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Crain's editorial: Flat line?

March 20, 2016 UPDATED 2 DAYS AGO

 

Northeast Ohio is home to some of the finest health care institutions in the world.

 

Unfortunately, its reputation as a health care stronghold hasn’t been enough to salvage two ill-conceived — and costly — economic development projects designed to build upon that medical expertise.

 

Cleveland’s Global Center for Health Innovation — still known by many as the “med mart” despite a spirited rebranding effort — and Akron’s Austen BioInnovation Institute have gobbled up millions of dollars of public money and, for the most part, have failed to deliver on their early promises.

 

So, at what point do we stop throwing money at an idea hoping something will stick?

 

MORE:

http://www.crainscleveland.com/article/20160320/VOICES01/160319785/crains-editorial-flat-line

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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Crain's editorial: Flat line?

March 20, 2016 UPDATED 2 DAYS AGO

 

Northeast Ohio is home to some of the finest health care institutions in the world.

 

Unfortunately, its reputation as a health care stronghold hasn’t been enough to salvage two ill-conceived — and costly — economic development projects designed to build upon that medical expertise.

 

Cleveland’s Global Center for Health Innovation — still known by many as the “med mart” despite a spirited rebranding effort — and Akron’s Austen BioInnovation Institute have gobbled up millions of dollars of public money and, for the most part, have failed to deliver on their early promises.

 

So, at what point do we stop throwing money at an idea hoping something will stick?

 

MORE:

http://www.crainscleveland.com/article/20160320/VOICES01/160319785/crains-editorial-flat-line

 

Despite the optimism of a ''medical mart'' and Cleveland's growing role in healthcare, the city still struggles with a bad national reputation.  This is changing, however, but the city and region need job and population growth to really turn itself around.

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Crain's editorial: Flat line?

March 20, 2016 UPDATED 2 DAYS AGO

 

Northeast Ohio is home to some of the finest health care institutions in the world.

 

Unfortunately, its reputation as a health care stronghold hasn’t been enough to salvage two ill-conceived — and costly — economic development projects designed to build upon that medical expertise.

 

Cleveland’s Global Center for Health Innovation — still known by many as the “med mart” despite a spirited rebranding effort — and Akron’s Austen BioInnovation Institute have gobbled up millions of dollars of public money and, for the most part, have failed to deliver on their early promises.

 

So, at what point do we stop throwing money at an idea hoping something will stick?

 

MORE:

http://www.crainscleveland.com/article/20160320/VOICES01/160319785/crains-editorial-flat-line

 

Despite the optimism of a ''medical mart'' and Cleveland's growing role in healthcare, the city still struggles with a bad national reputation nationally.  This is changing, however, but the city and region need job and population growth to really turn itself around.

 

The census numbers come out to the public on Thursday so we'll have to wait and see  8-)

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Crain's editorial: Flat line?

March 20, 2016 UPDATED 2 DAYS AGO

 

Northeast Ohio is home to some of the finest health care institutions in the world.

 

Unfortunately, its reputation as a health care stronghold hasnt been enough to salvage two ill-conceived and costly economic development projects designed to build upon that medical expertise.

 

Clevelands Global Center for Health Innovation still known by many as the med mart despite a spirited rebranding effort and Akrons Austen BioInnovation Institute have gobbled up millions of dollars of public money and, for the most part, have failed to deliver on their early promises.

 

So, at what point do we stop throwing money at an idea hoping something will stick?

 

MORE:

http://www.crainscleveland.com/article/20160320/VOICES01/160319785/crains-editorial-flat-line

 

Despite the optimism of a ''medical mart'' and Cleveland's growing role in healthcare, the city still struggles with a bad national reputation nationally.  This is changing, however, but the city and region need job and population growth to really turn itself around.

 

The census numbers come out to the public on Thursday so we'll have to wait and see  8-)

 

I hope I'm wrong, but looking at labor market numbers from the BLS, I think population loss sped up a bit last year for the metro.

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  • 3 weeks later...

Well it sounds better than FirstMerit I suppose...

