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Cleveland: General Business & Economic News

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9 hours ago, Sapper Daddy said:

 

It's nice to see the mayor present information I had in an article more than a month ago! 😉

 

 

Edited by KJP
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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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Interesting stuff from the 2020 Mayor's Estimate:

 

Revenue from the Income Tax is projected to rise from $444 million in 2020 to $481 in 2024. If I'm figuring this right, this implies about a $1.48 billion increase in annual taxable income in the city in 4 years. This projection has been conservative in past years.

 

Land use,  current acreage(percent of total),  planned 2020 acreage(percent of total)

*Single/2 family housing   14,456 (29%)  16.496 (33.1%)

*Recreation/open space    3,495 (7%)   4,250 (8.5%)

*Vacant                                  2,755 (5.5%)  0 (0%)

*Retail                                    1,591 (3.2%)  1,349 (2.7%)

*Commercial parking          181 (0.4%)  38 (0.1%)

 

Demolished structures   2019 - 810 (actual)  2020 - 1000 (planned)

Boarded-up                       2018 - 2,235  2019 - 3,379

 

http://www.city.cleveland.oh.us/sites/default/files/forms_publications/2020MayorsEstimate.pdf

Edited by Dougal
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There's nothing wrong with optimism, as long as you don't get your hopes up.

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That income tax revenue number is pretty remarkable, even though it is a conservative projection. Consider....

 

2016: $314.8 million

2019: $424.9 million (estimated)

2020: $444 million (projected)

2024: $481 million (projected)

 

That's a 53 percent increase in 8 years. And it's conservative.

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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Those projected land use numbers are interesting. I don't believe the zero vacant parcels for a moment, but looking at the projected decrease in commercial parking is both believable really great news if it plays out. I'm sure alot of that is the loss of lots downtown with SW, but we have also been seeing lots disappearing in the neighborhoods too. OC has seen a huge decrease in surface lots recently, particularly along Detroit.

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4 hours ago, Htsguy said:

^Now the hard part...spending it wisely.

 

Yeah I'm still waiting for the increase in services from when Mayor Jackson pushed for the 1/2% tax increase.   So far I've seen a street sweeper 2x in my neighborhood.  

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Industry on the move: Tech experiencing strong job growth in Cleveland

 

February 3, 2020

"Cleveland's tech industry is experiencing strong job growth. Local employers posted 222 new jobs over the past week and 396 new jobs in the last month, more than any other local industry, according to ZipRecruiter, a leading online employment marketplace...."

 

https://hoodline.com/2020/02/industry-on-the-move-tech-experiencing-strong-job-growth-in-cleveland

 

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^ Not good. That said, I had no idea Macy’s had anything in Lorain. I also fully believe they’re the architects of their own downfall. Nearly all of their stores offer nothing unique whatsoever, just bland, cookie-cutter boxes where nothing is worth the non-sale price. Finally, I used to live in South Florida and can’t forgive them for what they did to Burdines. I know they did the same to countless other regional chains. 

Edited by roman totale XVII

And they reckon that the last thing she saw in her life was
Sting, singing on the roof of the Barbican

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^good way to keep costs down:   "New York City will become the company’s sole corporate headquarters, the company said."

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^Macys used an old Macys in Lorain as a computer center. It was mainly back up operations and help desk support.  They are going to the cloud and using India for overnight processing and handling operations out of Atlanta. 

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OK, NOW move to Tower City!  😎

 

 

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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So, last year Cleveland estimated it would receive $424,869,173 in income taxes for 2019. The actual unaudited income tax revenue for 2019 was $441,753,856!

 

SOURCE: https://t.co/LvSUnivV8d

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More... That's $110 million more than in 2016 and $52 million more than 2017, a full year after the city's raised its income tax rate.

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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33 minutes ago, freefourur said:

^but I was told that raising taxes will lower tax receipts. /s

 

OK when is the city going to start maintaining their property, sweeping the streets or maybe PAVING some of the streets that have been a pothole infested mess for decades!   

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1 minute ago, Cleburger said:

 

OK when is the city going to start maintaining their property, sweeping the streets or maybe PAVING some of the streets that have been a pothole infested mess for decades!   

 

Yeah, they should be doing this since they have extra money coming in.

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16 hours ago, Cleburger said:

 

OK when is the city going to start maintaining their property, sweeping the streets or maybe PAVING some of the streets that have been a pothole infested mess for decades!   

