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> Home > Issues > November 2009 featured article
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November 2009
Ohio's High Stakes Gamble
by Peter Strozniak

Mukib Rahman is already thinking about the possible marketing opportunities for his Concord Township hotel if voters approve Issue 3 this month to permit casino gambling in Cleveland, Columbus, Cincinnati and Toledo.

Eastlake entrepreneur Walt Callam, however, doubts the proposed casino would benefit his riverfront restaurant and bar. What’s more, trade groups claim some retailers near the Cleveland casino would not be able to compete and would lose business.

Cleveland Cavaliers owner Dan Gilbert, one of the financial backers of Issue 3, would have rights to build a casino in Cleveland and Cincinnati. If Ohio voters approve the casino issue, Gilbert reportedly promised to launch construction plans the day after the Nov. 3 election.

Besides creating 4,000 jobs, the construction phase may open new opportunities for Lake County-based subcontractors and suppliers. After construction is complete, the casino is expected to employ more than 4,000 and generate about $136 million annually in gaming earnings. This total does not include licensing fees and other investments casino developers have promised to make.

If the casino opens by late 2012, can Lake County-area businesses expect to see any economic benefits? If so, how and to what degree would the casino impact these businesses? How could Lake County businesses attract casino visitors?

A terrible deal

During the fall campaign, opponents to Issue 3 have included some business groups such as the Ohio Council of Retail Merchants, Ohio Licensed Beverage Association, Ohio Coin Machine Association and the Bowling Centers Association of Ohio. They claim the issue has too many loopholes favoring casino owners, not business owners.

The business groups take issue with the amount of tax the casinos would pay. They also argue casinos would steal customers from existing businesses.

“The more I learn about Issue 3, the more convinced I am it is a terrible deal for Ohio,” John C. Mahaney, president of the Ohio Council of Retail Merchant, said in a statement earlier this year.

Moreover, a Hiram College study commissioned by the Ohio Licensed Beverage Association noted the number of retail businesses in Atlantic City, which opened casinos in the late 1970s, declined by 30 percent.

Keeping positive

Issue 3 also had received support from business groups, entrepreneurs and labor unions.

Rahman, general manager of Renaissance Quail Hollow Inn and Resort, believes the casino’s impact would be positive for Lake County businesses and family-friendly venues within a 50-mile radius of the Cleveland casino.

“Because of the recession, people are much more value conscious today than ever, which means they are closely watching how they are spending their discretionary dollars,” Rahman says. “They are looking for deals, and I think we can expect that consumer mindset to continue long after this economic recession ends.”

Rahman’s observation is supported by a Time magazine survey of 1,000 consumers. Sixty-one percent indicate they expect to continue to spend less even when economic prosperity returns.
Attracting customers

This fundamental shift in consumer spending habits might benefit a casino in Cleveland and perhaps the region, where prices are lower than in other big cities where costs are higher. Recently, readers of Travel + Leisure magazine voted Cleveland as the best city for an affordable getaway. Cleveland may leverage this national recognition as a way to attract even more thrifty tourists.

The Cleveland casino is expected to attract hundreds of thousands or perhaps millions of visitors every year. Rahman speculates that 2 percent to 3 percent would choose to stay at a hotel in the suburbs because room rates are less expensive, parking is free, and food and fuel costs typically are lower.
What’s more, the casino would attract a full range of clients such as serious gamblers who would want to stay at a Cleveland hotel to spend most of their time in the casino. Corporate, leisure and family clients, however, are interested in doing various things when visiting casinos.

For these types of visitors, Rahman says, the Cleveland region has a lot to offer including Lake County family-friendly venues such as Lake Metroparks Farmpark, golf courses, wineries, fine dining restaurants, Mentor Headlands Beach and the Great Lakes Mall.

Won’t make a difference

Other Lake County business owners don’t see how the casino is going to attract new customers.
“There are thousands of restaurants between my business and the proposed casino site,” says Callam, owner of Trader Jack’s and Riverside Grill. “So I find it doubtful that I would see any increase in business because the casino.”