 

Huntington Bank buys early naming rights to Cleveland Convention Center before RNC

 

By Teresa Dixon Murray, The Plain Dealer

April 06, 2016 at 5:00 AM, updated April 06, 2016 at 6:19 PM

 

CLEVELAND, Ohio -- Huntington Bank has struck a deal to get the naming rights of the Cleveland Convention Center before the Republican National Convention in July, even though its purchase of FirstMerit Bank, which currently holds the naming rights, won't be final until later this year.

 

The convention center will become the Huntington Convention Center of Cleveland before the focus of the nation and perhaps the world is directed at the convention center in mid-July, when the city hosts the RNC. The name change is effective immediately; in-house references and video board signage will be changed as soon as possible and most rebranding will occur during the next several weeks.

 

Huntington has agreed to pay FirstMerit $500,000 to assume its agreement with Cuyahoga County. The agreement calls for Huntington to pay more than $400,000 annually to the county for the convention center 20-year naming rights. Huntington is assuming the full agreement, which called for FirstMerit to pay $10 million over 20 years.

 

"As the eyes of the country and the world focus on this important center in the Midwest," said Huntington Chairman and CEO Steve Steinour, "we want to step up and ensure top-quality signage design is in place and ready to share."

 

http://www.cleveland.com/business/index.ssf/2016/04/huntington_bank_buys_early_nam.html

 

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^not sure. at least with FirstMerit, you knew it was a corporate name like "coca cola stadium".  But this may well be the convention center of Huntington, WV.  Sounds horrible to me as a name for the Cleveland Convention Center.

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^not sure. at least with FirstMerit, you knew it was a corporate name like "coca cola stadium".  But this may well be the convention center of Huntington, WV.  Sounds horrible to me as a name for the Cleveland Convention Center.

 

Well we only have to endure 20 years. :)

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  • 4 weeks later...

Well there's a great way to foster stability...

 

Head of Global Center for Health Innovation leaving for Akron job

http://www.cleveland.com/metro/index.ssf/2016/05/head_of_global_center_for_heal.html#incart_river_mobileshort_home

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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  • 2 weeks later...

The Cleveland Marathon was this past weekend, it used the convention center for the expo (t-shirt / packet pickup + vendors). It wasn't clear where the "best parking" is, so the first garage past it, is able to get away with some crazy rates ($12 for an hour of parking). Since Cleveland happened to have some freakishly cold weather with sleet during the race, all of the runners faced a pretty miserable experience (high 30's / heavy sleet). The collective feeling that I heard resonating from everyone I talked to was that it was a cruel cruel joke that after the race, when everyone is freezing, soggy, exhausted, is that there was no where warm to go for shelter, as the convention center was locked. Not sure if that one is on Marathon organizers, or, if since everyone had had access to the convention center for the preceeding 2 days, that you might assume that it would be open, and also, it sort of seems like a public space, sort of like Tower City.

 

Lastly, are there tunnels connecting things underground? Such as, will the new Hilton connect to the convention center underground. And does the convention center connect to GCHI / Public Hall / others? It felt kind of labyrinthian down there.

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  • 4 months later...

From cleveland.com

 

Hilton Hotel or Global Center could expand, according to architectural request

Karen Farkas, cleveland.com

 

CLEVELAND, Ohio - The manager of the Huntington Convention Center Cleveland and attached Global Center for Health Innovation is seeking architects who could improve the undeveloped spaces in the Global Center.

 

The firm chosen to provide services must perform several 'initial tasks' within 12 weeks of the contract award, according to the request.

 

    Site planning, development capacity and design services from the Global Center ground floor suites.

    Master planning services that could lead to the expansion of the Hilton Cleveland Downtown Hotel or the Global Center on a strip of vacant land east of Ontario Street.

    A design package to improve the undeveloped spaces in the Global Center.

 

http://www.cleveland.com/cuyahoga-county/index.ssf/2016/10/hilton_hotel_or_global_center_could_expand_on_property_west_of_the_center_according_to_architectural_request.html#incart_river_home

 

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If they feel need to do this, they should make the original designers pay for it.  The thing is brand new and shouldn't need an overhaul.  And per the article, it's currently in search of a new manager too.  Maybe wait until there is one and see what they might think?

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  • 2 months later...

http://www.cleveland.com/cuyahoga-county/index.ssf/2017/01/global_center_for_health_innovation_to_be_evaluated_n_2017.html#incart_river_home

 

The current 80% occupancy rate belies significant amounts of space practically given away.  After 3 years, at what point do we start considering adaptive reuses for this building?  Marketing it together with the CC and hotel is almost unfair to the CC and hotel.

