Revitalization plan is one of mayor’s Healthy Neighborhoods Initiatives
Mayor Frank G. Jackson today announced his $25 million Neighborhood Transformation Initiative (NTI) to help revitalize the City’s neighborhoods and spur entrepreneurial growth. The NTI expands on Mayor Jackson’s current neighborhood revitalization efforts, and focuses on private investments from Cleveland’s largest financial institutions. View supporting documents here.
“This initiative and the strategic investment of all of its partners will guarantee our city’s success,” Mayor Jackson said. “Our goal is to move the entire city forward –every neighborhood and all of its people.”
A Concentrated, Collaborative Effort
The $25 million Neighborhood Transformation Initiative was specifically created to leverage private investment in neighborhoods where traditional development models don’t work and where developers and lenders have considered it too risky for investment.
Mayor Jackson commissioned a study in 2016 through the Cleveland State University Center for Population Dynamics in an effort to have an empirical basis to identify neighborhoods and the greatest opportunity to stop decline, stabilize neighborhoods, and ensure growth for the future.
The City worked for more than one year to create a development infrastructure, create partnerships and to identify the neighborhoods.
Several organizations have partnered with the City to make the initiative a reality. These include Key Bank; Huntington Bank; PNC Bank; Fifth/Third Bank; Capital Impact Partners; The Cleveland Foundation; Urban League of Greater Cleveland; ECDI (Economic & Community Development Institute); National Development Council; Neighborhood Housing Services of Greater Cleveland; JumpStart Inc.; CCDC (Cleveland Citywide Development Corp); The Real Black Friday; and Greater Cleveland Habitat for Humanity.
Support of Private Investment in Cleveland Neighborhoods is Not New
Since 2006, the City’s Economic Development Department has participated in 970 development projects citywide. Of those, 739 were in the City’s neighborhoods. The City has also invested $195 million in the 739 neighborhood projects, and with that leveraged $935 million in total investment.
The City also invested more than $513 million of capital improvement and investments in roads, bridges, parks & playgrounds and recreation Centers, public facilities and demolitions. A total of 90 percent of the investment was in the neighborhoods.
Despite public investments, extensive neighborhood planning, engaging community development corporations, investments in infrastructure and aggressive strategies in removing blighted structures from the neighborhood, some areas of the City have not seen private investment.
Stop Decline, Stabilize Neighborhoods and Position Them for Growth
The City has created a model that will allow for public investment and better ensure these investments will create economic growth. It created the $25 million fund to leverage against other dollars with the intent of impacting private investments in neighborhoods. The City also created partnerships with leading lending institutions to develop an investment strategy to benefit neighborhoods that are lacking private investment.
The will also identify entrepreneurs who, with access to resources and capital, can have the opportunity to create successful businesses, create wealth, and restore equity and value in neighborhoods. The City is also supporting new construction and rehabilitation of homes, as well as down payment assistance programs for prospective homeowners.
For more information on the mayor Jackson’s Neighborhood Transformation Initiative, visit www.city.cleveland.oh.us