By now, most Clevelanders have heard the latest news, a "reversal of fortunes" for developer Mitch Schneider as Wal-Mart, the anchor retail store pulled away from an impending deal - citing in their letter what they consider poor public policy on the part of Cleveland to limit their ability to open a Superstore in Steelyard Commons. Since many of the other tenants predicated their leases on a Wal-Mart presence, this may be a potential "deal-killer" for Mr. Schneider.

What you will find in the paragraphs that follow is that it may also jeopardize a potential "deal within a deal" that could have delivered more than $10 million of local match funding through the city of Cleveland to both the Towpath Trail and Canal Basin Park.

The Wal-Mart pullout is the latest turn on the roller coaster of negotiations that has followed this project. Let us share some aspects of these negotiations regarding a variety of issues. Let's start at the beginning when ISG employed a local real estate brokerage firm to advise the company on the disposition of land that they would no longer use for its steel-making processes. You may remember that ISG originally considered abandoning the entire west side of its operations, but decided to maintain the use of its Continuous Caster along the Cuyahoga River. The firm divided the remaining property into individual parcels and put them out to public bid. The Steelyard Commons area was one such parcel. The public offering gave no determination on future land use. The only offers ISG received were from retail developers, and First Interstate was not their first choice. If an industrial developer would have stepped forward with the best offer for the property, ISG would have made the deal. None did.

As it turns out, Mitch Schneider and First Interstate were interested in developing a retail complex at this site for the past six years. They had approached the former LTV about such a deal, but were unable to consummate any negotiations prior to the LTV bankruptcy hearings and ultimate sale of its assets. However, once the parcel was placed on the market "for sale", Mitch Schneider tendered an offer.

It is well known that many urban planners and advocates consider "big box" retail as destructive to small retail owners. There are many case studies that show the direct impact of Wal-Mart on small town retail districts across America. To quote Robert Reich in a recent article, Wal-Mart giving what we asked for: "In the eyes of Wal-Mart detractors, it embodies the worst kind of economic exploitation: It pays its 1.2 million American workers an average of only $9.86 an hour, doesn't provide health insurance, keeps out unions, has a checkered history on labor laws and turns main streets into ghost towns by sucking business away from small retailers." Reich provides the punch line to this litany of sins in the article's headline: Wal-Mart is giving us what we asked for.

While some may want to set an example of this particular development in the name of healthy communities and small retail businesses, the only message that really matters in such a scenario is one found in our individual spending habits. In Cleveland, the long and continuous retail strips that followed our streetcar lines on West 25 Street, Lorain Avenue, Broadway, Detroit and others have been victimized by the introduction of malls for decades now.

To rephrase a President Bill Clinton quote: "It's our economy, stupid." What we buy; where we buy it, what businesses we support-these economic decisions determine success and failure. As long as Americans continue to make spending decisions based solely on price, then our retail choices will reflect these decisions and "big box" retail stores will continue to thrive and grow.

Current thinking regarding the impact of the retail complex adds this new perspective. While the usual argument against "big boxes" speaks to its negative impacts on local Main Street retail districts, new data shows that Clevelanders are already spending their money at such "big boxes" outside of the city. That has had an impact on Cleveland as it is losing $1.7 million of taxable sales revenue annually.

Developer Mitch Schneider considers Steelyard Commons as one remedy to this situation. The complex has or will have ready access to a number of freeways and is situated within a radius of a large consumer base with expendable incomes. Both should work to drive customers to the Commons.

This new retail complex will reconnect Jennings and Quigley Roads, providing access north and south through the Cuyahoga Valley. First Interstate will build this roadway and donate it as an easement to the City of Cleveland. In terms of other transportation access, the Developer is working with ODOT to help pre-finance the early building of a direct access freeway ramp from 1-71 to Quigley Road to coincide with the scheduled opening of Steelyard Commons in 2006.

In tribute to its former use, Steelyard Commons will emulate the former industrial building styles whenever possible - in a similar vein as to what Cleveland Metroparks designed as the Leonard Kreiger CanalWay Center. When possible, actual steel trusses will be incorporated from the former mill buildings to accent the new structures. Industrial artifacts will be spotted within the complex much like the converted Homestead Steelworks in Pittsburgh. Last of all, a smaller building designed in the traditional steel mill architectural vernacular will be moved to sit along the Towpath Trail and house interpretive exhibits on the steel industry.

Insofar as the routing of the Towpath Trail, First Interstate has worked closely with the Towpath Trail Partnership Committee in its configuration. Two routes will be offered through the Commons: one follows the course of the rail tracks and provides a through off-road trail with tunnels that allow for safe passage; the other extends from the original trait and winds along the roadway through the retail complex. First Interstate has indicated a willingness to construct the trails within Steelyard Commons as a contribution to the project.

There could be more good news for those who want the Towpath Trail built NOW! Since the Developer has been adamant in his stance to neither ask for nor accept any financial contributions for the project from the City of Cleveland, a possible funding source for construction of the Towpath Trail is possible. Ohio Canal Corridor has been negotiating with the city to design a Tax Increment Financing (TIF) District that includes Steelyard Commons and follows the routing of the Towpath Trail from lower Harvard Avenue towards Canal Basin Park. Such a District would allow for the enhanced value of the property taxes for Steelyard Commons to be directed to underwriting bonds that would provide local funding dollars for the Towpath project. These local funds would, in turn, be used as leverage (local match) for federal transportation funds for trail development. In other words, the single biggest question to building the Towpath -where to find local match - would be solved!

Needless to say, this idea is currently on HOLD. Like the development from which it would benefit, the TIF is in jeopardy. In fact, recent discussions with key administrative officials concerning Steelyard Commons suggest that the city will attempt to save the deal by directing TIF financing to Mitch Schneider to underwrite portions of the infrastructure he would have provided gratis. Let us hope that our civic leaders come together to salvage Steelyard Commons so it can move forward in a manner that yet allows a TIF for the Towpath. If not, it will be a rare opportunity squandered.