20 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS five major food chains have moved their distribution, storage and processing facilities to large acre sites southeast of Cleveland and the fifth will do so in the next few years. Three other food related firms have moved or plan to move to this same suburban area, including Cleveland's largest general line food wholesaler, the largest prepared foods processor and the largest automatic merchandising operation. The interview program results indicated that the interviewees would prefer a two or three level building with truck access on all levels and docking space provided immediately adjacent to tenant plant space areas. Tenants for this redesigned building should be considered as coming from meat processors- wholesalers, purveyors, commission merchants and jobbers, since the market potential for food processors appears limited. Because the major effort in the design and market test of the prototype building was directed toward processors, it is not known how much space would be required to fill the needs of this new tenant group. However, discussions indicated that a market for 250,000 to 400,000 square feet would not be unrealistic if an acceptable lease rate package could be developed. Several interviewees stated that the general scarcity of well located industrial land in Cleveland gives the Gladstone area good overall potential for new facility construction. However, the historical image connected with the Gladstone area was generally not favorable because of the near-by congested areas and the potential for vandalism, pilferage and crime. The Gladstone Urban Renewal Project is now eleven years old and there has been no significant redevelopment progress. In view of this, there was scepticism as to probable implementation and fast action needed to meet their immediate needs. The developer interest coincided with that of the prospective tenants. The construction of a multi-level building which meets all code requirements and provides space for a broad range of different food processing operations involves provisions for truck docking and holding facilities, parking and a material handling system. This, in turn, would result in a low building efficiency ratio and high rental rates. The developers also expressed concern about the financial stability of the firms that would require space in a facility of this type. They generally expressed concern over the success of the multi-level concept and none were inclined to include such a building in their plans to meet space needs for manufacturing concerns. A3-21 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3- SECTION C INDUSTRY TENANTS WHAT ARE THE POTENTIAL BENEFITS OF THE RELATED SPACE USES AND SERVICE FUNCTIONS PROGRAMMED FOR AVAILABILITY IN THE BUILDING? A number of tenant services were considered for inclusion in the building. These services could be utilized by any of the tenants who would otherwise be unable to afford them on an individual basis. The interviewees generally agreed that such services would be advantageous and desirable. These services included: An employee cafeteria A first class restaurant A common lobby and reception area, including conference rooms A central switchboard A paging system for each tenant and the docking area A test kitchen and foods research library Office areas for food brokers, food inspectors and similar related persons A machinery maintenance firm Bank branch and drug store WHAT LOCATIONAL ADVANTAGES AND DISADVANTAGES ARE THEREWITH REGARD TO TRUCK AND RAIL ACCESS, PUBLIC TRANSPORTATION, PROXIMITY TO CUSTOMERS, COMPETITORS, EMPLOYEES, RAW MATERIAL s'u PPL I ERS, WAREHOUSING AND COLD STORAGE FACILITIES? The Gladstone site area offers many locational advantages to continue as the major fresh produce market center for the metropolitan area, serving as a business location for commission merchants, meat processor-wholesalers, purveyors and jobbers. These include: The present clustering of commission merchants and wholesalers The availability of rail Easy access to the site for trucks by major thoroughfares and freeways Geographically central location for smaller store buyers who come from all sections of the city. Minimized travel time required between hotels, restaurants and other institutions served. A3-22 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS Truck and rail access are excellent in the site area. The Gladstone site area provides as good a location with regard to truck and rail access as any site in the City for those processors or distributors who need a central city site. However, for food processors serving a broad market area, the Gladstone site does not offer a strong advantage over alternative suburban sites which are also located in proximity to freeway access. Interviewees presently accustomed to receiving rail carloads now felt that the availability of a covered double track siding adjacent to the proposed first floor warehouse was an advantage. Those not now on or near rail sidings indicated that motor truck service could continue to meet their needs and provide a faster and more flexible transportation service. The accessibility to major routes of public transportation, which were considered to be a major plus factor initially, does not now appear to be a significant advantage. The interviewees indicated that their employees preferred not to ride the bus lines in the general area, especially those who would be coming or leaving in the dark hours. Use of the rapid transit, which stops within five or six blocks, would require a ten minute walk or a transfer to existing bus lines to the site or the establishment of a new bus loop line. The question of proximity to customers relates to the market area covered. For firms whose customers are located in Cleveland and its surrounding suburbs, Gladstone is a desirable site. As firms grow and enlarge their market area, the central city may become a minor portion of their total business and the need for a central city location diminishes. The larger food processors do not appear to have any need or desire to be located in proximity to customers. Food jobbers and purveyors, and commission merchants find it important to be located in or near the food terminal area of Gladstone since this gives the opportunity to buy from each other as necessary. The typical fresh fruit and vegetable merchant finds it essential to be located in a cluster of like businesses, since their customers are accustomed to the central market concept where they can compare prices and merchandise. The heavy concentration of potential employees in Gladstone area and the availability of lower skilled people does not appear to be an attraction to most food businesses. The food industry labor wage scale is such that the lowest job rate is $3.08 an hour plus fringe benefits of $.70 to $.80 per hour. Therefore, the food employer does not want to hire low or non-skilled A3-23 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS employees who will require training and not be immediately productive. In addition, the smaller and medium sized food processing and wholesaling firms have not been expanding their labor force substantially over the past few years. This limits the need for them to relocate into denser labor market areas where persons are presently unemployed. Other firms which have employed lower skilled laborers in the past, have expressed some concern over the ability to retain these employees after making the move to a suburban location. However, this factor has not deterred many from moving out of the central city. One large catering operation presently in a suburban location, indicated an interest in relocating in the Gladstone area because of proximity to food suppliers and convenience for his employees who reside mostly in the central city area. The Cleveland Board of Education has recently taken over a large building adjacent to the proposed