The 2002 Canadian scientific report "Air pollution induces heritable DNA mutations" finds "Integrated steel production generates chemical pollution containing compounds that can induce genetic damage." And, the 2009 German report "Long-term exposure to traffic-related particulate matter impairs cognitive function in the elderly" finds "chronic exposure to traffic-related PM (particulate matter) may be involved in the pathogenesis of AD (Alzheimer's Disease)". 

So, who thought it was a good idea to spend $43 million of scarce government and quasi-public funding to build Tremont Pointe government-subsidized housing, located within scent and fallout of the Mittal Cleveland Works Steel mill, and other highly polluting industry of the Cleveland Flats, and directly adjacent to the I-490 freeway, planned to have increased polluting traffic through expansion as the "Opportunity Corridor"?

As a community proud to claim world leadership in healthcare, Northeast Ohio leaders should certainly be well informed and proactive about the harm caused to residents' health by local industry and regional planning decisions like encouraging sprawl, shouldn't we?!?!

That pollution in Cleveland harms residents' DNA and brain function should not surprise leadership of Northeast Ohio, who are responsible for one of the most polluted and polluting regions on Earth, and so one of the most toxic places for humans to live, work and play.

Still, our leaders make decisions like to spend $43 million to build Tremont Pointe.

The developers of Tremont Pointe are Cuyahoga Metropolitan Housing Authority (CMHA), Tremont West Development Corporation, and the for profit development team of McCormack Baron Salazar/Turbov Associates (MBS/TA), from far away from here.

Buried on the MBS/TA website, we find:

Tremont Pointe (formerly Valleview) is a HOPE VI development in the city of Cleveland, Ohio. In 2001, CMHA engaged McCormack Baron Salazar/Turbov Associates (MBS/TA) to develop a Master Plan for the redevelopment of Valleyview Homes. In October 2003, MBS/TA was selected as developer and successfully partnered with the CMHA to secure a HOPE VI grant. The two-phased development includes 189 units of new townhouse and garden apartments on the site of the former Valleyview Homes. Site planning required the relocation of two existing streets and excavation of a significant hillside to allow pedestrian and vehicular traffic to access all levels of the tiered site and, most importantly, to integrate Valleyview with the greater Tremont Neighborhood.

Tremont Pointe | Cleveland, OH - 189 units - Total Development Investment  $43,237,000

Valleyview is a HOPE VI development in the city of Cleveland, Ohio. The first phase includes 102 units of family rental, including 51 public housing units.

That means we spent around $230,000 per housing unit... in a place where no humans should live.

Actually, it appear the money was spent with less balance than that, as Phase I built 102 units for $18,089,213, averaging around $177,000 per unit. Phase II only added 87 units, for $25,147,787, averaging around $289,000 per unit.

What did the public get for this $43 million in government and quasi-public funding, and why did the government spend our money on this?

Tremont Pointe offers a lesson in the real meaning of toxic real estate development!

According to a Tremont Pointe press release, we learn:

Funding sources in addition to the HOPE VI grant ($19.6 million) were provided by the City of Cleveland (housing and public improvements), Enterprise Team, Inc. (perm-mortgage lender), Bank of America (construction lender), Enterprise Community Investments and Ohio Capital Corporation for Housing (equity investors), and the Ohio Housing Finance Agency (low income tax credits).

Marous Brothers Construction is Tremont Pointe’s general contractor and City Architecture is the project architect. Minority-owned subcontractors for the project include, T-Square Builders, Gateway Electric and Tech Ready Mix. Female-owned subcontractors include Dentz Painting and L.M.R. Construction. Tremont Pointe is managed by McCormack Baron Ragan Management Services. For leasing information call 216-298-4060.

Tremont Place has paid-out profits to MBS/TA, City Architecture, Marous Brothers and others, from the $43,237,000 spent developing this superfund site. And, Tremont Pointe is a source of significant ongoing management income for McCormack Baron Ragan Management Services, Inc.

Phase I was completed in October, 2007, and Phase II was completed earlier this year, as featured in a slideshow on the CMHA website.

While this "redevelopment" was funded as public housing - and CMHA displaced residents of around 250 Valleyview public housing units to build Tremont Pointe... and claims to offer over 90 public housing units there, still - there is no listing of housing at Tremont Pointe on the CMHA website, under Family Housing or anywhere else I could locate... and the information that is provided there about the former Valleyview projects is woefully out-of-date.

It is unclear, therefore, how Tremont Pointe provides public housing to the customers of CMHA, what units are made available to public housing customers, and under what terms and conditions.

