Episodes – Port of Cleveland

Update on Hulett Removal Project

Cleveland – March 29, 2024 – Despite sincere efforts to enable the potential conservation one of the Hulett Ore Unloaders in its entirety, the Port of Cleveland encountered unforeseen challenges with a proposal aimed at doing so. As a result, the Port has entered into a new contract with Northern Ohio Scrap Service that will allow the port to continue to salvage two of the Huletts most historically significant pieces – an arm and a bucket – while the vendor handles the removal of remaining pieces.

Last week, the Port contracted with Maple Leaf Demolition, selected in part for the company’s intent to reassemble one of the Huletts on its site in Canton. Regrettably, Maple Leaf could not provide the necessary bonding and insurance required.

The new contractor is a Cleveland-based company with significant experience with this type of work.

Dave Gutheil, Chief Commercial Officer for the Port of Cleveland, expressed disappointment at this but reiterated their commitment to the initially envisioned solution of preserving several significant pieces on-site. He underscored the acknowledgment of their importance in Cleveland’s industrial and maritime history, emphasizing the desire to grant preservationists more time to find a suitable display solution.

Additionally, a shunt engine that was part of the Hulett unloading system will be salvaged and publicly displayed at the American Industrial Mining Museum in Brownsville, PA.

The Huletts were taken down in 1999 and two have been stored at the Port’s Cleveland Bulk Terminal since that time. Initially intended for storage for just five years, the Port has withheld actions to remove the pieces for over 24 years in an effort to accommodate preservation efforts.

The Port has agreed to store the pieces for a year to provide more time for preservationists to secure a suitable location for their display and raise funds for their removal.

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The following is a statement from the Port of Cleveland’s President & CEO, William Friedman, on the Baltimore bridge collapse

“The Port of Cleveland extends our deepest condolences to the families of those individuals who may have lost their lives in the tragic bridge accident in the Baltimore Harbor this morning. Our hearts go out to our colleagues and friends at the Baltimore port and in the maritime community as they begin to recover from this catastrophe. We also thank the first responders who routinely put their lives at risk in these emergencies to help others.

Local media have asked the question: could this happen in Cleveland where we also have bridges over shipping channels? Our circumstances differ significantly from Baltimore. The Francis Scott Key bridge had a long span over open water with in-water support piers located on either side of the shipping lane. Our network of bridges is different and varied. Several of the bridges over the Cuyahoga ship channel are lift or swing bridges overseen by capable and trained bridge tenders who communicate with vessels to elevate or swing the bridges to let vessels pass. The fixed bridges over the Cuyahoga have no supporting infrastructure in the water adjacent to the shipping channel, making it unlikely they could be compromised by a vessel. Additionally, all vessels that transit the Cuyahoga Ship Cannel are piloted by highly skilled ship masters who know the waterway extremely well and have transited it many times. They also keep vessel speeds low as appropriate in a much more confined navigation channel.

“The most significant threat to our shipping channel was the risk of a catastrophic landslide into the river at Irishtown Bend. The good news is that the Port has now mitigated that risk with the stabilization work now underway.”

William D. Friedman
President & CEO
Port of Cleveland

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Partner Highlight - OmniTRAX

The railroad work OmniTRAX does with the Port of Cleveland has increased substantially since 2019, when the company purchased the Cleveland Port Railway.

“We handled a total of about 199 (railroad) car loads in 2023,” said Nate Mazo, General Manager at Cleveland & Cuyahoga Railway, Cleveland Port Railway, Newburgh and South Shore Railroad and Northern Ohio and Western Railway, all part of OmniTRAX. That compares to 75 to 80 car loads prior to COVID. “Any time you are able to double rail traffic at a location, that’s a huge accomplishment.”

Cleveland Port Railway manages all rail switching services at the Port and is an affiliate of OmniTRAX Inc., one of the largest privately held rail-centric transportation and logistics service companies in North America. The Port of Cleveland is one of several Ports OmniTRAX is working at.

Mazo said steel is the primary cargo they work with at the Port of Cleveland, but they have also handled the recent addition of palm oil shipments going to a Lake County-based manufacturer. They occasionally do dimensional — or oversize — shipments, most recently several large transformers heading to a power generating station in Lordstown.

“We have a great relationship with the folks at the Port of Cleveland,’’ he said, noting that they are constantly talking with them about new opportunities and projects.

More than $32+ million for cutting-edge upgrades paving the way for Port modernization and sustainability

The Port is leveraging $32+ million in state and federal grants to overhaul of a key warehouse and electrical infrastructure at the General Cargo Terminal. This strategic move will ensure ongoing efficiency of Port facilities and prepare the Port for upcoming electrification efforts.