multi-level building. This is to be used for job training programs for younger and low skilled persons. The interviewees indicated that, if an employee had all other required qualifications, they would rather train them under personal supervision at their own plant. In addition, there is no apprentice wage rate in the local food processing industry. Proximity to raw material suppliers is an unknown factor since the majority of food to be processed is brought in from areas outside of metropolitan Cleveland and few have had the opportunity to evaluate this locational advantage. Many of the prospective tenants interviewed now use a number of different cold storage and warehouse facilities located in various buildings throughout the central city. They believed it would be desirable to have common cold and frozen storage included in any groupings of food processors and wholesalers should such a new grouping develop. WHAT BENEFITS OR PROBLEMS ARE ENVISIONED WITH THE PROPOSED MATERIAL HANDLING CONCEPT AND SUB-LEVEL TRUCK DISTRIBUTION AND DOCKING ARRANGEMENTS? The material handling system of the proposed building recognizes the problem that food businesses currently utilize a wide variety of material handling procedures. The concept of separating truck traffic from car traffic and pedestrian flow from product flow was very well A3-24 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECXiON C INDUSTRY TENANTS received. It was designed to provide the most efficient system for a multi-level structure. The concept, which was tested in these interviews, was that a building management service would operate the material handling operation from docks to tenant floors. This method was not satisfactory to many interviewees because of their desire to personally control these activities and because of the need for a maximum of flexibility to meet the minute-to-minute changes which occur from coordinating incoming deliveries and rush orders. Interviewees expressed opinion as to the general difficulty of consolidating the various material handling methods used into one program which could meet the needs of a building with perhaps twenty or twenty-five tenants. For example, the typical meat processor-wholesaler utilizes a sliding overhead rail track from which meat is hung by hooks and pushed along a track from the street into the plant. Food jobbers, purveyors and processor-wholesalers use a variety of packaging methods and sizes which adds further difficulties to a single type of material handling system. i The truck docking and holding system is a two- level system whereby the trucks enter on a holding level where they wait until they are assigned by a central control station, to a dock on the level below. This was designed for food processors whose truck schedules are more stable than those of locally oriented jobbers, purveyors or commission merchants. The amount of docking and holding space offers a better alternative for this latter group than presently exists. These firms experience a great amount of congestion at peak hours because there is limited docking and holding space in their present facilities to service their needs. Although they recognize that the proposed building system would produce a more orderly traffic flow, there was concern about the amount of time a truck might have to wait in the holding area before being directed to a dock space. Many interviewees expressed concern about the congestion problems which might occur at peak traffic hours by having all incoming and outgoing products channelled from elevator banks to trucks and vice versa. With one elevator assigned to serve each floor, plus one additional elevator to service all floors, a full floor space tenant would have a private elevator for his own use, plus the reserve elevator for peak periods. However, the amount of floor space required by some tenant prospect interviewees, indicates that space requirements would be less than one floor. With the possibility of four to five tenants on one floor, the interviewees felt there would be confusion in loading and unloading at one elevator entrance. A3-25 MARKET SURVEY OF POTENTIAL FOOD APPENDIX 3 - SECTION C INDUSTRY TENANTS WHAT RENTAL FLANGE WOULD BE ACCEPTABLE FOR SPACE IN THE MULTI-STORY BUILDING? Smaller and medium sized businesses operating as food merchants or processors in Cleveland have traditionally paid rental rates as low as any industry. These are currently in the range of $.75 to $1 .25 per square foot. Most of the prospective tenants, being smaller operators, presently have very old plant facilities which are physically and functionally obsolete. Under the new federal meat and poultry inspection laws to be adopted in the near future, many of these businesses will probably be forced to relocate. Those meat processor- wholesalers who intend to stay in business, and who can afford to do so, will expect to absorb higher rental levels than they are now incurring. Most interviewees could not easily make comparisons of the costs they would incur in the proposed new building versus those presently incurred. In addition, most could not accurately predict what various firms in the industry could absorb as a new rental structure. But, it was generally felt that the broad range of $2.00 to $3.00 per square foot including operating costs would be the maximum that most could afford under forseeable conditions in the industry. One of the major problems seems to be that many small businessmen in the food industry have not been able to build up capital reserves adequate to meet expansion needs dictated by growing markets. Because of a low profit margin on sales and the pressure of larger firms gaining an increasing share of the market, these small firms do not represent good prospects for bank loans which could allow them to construct their own facilities. Therefore, they have continued to occupy the same old quarters for years and have thus established themselves in a tradition of inefficiency. These factors present obstacles to the construction of a new multi-level facility for these businesses at a rental rate which they can afford. The required rent, which is in excess of $8.00 per square foot, could not be absorbed by these businesses as presently operated. A3-26 APPENDIX 4 PROTOTYPE BUILDING TWO SECTION A - BUILDING PROGRAM AND DESIGN SECTION B - FINANCIAL ANALYSIS SECTION C - DEVELOPMENT CONSIDERATIONS APPENDIX 4 - SECTION A BUILDING PROGRAM AND DESIGN Based on the original work program, a modification in the Prototype One design was to be made following the market test. (See Chapter 3, Appendix 3, Section C). However, the results of the market test showed that the tenant market and its needs were substantially different from those which had been assumed and programmed for Prototype One- The decision was therefore made to revise the building design to meet the needs of the actual market and to attempt to bring the rental rate into a range which they could afford. Commission merchants, purveyors, jobbers and meat processor-wholesalers who presently are located in or near the Gladstone area form the potential tenant market. Their requirements and the suggested design solution are summarized in the description below. GENERAL PLANNING REQUIREMENTS The general planning data and analysis which was developed for Prototype One (see Appendix 2, Section F) remains valid since both buildings use the same site. This had involved a thorough investigation of existing characteristics of the site and the surrounding area so that a program of land use functions, linkages, land acquisition, and thoroughfare planning could develop within a realistic framework. The change in building tenants and program involved some modifications in the relationship of the site and building to the general area. Evaluation of relationship with the surrounding area: (See Exhibit E3, Chapter 4.) a. Pedestrian linkage: Prototype Building Two is to be located on the western