Nevertheless, Callam’s popular restaurant, with two outdoor dining areas overlooking the Chagrin River, does attract boaters from other areas during the summer months.

“Sure, we do get a lot of people from different areas, but there are people who live five minutes away who have never heard of us because we are fairly new and we don’t do much advertising,” he says. “Let’s put it this way, if I were looking at an advertising campaign, it wouldn’t include the Cleveland casino.”

Perhaps businesses in Wickliffe, Willowick and Eastlake would benefit the most from a casino because visitors can drive from these communities to downtown Cleveland in 20 minutes.

“We get calls from out-of-town folks who ask how far our hotel is from Q Arena because they want to see LeBron James and the Cavs,” says Johnny Sahota, general manager of Comfort Inn in Wickliffe. “Some ask how far we are from Cleveland Browns Stadium or the Rock Hall of Fame. They almost always ask if we have free parking too.”

All about marketing

Bob Ulas, executive director of the Lake County Visitors’ Bureau that promotes tourism, hopes the Cleveland casino embraces a regional marketing effort.

“If the casino has regional marketing plans, I’ll be one of the first on the phone with the casino owners to see how we can partner up to promote Lake County,” Ulas says.

Regional marketing can create benefits for local businesses. For example, Ulas promotes Lake County on a Web site of the 215,000-square-foot GaREAT sports complex in Geneva.

“There are not enough hotels in Ashtabula County to meet the needs of parents and students who come to participate in sports events at the complex,” he says. “So we are starting to get a little bit of an overflow of visitors for hotels in central and east Lake County.”

Offering some deals

Rahman sees enticing gaming customers to stay at Quail Hollow by offering package deals such as free meals or free or reduced-price tickets to main attractions, shows or events.

Brad Seymour, vice president and general manager of the Lake County Captains in Eastlake, says there are many other minor league baseball teams that do marketing promotions with nearby casinos to keep fans coming back to the ballpark.

“When I was working for a minor league team in South Dakota, we partnered with one of the Native American casinos that was about a half-hour drive from the ballpark,” Seymour says. “We would encourage fans to go to the casino and mention the team’s name to receive special discounts or use our coupons for discounts at the casino.”

If Issue 3 passes, Seymour says, the Lake County Captains would be interested in taking advantage of marketing opportunities with the Cleveland casino.

Peter Strozniak of Painesville Township is a freelance contributing writer and editor. To contact Peter: pstrozniak@yahoo.com.

 

TriPoint's impact felt countywide
by Ron Hollowell

 
Lake Health TriPoint Medical Center in Concord Township

Relax While You Stay Awhile

The pulse of innovative health care continues to beat strong along Concord Township’s coveted Interstate 90-Route 44 corridor with the October opening of Lake Health’s TriPoint Medical Center.

TriPoint is the latest health care jewel nestled within the I-90-Route 44-Auburn Road area of Concord Township that also includes University Hospitals Concord Health Center, which opened in July. Lake Health bills TriPoint as a state-of-the-art, digital hospital that is redefining the health care experience for patients, families and the community.

“We planned and built the entire hospital around evidence-based research that demonstrates how to achieve better outcomes, improving quality of care and patient safety,” said Cynthia Moore-Hardy, president and chief executive officer of Lake Health. “That was our vision when we began this project, and we never lost sight of that goal.”

From its conceptual designs to its completion, TriPoint was constructed to enhance healing and wellness and to improve patient safety. It features the latest life-saving technology and an evidence-based patient- and family-centered environment. Principles of evidence-based design, a concept that links the quality of the hospital environment to patient outcomes, have been integrated throughout the facility.

Every detail incorporated into TriPoint, from its 119 private patient rooms to the heating and air conditioning system that reduces airborne pathogens, plays multiple roles in enhancing patient care: lowering infection rates, reducing falls, alleviating stress and minimizing medication errors. Each room includes a well-lit, private bath visible from the bed (proven to reduce falls) and a prominent sink near the doorway for hand washing when caregivers enter the room (reducing infection risk).

