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MedCity morning read, Thursday, April 9

A breakdown of notable pieces of the medical mart development pact. Final approval for the project should come by October 2010. Plus, the county can back out of the deal if MMPI can’t lease 10 medical mart showrooms to “medical device or equipment” manufacturers and book five medical events in its first year. But does this language disqualify medical software companies from big first into the facility?

By Chris Seper on April 09, 2009

If all goes well, construction for the Cleveland medical mart and convention center could get underway as early as next year.

That is one of several notable details in the tentative development agreement between Cuyahoga County and Merchandise Mart Properties Inc. that was released Wednesday. Several media – from The Plain Dealer to Cleveland Magazine to Crain’s – broke down the pact, which should be signed by both parties by early next week. (The Plain Dealer is asking people to help dissect the document).

Here are some of the important points of the document (pdf):

  • The first designs for the project should come in June and by November public officials will have approved a design plan. Final approval for the project should come by October 2010.
  • The county can back out of the deal if MMPI can’t lease 10 medical mart showrooms to “medical device or equipment” manufacturers and book five medical events in its first year. The medical mart tenants must be signed to three-year leases. But does this language disqualify medical software companies from big first into the facility? Cleveland-area Hyland Software, which has a large health-care customer base, has said it would be interested in taking space.
  • Expect a decision soon on where to build the complex. The consensus is the location of the former convention center. But the document requires the county to decide soon. The key issue delaying a decision: the purchase of property from the City of Cleveland and private owners.
  • The county gets to sell naming rights.
  • There are rules in the agreement to hire diverse and regional contractors. Some in the local business community had been privately lobbying to make sure a large part of work — beyond construction — remain in the region.
  • Bills related to the public money — in particular, construction and design work — will be public record. This is an important part for a skeptical public that has sought further disclosure from both the county and MMPI.

MMPI is expected to sign the document no later than Friday at which time company executives will discuss the deal. County officials are expect to approve the project next week.

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