portion of the site, adjacent to the Northern Ohio Food Terminal. This relationship is important because tenants of both facilities would be jobbers, commission merchants and purveyors. Historically this group has always been located close to each other because of the comparative buying which is typical of their customers. The major entrance is located on Woodland Avenue to relate to bus stops, car drop-offs and public housing across the street with a secondary entrance on East 40th Street to relate to the Northern Ohio Food Terminal . b. Adjacent land uses and building: This building design is three levels high. Two are above grade with the possibility of air rights development for office space, restaurant, and motel. Therefore, this building would fit in with its surrounding one, two, and three level buildings. A4-1 APPENDJX 4 - SECTION A BUILDING PROGRAM AND DESIGN Evaluation of vehicular circulation for the site and surrounding area in order to alleviate traffic congestion: (See Exhibit E3, Chapter 4.) a. Service roads: To the south of the proposed facility, a three level service road for trucks is proposed. This eliminates the possibility of the truck traffic congesting and inhibiting the automobile traffic in the area. This will not only serve the first stage of development but will serve latter developments on both sides of the roadway. The new three- level road is designed for a one-way traffic movement with the entrance ramps from East 40th Street and the exit ramps discharging the outward bound trucks onto East 51st Street. b. As with Prototype One, it is recommended that Woodland Avenue and East 40th Street be widened to accommodate the heavier flow of traffic. PHYSICAL SITE REQUIREMENTS The site requirements are functionally and visually part of the general planning requirements and are related to the surrounding area. The objective is that each foot of urban land is designated for a specific functional use such as construction, parking, circulation, or landscaping. Through investigation and analysis of the relationship of these activities, the site plan creates a proper balance of land use for a pleasing environment as well as a workable blending of functional activities. The general concepts which were applied to Prototype One (see Appendix 2, Section F) and the specific data regarding the site remain applicable to Prototype Two. The following represent modifications in light of the new building program and tenants: Staging system: The size of the project has been limited to meet present tenants market potential and developer capability. However, a staged system of development has been projected to illustrate the further potential of this kind of project if it is successful and to maintain the design continuity. Prototype Two is planned as the first phase of a three stage development. The subsequent stages would be similar three level facilities. Each building would have the possibility of further air rights development which could include commercial or office space or additional industrial space. A4-2 APPENDIX 4 - SECTION A BUILDING PROGRAM AND DESIGN Adequate circulation system a. Separate entrance lanes for trucks and cars; Because of the advantages of maintaining separate truck and car traffic, entrances to the site are designed with the trucks entering the Prototype Building off the new three level service road, and cars from Woodland Avenue. b. Off-street holding, and docking space for trucks: In order to fulfill the trucking requirements of the facility, each of the three levels has its own docking spaces immediately adjacent to the tenant space* Since a higher ratio of docking spaces per rentable square foot was provided than in Prototype One, the amount of holding space was reduced. There is some holding space on all three levels. c. Parking for employees and guests: A total of 470 parking spaces for employees and guests was provided on the roof of the three level facility. The ratio of spaces to building employees is increased from Building ( One because of the market test, which indicated that most employees of those interviewed prefer not to use public transportation. Also, the nature of the tenants' businesses is such that there would probably be more customers coming to the building than there would be for the processor tenant group. d. Rail facilities: Because rail facilities exist on the site, and some food industry firms need rail facilities, provisions have been made to bring rail access to the building. The change in the location of the building to the western portion of the site necessitates that two new spur tracks be designed to connect with existing tracks to the south. These new tracks extend into the facility so that they are covered. Zoning and urban renewal standards: As indicated ?n Appendix 2, Section F, the Gladstone Renewal Plan and the Cleveland Zoning Ordinance have certain requirements as to building height, setbacks, and coverage. The height limitation does not conflict with Prototype Two since it extends two levels above grade. However, the coverage and setback restrictions have not been observed because of the need to utilize valuable urban industrial land most efficiently and because the recommended widening of street right of ways effectively separates this building from surrounding uses. A4-3 APPENDIX 4- SECT1QN A BUILDING PROGRAM AND DESIGN BUILDING DESCRIPTION This building structure contains approximately 859,000 square feet of which 35.5% is rentable space for industrial activities. The balance of the space is used for truck and train maneuvering space, access ramp for car parking, mechanical rooms, and vertical circulation. The structure consists of one sub-grade level, two other levels, and a roof level. (See Chapter 4, Exhibits El through E5.) Sub-level 1 provides industrial space for warehousing or processing and truck circulation and docking space. Level 1 provides industrial space for warehousing or processing, truck circulation and docking space, and rail sidings. Level 2 provides industrial space for warehousing or processing and truck circulation and docking space. Roof level provides car parking, mechanical equipment penthouse, and space for air rights development which could include a restaurant, motel for truck drivers, office space, etc. PHYSICAL BUILDING REQUIREMENTS The physical building requirements recognize the fact that the detailed requirements of each tenant will differ, and are unknown. Therefore, the building has to provide the flexibility to enable the tenants to achieve their unique requirements. Following are the items which were considered: General requirements a. Adequate space for the use: After the amount of rentable space was determined, based on the anticipated food industry market for Prototype Two, the amount of space required for the supporting functions such as material handling, truck maneuvering and docking, train docking, and car parking was determined. b. Satisfactory relationship of the elements: The facility is designed so that all of the elements worked well independently and together with adequate circulation to connect all of the related space? . A4-4 APPENDIX 4 - SECTION A BUILDING PROGRAM AND DESIGN 1) Vertical pedestrian core inter-connects processing, office, commercial, automobile and truck areas. 2) Vertical material handling core inter-connects processing truck and train areas . Specific tenant requirements a. Flexibility and universality: As with Prototype One, the space within each functional area of the building is designed to be adequate and uniform to meet the needs of any potential tenants or uses. 1) Adaptable to various sizes of tenants or uses a) Each of the three tenant floors has a total rentable area of approximately 100,000 square feet. A tenant can rent any size space from 2,700 square feet up to one complete floor. In this building a multi-tenant floor is just as efficient as a single tenant floor because all of the access to the tenant space is from the truck docks and no additional circulation corridors are necessary. The area of each floor is larger than the processing levels of Prototype One, providing more flexibility for expansion. b) Off-street parking: Parking spaces are provided on the roof of the proposed three level structure. The parking spaces are uncovered and there is a total capacity of 470 cars. Extending to the roof are seven passenger elevators which provide access to each of the three processing or warehousing floors. 