Researchers say Cleveland needs to attract private market lending without displacing residents.
Using dozens of private, public and government data sources, researchers ranked single-family, multifamily, small-business, nonresidential, mission, public and overall investments in cities between 2010 and 2020.Overall, Washington D.C. topped the list, with $34,960 per household, followed by Denver, Colorado and Fremont, California. At the bottom of the list, Hialeah, Florida and Detroit, Michigan ranked 98th and 99th while Buffalo came in last with just $5,217 per household.
Theodos says mission capital comes in from, “sources which are backed sometimes by some measure of philanthropy or the public sector, but are still nonprofit-driven, in that they are concessionary either in the rates they provide, the terms, the amount of collateral, the type of collateral or possibly just in how much advance developmental services they provide.”
“The bad news is that they are still small relative to private market capital flows,” said Theodos. “So even though the city is doing a good job at accessing those resources, they really never, in any scenario, are able to make up for fundamental deficits in private market investment.” “Having a partner like KeyBank leverage our $50 million capital commitment is going to go a long way to incentivize other private sectors to help us leverage these dollars to restore and fix all of Cleveland’s neighborhoods,” Bibb said.