Fwiw, have you called the city's division of streets about any specific problem areas? I just bought a house in Ohio City with a foundation that butts an old brick alley. The bricks had sunk into the soil causing a low spot against my foundation. When it rained there'd be a 6 foot wide and 3" deep puddle against my house and it was definitely causing some moisture issues on the basement wall.

 

I called the division of streets about it, the next day they had a tech out to inspect. That night it was elevated to actionable status and within a week new concrete was being poured at the right grade. Now water flows out to the street and I don't have any issues!

 

I'm still seriously impressed with the response time, I was expecting it to take months.

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I had an anti-tax reactionary confront my NEOtrans twitter posting about this news, saying that people are fleeing higher taxes in Cleveland and that jobs/economic activity is rising everywhere in the USA. So I responded with....

 

Income tax revenue can be a measure of economic activity. Roughly half of those increased revenues (from Cleveland's dominant tax revenue source) came after the tax rate increase. They came from more people living/working in Cleveland. In other words the tax hike didn't scare them off; it captured value from Cleveland's newfound economic growth.

 

Economic growth has been limited to America's largest cities despite their higher taxes. This is especially true in Ohio where the 3 largest metros accounted for 88% of Ohio's job growth since Jan. 2015. And if it wasn't for the 6 largest metros, Ohio would have lost 18,000 jobs since Jan. 2015.

 

 

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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Pretty interesting and impressive stats to check out.  Cuyahoga’s economy in the top 1% among U.S. counties and stronger than that of several states.  Ohio’s economy as a whole not doing too shabby either.
 

https://www.cleveland.com/datacentral/2020/02/cuyahoga-countys-gdp-tops-13-states-how-much-ohios-big-counties-power-states-economy-building-from-strength.html

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I got excited when I saw that headline today - "Wow, they're actually reporting on something positive about the city!". Then I opened the article and read thru the first two paragraphs which were nothing but negativity and dragging the city down. Shouldn't have even opened it.

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9 minutes ago, PoshSteve said:

I got excited when I saw that headline today - "Wow, they're actually reporting on something positive about the city!". Then I opened the article and read thru the first two paragraphs which were nothing but negativity and dragging the city down. Shouldn't have even opened it.

 

Cleveland media in general is wild.

 

I remember when we got the RNC... the first local article I read led with "In anticipation of the headaches for locals and transportation issues..."

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Can't be too optimistic in journalism, otherwise you're labeled a cheerleader and not a sober observer. 

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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Bendix is officially leaving Elyria for Avon. This is a good take on an all-too familiar story to us, via BloombergTax

 

Ten-Mile Move, $25 Million in Tax Breaks: A Cleveland Story

Alex Ebert - Mon. Feb. 24, 2020

Link: https://news.bloombergtax.com/daily-tax-report-state/ten-mile-move-25-million-in-tax-breaks-a-cleveland-story?fbclid=IwAR3xZM67IHNO6gOyfptob2CLNYIsLyvxzltQIX7XYzeGBXKqyT1k43p6REo

 

"On Monday, the City Council of neighboring Avon will vote to approve more than $25 million in estimated tax incentives, the latest step in Bendix’s plan to move roughly 10 miles to a new home. ... The Bendix move highlights the tensions that result from conflicts between regional and local tax-incentive strategies, Evan Mast, economist with the UpJohn Institute said in a phone interview. 'From the Cleveland region’s perspective it doesn’t make much sense,' Mast said, because the incentives are offered to let a factory 'shuffle around in Greater Cleveland.' "

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2 hours ago, NorthShore647 said:

Bendix is officially leaving Elyria for Avon. This is a good take on an all-too familiar story to us, via BloombergTax

 

Ten-Mile Move, $25 Million in Tax Breaks: A Cleveland Story

Alex Ebert - Mon. Feb. 24, 2020

Link: https://news.bloombergtax.com/daily-tax-report-state/ten-mile-move-25-million-in-tax-breaks-a-cleveland-story?fbclid=IwAR3xZM67IHNO6gOyfptob2CLNYIsLyvxzltQIX7XYzeGBXKqyT1k43p6REo

 

"On Monday, the City Council of neighboring Avon will vote to approve more than $25 million in estimated tax incentives, the latest step in Bendix’s plan to move roughly 10 miles to a new home. ... The Bendix move highlights the tensions that result from conflicts between regional and local tax-incentive strategies, Evan Mast, economist with the UpJohn Institute said in a phone interview. 'From the Cleveland region’s perspective it doesn’t make much sense,' Mast said, because the incentives are offered to let a factory 'shuffle around in Greater Cleveland.' "

A move from Elyria to the sprawling suburb of Avon. What an absolute waste of money and unnecessary development of rural land. The suburban, auto-centric mentality of this region is nauseating. Do people really want to work at a campus with a view of a highway and trees that separate you from other businesses? Idk why people enjoy working at the campuses like Progressive

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The 8,000 figure represents planned hires and not the net addition to Progressive's employment ranks, given the number of people who may leave the company this year. A Progressive spokesman said in an email that "typically 50% of external hiring figure is net additions," so about 4,000-plus jobs will be net additions in 2020.

