#tech czar

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Big show today on the Tech Czar Chat. Guest Michael Cottrill, Co-Founder of BeeGit (www.beegit.com). In News & Commentary we discussed OneCommunity 100GB pipe, Industry Digital Summit (www.indsum.com), CWRU's think[box] and ESPN Cleveland's new mobile app. Great interview with Michael Cottrill on capital raising, being a tech company in the C.L.E, and what does the name - BeeGit - mean! Discussed my next Plain Dealer column featuring Gabriel Partners and ExpeseBot. My culinary pick of the week - Jonathan Sawyer is up for an Beard Award. Show him some love and go to GreenHouse Tavern, Trentina or Noodle Cat. Host: Michael C. DeAloia, Tech Czar Guest: Michael Cottrill, Co-Founder - BeeGit

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On the Sin Tax

I have listened to both sides on the current battle being waged around Issue 7 better known as the "Sin Tax." And I have to be blunt, I don't believe that billionaire owners of sports teams deserve or require public largess to finance the stadiums in which their teams play. The arcane belief that the teams venue somehow must be owned publicly or financed with public money creates an opportunity cost that would be better spent on education, infrastructure and economic development than our corporate suites. 

Listen, I am a capitalist and a free market idealist. And I look back into history past when professional sports teams owned their own stadiums. The Dodgers owned Ebbets Field. The Reds owned Crosley Field. Do I mind the team's ownership tapping into port authority bond issues for a smaller interest rate? Of course not. But to threaten a city and take the sports fans hostage for tax benefits, sweet heart deals and forgivable loans is morally repugnant.

The City of Cleveland should not own and operate three major sports facilities. It manages them poorly. It is being fleeced by team owners for repairs. Owning said facilities is expensive. Thus financially squeezing out the appropriate daily costs of operating a city. And Cleveland leadership cowers to much in front of these professional teams. This is just embarrassing. There are professional groups that do nothing but manage stadiums for profit. Why not consider this as an alternative?

When the Dodgers were purchased by the Guggenheim Baseball Partners (including minority shareholder Magic Johnson), the new owners not only bought the team but also the stadium. And while Jerry Jones rightly deserves criticism for how he manages the Dallas Cowboys, he deserves accolades for owning the very stadium in which the team competes. There exists a better revenue model when the team owners also own the stadium. It is an argument I have heard very little about in this current debate about the sin tax. But when ownership owns the facility they must become expert on how to manage, repair, improve and extract fair profit from the facility. That's how business should be accomplished. 

Instead, why not begin transferring ownership of these facilities to the teams themselves. The teams pay a fair market value for the stadiums plus assumption of the debt on the facilities. That seems more fair to me. The City of Cleveland could then use these financial proceeds (and the relief from the debt payments) to fix roads, repair neighborhoods, improve schools and increase access to social services. I don't understand why the city is so intent on the ownership of three white elephants. 

Finally, I am really disturbed by the various groups involved in the pro Sin Tax message being so rude and dismissive of those who want to know the why's and the how's of this tax. In a time of social media that promotes open conversation the pro Sin Tax group as far as I can tell have been so overtly smug at the opposition that it defies civility. The command and control nature of Cleveland and its civic elite have encouraged poverty, poor education, a historic lack of entrepreneurship and innovation and too many missed opportunities. The lack of the financial and legal understanding of what is the "Sin Tax" on the side of the pro Sin Tax group is mind-boggling and a bit scary. Why should we trust those who have been verbally abusive and intellectually dismissive in this debate? 

When the votes comes to pass, I trust the great voters of Cleveland to do the right thing. Vote no. 

Cool Cleveland Link: http://bit.ly/Rfb23W

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On the Public Square Redesign

Many years ago when I was the "Tech Czar" for the City of Cleveland I was invited to give a speech at the Union Club to a group of attorneys and real estate developers. It was after my speech on technology redevelopment that the city was engaged in at the time - eTech Hatchery, IdeaCenter, Tyler Elevator - when a very angry attorney stood up and asked me what was being down about the "shit hole that is Public Square." And clearly one of the iconic venues of Cleveland has morphed into a tired, almost forgotten about destination. A destination in name only - since if you are not transferring from one RTA bus to another I doubt you ever walk through Public Square. 

The redesign of Public Square is a civic must. This is year the city of Cleveland grew up. It is the welcome mat for the city as well. And to see Public Square in such a tired condition is more than embarrassing. So, I was excited to see news of a redesign of Public Square in the Plain Dealer. The architecture columnist of the paper - Steven Litt - detailed the complex redesign of the Square. (See link below.) 

The City of Cleveland's Group Plan Commission put forth a "radical' plan for the Square with a clarion call to the civic, Foundations and private industry leadership for the $30 million to implement the plan. The redesign does offer some fun attributes for the new Square including a cafe, a "splash zone," speakers terrace and new landscaping. 