The 42-inch television sets in each patient room feature 30 cable channels and a package of movies, doubling as an interactive patient entertainment and education system. Its large, digital picture frame displays soothing artwork. Patients also can use their TV to access educational programming and information for themselves and their families.

“By utilizing the most advanced technology available, we can ensure that our patients receive not only receive the best care, but also the safest care,” said Dr. John P. Ferron, a general surgeon and president of Lake Health’s medical staff.

TriPoint’s interior is bathed in natural light with scenic views of natural greenery and streams to the healing gardens and dedicated family areas. As the plans for TriPoint and its gardens were developed, architects from Columbus-based Karlsberger took a physical stream that winds around TriPoint metaphorically inside the building through the use of plant and material textures and water features. Karlsberger architects incorporated the features of the stream through TriPoint’s chapel, where the look and sound of water reinforces the connection with nature.

TriPoint’s permanent artwork collection is another highlight of the facility and features original paintings, photography, sculptures, ceramics and textiles created primarily by Ohio artists. The collection serves aesthetic purposes and also allows patients and visitors to navigate their way through the facility.

Identifiable paintings help visitors to know if they are in the right location. A rotating gallery in the grand walkway gives selected local artists an opportunity to display their work for a specified time.
Visitors to TriPoint certainly will enjoy all of the amenities of home during their stay. Upon their return home, visitors will have gained a much broader perspective on how health care is delivered today and well into the 21st century.

Ron Hollowell

Now that Lake Health has opened its $155-million TriPoint Medical Center in Concord Township, the newly crowned health care corridor along Interstate 90 and Route 44 has added its second medical jewel. The first gemstone, University Hospitals Concord Health Center, opened in July.

Patients from eastern Lake County, as well as those in Geauga and Ashtabula counties, use Lake Health’s services, physicians and facilities. TriPoint’s location provides more central access to those patients, said Gary Robinson, Lake Health’s vice president of government and community affairs.

In addition, the property selected for TriPoint lends itself to creating a healing environment, with many trees and water features that provide a more-calming, less-stressful atmosphere. The location also allows Lake Health to expand TriPoint in the future.

While Concord Township and neighboring communities in Lake, Geauga and Ashtabula counties are beginning to feel the positive economic impact of TriPoint and UH Concord Health Center, the health care landscape in Painesville may be in need of some airbrushing. Despite closing LakeEast Medical Center (formerly LakeEast Hospital) Oct. 21, the hospital system is not abandoning residents in the county seat all together.

Lake Health will construct an urgent care center on the ground floor of the Chase Bank Building at 30 S. Park Place. Health care services here will include urgent care, diagnostics and ambulatory outpatient services, Robinson said.

The service mix at the urgent care center will take into account the growing need for general medical services for city, county and large employers’ employees that work in the community and require testing and work-related injury services during their typical work day, Robinson said.

The urgent care center is scheduled to open in spring 2010.

In the interim, Lake Health has established the Painesville Quick Care Center at 72 S. Park Place. The clinic is temporary until the urgent care facility is operational so that there is no interruption of services for the immediate area, he added.

LakeEast site plans

A LakeEast Hospital Re-Use Committee consisting of representatives from Painesville’s administration and city council, as well as Lake Health administration and its board of trustees, was formed to elicit options for the best re-use of LakeEast Medical Center and the property on which it sits. The purpose of the committee was to ensure that the future use of the site supported Painesville’s strategic direction, Robinson said.

City Manager Rita McMahon said the city will lose about $600,000 annually in income tax revenue as a result of the LakeEast Medical Center employees who will no longer work in the city. She also cited an economic impact study, which revealed modifications in the downtown markets by a change in the customer base and significant direct fiscal impacts to the city. In addition to the $600,000 in lost income tax revenue, more than $3 million will be lost in utility revenue, primarily electricity provided by the city.

