State of the City: "Endless Possibilities"

The City of Euclid faces various challenges, but if the Administration, City Council, and residents commit to working together, “there are endless possibilities for our future.”

That was a general theme of Euclid Mayor Bill Cervenik’s annual “State of the City” message, delivered after the Feb. 6 City Council meeting. However, the specifics painted a clearer picture of the city’s recent successes as well as the hurdles and opportunities that lie ahead.

A good portion of the mayor’s remarks dealt with economic development.

“In 2011, the City of Euclid made great progress in sustaining and growing the local economy,” Cervenik stated. “The Community Services and Economic Development Department assisted nearly 20 companies in locating or expanding their business in Euclid…. Approximately 150 jobs have or will be added to the city and over 400 jobs were retained through these efforts.”

            One of the firms the mayor referred to was Lincoln Electric, which last year erected a 2.5-megawatt wind turbine at its East 222nd St. world headquarters. Last month, Lincoln announced that it had acquired Techalloy, a Maryland firm, and planned to relocate its operations to Euclid, bringing “at least 200 jobs” here.

            “Even more important than the 200 jobs,” Mayor Cervenik asserts, “is that the company will be spending at least $40 million on retooling the plant. That kind of investment will ensure Lincoln’s commitment to staying in Euclid and relocating [operations] here.”

            Ohio Governor John Kasich, who attended the event in Euclid at which the Techalloy acquisition was announced, said the state will assist the relocation by providing $10 million worth of tax credits for job training and retention. Additional incentives were offered by the city and by Cuyahoga County.

            Further, the mayor reports that city officials know of  “at least five companies that are committed to moving to Euclid that could add another 500 new jobs here in 2012.”

            In his State of the City message, he mentioned several manufacturing firms that already have either located or expanded in Euclid—Edmonds Elevator, Simmers Crane, TECT, and Mesocoat. “Mesocoat, a sister company of Euclid-based Powdermet, is nearing completion on the expansion of their operations at their Rockwell Drive location,” the mayor said. “Mesocoat develops high-tech coatings for materials that are used in severe environments and will add 30 jobs associated with this expansion.”

            Like Lincoln Electric, William Sopko & Son is advancing the development of “green energy” in Euclid. The Lakeland Blvd. firm is “working with the Great Lakes Energy Institute, Case Western University, and other industry partners to install two smaller [wind] turbines on their property,” the mayor noted. “These turbines will be used to test local parts that could be commercialized in the future, creating jobs in the green economy.”

            In the commercial and retail sectors, “small businesses such as Confident Tire, Cleveland Paint Company, CitiTrends, Happy’s Pizza, and Azman Meats all decided to locate in Euclid, filling vacant storefronts and moving our local economy forward.”

            Other topics touched on in the State of the City message included:

            REVITALIZATION:  The city’s Community Services & Economic Development (CS&ED) Department has continued its planning efforts for Memorial Park, the City’s Waterfront district, Downtown Euclid, “and most recently, Euclid Avenue,” the mayor pointed out. “These are vital parts of our community. Careful and thoughtful planning of improvements for these areas will be catalysts for growth and renewal.”

            Downtown Euclid has already benefited from more than $15 million in investments since the planning process began, Cervenik pointed out. “The Waterfront Improvements Plan has already started. Work is in progress for public improvements to Sims Park, including multi-purpose trails and the construction of a vastly improved fishing pier.”

            The mayor also noted that Shore Cultural Centre “is beginning to take shape as a contributing stakeholder in downtown Euclid. More arts and cultural activities are taking place, with many new and exciting programs planned for the future. Under the management of the Coral Company, this progress should continue.”  However, he added that “hundreds of thousands of dollars” will have to be invested in the building’s infrastructure needs and operations, “if we expect to reach the goals of the five-year strategic plan.”

            HOUSING: The city’s Neighborhood Stabilization Program (NSP) is having a “positive impact” in Euclid neighborhoods, Cervenik asserted. “Our first allocation of NSP funds rehabbed eight and demolished 23 blighted homes by 2011. Our second allocation of NSP funds will allow for the demolition of 16 properties.”

           Funds from the city’s HOME grant, a block grant administered in partnership with the county, were used last year to assist 21 first-time homebuyers with their down payments. HOME funds were also used to begin rehabbing four homes. Another block grant enabled the city to reinstate the curbside recycling program and, in the first year, 1,590 tons of material were recycled.

          PUBLIC SAFETY: “I have been told time and time again by our residents and businesses that safety is their number one concern,” the mayor reported. “Providing for the safety of our residents consumes more than 60% of our General Fund budget. I pledge to continue to work with our Safety Forces to keep them adequately staffed, trained, and equipped.”

          FINANCIAL STABILITY: The State of Ohio has reduced its funding assistance to Euclid by $1.7 million. Moreover, the Ohio Estate Tax—which has provided about $900,000 a year—is scheduled to be eliminated on Jan. 1, 2013. However, as result of the slowly improving economy and a “multifaceted effort” by the city tax department to achieve strict compliance, the city’s total income tax collections increased by approximately $1.2 million last year, partially offsetting the losses.

          Various cost-saving measures, including “consolidation of various departments to eliminate duplicate responsibilities,” should enable the administration to present City Council with “a budget that protects the financial stability of the city,” the mayor said.

           INFRASTRUCTURE: A major financial burden facing the city in the years ahead will be the cost to meet EPA-mandated upgrades in the wastewater treatment system to prevent untreated waste from being discharged into Lake Erie during heavy rainstorms. “Major changes in the collection system and treatment plant will be required,” Cervenik stated. “These improvements will be made over a 15-year period, with the goal that, in a normal year, no untreated or partially treated wastewater is discharged into the lake. As you can imagine, projects of this magnitude are expensive.”

          Sewer rate increases—perhaps in the vicinity of $10 a month—will be needed to finance the work.

          SENIOR PROGRAMS:  During 2011, the Euclid Senior Program served 47,137 meals in the community center dining room and to homebound seniors. “We currently have over 400 senior memberships and hope to double that by the end of 2012,” the mayor said. Also last year, the city offered transportation services to 500 seniors involving 5,080 trips to and from the center, to medical appointments, and grocery shoping. In addition, Euclid provided home health aide services to 200 residents.