And yet, in my opinion, the plans are rather sedate and not as "radical" as portrayed. Are the changes necessary? Of course. But did the planners provide Cleveland with the best possible design for a new Public Square. I, personally, don't get that feeling. As with so many architectural and design opportunities in the city, we squandered this one. Where is the cool signage and technology to be implemented into the Square? Could there have been better landscaping? Could the plan have been extended down Euclid Avenue to East Ninth including way finding signage and digital signage giving the area a smaller "Times Square" feel? I do believe so. 

And to come out with the plan with no financing options is a bit peculiar. The City of Cleveland alone should have immediately offered $5 million to get the fund raising started.

Green space in urban environments are so important to the life and vitality of the City. I praise the city for delivering a good plan. Solid. But not spectacular. And Cleveland, in my mind, deserves the spectacular. 

Would enjoy hearing your thoughts, Cleveland?

Steven Litt, PD column: http://bit.ly/1i8PxYn

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After being named one of Forbes' top 15 cities with emerging downtowns in 2013, our great city of Cleveland continues to prove them right. With multiple

Big kudos to Insiva, a Cleveland, OH-based development company, on this great info graphic. It shows the rapid growth in the Downtown Cleveland marketplace. 

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On Mass Transit in Cleveland

This debate could easily be multiple blog posts but it has to be said that Cleveland and Northeast Ohio need a regional mass transit policy. I remember many years ago having a lunch with Joe Calabrese of the Greater Cleveland RTA. Two things struck me about this lunch. The first - Joe sending me a letter during my first week of the being the "Tech Czar" for the City of Cleveland. It was a kind gesture and I immediately took him up on the idea for lunch. The second - Joe insisting that the civic leadership in Cleveland and Northeast Ohio had to unite on a mass transit policy. The current transit system to me seems so inefficient and not reflective of a new Cleveland region.

It is my believe that the following concepts should be embedded in a new mass transit policy:

Bring back the Trolleys. One of the strongest fabrics of Cleveland's old neighborhoods was the inexpensive trolley's that could get you anywhere in the City (with one additional transfer). The tracks in a lot of neighborhoods are still under the pavement. Start with St. Clair, Superior, Chester, Detroit, Lorain and Clifton Avenues. 

The bus systems in Lorain County and Summit County must be combined with the Greater Cleveland RTA so as to assume greater synergies and cost reductions. 

Integrate the new regional RTA into the airports, bus depots, water ports and train stations to enhance other forms of transportation.

Take a peek at what is being proposed for Chicago. Pretty impressive. Let me know your thoughts. 

Proposed Chicago Mass Transit: Link

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On Immigration to Cleveland

If you have a few spare moments today, please read the "Come to Cleveland? Maybe Not" article by Daniel McGraw in Belt Magazine. McGraw captures the essence of all that is wrong with immigrants coming to Cleveland. As the City's population continues to decline it is civically immoral not to fashion a policy for immigration. And for Mayor Jackson to offer nothing but ignorance on the topic shows the world the disdain of Cleveland's political elite on this important issue. 

Cleveland was built upon a rich selection of immigrants. Romanians, Poles, Slavs, Slovenians, Hungarians and Irish filled the neighborhoods of Cleveland with a strong work ethic and a rich appreciation of the American Dream. Our original civic leaders - such as Mayor Tom Johnson and power broker Marcus Hanna (although bitter enemies themselves) saw the power of the immigrants to turn Cleveland into a economic powerhouse. 

And wasn't it the belief locally that Cleveland needed to be more competitive for the immigrant that the regional power brokers created Global Cleveland (www.globalcleveland.org)? Cleveland needs an immigration policy NOW. Even if it only targeted a few countries like Vietnam, China or India. (Not suggesting it should but with limited resources why not focus our energy.)

I hope you take a peek at the article and then let me know your thoughts.

"Come to Cleveland? Maybe Not." - Link

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On the Loss of United...

The recent news that United Airlines was closing its hub in Cleveland was perceived as a major blow to the City. And in the short run...I suspect that will be true. Inside Business recently ran a small article on the various airlines that could find their way to Cleveland buying United gates at Hopkins International for cheap. Jet Blue, Frontier and Spirit were mentioned as airlines moving into Cleveland and offering small fares. 

I had a different thought. If Cleveland is seeking a new airline why not build our own? A small healthy airline could be run out of Burke Lakefront airport with destinations to some of the key business travel destinations such as Chicago, New York, Washington D.C. and Atlanta. Perhaps even Toronto. Budget carriers like People's Express used to fly out of Burke.

In Cleveland's grand past a band of entrepreneurs would get together and build their own industry. So why not try again...the airline could be called Biz Air and could be run with a new business model. A standard jet fleet with unique seating, wi-fi, a new set of unique of frills not to mention we would be starting a new company and industry in the City. Which makes it all very exciting. 

Would appreciate your thoughts.

Article Link: The Loss of United Airlines