CLEVELAND, Ohio – As Cleveland continues to search for a new permanent home for its police department, the cost of staying put continues to add up.
The city sold its downtown police headquarters building at the Justice Center complex to Cuyahoga County for $9.25 million with the intention of moving into a new permanent location by next spring.
But six months after announcing a new location had been found, much has changed.
Cleveland is back to considering site options, but with nothing on the immediate horizon. That prompted the city to work out a deal to lease back the space it once owned for at least a year.
So far, Cleveland has paid more than $260,000 in rent to Cuyahoga County. Nearly $133,000 more will be paid this month.
What was the plan?
Cleveland began looking for a new headquarters after reaching agreement with the county in June 2017 over jail services. That agreement allowed Cleveland to close its lockup at the Justice Center as the county took over all jail operations.
That shift was completed in July.
Cleveland sold the county its share of the Justice Center complex. It received payment for the property and title transferred in October.
The plan was to move to a new site – one without jail facilities – beginning almost immediately and wrapping up by spring 2019. The city would pay rent on its Justice Center space, but that would decline as staff moved to the new headquarters.
What was the favored site?
Cleveland announced in June it would move to 1801 Superior Avenue, the former home of The Plain Dealer. The project was a $60 million deal that included the purchase and alteration of the building and surrounding 8 acres of property.
Police Chief Calvin Williams said then that the building would provide a more welcoming environment for visitors and a better work environment for officers.
"The building ... puts the division (of police) and the city in a position to administer 21st Century policing to our community,” Williams told City Council.
The city hired GLP Superior Ltd., led by Fred Geis, to buy and renovate the property.
As the work progressed, the city planned to remain in its old headquarters, paying rent to Cuyahoga County. That rent would reduce though as the police department gradually moved into new quarters.
But in September, Cleveland abruptly announced it was backing out of the deal and no longer wished to work with GLP Superior LTD.
Mayor Frank Jackson’s administration has never detailed exactly what led to the decision, but the chatter among city officials is that GLP was unable to obtain agreements from some of the current tenants to vacate.
What’s happening now?
The city hasn’t completely ruled out the site on Superior Avenue, according to Dan Williams, a spokesman for the Jackson administration. But Williams acknowledged that making it work is problematic.
So, the city is looking at other options.
The city used Colliers International to research, tour and evaluate more than a dozen proposed sites. That group was narrowed to five sites. The 1801 Superior site was the lowest bid in that group.
Some of those other sites are getting another look. After negotiating over the 1801 Superior proposal, its price tag was $12 million cheaper than what was originally bid.
Jackson has suggested that might be possible at some of the other proposals. The next lowest proposal involved conversion of the old Third District headquarters building on Payne Avenue and some additional construction for slightly less than $80 million.
And the city could seek new bids on the project, Williams said.
In the meantime, the city is under lease until October, with options to renew three subsequent years. Cleveland will pay about $1.4 million for that space in the first year.
The city will also pay $105 per month for parking spaces it uses at the Justice Center. For October that involved 143 spaces, but it can be recalculated each month. For a year, though, the 143 spaces would cost more than $180,000.