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Charter One to invest $150 million into Cleveland economy for jobs and housing
“Charter One UPtown Initiative” to bolster large-scale development projects and improve housing opportunities in University Circle and surrounding neighborhoodsCLEVELAND (March 28, 2006) - Charter One Bank today announced a bold new effort committing $150 million over three years to strengthen Cleveland’s community revitalization efforts through a focused investment in economic and community development in the greater University Circle area.
The Charter One UPtown Initiative will offer below market-rate financing and philanthropic grants providing the City of Cleveland with a substantial new resource to support business development and upgrade housing in six neighborhoods located in the UPtown footprint – University Circle, Fairfax, Glenville, Hough, Little Italy and Buckeye.
“Charter One is committed to making our neighborhoods a better place to live and to creating jobs for residents,” said Ned Handy, President & CEO of Charter One Bank, Ohio. “The Charter One UPtown Initiative is a unique collaborative effort with our community partners that can enhance our city and build upon the strength and potential inherent to University Circle and its surrounding neighborhoods.”
Dubbed UPtown for its multiple “universitypartners,” Charter One has brought together business, government, academic and civic institutions including the City of Cleveland, Cuyahoga County, Neighborhood Progress Inc., Case Western Reserve University, University Circle, Inc., The Cleveland Foundation, The George Gund Foundation (pending), University Hospitals of Greater Cleveland and the Cleveland Clinic.
Mayor Frank Jackson commended the efforts of Charter One Bank to bring about vital urban community transformation.
“Charter One Bank’s investment in our community will provide the connections between the business community, institutions and our neighborhoods that will help make Cleveland a city of choice,” said Mayor Jackson. “The money invested by Charter One in our neighborhoods will help improve the quality of life for our residents and our businesses; expand the revitalization that is already underway; and demonstrates that Cleveland is truly the heart of this region’s economy.”
The Charter One Uptown Initiative includes $100 million set aside for economic development investments to encourage large and small businesses to invest in the area, including providing early start pre-development funding to spur economic investments in the area. This includes $10 million to enhance small business development in the neighborhoods, including promoting retail corridors, improving neighborhood commerce and providing training and technical assistance to help small businesses grow.
“Cleveland has the academic and medical research institutions with a demonstrated ability to generate intellectual capital,” Handy said. “By offering favorable financing, we can implement a coordinated business development strategy through the private, public and academic sectors to bolster the key building blocks of business and job growth in Cleveland.”
In addition, Charter One is devoting $50 million to increase the availability of market rate and affordable housing and improve existing housing stock, including:
- A Charter One Housing Bank set aside of $35 million to promote the development of rental or for-sale affordable housing by non-profit developers at rates of 5 percent for 3 years, capped at 7%, with a 30 year amortization.
- $10 million for residential mortgages with down payment assistance and reduced rates through Charter One Destination Home, and low cost home improvement loans for as low as 1 percent to revitalize existing housing stock in the neighborhoods.
- A $1.25 million partnership with Neighborhood Progress Inc., Cleveland’s leading community development organization, to develop new housing and revitalize neighborhoods. The funding will be used for land acquisition and pre-development work to promote affordable housing, neighborhood beautification projects on vacant lots, and revitalization support for existing property owners as part of a Model Block program at E. 106th and E. 118th Streets.
Mayor Jackson lauded the two-pronged focus of the initiative. “To have a dynamic city, we must attract new residents, at all income levels” he said, adding that “we can’t forget about the residents who are already here. Charter One is helping to rebuild our community by giving our residents the opportunity improve their homes and neighborhoods.”
The Charter One UPtown Initiative is also providing $250,000 over three years infoundation grants for neighborhood beautification, public safety initiatives, neighborhood planning and community development activities, to help make Cleveland’s neighborhoods more competitive and improve the quality of life for its residents, families and children.
About Charter One Bank, N.A.
Charter One Bank, N.A., is a $41 billion bank operating in Illinois, Indiana, Michigan and Ohio. It has more than 490 branches and 820 ATMs.It has 166 branches in Ohio. Charter One is a subsidiary of Citizens Financial Group, Inc., a $155 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,800 ATMs and more than 26,000 employees in a 13-state retail branch network and has non-branch retail and commercial offices in about 40 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).
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