Cleveland Plain Dealer...
Ohio offers Sears riches to move to Columbus, but why not Cleveland?  
December 8, 2011 

CLEVELAND, Ohio — Ohio’s most populous metro area, home to major-league sports and world-class arts, certainly knows how to host a world headquarters. Just ask Eaton Corp. and American Greetings. 

Yet the word “Cleveland” seems to go unspoken by state officials brokering the deal of the year. 

As economic development catalysts tout the cost of living and quality of life that Sears employees would find in Columbus, residents of Northeast Ohio might be justified in asking, “What about Cleveland?” 

Tight-lipped state officials appear singularly focused on luring Sears and more than 6,000 headquarters jobs to the state capital. 

It’s nothing personal. Just business. 

The state is promoting Columbus because that’s the Ohio city in which Sears expressed interest, development officials say. While a Sears spokeswoman declined to comment on what might make Columbus alluring to a company familiar with Chicago, economists and site-selection specialists see retail appeal. They say Sears might slip easily into a city that’s home to the likes of Victoria’s Secret, Big Lots and Abercrombie & Fitch. 

Local economic development officials, meanwhile, seem resigned to watch from the sidelines. 

“I think we would have a lot to offer,” said Larry Benders, Cuyahoga County’s director of economic development. He cited a skilled work force, affordable housing and big-city cultural amenities. 

Benders also said the county, in the spirit of regional cooperation, will let Team Northeast Ohio take the lead in any attempt to get Sears to glance toward Ohio’s lakefront. 

But a Team NEO spokeswoman said the regional economic development agency is deferring to state development officials in Columbus. 

“I wouldn’t ask, ‘Why Columbus and not Cleveland,’ “ said Jenny Febbo, Team NEO’s vice president of marketing and communications. “This would be good for Ohio and what’s good for the state is good for us, too.” 

Sears Holding Corp., the parent of both the Sears and Kmart chains, is weighing a big move and soon. The company hopes to decide by the end of the month whether to remain in a 200-acre campus in Hoffman Estates, 18 miles west of O’Hare International Airport, or pull up roots and relocate, company spokeswoman Kimberly Freely said Friday. 

Tax issues may be helping nudge Sears out of Greater Chicago. Earlier last week, Illinois lawmakers denied a package of tax breaks designed to induce Sears to stay. 

According to the office of Illinois Gov. Pat Quinn, Ohio is offering $400 million in tax breaks and other incentives to lure Sears to the Columbus area. Ohio Gov. John Kasich’s office on Friday declined to comment on the relocation discussions or the state’s offer. 

Marlon Cheatham, the spokesman for JobsOhio, which is involved in the negotiations, said the state has shaped an offer that reflects the wishes of Sears. 

“I don’t think I’d say the state is just pushing Columbus,” he said. “It’s pretty much the company’s choice for the location.” 

Freely confirmed that Sears officials made site visits to only two cities -- Columbus and Austin, Texas -- but declined to say why those cities stood out. 

The presence of companies like Limited Brands may give Columbus some allure, Febbo said, and private development specialists agree. 

Home to some of the most valuable retail brands in America, Columbus has positioned itself as a retail corporate hub, in contrast to Greater Cleveland’s expertise in sectors like advanced manufacturing. 

A retail ecosystem gives the region a work force that Sears would find attractive, said Dennis Burnside, managing partner of the Cleveland office of Mohr Partners, an international site-relocation firm. 

“The talent is there, not just for the corporate offices. You’ll find the designers and technology workers who know the retail business,” Burnside said. “It’s not unusual for companies to relocate where their competitors are because they tap the same talent pool.” 

Secondary in importance would be the cost of doing business, Burnside and others say. 

To help JobsOhio craft its pitch, Chmura Economics and Analytics of Cleveland produced a profile of the Columbus work force and compared costs with those in Chicago. 

“As you would expect, Columbus is cheaper,” said Dan Meges, an economist at the downtown firm. 

He said Sears could expect to shave about 15 percent from its payroll in Columbus. 

Cleveland would also offer payroll savings, of about 9 percent, Meges said. Cost of living matters, too, and there he believes “Cleveland might be a smidge cheaper.” 

As they grant Columbus the limelight, some local economic development boosters struggle to contain the pitch they would love to shout.

“We have a lot to offer major corporations,” said Joe Roman, chief executive officer of the Greater Cleveland Partnership, who highlights the region’s trump card. 

“It’s clearly our hub airport,” Roman said. “That’s what distinguishes us from many other cities in the Midwest. We offer two if not three times the number of direct connections. It’s the only hub airport in the state.” 

Sears’ executive ranks won’t be flying out of it anytime soon. 

Roman said a deal of this size and complexity needs to be handled by the governor’s office, and he intends to stand clear. 

“They know what they heard from Sears,” he said. “And I’m confident they’re making their best offer to Sears.” 

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