William Friedman, Port president and CEO, said the investments were critical to successful port operations as well as sustainability.

The undertaking is part of a broader investment of $93.8 million in Port infrastructure since 2015, with more than 75% of it covered by state and federal grants. Aligned with the Port’s recently implemented Climate Action Plan, the overarching goal is to achieve net-zero greenhouse gas emissions by 2050, making Cleveland the first Great Lakes port to adopt such an ambitious plan.

Learn more details about the grants and the plan.

Port continues to finance transformational residential projects in Northeast Ohio

The Port of Cleveland’s development finance team is busy collaborating with developers and other ports to provide unique, competitive financing that most recently was used to help make possible a new Cleveland rental housing development and a mixed-use project that could help revitalize downtown Painesville:

• The Port is issuing up to $15 million in bonds for the $19.8 million Franklin Yard project. Located at the corner of Franklin Boulevard and West 32nd Street in Cleveland’s Ohio City neighborhood, it will include construction of a modern new three-story apartment building with 29 units and restoration of two nearby historic buildings that will create an additional 38 units.

• The $10.5 million 89th Rising Housing Development is the first modern market rate rental development in the central part of Cleveland’s Fairfax neighborhood. The development is planned by a company founded by Timothy L. Tramble Sr., president of We Rise Development, a resident of the Fairfax neighborhood and president and CEO of the Saint Luke’s Foundation. With the Port’s approval of up to $6 million in bonds, the initiative is poised to address vacancy and blight. The first phase will include 48 one- and two-bedroom rental units in six large structures designed to give the appearance of the Victorian houses that once anchored the street. Learn More

• The $33 million+ Grand River Walk is envisioned as a vibrant, mixed-use complex with 120 residential units, retail space and covered parking. The Port is committed to issuing up to $6 million in bonds for the project through their A- rated bond fund under a Cooperative Agreement with the Lake County Port Authority. Learn More

Beyond their maritime origins, port authorities have evolved into catalysts for comprehensive economic development, offering an array of benefits including speed of closing, confidentiality, off-balance sheet financing, sales tax exemption and flexible, competitive financing products.

Hullet Remnants to be Removed from Cleveland Bulk Terminal

Cleveland – March 22, 2024 – The Port of Cleveland has entered into a contract with Maple Leaf Demolition (Maple Leaf) of Canton, Ohio to remove the disassembled pieces of two Hulett Ore Unloader machines from the Port’s Cleveland Bulk Terminal (CBT). Site preparation and clearing will commence immediately and removal will occur in April and May.

Four Huletts were originally installed at CBT (then known as the C & P Ore Dock) in the early 20^th century to unload ore ships. All four were taken down in 1999. Two of the machines were scrapped at the time and two were set aside on the terminal in pieces. Initially intended for just five years, the Huletts' stay at CBT stretched into 24 years. The acreage encumbered by the Hulett remnants has been undevelopable for Port purposes during that time.

The two remaining Huletts were not previously removed because they were caught in legal and administrative limbo resulting from a lawsuit brought against the U.S. Army Corps of Engineers (Army Corps), which issued a dredging permit that included disassembly of the Huletts. That legal action and ensuing administrative process was not concluded until a Memorandum of Agreement (MOA) was executed in 2018 between the Army Corps, the Port of Cleveland and several interested historic preservation groups.

The MOA gave the preservation interest groups three years to plan and raise the funding for a Hulett display. It also obligated the Port to store the pieces until the end of the three-year period.

The Port selected Maple Leaf for the removal because, among other factors evaluated, Maple Leaf intends to make its best efforts to reassemble one Hullet in its entirety on a site the company owns in Canton.

Dave Gutheil, the Port’s Chief Commercial Officer, said, “We are very pleased to offer Maple Leaf the opportunity to reassemble one of these machines because we recognize the role they played in Cleveland’s industrial and maritime history. That said, these machines are massive -- more than 800 tons a piece -- and it is a major undertaking both financially and technically to safely transport and reassemble one.”

Chance Ayers, owner and president of Maple Leaf, said, “My company is very excited to be awarded this contract and to have a chance to reinstall one of these historic machines on our site in Canton, which was once used for steelmaking. I’m personally passionate about this project and hope others will be pleased too.”

Mera Cardenas, Executive Director of Canalway Partners, who was spearheading efforts to put up a Hulett display, acknowledged the challenges faced in preserving the Huletts on Cleveland’s waterfront, which was ultimately not feasible.