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I wonder if the building could be essentially marketed as convention space, if the existing tenants were to move? Move the smaller meeting spaces into the Medical mart and add the vacated meeting room space to the main convention floor of the Convention center.

 

I know there are some issues with the different elevations of the main convention floor and the meeting rooms, but having a larger main floor may be more attractive to more convention planners.

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I always read these articles on the Globe as nothing but 'clickbate'. I mean seriously where is the news here.  80 % occupancy would put it right in line with downtown Clevelands office vacancy rate.  Key Center and 200 PS are also at about 80% occupancy, should we consider them a failure also.  Why no headlines for them?  Because no one would click on the story.

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As previous articles have noted, much of that 80% involves heavily subsidized rents due to its failure to attract market rate tenants.  This also differs from Key Tower in being a public project designed to bring in new businesses.

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Well I wouldn't doubt many of the leases at Key/200 or other buildings are structured in a way that some type of concession was granted. Many of them are not paying market rate to sign on the dotted line. Also some businesses recv tax abatement or forgivable loans from the city/county to commit long term. I don't see the difference.

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The center was built to attract potential buyers here for meetings to test new Healthcare products. I guess the true question is how well it is doing that and if the residual effects of these visits, (Hotel stays, restaurant meals, show tickets, taxi rides, tax income) have as large or larger financial impact than the expense of operating the center. If not, then it is not doing its job well enough.

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It's not. As indicated with a previous article, that's certainly not clickbait, some of those conventions included comic books and companies that were not peddling or working in any realm of health care. It's become a de facto extension of the convention center but wholly underutilized.

 

This is the same county that is approaching its credit limit and has talked about reducing its role in future pet projects for this very reason. And yet it is now in talks with rebuilding the still-fresh Q because...?

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The Global Center may be at 80% occupancy but a good number of those tenants signed 5 yr deals and the leases are going to start coming up.  Will be interesting to see who renews and at what rate they pay going forward. When you look at the cost of the buildout of the spaces and the rents paid, I can't imagine it's been a good business move for many

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The Global Center may be at 80% occupancy but a good number of those tenants signed 5 yr deals and the leases are going to start coming up.  Will be interesting to see who renews and at what rate they pay going forward. When you look at the cost of the buildout of the spaces and the rents paid, I can't imagine it's been a good business move for many

 

Exactly. Better start now trying to figure out what that place is going to be.

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FWIW, my wife works for a large healthcare company and has hosted several large internal meetings there.  These are the kind of events that don't end up on the marquee, but are happening there. 

 

It wasn't built for that though, those are spot bookings.  It was built for long-term tenants offering one-stop shopping for health care purchasers.  To the extent that business model works, there were already private companies doing it when the project was conceived.  It should be clear at this point that the mission is a failure and a new one is needed.  My concern is that they're looking for new management who are dedicated to the original mission.  Then again, maybe the long hiring process means they're just bringing people in to brainstorm ideas.

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  • 3 months later...

Vacant space in Global Center for Health Innovation is an eyesore, report says

By Karen Farkas, cleveland.com

on April 27, 2017 at 7:20 AM, updated April 27, 2017 at 7:22 AM

 

CLEVELAND, Ohio - The long-vacant spaces in Cuyahoga County's Global Center for Health Innovation remain an unfinished eyesore, according to an inspection of the facilities.

 

The much ballyhooed center, formerly called the medical mart, was supposed to be the draw for the county's convention center, built together for $465 million in tax dollars. About 20 percent of the center remains vacant more than three years after its grand opening, making the building look perpetually under construction.

 

"The unsold spaces on the upper levels of the Global Center should be developed to a certain level of finish to convey to potential tenants that the spaces are near-ready for occupancy," according to a study prepared for the Cuyahoga County Convention Facilities Development Corp., which oversees the operation and management of the Huntington Convention Center and the Global Center. "At minimum, carpeting, code-mandated electrical and data/telecom outlets, a 'cloud' ceiling with lighting and finishing the soffits on the perimeter to match adjacent units should be conducted without delay."

