Read this yesterday in The Villager (click on “Top Stories” button on the left) and wanted to share some of this very refreshing perspective on some of the monumental issues facing this region:
As developer of two leading West Shore residential neighborhoods - Westhampton at Crocker Park and The Hamlets of Rocky River - you might expect Peter L. Rubin to credit housing development as central to regional revitalization. The President and CEO of The Coral Company offers a view that is more than simple provincial analysis, however.
“As a region, we have decided to invest in the wrong place - in housing,” said Rubin. It is a mistake, he said, that follows a national trend to invest in mass housing growth.
Rubin suggests that there is a simple equation - a logical sequence of measures - that set the foundation of a successful economy. “This is nothing formal - just the result of my years of observation as a businessman and a developer,” he said. “The equation goes like this: Industry creates jobs, jobs create demand for housing, housing creates neighborhoods and amenities, which improve the quality of life. And that ultimately creates even more jobs.”
Simply stated, Rubin defines a successful economy like the six sides of a cube - almost like dice. But, instead of rolling dice by chance, smart planners should base revitalization on jobs. Put first things first.
“It is short term,” he said of the new housing boom. He agrees that things like tax abatement and residential improvements look good on paper. They are necessary to attract developers. But they are occurring out of a sequence that has lasting regional impact. “There are more housing permits in the Cleveland than any other city. We have ramped up housing, but the impact is short term and it doesn’t create jobs. It empties out the inventory of housing that is still worthy,” he said. (Emphasis added by me.)
“In real estate, we are followers. We follow demand,” he said. “We have a situation in northeast Ohio today where the equation is upside down. There is no demand for any real estate product in northeast Ohio today. We work it backward. We build supply and then create demand….”We are just shuffling chairs…..”
Instead of arguing whether the glass is half full vs. half empty we should first be looking at how we’re filling the glass and at what we’re filling it with.
The Villager: The Call for Regionalism….A Rubinesque View of Cleveland (click on “Top Stories” button on the left)