2) Truck facilities: Trucks have access to all three levels of the building. After entering the ramp, they can proceed to the level where they are going to conduct their business. Each tenant has his own private truck docks where loading and unloading take place. The building has a total of 184 truck docks and holding space for 26 trucks. The number of truck docks each tenant has is in direct proportion to the amount of space he rents. 3) Train facilities: On Level 1, there are two rail sidings which extend into the building. These sidings have a capacity for 16 rail cars. Adjacent to the tracks is a common train dock which is connected to the truck docks or level 1 . To facilitate moving materials between the train dock and all building levels, there is an internal ramp system for fork lift trucks. This connects the truck docks on all levels with the train dock on A4-5 APPENDIX 4- SECTION A BUILDING PROGRAM AND DESIGN level 1 . 4) Adequate floor loads: Tenant" requirements for industrial areas and truck areas are similar to those in Prototype One as to the possibility of heavy equipment, concentrated storage of materials and the need to accommodate large tractor- trailer trucks. The building is designed with the following floor loads: a) Truck maneuvering - 250 Ibs./sq. ft. b) Truck and train docks - 200 Ibs./sq. ft. c) Tenant industrial space - 200 Ibs./sq. ft. d) Roof car parking - 75 Ibs./sq, ft. e) Roof area for future air rights - 100 Ibs./sq. ft. 5) Adequate and uniform bay sizes a) Tenant space - 30' 0" x 30' 0" for reasons of flexibility and general acceptance in industrial construction, as discussed In Appendix 2, Section F. b) Truck dock area - 30' 0" x 30' 0" - permits maneuvering of fork lift trucks and stacking of pallets . c) Truck maneuvering area - 30' 0" x 60' 0" generally used to accommodate large tracter trailer trucks; 60' 0" x 60' 0" bay in some areas for an adequate turning radius. 6) Adequate and uniform ceiling heights: Provides for truck clearance, stacking of pallets and overhead chain hoists or conveyors. a) Tenant space: 17'0" on sub-level 1 and level 1 13'6" on level 2 b) Truck space: 14'6" minimum clearance on all levels c) Mechanical penthouse: 15'0" d) Toilet rooms: 9'0'" 7) Floor to floor heights a) Tenant space: 20'0" on sub-level 1 and level 1 16'6" on level 2 b) Truck space: 20'0" on all three levels A4-6 APPENDIX 4- SECTION A BUILDING PROGRAM AND DESIGN c) Mechanical penthouse: 17'0" d) Toilet rooms: 17'0" on sub-levels 1 and level 1 13*6" on level 2 8) Suitable materials and finishes a) The entire facility is constructed out of poured-in-place reinforced concrete. b) Generally, shell space is provided so that each tenant can provide the finishes which are most suitable to their need. (1) Public spaces (elevator lobbies) (a) Floor - concrete with hardener (b) Walls - concrete, masonry (brick or structural facing tile) (c) Ceiling - lay-in-grid, mineral fiber panels (2) Toilet rooms (a) Floor - ceramic tile (b) Base - ceramic tile (c) Walls - ceramic tile (d) Ceiling - lay-fn-grid, mineral fiber panels (3) Warehousing or processing space (a) Floor - exposed concrete (b) Walls - concrete block, exterior walls only (c) Ceiling - exposed concrete (4) Loading docks (a) Floor - concrete with hardener (b) Ceiling - exposed concrete (c) Dock levelers - each docking space is equipped with a leveler (d) Dock bumpers - each dock is adequately equipped c) Doors and door frames (1) Doors - hollow metal with enamel finish (2) Door frames - hollow metal with enamel finish A4-7 APPENDIX 4 - SECTION A BUILDING PROGRAM AND DESIGN d) Exterior walls (1) Truck circulation area: Poured-in-place concrete frame with an upturned beam to form the spandrel panel. The area above the spandrel is open to facilitate fresh air venting of the truck area . (2) Rentable warehousing or processing space: Concrete block with hollow metal doors and frames. 9) Adequate toilet room facilities: Separate men's and women's toilet rooms are provided on each level. The toilet rooms provide only the basic building code requirements. If the locker and shower rooms are required by an individual tenant, he will install them at his own expense. 10) Passenger elevators: There are seven automatic elevators which are accessible from the roof parking area and the other levels of the building. a) Cab capacity - 2500 lbs. b) Door size - 3'6" x7'0" c) Speed - 200 feet per minute 11) Adequate and flexible material handling system to meet all types of potential tenant needs: All of the material handling is to be done by the individual tenants. There are no material handling elevators. An internal ramp system, which connects the loading docks on all three levels, is provided for fork lift trucks. This permits movement of materials between the different floors for train shipping and receiving on level 1, and for selling and buying between building tenants. 12) Use of a "grid" or similar system for flexibility and ease in locating mechanical and electrical systems;. This facility is not designed with this type of system for the following reasons: a) The selected potential tenants for this facility are mainly food distributors. This tenant group does not require as many services and utilities as food processors. A4-8 APPENDIX 4- SECTION A BUILDING PROGRAM AND DESIGN b) Since the ceiling in the tenantspace is very high, there is ample room to suspend the services and utilities from the structure above. 13) Mechanical and electrical system: Certain provision is made for adequate supply lines for all required utilities which could be extended to the individual tenant spaces as required. Each tenant would be responsible for supplying utilities in his own space to meet his requirements. All of the tenant service installations must be approved by the building owner. Following are the utilities and services which were designed into the building. a) Plumbing (1) Water: Hot and cold water service is supplied to all public toilet rooms and janitor spaces. For tenant use, there are cold water lines available at four locations on each floor. If the tenant requires water, he should provide a valve the same size as his intended service line. This valve would be located at the tee joist beyond the main shut-off valve in the shaft, so his water can be turned off without interferences to other tenants. The tenant would also provide a water meter, and then he will be free to run a line as necessary to and within his space. (2) . Hot water: If a tenant requires hot water beyond the toilet room service provided by the building, he may provide an electric or gas hot water heater in his space and connect this to his own water supply. (3) Sanitary waste: Public toilet facilities (including lavatories) are provided on each floor. If a tenant requires additional facilities, he may install them at his own expense. (4) Storm water: Storm water stacks are provided on each floor. The tenant may install a "Y" in these stacks to serve any floor drains he may wish to install. b) Industrial waste: Waste is collected at two locations on each floor. Incineration of both edible and unedible garbage and dry waste is provided through this system. A4-9 APPENDIX 4 - SECTION A BUILDING PROGRAM AND DESIGN c) Gas service: Gas is provided at four locations on each floor. When the tenant requires gas, he should provide a valve the same size as his intended service line. This valve