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BOA Minutes <br />July 6, 2017 <br />Pg #24 <br />oxcLVSro <br />Mr. Ridey said John, with respect to what you said, I have a particular view of it. If you look at <br />Progressive with two campuses, this is so independent of anything and everything. This is a <br />gentleman who wanted to build something on the Lakefront in the most extreme fashion in <br />Cleveland some years ago. He was somebody who gave Gase Western Reserve University a lot <br />of rnoney so Frank Gehry to come in and build his sculpture for the business school. He was a <br />very exceptional person. By the same token other corporations hade chosen to locate in more <br />remote areas with part of their operatioris. Big financial operation in Beachwood into a Science <br />Park. And what's there now, Cleveland Clinic with all their vffices in that area. Eaton <br />Corporation has been a wonderful example of great architecture on site. But these are all very <br />lazge scale independent facilities. I want to make sure that's separate from a little heavily <br />dependent operation here because it's looking for people to understand where it's located and <br />then to be able to compete against all of the other locations that are out there with a scale that <br />you would be able to produce at 40,000, 50,000 or 60,000 square feet. Those numbers aren't <br />calculating inside pazking or surface parlcing. When you look at value that's created there but <br />you can't cover the cost of construction with the rents you can receive. It's right here, I'd be <br />happy to share this data with anybody in this room. There are 40 or 57 buildings in here, some <br />of which are sold in the range of $60 to $120 / sq ft. from 2014 and forward to this day. You <br />can't build a building at $120 /sq. ft. <br />Mr. Manrelli.asked, if you had met Mr. Cannata today and he hadn't owned that property, how <br />would you advise him to move forward? <br />Mr. Ritley replied, don't buy it. <br />Laughter ensued. <br />Mr. Ritley replied, truly if you told me that was the zoning. <br />Chairman Prcela said, you would tell him to put it off contingent on getting it rezoned. <br />Mr. Ritiey replied, no. I'm going to tell you why, the same proposition exists. You've got to <br />face the facts on this thi.ng. Why would I buy something that I'm going to have to go forward <br />and take the risk of it. I don't care whether you're talking about today's stock mazket going <br />crazy, low interest rates and all the wonderful candy being handed out. What it really amounts <br />to in this day and age with all of these pluses, you cari't make any economic sense out of it. It <br />was worse in the year he bought it. <br />Mr. Marrelli asked, why is it economically feasible for ARTIS? <br /> <br />Mr. Ritley replied, it's only a different business model. The revenue stream that comes from it <br />comes to perform essenrial services in that location. That's how the latent productivity of the <br />land is being released, because it flows through a business model that is best suited for a I; <br />; <br />L...i