“Using the Renaissance Business Park as a key component of our plan, we have added several new businesses with jobs new to Painesville to replace that lost income tax (revenue),” McMahon said. “With the development of PCC Airfoils, we were also fortunate to replace most of the electric usage.”

McMahon added the city has had an aggressive economic development program for the past four years to fill the void left by LakeEast Medical Center’s departure. The Downtown Painesville Master Plan indicates that the appropriate use of the LakeEast Medical Center site should be a mixed residential development.

The city has applied for Clean Ohio

Revitalization funds to demolish the building and turn over the property to residential developer Zaremba to redevelop the site. If the city is successful in receiving the grant, Lake Health has agreed to donate the property to the city, she said.

“A guiding framework for the discussion was a comprehensive study completed for the city of Painesville that addresses the long-term strategy for the city,” Robinson said. “One of the major conclusions related to the redevelop of the LakeEast Hospital property is to create a mixed-use area featuring high-quality, market-rate homes designed to reflect the characteristics of historic Painesville, as well as commercial and retail integration. The idea is to provide a smooth transition from the neighborhood to the downtown area.”

Making an impact

The economic impact of TriPoint Medical Center already has been felt throughout the tri-county area. More than 770,000 man hours of work went into the construction of the facility, Robinson said. If Lake Health’s growth projections are achieved, the system could see the addition of another 200 caregivers during the next three to five years. This figure represents about a 25 percent increase in staffing.

“In terms of the area businesses, you will see an increase for those businesses that provide services for the nearly 1,000 employees that will be on-site on a daily basis,” Robinson said. “You name it – restaurants, banks, laundry services – these are the kinds of services that people need to use during the course of a day.”
TriPoint’s arrival, Robinson said, also provides a smooth transition of sorts to its accompanying facilities, which include LakeWest Medical Center in Willoughby and medical campuses in Madison, Mentor, Chardon and Willowick. Lake Health has piloted different technologies at other sites in preparation for their installation at TriPoint.

“All of our facilities are benefiting from the advanced technology featured at TriPoint Medical Center,” Robinson said. “The benefit is that information flow is not constrained to TriPoint Medical Center, but it is available throughout our system. This (process) allows caregivers to access information at a variety of different locations immediately.”

Patient care is streamlined at every encounter, enhancing a physician’s decision-making process. Streamlined care helps to prevent errors regardless of which of the Lake Health facilities patients use for their care.

LakeEast Medical Center was a Painesville stalwart since it opened in 1904. It has undergone many facelifts in the past 109 years, but business and community leaders are working diligently to ensure its legacy is retained – albeit in a different form – for generations to come.

Meanwhile, TriPoint Medical Center represents the future of health care and the technological advances that promise hope for the next generations. Lake Health leaders hope its economic impact will continue to affect positive growth throughout Lake County in much the same way its predecessor did for more than a century.

Ron Hollowell is a Hambden Township-based freelance writer.

 

Everybody loves Don Delaney
by Lila Mills

Don Delaney always loved basketball and always dreamed big. His dream took him from high school basketball coach to the height of the sport – the National Basketball Association.

Delaney, now 73, served as the general manager and head coach of the Cleveland Cavaliers in the early 1980s. Now ailing from strokes, family and friends plan to honor the beloved Lake County resident Nov. 15 with a party at Delaney’s Chase Inn, the bar he owns in Mentor. Ray Milavec, the announcer for the Lake County Captains and a former teammate of Delaney’s, is expected to roast him.

“Everybody loves Don Delaney,” says Mike Radovanic, co-owner of Delaney’s Chase Inn. “We’re just trying to do a tribute for him for all he’s done for Lake County.”

Delaney started dreaming about basketball when he was a boy growing up in Lyndhurst. He played the sport on a city league in elementary school, and soon he was hooked. That team, coached by future Cavs owner Ted Stepien, won the city championship.

“I had no other skills,” Delaney remembers. “I just loved the game.”

