First Interstate Properties, Ltd. announced today its plans for a historic multi-tenant retail facility to be built on a portion of the former ISG/LTV Steel site in the City of Cleveland. The project, Cleveland’s Steelyard Commons, is proposed to be a 1,000,000 square foot retail complex, including an extensive list of uses similar to many large suburban shopping complexes. “The project will be similar in scale, attention to architecture, and attention to green spaces to First Interstate’s project in Avon, Ohio, called Avon Commons” said Mitchell C. Schneider, President of First Interstate Properties, Ltd. Details relating to the project are set forth below:

Project Description. First Interstate Properties, Ltd. has a signed Purchase Agreement to acquire from ISG a 127 area land parcel abutting the Jennings Freeway (formerly a part of the Cleveland Works LTV Steel site). We have developed a site plan indicating that this site can accommodate a modern, multi-tenant shopping center complex comprising approximately 1,000,000 square feet of retail, restaurant and service spaces. The project would be similar to First Interstate Properties, Ltd.’s recent project called Avon Commons located in Avon, Ohio, in terms of quality, design, architecture, green spaces and landscape design.

Capital Investment. Our current estimate is that this project will involve a capital investment of approximately 90 Million Dollars, including land, land improvements, infra-structure and all building improvements. The project costs could reach as high as 100 Million Dollars depending upon the ultimate site plan and the improvements required by individual tenants.

Taxes. Based upon a 90 Million Dollar valuation for real estate tax purposes, our estimate is that this project will generate 2.35 Million Dollars annually in real estate taxes. Sixty-Two Percent (62%) of such real estate taxes are allocated to the Cleveland Public School System, which would result in annual receipts of 1.45 Million Dollars per year for the Cleveland Public School System. Issues of tax abatement are being discussed with the City of Cleveland. However, it is anticipated that no portion of the real estate taxes allocated to the Cleveland Public School System will be abated.

Permanent Employment. Based upon our prior project history, First Interstate has estimated that this project will generate more than 1,500 full-time equivalent positions in the retail, services and restaurant sectors. Using a conservative full-time, annual salary estimate of $20,000 per annum per employee, this translates into what we believe to be a conservative estimate of an annual payroll exceeding 30 Million Dollars per annum. With a 2% employment tax in the City of Cleveland, this would add $600,000 per year to the City of Cleveland’s general tax fund in addition to any other taxes the City may receive as a result of real estate taxes, personal property taxes and sales taxes generated at Cleveland’s Steelyard Commons.

Likelihood of Success. First Interstate Properties has undertaken 7 major development projects in Northeastern Ohio. “We have not had stronger positive tenant reception to any proposed project in our 15 years in the retail development business” said Mr. Schneider. “This is an opportunity to create a new regional trade area in an area of Northeastern Ohio that is woefully underserved, well populated and well located. Our national retail clients have all recognized this fact and we have preliminary commitments from nearly 200,000 square feet of retail tenants and another 400,000 square feet of retail tenants who immediately began doing their internal market research for this site upon receipt of our package”, Schneider said. “We are confident, provided that we can educate our retailers regarding the convenient access to this site, we will be able to bring roughly 1,000,000 square feet of retail to location.”

Location/Access. Cleveland’s Steelyard Commons is centrally located to numerous Cleveland neighborhoods that are currently underserved by modern multi-tenant retail facilities. The Immediate Trade Area serves 320,000 people. Current access to the site provides immediate access to I-90, I-71, I-77 and the Jennings Freeway. First Interstate, the City of Cleveland, ODOT and NOACA are working together to improve access through prioritizing certain infrastructure improvements provided for in the current Recommended Design Concept of the Cleveland Inner Belt Study.

Project Impacts. Cleveland’s Steelyard Commons will:

• Recapture lost retail dollars currently spent outside of the City of Cleveland.
• Stabilize and increase residential home values in nearby neighborhoods.
• Attract retail customers to retail businesses surrounding the Steelyard Commons.
• Strengthen Cleveland’s neighborhoods.

Developer Capacity. Cleveland’s Steelyard Commons is being proposed by First Interstate Properties, Ltd. First Interstate Properties, Ltd. has developed more large scale multi-tenant facilities in Northeastern Ohio than any other developer over the course of the past 10 years. First Interstate Properties has developed and owns the largest portfolio of open-air, retail shopping centers in both Lorain and Lake Counties. First Interstate Properties most recently completed Legacy Village in Lyndhurst, Ohio. According to the national shopping center industry magazine Retail Traffic, First Interstate Properties, Ltd. is the 70th largest developer of retail real estate in the United States. Several local financial institutions have expressed interest in providing the construction financing for this project.

First Interstate Properties' founder, Mitchell C. Schneider, has a keen interest in development in the City of Cleveland based upon his personal convictions that the City of Cleveland’s residents are underserved by national and regional retailers in comparison to surrounding communities. Mr. Schneider believes that the same kinds of opportunities for quality goods and services at competitive prices that are available to residents of Cleveland’s suburbs should be available in a convenient location to residents of the City of Cleveland.