City of Lakewood Recommends Plan to Redevelop Former Lakewood Hospital SiteMarch 30, 2022
Mixed-use project will keep a rapidly-growing business in Lakewood while adding hundreds of housing units, retail space, and a public plaza
On Monday, April 4th, Mayor Meghan F. George and the City’s Planning and Development Department will present the term sheet for redevelopment of the former Lakewood Hospital site in downtown to Lakewood City Council. Key to the deal is an agreement for the rapidly-growing Roundstone Insurance to remain in Lakewood by occupying a new multi-story Class-A office building at the corner of Belle and Detroit Avenues.
“This agreement is a significant win for Lakewood on multiple levels, meeting goals that the community set out during the initial visioning process” said Mayor George of the project, which is expected to total in excess of $90 million. “Those aspirations included community and economic development priorities for public space; high quality architectural & environmental design; diverse & affordable housing; active commercial uses; and workforce growth. The elements of this agreement achieve that vision.”
Planning Director Shawn Leininger explained the key aspects of the deal reached with the development team of CASTO Communities and North Pointe Realty on a mixed-use, multi-story building that will anchor the site at the corner of Belle and Detroit, including:
- Office: over 65,000 square foot new, class A office space will be constructed, owned, and occupied by Roundstone Insurance, which is expected to grow to well over 200 employees in the coming years;
- Commercial: nearly 30,000 square feet of ground floor retail or restaurant tenant(s) in the anchor building that will add energy to the already bustling Downtown Lakewood business district;
- Community Space: a 20,000 square foot plaza and community space that will be used for frequent public events and gatherings;
- Housing: at least 200 units of mixed-income for-sale and rental housing, including affordable units to address the increasing cost of housing in Lakewood;
- Parking: a parking garage that will serve the development and also provide additional public parking.
Leininger said that having Roundstone as the anchor in the office building allows Lakewood to maintain a growing employer that was otherwise unable to find enough space to remain in the city, and also have hundreds of workers patronizing downtown businesses. “Roundstone has been growing in our city for years, but would likely have ended up leaving Lakewood soon because there was no other location for them to continue that growth trajectory,” said Leininger, who noted that Roundstone is expected to quickly become the second highest source of private payroll taxes for the City. “The City has been working with Roundstone to investigate various options to remain in Lakewood, and having them as the anchor in this development provides a win-win situation that meets the goals for all involved.”
Roundstone, a national provider of health insurance that focuses on small and mid-sized businesses, was deeply involved in the negotiations and has agreed to terms with CASTO and North Pointe, who will develop the space that Roundstone will purchase. The first floor commercial space will be retained by the developers. CASTO is a national real estate developer based in Ohio with decades of mixed-use development and management experience, and has partnered with local real estate firm North Pointe on the project.
“We’re thrilled to expand our presence in the heart of Lakewood with a new office building,” said Mike Schroeder, CEO and Founder of Roundstone. “We’re committed to our Cleveland roots and creating jobs in Ohio and are grateful to be part of the vibrant Lakewood community. Our entire team is excited by the news and the vision for the company – pursuing our mission of Quality, Affordable Health Care for All.”
“Our partnership with the City of Lakewood for the downtown development was founded on a shared goal of community benefit for the people of Lakewood,” said Brent Sobczak, President of CASTO Communities. “We have a passion for these kind of complex, mixed-use projects, and the agreement will achieve a well-planned vision to add public space, housing, office, and vitality to Lakewood’s central business district. We are excited to get under way and look forward to being a strong corporate partner in this great city.”
“We’re working closely with the City of Lakewood and the community to create a development with a true sense of place that respects Lakewood’s character,” said Scott Simon, President of North Pointe Realty. “That includes unique public space assets for the people of Lakewood to meet and connect.”
Once adopted by Lakewood City Council, the term sheet will empower the Mayor’s Office to negotiate final terms with CASTO and North Pointe. If Council approves the terms soon, the City and CASTO expect construction work on the site could begin later this year.
Click here to view the site plan.
Click here to view the conceptual drawings.
Click here for the communication to be introduced at the Lakewood City Council on Monday, April 4th.
Click here to view the proposed resolution regarding the Downtown Development term sheet.
For more information about the City of Lakewood, please visit lakewoodoh.gov.
For more information about CASTO, please visit castoinfo.com.
For more information on Roundstone Insurance, please visit roundstoneinsurance.com.