 

https://www.crainscleveland.com/staffing/progressive-corp-says-it-will-hire-8000-people-nationwide-year-including-1500-cleveland


The Crains article makes it a little more clear. It’s looks like it’ll be about 750 new jobs to Cleveland which is still fantastic!

Edited by cle_guy90
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6 minutes ago, skiwest said:

Glassdoor reveals Cleveland ranks 5th among the 25 best cities for jobs in 2020.

 

https://www.cleveland19.com/2020/02/26/glassdoor-reveals-cleveland-ranks-th-among-best-cities-jobs/

 

Last year the CLE ranked 9th.  While still lower than many of our peer cities, Cleveland's median house value increased 16k in one year. Not bad.

 

Full list can be found here: https://www.glassdoor.com/List/Best-Cities-for-Jobs-LST_KQ0,20.htm

Edited by Clefan98

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I'm trying to be optimistic about the severity of this market correction. The market has certainly been looking for a reason to go down, and it has finally found one. I'm hoping, but not hopeful that we can eliminate the froth in Wall Street without tanking Main Street. Just when the local economy was really getting hot, too.

 

Sorry to be so gloomy.


There's nothing wrong with optimism, as long as you don't get your hopes up.

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2 hours ago, Dougal said:

I'm trying to be optimistic about the severity of this market correction. The market has certainly been looking for a reason to go down, and it has finally found one. I'm hoping, but not hopeful that we can eliminate the froth in Wall Street without tanking Main Street. Just when the local economy was really getting hot, too.

 

Sorry to be so gloomy.

 

To be fair - the stock market and economy, while often correlated, are not the same thing.

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2 hours ago, Dougal said:

I'm trying to be optimistic about the severity of this market correction. The market has certainly been looking for a reason to go down, and it has finally found one. I'm hoping, but not hopeful that we can eliminate the froth in Wall Street without tanking Main Street. Just when the local economy was really getting hot, too.

 

Sorry to be so gloomy.


The good news is no reputable economist is forecasting recession.  The bad news is my ETF has had a rough week.  This downturn just emphasizes how much our economy relies on the vitality of foreign markets.

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I pulled my money out of the stock market, although too late to avoid taking a hit. I'm waiting for things to calm down/find the bottom. If we can get through the rest of today without further tanking, then I might put my money back in early next week.


"Life is 10% what happens to you and 90% how you respond." -- Coach Lou Holtz

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This is likely just a short term blip.  My re-invested dividends and capital gains will be buying cheaper shares.

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Just now, skiwest said:

This is likely just a short term blip.  My re-invested dividends and capital gains will be buying cheaper shares.

I invest monthly regardless in the same few ETF's and a small percentage in some individual stocks. 

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14 minutes ago, freefourur said:

I invest monthly regardless in the same few ETF's and a small percentage in some individual stocks. 

 

17 minutes ago, skiwest said:

This is likely just a short term blip.  My re-invested dividends and capital gains will be buying cheaper shares.

 

I agree with you both - though, I'd say "blip" is a bit generous. Two years of gains were wiped out in 3 days

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6 hours ago, YABO713 said:

I've heard of Glassdoor, but I don't know anything about it's reputation. Can you explain why it's good to hear this from them? 

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2 hours ago, KJP said:

I pulled my money out of the stock market, although too late to avoid taking a hit. I'm waiting for things to calm down/find the bottom. If we can get through the rest of today without further tanking, then I might put my money back in early next week.

 

I did the opposite, move too soon into 50% cash last November. Bought a bit of an S&P500 index fund late in trading today, again, probably too soon.  🙂

 

My reason for posting, though, is because a tightening in the debt market (as a result of this huge asset shrinkage)  may delay some of these ground-breakings everyone is looking forward to. Even if the Fed cuts rates a !/4 point in March, that may not save these deals.


There's nothing wrong with optimism, as long as you don't get your hopes up.

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