should be located at the tee just beyond the main shut-off valve in the shaft, so the tenant's gas can be turned off without interference to the other tenants. The tenant should also provide a gas meter, and then he is free to run a line as necessary to and within his space. All of this will be included in the tenant improvements. d) Fire protection: The building is provided with standpipes in each stairwell and with hose cabinets on each floor. Additional hose cabinets made necessary by the tenants layout and sprinklering of tenant spaces shall be installed from tees provided in the standpipes. The installation of these additional items will be at the tenant's expense. Break-glass alarm stations are provided on each floor, with an alarm panel located in the building maintenance office and warning bells installed throughout the building. e) Heating and ventilation (1) Air distribution: From the mechanical penthouse where the fans and boiler are located, air is distributed through a supply duct system to the vertical mechanical shafts. The tenant would be responsible for installing his own ducting and variable volume air diffusers, meeting the building engineering standards, to his space. Where a finished ceiling is installed by the tenant, air is returned through openings in the ceiling, making the entire space from the drop ceiling to the bottom of the structure on each floor a return air plenum. Should additional returns or sound baffling be required, the tenant must provide this. If walls are carried to the underside of the structure for sound isolation, openings with appropriate sound attenuation must be installed by the tenant so that air will flow in a normal return path to the mechanical shafts. Where no drop ceiling is installed, the tenant must install return air ducts within his spaces to tie into the vertical shafts or the adjacent tenant's plenum. A4-10 APPENDIX 4- SECTION A BUILDING PROGRAM AND DESIGN The building's air distribution system provides the tenants only with tempered air. If additional heating is required by individual tenants, he will have to provide a supplemental system, unit heaters or a radiant heat at his own expense. (2) Ventilation: Ventilation is provided through the fans located in the penthouse (both intake and relief). When the outside temperature is low enough to be useful for cooling, outside air will be introduced above the minimum ventilation requirements. (3) Exhaust: All public toilet rooms and janitor spaces are exhausted by separate fans and ducts provided by the owner as part of the basic building. i If process exhaust from the tenant spaces is required, this must be provided by the tenant. Such exhaust can be ducted to one of the utility shafts and thence vertically to the penthouse. Fans must be provided by the tenant. f) Electricity and communications (1) Electric power: Electric service is available at four locations on each floor. The tenant is responsible for metering, switching, and fusing beyond the panel board, and for the installation of all power receptacles. (2) Emergency circuits: Emergency circuits are provided in stairs and elevator lobbies as required by code. (3) Lighting: General lighting is provided in the public circulation areas, and the truck circulation areas by the owner. The tenant is responsible for install ing all lighting within his space. All lighting fixtures must conform with the building engineering standards. (4) Telephone: A telephone terminal cabinet is available on each floor. Requirements beyond this point are provided at the tenant's expense. A4-11 APPENDIX 4- SECTION A BUILDING PROGRAM AND DESIGN g) Expandability (1) Modular structural system was designed to permit easy expansion of tenant spaces. (2) A flexible leasing system using a combination of long and short term leases would facilitate expansion of individual tenants. b. Economy 1) The tenant space is flexible in its design and universally adaptable to any food industry tenant. Thus, it has wide appeal for initial rental purposes. Tenants can expand their facilities within the building; and if a tenant moves out, the space will not become obsolete. 2) The building was designed with a minimal amount of construction in the tenant spaces to allow the tenants to provide for their businesses. This will eliminate the possibility of having spaces overdesigned for a tenant's needs. 3) The building is designed to achieve maximum efficiency of rentable space by providing an efficient subdivision of the floors and providing a minimal amount of corridors and public spaces. c. Safety: Safety of the tenants was provided by having a central security system. d. Common facilities and support facilities 1) The following common facilities are designed into the building in order to economically solve some of the potential tenants' functional space requirements: a) Lunch room b) Medical facilities c) Toilet facilities 2) Support facilities: Support facilities were not designed into the three tenant levels; however, in a portion of the building the structure has been overdesigned to allow for air rights construction for commercial,office and restaurant facilities. A4-12 APPENDIX 4- SECTION B FINANCIAL ANALYSIS The assumptions and procedures used in this analysis were similar to those used for Prototype One, since the basic idea was to test the feasibility of private development of Prototype Two. (See Chapter 3, Appendix 3, Section A.) Project costs (i.e. costs incurred prior to and during construction) were computed following the same procedure and standards as had been previously set. Financing alternatives were analyzed and the E.D.A. package was selected as the most favorable method. Annual cash disbursements for each segment were projected by major category: mortgage interest and principal, real estate taxes, insurance, operating and maintenance costs, and building management costs. The procedure was to use the costs established for Prototype One and adjust them as necessary to reflect changes in building design or management. i The details are given in Appendix 3, Section A; major differences are summarized here as they apply to Prototype Two. Truck Holding Maneuvering and Docking Rentable Levels Prototype One $.475 per sq. ft. $.753 per sq . ft. Prototype Two $.395 per sq . ft. $.753 per sq . ft. a. There was a difference of $.08 per sq . ft. between operating costs for truck and rail facilities. This difference is primarily because of decentralized material handling which requires fewer freight elevators to operate and maintain. Although central support facilities would be much less elaborate for Pro- totype One, the basic operating and maintenance costs per square foot of rentable space were assumed to be the same for both buildings because: The NABOM office building costs were substantially reduced to include only basic utility, maintenance and cleaning costs common to both buildings ($1 .25 per sq. ft. reduced to $.75 per sq . ft). Almost one- third of the cost is for interior and exterior cleaning and light maintenance of the building shell and public areas. The objective of maintaining an attractive building with high standards of upkeep is common to both buildings. A4-13 APPENDIX 4- SECTION B FINANCIAL ANALYSIS A cost of $60 per car space per year was used for the open, rooftop parking level of Prototype Two, because: Most maintenance costs of the rooftop can be allocated to the underlying commercial building. Electricity costs for lighting are less. Damage to cars and to the buildings would be less. b. Management fees for Prototype Two were assumed to be $40,000 less. This reduction includes $25,000 due to less rentable space to manage, and the elimination of the centralized material handling concept. Car parking management costs were reduced $15,000 because of the less complex parking operation. c. To present the most favorable cash flow for Prototype Two, it was assumed that the cost of land acquisition