What is clear is that Tremont Pointe is being sold to the public as a market rate real estate development, rather than government-assisted housing. There are numerous global web-based real estate rental sites featuring the availability of housing at Tremont Pointe, at what appear to be high rental rates... for example, at ForRent.com:

    Floor Plans

        Beds     Baths     Price     Floor Plan     Room Planner     Availability
    2 Bedroom Apartment     2     1     $685                 Check Availability
    2 Bedroom Townhomes     2     2     $859                 Check Availability
    3 Bedroom Townhome     3     2     $1035                 Check Availability

Description

ASK ABOUT OUR MOVE-IN SPECIALS! Tremont Pointe is located in Cleveland, Ohio and offers the best Green Living has to offer. Green, city living at an affordable price is what you will find at Tremont Pointe. This apartment community has gorgeous 1, 2, and 3 bedroom townhouses and apartments available to rent. These suites feature great amenities such as in-home washer and dryers, 100% Energy Star appliances and fixtures, central air, carpeting, mini blinds and much more. As a resident of Tremont Pointe, you will also enjoy community benefits such as quick access to local shopping, dining, galleries, public transportion and highways, playground and a fitness center. Call today to find out how to make Tremont Pointe your next green home.

These webvertisements, clearly produced by McCormack Baron Ragan Management Services, Inc. Communities, way  over-sell the development, and make no mention of this being a government subsidized development, at such a polluted location, developed with CMHA, and that there are low income or subsidized units.

The advertising clearly states there are 189 units renting at market rate - $685, $859 and $1035 per month, depending on configuration.

Is that pricing realistic and sustainable, for such a toxic location, and so expensive a development, and is this good strategy for addressing the housing needs of our nation... especially for those in need of financial assistance?

For the sake of financial analysis, if there are 63 X 2 bedroom 1 bath units, at $685, 63 X 2 bedroom 2 bath units, at $859, and 63 X 3 bedroom 2 bath units, at $1035, rented at 95% occupancy, the annual income before expenses is only $491,467 + $616,934 + $743,337 = $1,851,737.

Of course, management will get 10-20% of that, if not more... subtract $300,000. Sewage and water are included in rent, so take $100,000 more off the top.... more off for utilities for common areas. Add a few staff here, and ground and maintenance there... and don't forget about security... it is hard to calculate there being much money left over to service debt on spending $43 million, as a private developer must do to make a development realistic and sustainable.

Tremont Pointe clearly is not realistic or sustainable.

If Tremont Pointe spent $43 million to replace public housing with market rate housing, why was any public funding used to build any of the housing at this toxic location, at all. And, if any of this is actually public housing, which is not clear, is it worth spending on average $230,000 per unit to provide so little real public value.

Especially as the housing was built in a place where no humans should live.

Those renting this government-assisted and/or market rate housing from distant landlord MBS/TA are being placed at risk of genetic mutation, Alzheimer's, asthma, cancer and other health hazards!

Does that make sense?

No, it does not. Humans should not be allowed to live in such a toxic place, much less be subsidized by government to do so, and private investors should not be allowed to profit from placing humans in such risk. This is insanity.

Yet, in the advertising to rent these carcinogenic condos, the "developers" tout Tremont Pointe as "the best Green Living has to offer... Green, city living at an affordable price is what you will find at Tremont Pointe." And, in propaganda for this development, by the developers and urban development financiers "Enterprise", it is claimed "the diverse residents of Tremont Pointe will reside in a strong, healthy community."

What are the opportunity costs of such poor decisions being made by our leaders in our community.

From a good description of Opportunity Cost, from the University of Colorado:

"the relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up...by making choices in how we use our time and spend our money we give something up... laws that protect wilderness areas and endangered species will ensure a better environment tomorrow at the opportunity cost of reduced access to resources today... given limited funds, the opportunity cost of producing one type of good will arise from not being able to produce another."

Our government leaders make mutually exclusive decisions on how to allocate our scarce resources, and the opportunity cost of spending our scarce dollars on this public housing begins with the value of other things that could have been done with those public funds, in this case in excess of $43 million.

The opportunity costs end with the medical and human expenses associated with the harm pollution will cause the 1,000s of people living here, over the next 50 years, versus the value those people would add to the world should they live longer, healthier lives never harmed at Tremont Pointe.

Those costs are far greater than $230,000 per unit.

Fortunately, much of Tremont Pointe appears vacant. It is far more valuable for society to keep it that way.