Council facilitates move of Cleveland 19 News to Independence

by Laura Bednar

Dec. 16 special city council meeting

The Independence Technology Center building on Brecksville Road plans to host a new business after the Cleveland Clinic – primarily the financial services division – vacated most of the space following the pandemic, Economic Development Director Jessica Hyser explained during a Dec. 2 Independence Planning Commission meeting.

The proposed buyer, WOIO, Cleveland 19 News, will purchase 55,000 square feet of space on the first floor for its news operation. Portions of the parking lot would be part of the sale for staff parking and equipment storage, according to ITC owner Richard Pace.

The ITC building is 306,000 square feet and Pace noted during the planning commission meeting that he is in negotiations with the Cleveland Clinic to retain the visiting nurse program, which takes up 40,000 square feet. Mortgage lender Green Landing takes up 10,000 square feet and Youth for Christ, 9,000 square feet. Pace added there are a number of small tenants in the front building and the west building. He is still negotiating with a large tenant for the second floor, which has 80,000 square feet of leasable space.

WOIO originally purchased land at Rockside Woods Boulevard, near Topgolf, to build its news operation, but backed out of building. Councilperson Jim Trakas explained that Pace negotiated a deal for WOIO to move to the ITC building.

To facilitate the move, city council approved purchasing the property on Rockside Woods Boulevard from WOIO for $700,000 at its Dec. 16 meeting. The property had previously been sold for $2.8 million.

“It is the intent of the city to market the property for another economic development opportunity, and Mayor Greg Kurtz stated publicly that he already has an interested party in that property, who is undisclosed at this time,” said Trakas.

Property sale

The city amended an agreement with VRK Holdings LLC, a DiGeronimo Companies affiliate, for the sale of property at 5469 Old Brecksville Rd. and 5572 Brecksville Rd. Independence sold the properties in 2023 for $610,000. The amendment stated that 5572 Brecksville Rd. would be sold for $87,000, instead of the original $140,000, to address a deed restriction from the city of Cleveland, bringing the total sale for both properties to $557,000.

Trakas said through a title search for the property, something was found in the title that necessitated the amendment.

The vote to amend was tied 3-3 with council members Kevin Day, Tom Narduzzi and Chris Walchanowicz in favor; Vice Mayor Anthony Togliatti, Jim Trakas and Dale Veverka voting against and council member John DiGeronimo abstaining. Mayor Greg Kurtz broke the tie by voting in favor of the amendment.

“VRK Holdings has consolidated parcels of property on North Brecksville Road in anticipation of some type of larger future development opportunity,” said Trakas. 

After DiGeronimo Companies chose to headquarter their business in Brecksville, Trakas said the mayor convinced them to keep a portion of their business in that vicinity. 

“The property in question is being used by a DiGeronimo-related entity for the foreseeable future, keeping that portion of payroll in Independence and not Brecksville,” he said.

Legal settlement

Council approved a settlement agreement and release with Industrial Realty Group following a four-year legal battle.

Developer Industrial Realty Group entered into a purchase agreement for 33 acres in the northwest quadrant of the city that was subject to and conditioned upon the approved design, planning and construction of a development to increase economic development. IRG did not submit a plan within the 360-day timeline after purchasing the land in 2019. The city filed a complaint with the Cuyahoga County Court of Common Pleas in 2021 to nullify the agreements based on IRG’s breach and order distribution of $25,000 in escrowed funds to the city.

ndeThe settlement agreement terminates the original purchase agreement and replaces it with an amended and restated purchase agreement, which sells the land for $3.5 million. The $25,000 from the lawsuit will be used towards the purchase price.In the agreement, IRG must follow the city’s zoning code for development in that area, which allows for commercial, industrial, retail, office building and hotels. The new agreement has no set timeline for development.