Comments on: $170 Million to move to the Suburbs? http://rustwire.com/2009/06/11/175-million-to-move-to-the-suburbs/ News from the Rustbelt Sun, 06 May 2012 17:20:18 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Rob http://rustwire.com/2009/06/11/175-million-to-move-to-the-suburbs/comment-page-1/#comment-387 Rob Sun, 14 Jun 2009 02:13:35 +0000 http://rustwire.com/?p=1501#comment-387 Another question to ask is why this new headquarters can only be built in the suburbs. If Eaton genuinely wants a campus environment, is there nowhere in Cleveland where it can be located? Applied Industrial Technologies has a very nice campus on Euclid (east of CSU). There is seemingly plenty unused or poorly utilized land on the eastern part of downtown that can be converted into business campuses if that's what companies want. Is is the most efficient use of urban space? Probably not. But it's a whole lot better than vacancy. Another question to ask is why this new headquarters can only be built in the suburbs. If Eaton genuinely wants a campus environment, is there nowhere in Cleveland where it can be located? Applied Industrial Technologies has a very nice campus on Euclid (east of CSU). There is seemingly plenty unused or poorly utilized land on the eastern part of downtown that can be converted into business campuses if that’s what companies want. Is is the most efficient use of urban space? Probably not. But it’s a whole lot better than vacancy.

]]> By: schmange http://rustwire.com/2009/06/11/175-million-to-move-to-the-suburbs/comment-page-1/#comment-384 schmange Fri, 12 Jun 2009 20:53:41 +0000 http://rustwire.com/?p=1501#comment-384 That is a good point and one I've considered. However, there is much greater potential for job growth in lending to small businesses. With Eaton, my understaning is that we're hoping for a net-sum gain of zero. With small business loans, the number I've calculated is just a guess, but it's safe to assume a bigger return, jobs-wise, I would wager. Also, I made a mistake in the article I want to point out. Eaton is asking for $150 million, not $170 million. $170 million is the total cost of the rehabilitation project. That is a good point and one I’ve considered. However, there is much greater potential for job growth in lending to small businesses. With Eaton, my understaning is that we’re hoping for a net-sum gain of zero. With small business loans, the number I’ve calculated is just a guess, but it’s safe to assume a bigger return, jobs-wise, I would wager.

Also, I made a mistake in the article I want to point out. Eaton is asking for $150 million, not $170 million. $170 million is the total cost of the rehabilitation project.

]]> By: Stephen Gross http://rustwire.com/2009/06/11/175-million-to-move-to-the-suburbs/comment-page-1/#comment-382 Stephen Gross Fri, 12 Jun 2009 18:35:58 +0000 http://rustwire.com/?p=1501#comment-382 While I support your argument generally, I have one point to quibble with. You suggest that $170M could be lent out as start-up loans. There is a key difference there, though: Eaton is likely to pay back $170M in loans, because they're a well-established mega-corporation with solid revenue. $170M in startup loans, however, are much riskier. Ask anyone in finance, and they'll tell you that loans to big companies are more reliable than a few thousand loans to startups. While I support your argument generally, I have one point to quibble with. You suggest that $170M could be lent out as start-up loans. There is a key difference there, though: Eaton is likely to pay back $170M in loans, because they’re a well-established mega-corporation with solid revenue. $170M in startup loans, however, are much riskier. Ask anyone in finance, and they’ll tell you that loans to big companies are more reliable than a few thousand loans to startups.

]]> By: schmange http://rustwire.com/2009/06/11/175-million-to-move-to-the-suburbs/comment-page-1/#comment-376 schmange Fri, 12 Jun 2009 00:54:02 +0000 http://rustwire.com/?p=1501#comment-376 Well said, Rob. http://www.cleveland.com/letters/plaindealer/index.ssf?/base/opinion/1228997303111840.xml&coll=2 Well said, Rob.

http://www.cleveland.com/letters/plaindealer/index.ssf?/base/opinion/1228997303111840.xml&coll=2

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