 

MORE

http://www.cleveland.com/cuyahoga-county/index.ssf/2017/04/global_center_for_health_innovations_vacant_space_is_an_eyesore_report_says.html#incart_river_home

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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Vacant space in Global Center for Health Innovation is an eyesore, report says

By Karen Farkas, cleveland.com

on April 27, 2017 at 7:20 AM, updated April 27, 2017 at 7:22 AM

 

CLEVELAND, Ohio - The long-vacant spaces in Cuyahoga County's Global Center for Health Innovation remain an unfinished eyesore, according to an inspection of the facilities.

 

 

But some kitchens and baths in them and rent them out as apartments.  They are flying off the shelves in downtown Cleveland!

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And now we have an extremely expensive space for... comic book conventions (per an earlier article). I would agree that opening the incubator space up to every type of business would be great - as well as repurposing the space for higher-end offices that are absent the medical industry. Let's get this baby used!

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For some reason I thought at least part of it was supposed to be an incubator.

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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For some reason I thought at least part of it was supposed to be an incubator.

 

I don't think so. More than anything, this thing was meant to generate hotel nights and restaurant demand, by attracting institutional medical equipment buyers from out of town and generating some additional national meetings in the convention center.

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boondoggle

 

I think this is a negative way to look at it.  Failed concept, yes, but I think we all knew the medical mart concept was just that, a concept, unproven and carried the element of risk.  That risk became greater when MMPI got out of the picture as it's other marts faltered, but by then there was no turning back. 

 

So we may be left with a building that needs to refine / redefine it's purpose, but I think everyone knew this was a possibility coming into it.  Back then however the goal was to get a new convention center built, a goal since the 1980's that routinely went no where.  The convention center got built this time because of the Global Center concept, and without it I fear we'd have no new convention center or new Hilton hotel, both of which played a key role in a 2016 that redefined Cleveland and created great momentum. 

 

So we took a risk on the concept, but the resulting new convention center, rebuilt malls, and new Hilton hotel were worth it, and we have an asset that can be re-purposed into something great.  It's new, energy efficient building in a great location attached to the convention center and hotel. 

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Note that the Medical Mart, in part, incubated the US offices of this Irish firm until they could expand to a new spot at Tyler Village.....

 

RelateCare picks Cleveland for U.S. center

April 23, 2017 UPDATED 9 DAYS AGO

By LYDIA COUTRÉ 

 

An Irish-American health care company has chosen Cleveland to launch its largest office in the United States.

 

Operational since December, RelateCare's first U.S. Patient Coordination Center already employs more than 30 clinical and administrative staff who provide patient access and engagement services to several health care systems.

 

...RelateCare already had a couple of small offices in Cleveland: One in the Cleveland Clinic Innovations offices, which they will maintain, and another in Global Center for Health Innovation, which they've given up in their move to the new Patient Coordination Center.

 

MORE:

http://www.crainscleveland.com/article/20170423/NEWS/170429934/relatecare-picks-cleveland-for-u-s-center

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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  • 3 weeks later...

Global Center still has room to grow

May 21, 2017

By JAY MILLER

 

The Healthcare Information and Management Systems Society is probably the most successful tenant of the Global Center for Health Innovation. Its fourth-floor HIMSS Innovation Center is averaging 1,000 visitors a month.

 

"We've had a lot of international visitors," said John Paganini, the HIMSS Center's senior manager for interoperability initiatives. "At the same time, there is a heavy Northeast Ohio presence here."

 

The HIMSS center is a demonstration, exhibition and education facility, for several dozen firms offering health IT-related services to the health care providers. Since its opening, it has hosted 450 events in the building on Cleveland's Mall.

 

The Global Center also has seen a tenant grow its way out of the building on Cleveland's Mall.

 

MORE:

http://www.crainscleveland.com/article/20170521/NEWS/170529992/global-center-still-has-room-to-grow

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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Hindsight is 20/20, but the building probable should have been designed in such a way that it could easily be converted into something different should the medical Mart concept not take off. Maybe it is, of course the exterior windows built to look like strands of DNA could be problematic.

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of course the exterior windows built to look like strands of DNA could be problematic.

 

Strictly speaking, they resemble an electrophoresis scan.  When the building was under construction, I asked if it was expandable - got no answer.

Es war ein heisser Nacht in Apalachicola als die asbest Vorhang gefällt.