His most cherished memory is being voted most valuable player during a high school basketball tournament when he was a student at Brush High School. He went on to earn degrees from Kent State University. He commuted to the campus, working to put himself through school.

After graduation, Delaney became a teacher. He taught science at Willowick Junior High School and North High School in Eastlake. He left there to teach biology and physical education at Kirtland High School. In his spare time, he coached local basketball teams, including teams for Lakeland Community College and Dyke College.

All along the way, he kept dreaming.

Stepien, his former coach, hired him to coach a professional men’s softball team, the Cleveland Competitors. One day, Delaney recalls, Stepien stopped by the team’s practice.

Stepien told Delaney: “I’m going to buy the Cavs. Are you with me?”

“I said, ‘What the heck? I’ll take a chance,’” Delaney remembers.

That is how Delaney, a high school physical education teacher, ended up as the general manager of the Cavs.

The team was one of the worst in the NBA at the time. Stepien’s tenure is legendary for its strife. He made trades and statements that angered fans and local reporters. During the 1981-82 season, the team had four head coaches and went 15-67.

For Delaney, however, it was a dream. Tony Saranita, now 53, was the vice president of advertising for the Cavs at the time. He and Delaney became friends.

“We really enjoyed ourselves on the job,” Saranita says. “We didn’t win many games, but we had fun. We were living the good life.”

Saranita recalls Delaney’s sense of humor and relaxed managing sense. He often ran interference between staff and the hard-driving Stepien.

“Don was a great guy to work for,” Saranita remembers.

Today, Don lives with his wife Lorraine, 43. He has a son, a daughter, two stepdaughters and two grandchildren. To many who see him, he is known as Coach.

“As little as I know, I was the coach of the Cavs,” Delaney said by telephone from his home in Willoughby. “You got to be dreaming for those things to happen. Dream big.”

Lila Mills is a Euclid-based freelance writer who previously has written for The Plain Dealer.

 

City's Compass Points North
by Regina Steffen

It’s no accident that downtown is the crown jewel of Willoughby. Residents, merchants and city officials worked long and hard to revitalize the area, including upgrading streetscapes to and make it more appealing.

Now, Willoughby government and civic leaders have turned their attention to the Lost Nation Road and Lakeshore Boulevard section of the city in hopes of giving motorists a reason to travel to the city’s northern end.

It isn’t that the city has ignored the neighborhood. It was 15 years ago when the city paid $1 million for an erosion control project in Osborne Park. About 10 years the city built a municipal pool in the park, as well as a roadway and parking lot. In total, the city has invested about $3 million in upgrades to the park over the past 15 years.

Still, there are upgrades that can be done to the park to make it a more welcoming place for visitors, said Mayor David Anderson. The city is looking into several possibilities, including the addition of a fishing pier and a pavilion, as well as extending the roadway in Osborne Park farther past the swimming pool to allow easier access to the water.

That is why the city has been working closely with Jason Boyd of the Lake County Planning Commission to determine the best ways to develop the waterfront and secure funding for the projects. With an eye to the future, the city’s community development manager, Janice Lipscomb, is busy preparing to meet a grant deadline that will help pay for Osborne Park projects.

“We are writing a Coastal Management Grant to help fund a portion of the project,” Lipscomb said. The grant will provide some of the money necessary to allow the city to improve access to the waterfront.
Willoughby Councilman Chris Woodin, whose Ward 1 includes northern Willoughby, said he would love to see a break wall built that would give residents a great swimming beach. That would be a little east or west of the park. He added that the possibility of a dock within the break wall area would give boaters a longer season by providing a safer place to take their boats out on the water.

Attracting businesses

Lipscomb and Anderson agree that these improvements would not only attract visitors to the area, but eventually would bring in more businesses.

If lake improvements increase the traffic count in the area by 3,000 to 4,000 cars per day, Woodin said, it may make the difference as to whether a restaurant owner decides to open an eatery in the area.
“JT’s Diner does a phenomenal breakfast business, but it isn’t open for dinner. There are no real places for an evening meal unless you go to a sports bar,” he said.