would be paid for by the City. However, a separate analysis of land cost showed that excluding the cost of land would reduce rental rates by only $.12 to $.14 per square foot. (See Exhibit E2 this Appendix.) This reduction is not sufficient to make the required rentals profitable and competitive. d. Exhibit El, this Appendix, summarizes the financial characteristics of the project in the same way as the thirteen level prototype building. However, an additional column has been added which summarizes the effect on rentals of adding a simple 10% after-tax return on investment requirement to the annual cash flow. This requirement increases rentals to $6.45/sq. ft. and $6.79/ sq. ft. for 100% and 95% occupancy respectively. e. Exhibit El in this appendix shows that a 100% write-up in the value of the land to the developer for financing purposes reduces his equity requirement slightly. However, there is no reduction in required rental rates as compared to those shown for the 10% return on investment option. The reduced cash requirement for a 10% return on lower equity is offset by higher financing and real estate tax costs resulting from the write-up in land value. A4-14 APPENDIX 4 - SECTION B FINANCIAL ANALYSIS There are major differences In the design and management concepts of the two buildings which are reflected in the financial analysis. Prototype One assumes that the building management will provide and operate an internal material handling system, while the Prototype Two assumes that tenants maintain individual control over their truck scheduling and material handling operations. Material handling fees are not included in the projected building management costs charged to tenants of Prototype Two. However, the removal of material handling also affects building design, since in Prototype Two truck docks and holding areas would be constructed on all three levels. In addition, the rail facility for this building would require a costly new two- track spur into the center of the building at grade level. By comparison, Prototype One would centralize truck handling and docking below ground and uses an existing rail bed. Thus, truck and rail facilities in Prototype Two would be more expensive and would have to be absorbed by less rental space. Costs of these facilities are estimated at $26.00 per square foot of net rentable space in the Prototype Two compared to estimated costs of $12.00 per square foot of net rentable space in Prototype One. Prototype One would require construction and maintenance of central facilities such as a lobby-reception area, lunch room, infirmary, restaurant, commercial offices, and conference rooms. The adjoining parking facility would have three enclosed levels and one rooftop level. Costs of these features are estimated at $57.00 per square foot of net rentable space. In contrast, Prototype Two would require less elaborate central facilities (only lunch room, infirmary and rest rooms); it would have very limited office areas; and it would have only open rooftop parking. (Spaces for commercial offices, conference rooms, a restaurant and a motel have not been designed on structure , although air rights would be available for independent development of such facilities in the future.) Costs for these facilities are estimated at $20.00 per square foot of net rentable space, or about one- third those of the larger building. Thus, the higher costs of truck and rail facilities in the three-level building would be offset by the lower cost of central building ancillary facilities: A4-15 APPENDIX 4 - SECTION B FINANCIAL ANALYSIS PROTOTYPE TWO PROTOTYP'E ONE (cost per square foot) (cost per square foot) Trucking and rail support facilities $26 $12 Central building ancillary facilities 20 57 TOTAL FACILITIES $46 $69 A4-16 o u O z < >- CO 3 1° - 5 -o w E i- o 4) 0) 3 oo °= o o. (U •rr 1 ^ o -o 41 8 ki po h2 o * '^" .£ ^ 0> O i- o 'SI ? u_ i<->.5" O S O O C U g en M c — 41 n C ~t C ITi. 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'■§ To J O rr ni *■ ce: o u c ' O _£ '■C o ^ c o *- '"1 "D C C 4) O *" co.£ c o •- 02 c « E c O) o 02 c 4) E a ^ v> o U >o TJ « C o o Z 02 ■ 8 u o *- o o u- 0) 'o o CU 3 cr o v> E w ' w V o a. u_ ~o o a. c o o o> «• C VI > u o Z s o fe o co on EXHIBIT E3 PROTOTYPE BUILDING THREE TRUCK-HOLDING AND CIRCULATION AREAS PRO FORMA PROJECT COSTS AND CASH DISBURSEMENTS PROJECT COSTS Building cost - 165,600 square feet at $9.26 Architects, engineering and other fees - 5% of building cost Interest, insurance, other construction costs - 4% of building cost Management administration - 1% of building cost Contingency - 2% of building cost Land cost Construction Costs Total Project Cost $1,535,000 77,000 61,000 15,000 31,000 $1,719,000 198,000 $1,917,000 ANNUAL DISBURSEMENTS - Note 3 Traffic handling personnel Security personnel Maintenance and repairs Total Annual Disbursement - Note 5 $ 21,000 20,000 8,000 $ 49,000 ANNUAL DISBURSEMENTS ALLOCATION - Note 5 Tenants Non- tenants 75% 25% TOTAL $ 37,000 12,000 $ 49, 000 See Notes to Pro Forma Project Costs and Cash Disbursements. A5-26 _. NOTES TO EXHIBITS El, E2, E3 NO TE # 1 - MORTGAGE, INTEREST AND PRINCIPLE The industrial building mortgage cost is based on 90% of the building construction and land costs on a level annual debt service payment basis at 4 3/4% for a 40-year period. This low cost financing is assumed to be obtainable through the Economic Development Administration (E.D.A.). The 90% portion of the project cost anticipated to be financed by the E.D.A. was determined by use of E.D.A. formula in compliance with their regulations. No return on investment factor or mortgage cost is included in the pro forma cost estimates covering the remaining 10% of the project costs, because it is expected to come from local non-profit sources. It is further assumed that monies in the form of E.D.A. grants will be available to cover the central building core construction and underlying land costs, thereby negating the requirement to include mortgage costs in the annual cash disbursements of that portion of the project. / The truck holding and circulation area is currently viewed in the project concept as a quasi-public street and/or parking area. Capital funds for this portion of the project are therefore anticipated to come from E.D.A. grants, in which case no mortgage costs would be incurred or included in annual disbursement requirements. The cost of off-site improvements which would be paid by the City are not included in this analysis. NOTE # 2 - TAXES Real estate taxes are computed at the 1969 rate of $6.26/$100 with a 40% valuation base. The current rate and valuation have been applied to the total project cost of the industrial building and central building core in anticipation of these areas bearing their full tax burden. It is assumed that preferential tax treatment will be available to the truck holding and circulating area on the basis of its quasi-public street concept. Thus, no tax costs have been included in its annual disbursements. A5-27 —NOTES TO EXHIBITS El, E2, E3 (cont'd.) NOTE # 3 - OPERATIONS AND MAINTENANCE Expenses included in Prototype Three were analyzed on a basis consistent with that of Prototypes One and Two. Where similar construction, space utilization, and service were anticipated, a cost factor consistent with Prototypes One and Two was applied to Prototype Three. (See Appendix 3, Section A and Appendix 4, Section B.) Certain operating and maintenance expenses are based on historical rates for similar type buildings. For areas in which historical rates did not apply because of the unusual concept of the building, these rates were carefully evaluated and refined to meet the estimated needs of the industrial complex. The operating and maintenance cost for each major project segment is as follows: Industrial Building $.413 per square foot Central Building Core $.299 per square foot Truck Holding $.196 per square foot The building