“While we’re disappointed we weren’t able to secure an interpretive site for the artifacts over the last 25 years, we are pleased at the prospect of a fully erected Hulett nearby,” she said. “The Port has been very collaborative and patient and I am pleased that they have found what appears to be a preservation-minded outcome under the circumstances.

“The funding that Canalway previously set aside for preservation of the Huletts will now be allocated to our ongoing work of preserving and highlighting Cleveland’s cultural and industrial history through preservation and programming,” she added.

If Maple Leaf is unable to re-erect the Hulett in its entirety, the Port has contractually obligated the company to set aside a bucket and leg for a period of one year to once again give others time to find a way to use them in a display.

Additionally, a shunt engine that was part of the Hulett unloading system will be salvaged and publicly displayed at the American Industrial Mining Museum in Brownsville, PA.

As part of the 2018 Memorandum of Understanding, the Port will return $250,000 to Canalway Partners and disburse $250,000 to the State Historic Preservation Office. This funding is intended to support interpretation of sites within the Ohio & Erie Canalway Heritage Area and the preservation of historical resources about Cleveland’s industrial heritage.

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Port approves up to $15 million in financing for new and historic Ohio City residential project

Cleveland – March 14, 2024— The Port of Cleveland Board of Directors has approved issuing up to $15 million in bonds for the development of a new residential project and rehabilitation of a historic building into residential in Ohio City.

The $19.8 million Franklin Yard project, located at the corner of Franklin Boulevard and West 32nd street, will include construction of a modern new three-story apartment building with 29 units and restoration of a former YWCA women’s residence and a mid-19 century mansion that will create an additional 38 units.

The project is being developed by The Dalad Group of Independence in partnership with Property Advisors Group of Beachwood. The Dalad Group is a developer of office, industrial, retail and residential space. Their historic renovation projects in Cleveland have included the Hoyt Block featuring the Blue Point Restaurant, the Hat Factory apartments on West 6th and Worthington Yards in the Warehouse District. Property Advisors Group developed the first office-flex projects in Independence’s Rockside Road business district, and most recently has been involved in historic redevelopment projects in Ohio City, Detroit Shoreway, Little Italy and Tremont.

Construction is expected to start in the second quarter of 2024, with planned completion in 2025.

Franklin Yard tenants will have access to several outdoor patios, an interior courtyard, a fitness room, a community living room and convenient storage areas. The historic rehabilitation aspect of the project was the recipient of federal and state historic tax credits.

“The Port is happy to partner with The Dalad Group and Property Advisors Group on this project,’’ said Rhonda Winslow, Vice President of Development Finance for the Port of Cleveland. “This project will revitalize a historic building and contribute to the ongoing revitalization of the historic Ohio City neighborhood.”

“The Port and its consultants have been very responsive and helped simplify a somewhat complex process,’’ said Daniel M. Spirko, General Counsel with Dalad Group. “We are in a challenging real estate market where every dollar matters. The Port’s program is certainly going to add value to the project and provide another piece to the puzzle.”

Port authorities in Ohio can offer an array of benefits in the real estate and economic development space. Since 1993, the Port of Cleveland has provided more than $5 billion to more than 160 projects in Cuyahoga County and beyond.

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Port’s first chief legal officer has spent her career breaking barriers

Maria Bocanegra, the inaugural Chief Legal Officer at the Port of Cleveland, oversees all legal affairs for the Port including its ethics, compliance, labor, contracts, business transactions, governance and managing outside counsel, will also providing strategic guidance on legislative & regulatory matters.

As the first Latina in this role, Maria sees it as an opportunity to set an example and increase Latino representation in board and executive positions.

Prior to joining the Port in 2022, she served as the second Latina commissioner with the Illinois Commerce Commission, gaining national recognition for her work in utility regulation. Maria is actively involved in various advisory councils and serves on multiple boards, including the Citizens Utility Board of Ohio, Council of the Great Lakes Region and the Cleveland Water Alliance.

Maria has been recognized as a Crain’s Cleveland Notable Latino Leader and Who’s Who In Hispanic Chicago and by Latino Leaders Magazine.

In her spare time, she enjoys trying new restaurants & cuisines, travel and learning all things real estate investing. New to Ohio City and Cleveland, Maria’s top spots for food are Saucy Brew Works, Johnny’s for a filet or Little Johnny’s for a cheeseburger. When she is not exploring Cleveland, Maria is a frequent NYC and Comedy Cellar visitor.

Cleveland Port secures $32+ million for modernization and sustainability

CLEVELAND, February 8, 2024 – The Port of Cleveland took a significant stride toward the future as its board approved the allocation of more than $32 million in federal and state grants to help rehabilitate and modernize a key warehouse and upgrade electrical infrastructure at its General Cargo Terminal. This strategic move will ensure ongoing efficiency of Port facilities and prepare the Port for upcoming electrification efforts.