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  • 5 months later...

 

 

October 31, 2017 10:27 am      UPDATED 4 HOURS AGO

MedRespond to take up space in Global Center

By [/color]LYDIA COUTRé

[/size]A Pittsburgh-based online health care communications company is opening a Cleveland office in the Global Center for Health Innovation.MedRespond, which won first place at the inaugural Medical Capital Innovation Competition in April, combines artificial intelligence, search and streaming media to enable health care enterprises to provide personalized, relevant and scalable engagement solutions for their patients, clients and their families, according to a news release.MedRespond anticipates hiring several employees with its expansion to the Global Center, focusing on expanding its content development resources, according to the release.MORE:http://www.crainscleveland.com/article/20171031/news/140606/medrespond-take-space-global-center[/size]

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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  • 3 weeks later...

Kennedy is a gubernatorial candidate in Illinois

 

Chris Kennedy's troubled Cleveland deal: Taxes raised, company collected millions

http://www.chicagotribune.com/g00/news/local/politics/ct-met-chris-kennedy-cleveland-20171115-story.html?i10c.encReferrer=aHR0cHM6Ly90LmNvL1pzOE5OUHJDenA%3D

“What is the meaning of this city? Do you huddle close together because you love each other?”
Or “We all dwell together to make money from each other”? -- TS Eliot’s The Rock

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The interview with Kennedy includes a point rarely discussed, that the Medical Mart itself wasn't supposed to generate revenue.  It was meant to be a loss leader, offering retailers free rent to mitigate any doubts they had about the concept and the city.  Kennedy has a point.  That's the same idea I've pushed for years in regard to general consumer retail, since it's proven to be effective in other cities. 

 

In the case of the Medical Mart, where the concept is a tough sell and the market is inherently limited, that financial inducement was especially important.  If we're treating it as a regular office building that needs to be independently profitable, it can't succeed and the whole thing becomes a waste.  Apparently that was never the plan.  But how was this crucial aspect so quickly forgotten?  Why wasn't it front and center in the first place?

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I agree with you that in some aspects retail should be subsidized because of the reasons you've cited before. Wouldn't it be awesome if small businesses could get the same red carpet treatment that the big developers (and people with the last name Kennedy) get? Probably a good thread topic on its own. But with MM, don't you think if it was a such a great idea that places like Nashville, NYC, etc. would have followed through on their initial plans to compete with Cleveland? 

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Totally.  Point is, this thing had no chance without the free rent.  Even then it was dicey.  There were already distributors in health care who offered one-stop shopping for purchasers.  Their impact on convention generation was established and measurable.  What's the point of having trade shows when that role is filled by existing showrooms?  A solution in search of a problem. 

 

Of course the whole idea on our end was to get funding for the convention center renovation, which nobody wanted, so it was paired with a second thing nobody wanted and forced through.  And then we ran away from the base concept of it, which, to be fair, probably wouldn't have worked anyway.  And then we actually got ourselves a top-tier convention, but that was unrelated to health care and held at the Q, which itself was deemed inadequate right afterward.

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^I agree that focusing on its rental income sort of misses the point, but even as a loss leader the Med Mart failed, no? Even at cheap rents it never filled with the healthcare showrooms and sales offices that were envisioned, prompting name change, new types of tenants, and management changes. I haven't followed the convention center's bookings closely, but is there anything to suggest it's outperforming peer centers because of the Global Center's tenants? The whole point was to boost the low wage service economy through hotel stays and restaurant meals, with a really nebulous boost to the city's healthcare companies, I guess, through additional exposure, but as far as I know, the Global Center has been a big zero on those fronts.

 

Oops, I'm a few posts behind. 

 

I think the operators did give the initial concept a try, and it failed, so now we're left with a box that can either be a loss leader, a revenue generator, or some combination, but I don't think we've seen anything to date that justifies the additional expense it entailed.

 

 

 

 

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I still don't think the convention center alone was enough to get funding.  The medical mart was the sweetener.  I'm sure there are differing opinions, but I feel the new convention center accelerated all of the downtown development, including hotels, which lead to us landing the Republican convention.

 

I'm hoping for good things with the Bio Enterprise incubator, but even if it isn't a significant success, I still feel it was worth the money.

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