support systems and services (see Note 4 below) and general operating and maintenance are included in these costs, as they apply to each segment. Because the concept of Prototype Three differs significantly from that of the earlier studies, it is difficult to make a direct comparison of these costs with the earlier ones. (See Appendix 4, Section B.) NOTE #4 - OTHER BUILDING SUPPORT SYSTEMS Recognition of the estimated costs of the following systems and services has been included in this caption: elevators, plumbing, electrical, traffic handling and security personnel and janitors. NOTE #5 - COST ALLOCATION Non-tenant truckers are expected to occupy 25% of this area and, therefore, absorb 25% of its annual cost. This usage is expected because of the high truck volume presently near the A5-28 NOTES TO EXHIBITS El, E2, E3 (cont'd.) proposed site and in anticipation of marketing effort directed at the use of this facility by the trucking industry. The remaining unabsorbed cost (75%) is included in tenant rental rates on the basis of expected usage. NOTE # 6 - MANAGEMENT Based on discussions with operators in the building management field, it is estimated that 4% - 5% of gross annual rental revenue would be a reasonable charge for building management services. For presentation purposes this cost is treated as an add-on to annual disbursements to arrive at total annual disbursements, which is then the equivalent of gross annual rental revenue on a break-even basis. NOTE #7 - BREAK-EVEN RENTAL PER SQUARE FOOT Total cost per square foot is computed at 100% of rental capacity of 1,745,900 sq . ft. on a break-even basis. It is understood that this is an unrealistic occupancy assumption, however, adjustment of this cost for any level of occupancy is in direct proportion to the reduction of the occupancy level. A5-29 EXHIBIT E4 PROTOTYPE BUILDING THREE CAR-PARKING STRUCTURE PRO FORMA PROJECT COST AND DISBURSEMENTS PROJECT COSTS Building cost Architects, engineers - 5% of building cost Interest, insurance, other construction costs - 4% of building cost Management, administration - 1% of building cost Contingency cost - 2% of building cost Construction Cost Land cost $6,997,000 350,000 279,000 70, 000 140,000 $7,836,000 151,000 Total Project Cost $7,987,000 ANNUAL DISBURSEMENTS Debt service - Note 1 25-year, 6% General Obligation Bonds 30-year, 6% General Obligation Bonds 30-year, 6-3/4% Revenue Bonds Direct labor - Note 2 Maintenance, utilities, and insurance - Note 3 Real estate taxes - Note 4 Management fee - Note 5 TOTAL Monthly charge per space - Note 6 Monthly charge per space with 1 1/2 debt service coverage - Note 7 Monthly charge per space for debt service/taxes - Note 8 25-Year 30-Year General General 30-Year Obligation Obligation Revenue Bonds Bonds Bonds $625,000 $580,000 $628,000 46,000 46,000 46,000 79,000 200,000 79,000 200,000 79,000 200,000 25,000 25,000 25,000 $975,000 $930,000 $ 35 .00 $978,000 $ 37.00 $ 37.00 49.00 46.00 49.00 31.00 30.00 32.00 See Notes to Pro Forma Project Costs and Cash Disbursements. A5-30 __ NOTES TO EXHIBIT E4 NOTE *1 - DEBT SERVICE Debt service requires : based on construction costs of $7,835,800 plus land cost of $151 ,000. All debt ait? n itives would be City of Cleveland obligations. NOTE # 2 - DIRECT LABOR Cash disbursements of $46,000 would support the estimated 11 men required 6-days per week, 24-hours per day. NOTE *3 - MAINTENANCE, UTILITIES, AND INSURANCE Maintenance disbursements are based on costs experienced by comparable facilities in the Cleveland vicinity. Utility disbursements are predicted on a factor of 1 watt per square foot for the period of illumination, which is the basis used by local utility companies for evaluating energy requirements. Insurance disbursements will provide for fire and extended coverage, plus garage-keepers legal liability. NOTE H - TAXES The County Auditor's office furnished the rate of $6.26 per $100 valuation with a 40% base. The total construction cost, plus the value of the land, produced a base of $7,986,800, on which the factor of 40% is applied. NOTE # 5 - MANAGEMENT FEE The management fee of $25,000 was based on conversations with a local company engaged in parking lot management. A5-31 NOTES TO EXHIBIT E4 (cont'd.) NOTE § 6 - MONTHLY CHARGE PER SPACE '"^ The monthly charge per space represents the total annual cash d'h ■ :ents divided by 2,188 potential spaces converted to a monthly rate. NOTE #7 - MONTHLY CHARGE PER SPACE - 1 1/2 DEBT SERVICE COV.ERAG E This monthly charge per space with 1 1/2 debt service coverage is computed as in Note 6 above, except that total cash disbursements are increased by 50% of the annual debt service requirement. This produces a monthly space cost which contains a "cushion" equal to one-half of the annual debt service. NOTE *8 - MONTHLY CHARGE PER SPACE - DEBT SERVICE AND TAXES This computation is similar to Note 6 above, except that the total of debt service and taxes is used in lieu of total cost. The value of this figure is that it highlights the significance of the cost of the facility and land in relation to other operating costs. A5-32 APPENDIX 6 BIBLIOGRAPHY BIBLIOGRAPHY BOOKS Browne, W. Chester & Associates, Inc. - Feasibility Report for Prototype Plans for a Multi-Story Manufacturing Plant in the South End Urban Renewal Area for the Boston Redevelopment Authority, June 1966. Bucknell, L. H. - Industrial Architecture, "Commerce House and Industry House", London, England, p. 102-104. Cahiers de L'lnstitut D'Amengement et D'Urbanisme de la Region Parisienne, May 1964. Cleveland City Planning Commission - Amendment - Gladstone Urban Renewal Project, Ohio R-8 , June 1968. Cleveland City Planning Commission -Cleveland Today . . . Tomorrow, City of Cleveland, Ohio, 1950. Cleveland City Planning Commission - Gladstone - Urban Renewal Project, No. R-8, May 1 957 . Cleveland City Planning Commission - Looking Ahead for the Goodrich Area, City of Cleveland, Ohio, 1956. Cleveland City Planning Commission - Urban Renewal Plan - Gladstone, City of Cleveland, Ohio, 1957. Cleveland Electric Illuminating Co. - More Land for Industry. Denver Research Institute, University of Denver - The Scientific Complex - Challenge to Colorado, prepared for the Public Service Company of Colorado, 1964. Dodge, F. W. Corporation- Buildings for Industry. Ernst & Ernst - Servicing Requirements International Rubber and Chemical Center , Akron, Ohio, prepared for Knoerle-Gould & Associates, 1964. Guttenberg, Albert Z .- The Evaluation of a Non-Residential Parcel, 1963. Henn, Walter- Buildings for Industry land II, Hayden Book Co., New York, 1965. Hunter, Henry L. and Wright, Alfred - Factors of Indu strial Location in Ohio, College of Commerce and Administration, The Ohio State University, 1963. A6-1 Mayor's Committee for Economic and Cultural Development - Mid-Chicago Economic Development Study- Volume I, February 1966. Munce, James - Industrial Architecture. Rapkin, Chester et. al. - industrial Renewal, State of New York, Division of Housing and Community Renewal, 1963. Regional Planning Commission- Land for Industry, Cleveland - Cuyahoga County, Ohio, 1955 State-Local Waterfront Industrial Site Committee - Program for the Preservation and Development of Industrial Areas Along Tennessee's Waterways, 1962. U.S. Department of Agriculture - Baltimore Regional Wholesale Food Distribution Facilities, Marketing Research Report No. 783, February 1967. U.S. Department of Agriculture - Chicago Wholesale Food Distribution Facilities, Marketing Research Report No. 790, March 1967. U.S. Department of Agriculture - Wholesale Food Distribution Facilities for Philadelphia, Pennsylvania, Report No. 201, March 1958. U.S. Department of Agriculture - U.S. Inspected Meat Packing Plants - A Guide to Construction, Equipment, Layout, Agriculture Handbook No. 191, January, 1961. U.S. Department of Commerce - Evaluation of Vacant Industrial Buildings and Land and Their Potential, May 