City, county stepped up to keep towing company

Wednesday, May 30, 2007

Frank Bentayou

Plain Dealer Reporter

Buffalo, N.Y., wanted Great Lakes Towing Co. Other cities did, too.

Cleveland and Cuyahoga County had to do something to keep the old outfit here -- it will be 108 years old on July 7.

The financial support the governments provided not only assured the company's continued presence, but it also may have helped notch the tug firm up to another level of success.

It will operate some 40 tugs on the Great Lakes and also build tugs, make barges and maintain and repair all kinds of vessels in Cleveland.

First, President Ron Rasmus wanted his headquarters where his main operations are -- on the water -- not in the Terminal Tower, where offices had been since the 1930s.

A suitable locale, at 4500 Division Ave., southwest of Whiskey Island and with access to Lake Erie and the Cuyahoga River, seemed just right. But the land, where The Plain Dealer once stored paper, ink and other supplies, was polluted, a brownfield.

The city and the county both helped with cleanup and construction with low-interest loans and grants, but the costs went up.

"There was a flood there in 2005," said Kevin Schmotzer, a Cleveland economic development specialist. And then Hurricane Katrina hit the Gulf Coast, "and that drove the cost of building materials up out of sight."

Hence, more money from the local governments, loans of $814,500 from each, plus $30,000 in grants and more to help offset escalating costs.

That was for Phase I and got Great Lakes the energy-efficient buildings it now occupies. Executives and city and county officials will meet again in the coming weeks to discuss Phase II, when the company hopes to expand shipyard services and build a manufacturing structure for barge making.

"We wanted 25 new jobs over three years," Schmotzer said, "and the renovation of a former brownfield site."

Plus, of course, Buffalo didn't get Cleveland's tugboat company.

To reach this Plain Dealer reporter:

fbentayou@plaind.com, 216-999-4116

216-621-4854

800-321-3663