Besides bringing in new business, Woodin is hopeful that as more people frequent the area, it will encourage business owners and building owners to renovate and update existing structures. One example is the southeast corner of Lost Nation Road and Lakeshore Boulevard, which has an empty gas station. He envisions an area that would mimic the shops and eateries of downtown Willoughby.
Having two areas of interest and two destinations in the city, Woodin said, would increase traffic to both areas because people would have more choices and more reasons to come.

Gathering input

Woodin hopes that the increased emphasis on his ward will pique the interest of brokers, real estate agents and investors. To help with that, he said, that the city is compiling a database to increase communications about the plans. Getting the word out about these properties is essential to revitalizing them.

“Right now, if I’m in San Francisco and want to know what properties are available in Willoughby, some of these might not show on a search,” he said, adding that can lead to missed opportunities for both the city and business people. A meeting with business owners, landowners and investors is being planned.

Residents had the opportunity to give their input into what they would like in the area last year at a public meeting. Many residents have asked for more retail establishments in the area, Lipscomb said.
A new dollar-price store opened near Lost Nation and Lakeshore, but Lipscomb thinks that the area, in the long run, will attract more commercial/offices and restaurants than retail. She would like to see an expansion of some of the medical offices in the area.

The type of businesses Lipscomb envisions includes dry cleaners, restaurants and a bank. It’s not the right neighborhood for a big-box store, she said, but there are other businesses that she believes would do very well in the area.

Showing its best side

In these tough economic times, no one foresees anything happening overnight. Rather, Lipscomb said, it will be a process and most likely implemented in phases.

One of the first phases, Mayor Anderson said, will be beautification of public areas. This will be done in much the same manner as the downtown area with new, lush plantings and enhanced landscaping and streetscaping.

Anderson realizes that the demographic density of the area ultimately will bring in business, but he also wants all of the public land in the area to look the best it can so residents know the city is serious about improvements.

Anderson and Lipscomb lauded residents who live in the area for upgrades and investments many have made to their homes. This shows that people in the area appreciate it and want to stay there.
Zooming in on zoning

Some of the other steps Willoughby is studying for the north part of the city is the possibility of mixed-use zoning similar to the downtown district.

Because lots in the Lost Nation/Lakeshore area are relatively narrow and not very deep, the city is looking into waiving set-back zoning requirements. To increase residential density of the area’s population, Lipscomb said, builders are being encouraged to build on the few empty lots with higher-density housing such as townhomes.

Just like the downtown area, the Lost Nation/Lakeshore area would have its own zoning ordinance restrictions, which would be based on the use of the land, the type of lots and the vision that the residents and city officials have for the area.

The idea of filling in empty residential lots with townhomes was resisted for a time, then city officials and area residents began to reassess the situation, Woodin said. They decided that bringing more people into the area with townhomes was better than little to no movement on the residential front.

“Residential development in that area will be mostly infill,” Lipscomb said, adding that it will be the city’s job to assure retailers that the population density will support the businesses.

A portion of the area falls within the city’s Community Reinvestment area. When improvements are made to an existing structure, taxes on the improvements are abated for five or eight years, depending on the type of structure being improved and whether it is new construction or an existing building.
Property owners must file paperwork with the city to receive the abatement. Guidelines, forms and maps are available on the city’s Web site, www.willoughbyohio.com. An incentive grant program for businesses available through the city also is available.

Overall, Lipscomb, Anderson and Woodin agree that the city’s Comprehensive Plan Vision 20/20 puts forth the necessary steps to assist in Willoughby having continued success in its revitalization efforts.

Regina Steffen is a freelance writer from Concord Township.

 
 
 
We hope you enjoy our monthly feature article (above). Tri County Business Journal is a monthly newspaper filled with news, feature articles and announcements for the Lake County business community. Stay informed about the people, companies and new ideas that make Lake County the place to be. Subscribe to the print edition to read the complete issue.
 
 
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