1965. U.S. Department of Commerce - Special Censuses, November 1965. Sogarfs - La Gare Rautiere Merchandises de Paris"- Rungis, 1966. A6-2 MAGAZ INES "Accent on Natural Ventilation in Venezuela", Progressive Architecture, April 1964, pp. 166-171. "Administration and Warehouse Building", Arts and Architecture, August 1962, pp. 22-23. "The Architect's Role in Industrial Buildings", Progressive Architecture, November 1964, pp. 138-139. "Architecture and Nature Combat Industrial Blight", Architectural Record, November 1961, pp. 180-181. "Architecture Problems of Total Energy", Progressive Architecture, February 1965, pp. 190-195. "Barden Corporation", AIA Journal, July 1962, pp. 86-93. "Bell Telephone Company at Holmdel", Architectural Forum, October 1962, pp. 88-97. "Bold Forms for Glass Plant", Progressive Architecture, October 1959, pp. 162-165. "Buildings for Industry", Progressive Architecture, March 1962, pp. 158-175. "Buildings Outside Sidney", Architectural Review, May 1961, p. 293. "Candela's Warehouse", Architectural Forum, September 1961, pp. 108-110. "Ceramics Factory in California", Architectural Forum, August 1961, p. 85. "Complex Processes Simplified", Architectural Record, December 1959, pp. 118-119. "Comprehensive Architectural Practice- Industrial Buildings", AIA Journal, June 1962, pp. 81-87. "Comprehensive Services for Industrial Lessee Clients", AIA Journal, August 1963, pp. 43-54. "Computer Plant", Architectural Forum, November 1966, pp. 70-77. "Designing Against Obsolescence", Architectural Record, January 1962, pp. 113-120. "Factories: Any Room on the Bandwagon", Design for Industry , October 1959, pp. 20-23. "Factory at Basildon New Town", Architectural Review, August 1960, pp. 118-123. "Factory, Cramlington, Northumberland", Architectural Review, January 1965, p. 70. "Factory at Duxford", Architectural Review, November 1959, pp. 254-256. "Factory in New York", Architectural Review, July 1959, pp. 56-53. A6-3 'Factory and Offices", Architectural Review, January I960, p. 46. 'Factory for a Radar Manufacturer", Architectural Record, April 1962, pp. 190-191. 'Factory at Uxbridge", Architectural Review, September 1961, pp. 197-199. 'Factory at Workingham", Architectural Review , February 1962, pp. 128-129. 'Food Machinery Research Center", Architectural Review, June 1962, pp. 149-154. 'Fully Air-conditioned Plant in Florida", Progressive Architecture, April 1964, pp. 162-165. 'Garment Factory", Architectural Forum, May 1963, pp. 142-143. 'Good Buildings Attract Good People", Architectural Record, January 1965, pp. 156-158. 'Heat Pump, Radiant Panels Condition Electronics Plant", Architectural Record, January 1964, pp. 170-171. 'High-Style Factory for a Hi-Fi Maker", Architectural Forum, February 1962, pp. 86-91. 'How Architects Fare in Corporate Building", AIA Journal, December 1965, pp. 45-48. 'Hydraulics Research Building", Architectural Review, January 1960, p. 49. 'IBM, December, 1958", Zodiac § A, 1959, pp. 58-65. 'Industrial Buildings Types-Glass Tile Enclosed Paper Plant", Architectural Record, January 1960, pp. 163-165. 'Industrial Parks City Style", Architectural Forum, December 1959, pp. 94-97. 'Industrial Structure", Arts and Architecture, April 1961, pp. 16-17. 'Long Span Tubular Trusses", Progressive Architecture, September 1961, pp. 178-181 . 'Machine Factory With A Woodland Setting", Progressive Architecture, December 1963, pp. 126-127. 'Miniature Circuits", Progressive Architecture, November 1964, pp. 158-160. 'Mountain-top Research Complex", Progressive Architecture, December 1963, pp. 121-125. 'Multi-Story Factory", Architectural Review, February 1963, p. 138. 'Newspaper Offices, Printing House Square, London", Architectural Review , July 1965, pp. 48-54. A6-4 "Nucleus of an Electronics Center", Progressive Architecture, November 1964, pp. 152-156. "Paper Mill at Dartford", Architectural Review , November 1959, pp. 279-281 . "Parke-Davis", Architectural Record, November 1961, pp. 170-175. "Pharmaceutics Plant-Kling", Architectural Forum, June 1962, pp. 136-139. "Philip Morris Research Center", Architectural Record, October 1959, pp. 212-216. "Plant is Designed Around Production Flow Layout", Architectural Record, November 1961, p. 83. "Plant Designed for New Products, New Methods", Architectural Record, March 1961, pp. 159-162. "Plant Designed for Product Development", Architectural Record, June 1960, pp. 168-170. "Prefabricated Modular Interior Units in Renovating Hospitals", Architectural atid Engineering News, March 1967, pp. 50-53. "A Prefabricated Plant for SDS in Los Angeles", Domus, February 1967, pp. 27-34. "Printing Plant- Tapiola, Finland", Architectural Review, November 1966, pp. 156-157. "Research Building", Progressive Architecture, April 1961, p. 55. "Research and Development", Landscape Architecture, Summer 1961, pp. 204-211. "Research and Development Buildings", AIA Journal, June 1963, pp. 75-84. ■ "Research and Development Headquarters", Arts and Architecture, March 1960, pp. 24-25. "Research in the Round", Architectural Forum, June 1961, pp. 80-85. "Rice University Conference Develops Five Factory Projects", Architectural Review, December 1963, pp. 115-120. "Rigid Frames Free Plant Floor Area", Architectural Record, January 1960, pp. 165-167. "Roof-Mounted Heat Pumps Solve Multi-Zone Problem", Architectural Record, April 1961, pp. 196-198. "Sheerness Boat Store", Royal Institute of British Architecture, June 1961, pp. 318-324. "Six Story Warehouse", Architectural Forum, April 1962, pp. 92-93. A6-5 Smal! Industrial Buildings", Arts and Architecture, December 1962, p. 24. SOM's New Structural Mix", Architectural Forum , October 1961, pp. 140-143. Standard Units of Consistency", Architectural Record, January 1960, pp. 170-173. Stones Office, Manufacturing and Warehouse Building for Yardley in Totowa, New Jersey", Architectural Record, October 1962, pp. 129-131. Texas Institute Laboratory", Progressive Architecture, September 1959, pp. 172-177. Towers of Pharmacy", Architectural Review, June 1963, p. 301 . Training Center", Arts and Architecture, September 1959, pp. 14-15. Trends That May Reshape Factory Design", Architectural Forum, April 1962, pp. 86-91 . Unique Cross-Curve Plan for IBM Research Center", Architectural Record, June 1961, pp. 137-146. University Printing Work, Oxford", Architectural Review, January 1966, p. 59. Warehouse for Emollients", Progressive Architecture, November 1964, pp. 148-149. OTHER SOURCES Bureau of Educational Research, Cleveland Public Schools, Unemployment Out-of-School Youth Survey, Cleveland, Ohio, December 1966. Bureau of Unemployment Compensation, Ohio State Employment Service: Ohio Labor Market Information, several issues. Council for Economic Opportunities, Project Aim Jobs (job training and development brochure), Cleveland, Ohio, June 1967. Federal Reserve Bank of Philadelphia, Mainsprings of Growth: Studies of the Structure of the Philadelphia Metropolitan Economy, March 1967. A6-6 Ohio Department of Industrial Relations: Directory of Ohio Manufacturers, 1965, Columbus, Ohio. "Sheet a Week" collection from the Real Property Inventory, up to May 26, 1967. State of Ohio, Redevelopment Department What 100 Jobs in Manufacturing Mean to a / Community (Broadside, no date). U.S. Bureau of the Census, Census of Manufacturers, 1963 - Volume III, Area Statistics. U.S. Bureau of the Census, Technical Studies, Characteristics of Selected Neighborhoods in Cleveland, Ohio - April 1965. Series p-23, No. 21, January 23, 1967. U.S. Bureau of the Census, U.S. Census of Population and Hou sing, 1966, Census Tract, Final Report PC (1) - 28 (Cleveland, Ohio). U.S. Department of Labor, Sub- Employment in the Slums of Cleveland (based on the Cleveland Board of Education's "Out of School Youth Survey" and Bureau of Census, "Technical Studies, Selected Neighborhood Characteristics", January 1967) no date. A6-7 * U.S. GOVERNMENT PRINTING OFFICE: 1971-443-369/403 "iplii"