The new plan for the former Lakewood Hospital site includes over 200 apartments and a new headquarters for the health insurance company
CLEVELAND, Ohio — A new plan for the former Lakewood Hospital site includes hundreds of apartments and the headquarters of a growing health insurance company.
According to renderings and documents released Wednesday in the inner ring suburbs, the plan calls for Roundstone Insurance to move a few blocks east of the century-old First Church of Christ, Scientist Building, onto the 14-acre former hospital site Detroit and Belle Avenues moved website.
The insurance company, which has more than 100 employees and plans to hire nearly 100 more over the next five years, would buy 65,000 square meters of office space from the developers, the documents said.
The developers behind the multi-building project, CASTO Communities of Columbus and North Pointe Realty of Mayfield Heights, also plan to build more than 200 apartments on the downtown lot — at least 20% of which would be reserved for low-income residents.
They also want to build nearly 30,000 square feet of storefront and restaurant space on the ground floor, a 20,000 square foot plaza and a 540-space parking garage. Plans also include preserving the facade of the historic Curtis Block building on the site.
The city would sell the property to the developers, who will keep everything but Roundstone’s offices. All of this must be completed by the end of 2025, according to a term sheet included in the documents.
The announcement means residents and passers-by could finally see progress at a site that was mostly vacant after the 2019 demolition of the Cleveland Clinic-run hospital, which closed in early 2016.
A previous deal to develop the land fell through after a dispute over environmental cleanup and finance.
Mayor Meghan George’s administration will formally present the proposed plan and agreement with developers to City Council during a meeting on Monday. If the council approves the agreement in the short term, construction could begin this year, according to the city.
“This agreement is a significant win for Lakewood on multiple levels and fulfills the goals the community set itself during the initial vision process,” George wrote on the city’s website about the approximately $90 million project.
Lakewood planning director Shawn Leininger said in the website post that had it not been for the new development, Roundstone probably would have had to move out of town, as no other suburban site had enough space to accommodate its growing needs. He said Roundstone is expected to become Lakewood’s second-largest source of private payroll taxes.
To keep the company in town, George proposed granting him $1.5 million over eight years. The city also proposed a 15-year tax break to fund construction of the lower-income housing, as well as an additional incentive to finance through tax increases. The City Council must agree to the terms of the contract.
CASTO and North Pointe previously submitted plans to the city for the site, but Lakewood officials settled on a separate proposal from Carnegie Management and Development Corp in 2017. from Westlake.
Under Carnegie, the site would become One Lakewood Place, a $72 million development with 200 apartments, a dozen townhouses, store fronts and office space.
However, the city’s relationship with Carnegie fell apart after a dispute over pollution cleanup and finance. Demolition contractors working on the site in September 2019 found tetrachlorethylene – a chemical used in dry cleaning before it was more tightly regulated in the 1970s – under flagstones and in the ground in an area that used to be under a laundry room . The land was later redeveloped and the city moved on with the current developers.