William Friedman, Port president and CEO, said the investments were critical to successful port operations as well as sustainability.

“These initiatives stand as a testament to our commitment to sustainable practices,” Friedman said. “True environmental stewardship requires translating words into meaningful, concrete actions.

Through these measures approved today, we are actively decarbonizing and forging a path toward a greener and more sustainable future.”

The grants for these projects include:

$27.2 million from the U.S. Department of Transportation Maritime Administration’s Port Infrastructure Development Program to improve safety, efficiency and reliability of movement in and around the Port.
$4.9 million from the Ohio Department of Transportation’s Maritime Assistance Program for projects enhancing efficiency and capacity of cargo terminal operations.

The funds will be allocated toward:

Comprehensive rehabilitation and modernization of the terminal’s largest warehouse, Warehouse A, including structural steel repairs, a new overhead crane, window replacements, new concrete slab, updated lighting and a new roof. Friedman said Warehouse A, over 50 years old, can’t accommodate evolving technology the Port needs for successful operations.
Development of an Electrification Master Plan and installation of new terminal electric feed in collaboration with Cleveland Public Power, which has been an integral partner in providing technical expertise and planning for sufficient capacity for the Port’s electrification goals.

Friedman highlighted the importance of the new electric distribution hub, which will lay the foundation for future electrification efforts, including cargo handling equipment, charging stations, switching locomotives, ships when docked at the Port, mobile harbor cranes and potential solar arrays on the warehouse roofs.

Stormwater collection and treatment infrastructure to ensure the quality of stormwater discharging into Lake Erie, building resiliency to climate change impacts such as increased storm intensity and heavy rainfalls.
Construction of a new learning center for students from Cleveland Metropolitan School District’s Davis Aviation & Maritime High School.
Reconstruction of two smaller buildings on the terminal as warehouse annexes, opening cargo traveling lanes and freeing up additional cargo laydown space.

To begin executing this ambitious project, the Port board also authorized an engineering design contract with Jacobs Engineering Group for the project. Jacobs was selected through a competitive process.

The Port received letters of support for the federal funds from Sen. Sherrod Brown and Reps. David Joyce, Shontel Brown and Marcy Kaptur and former U.S. Rep. Tim Ryan.

Sen. Brown wrote in a letter to U.S. Department of Transportation Secretary Pete Buttigieg: “The Port is an economic engine for the community, a key to Northeast Ohio’s global competitiveness and a partner in building the region’s future. This project will work to increase the port’s efficiency in cargo movement with much needed improvements around the warehouse. It will also enable a more energy efficient warehouse, which will help greatly decrease carbon emissions.”

Board Chair J. Stefan Holmes expressed sincere appreciation to both the U.S. and Ohio Departments of Transportation for their generous grants and their recognition of the vital significance of the ongoing projects at the Port. "It is through collaborative partnerships such as these that we can fortify our position for sustained success in the years ahead," he emphasized.

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Port Approves Up to $6 million in bonds for Grand River Walk Project in Painesville

Cleveland – Dec. 14, 2023— The Port of Cleveland Board of Directors has approved the issuance of up to $6 million of bonds to help finance the more than $33 million Grand River Walk, a project which will transform and revitalize downtown Painesville.

The project is expected to include a five-story mixed-use building with 120 residential units, 18,760 square feet of ground floor retail space and 69 covered parking spaces. On December 4, Painesville City Council voted on the finalization of a Cooperative Agreement to facilitate the urban redevelopment tax incremental financing (TIF), which has already been approved by the local school district. The Port of Cleveland will enter into a Cooperative Agreement with the Lake County Ohio Port and Economic Development Authority to use its bond fund to facilitate the project financing.

“We are thankful for the help from the Port, Painesville City Council and the Painesville City Local Schools Board” said Michael Vidmar, Director of Acquisitions for Marous Development Group. “This is a critical piece of the financial package needed to make this large development happen. Lake County is home for our company, so this transformational project is particularly important for us.”

“The Port is happy to use our bond fund to monetize the TIF and help with the financing for Grand River Walk,’’ said Rhonda Winslow, Vice President of Development Finance for the Port of Cleveland. “We believe this project will help spur further investment in downtown Painesville.”

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Update on Hulett Removal Project

Partner Highlight - OmniTRAX

More than $32+ million for cutting-edge upgrades paving the way for Port modernization and sustainability

Port continues to finance transformational residential projects in Northeast Ohio

Port’s first chief legal officer has spent her career breaking barriers

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