Joseph G Blake
Dear Classmates,
In recent weeks we have discussed some issues related to current life in Shaker Heights versus what we may have known. For sure much has changed.
I wanted to offer some facts and observations about taxes, demographics and regulation of renovations. I hope will read along. It was heard to be briefer.
It is very true that residents in Shaker Heights do pay among the highest real estate millage rates and local income tax rates in Ohio (2.25% versus 2.5% in Cleveland and 2.75% in Youngstown).
The tax rate paid $100,000 of home value is $4135 for Garfield Heights, $4058 for the Shaker Square area in Cleveland and a section of South Euclid in the Cleveland Heights/University Heights School District, $3972 for Shaker Heights and $3824 for University Heights for the combined school district with Cleveland Heights.
Unlike many other states, Ohio voters can vote for millage increases. As late as 2019 they voted to continue a tax for the Shaker Public Library. That year there was a proposal to transfer the library to the county system and no longer pay the tax. The city government supported the transfer but the library organized a ballot initiative to keep the tax and the independence of the library. It won.
One should also recall that voters in Shaker have wanted a high level of services and been willing to pay for it. The classic example would be that Shaker residents have never taken trash to the street for removal. The city workers come to the back of the house and get it. Given that at least a third of houses are very large to mansions (3500 to 7000 sq feet) and often more than 100 feet from the street, the service is essential but obviously not cheap.
Also Shaker has sidewalk plow service in the winters which many communities do not.
The bond credit rating for Shaker Heights is AA+. That is better than most major corporations.
One has to admit readily that Shaker has a tax base that reflects the bias of the Vans who did not like commercial development very much. It was largely concentrated to essential services. In their day, it had a certain logic. My mother was a resident of Shaker for 61 years but her shopping habits reflected habits developed in the circa 1930s. She shopped at Heinen’s beginning in 1928 (or placed an order pre 1950 and it was delivered), took the rapid to Higbee’s, or a few shops at Shaker Square. Of course Christmas meant a visit to Sterling’s to see their giant tree in the five story atrium in the store. It was over 75 feet and then the largest inside decorated tree in the USA. I doubt she ever went to Severance or other shopping malls. There are of course many apartments which to some degree offset the lack of commercial property.
This stands in sharp contrast with Beachwood that has long had an enviable commercial tax base for its size along Chagrin Boulevard and expands to Beachwood Place along Richmond. Next time you exit from 271 and Chagrin you will see what I mean. Beachwood taxes are lower for sure because of this base. It is also smaller in terms of size and population around 12,000.Pepper Pike is 6,000. It has very little commercial base. Woodmere has relatively more on Chagrin but it’s a village of 850. .
Until the late 1950s, students from Beachwood attended SHHS, at the time sparsely populated. There was some discussion about continuing that arrangement. One can only speculate how that might have changed the tax base for the school district.
In terms of demographics, they have changed considerably in the last 50 years. In 1970 Shaker had 37,000 residents. Today there are about 28,000 residents. That is a 25% decline in population. Meanwhile, Cleveland has lost half of its population and Cuyahoga County about 1/3.
The city today is racially mixed. Shaker was just starting to integrate when we were in high school. Ludlow and Lomond led the way and formed associations to make the process friendly. Steve Alfred who helped found the Lomond Community Association would later be mayor of the city. Today, white families often choose to live in Shaker because of its racial diversity.
The city and the school district have different demographics because the school district includes a section of Cleveland around Shaker Square which is in Cleveland. Also many Shaker residents send their children to private or parochial schools. Shaker has three private schools prominently located north of Shaker Boulevard. So today as in 1964 the demographics of the city versus the school district are different. Note the details below.
“Although the population of Shaker Heights is 55% White, 37% African American and 8% Asian or other, The Shaker Heights City School District's approximate enrollment is 48% African American, 40% White and 12% Asian, Hispanic, multiracial or other.”
In many ways, the school district must offer a wider range of services to provide for the needs of students from different socioeconomic backgrounds. But the district also offers wider opportunities than in our day. We were a much more homogenous group for sure. See comments below.
“Shaker Heights High School is an International Baccalaureate World School, the only public high school in Cuyahoga County to hold this accreditation and offer rigorous IB classes. It is consistently ranked among the top districts in the state for National Merit semifinalists”
Many would use National Merit Semifinalists as an important benchmark for success. Note the number for 2020.
“September 23, 2020—Thirteen members of the Shaker Heights High School Class of 2021 were named National Merit Semifinalists in the 2021 National Merit Scholarship Program and additional nine students were named National Merit Commended Students.”
“Shaker Heights High School had the second-highest number of National Merit Semifinalists among Northeast Ohio public high schools and the seventh-highest among all of Ohio’s public high schools. This Semifinalist group represents the largest number of Semifinalists from Shaker Heights High School since 2016.
There is certainly reason to argue that there is considerable return to the taxpayer in Shaker Heights.
One should note that a class at SHHS is around 400 students today versus 600 when we graduated in 1964.
It’s interesting to look at income and related data
The median household income in Ohio is $56,502 versus $83, 420 for Shaker Heights. The median value of a house in Ohio is $142,600 versus $222,700 in Shaker Heights. The percentage of households that are classified as high income (more than $200,000) is 4.9% for Ohio, 20.4% for Shaker Heights, and 48.4% for Pepper Pike. Shaker today has a wider range of economic groups than 50 years ago ranging from very wealthy to families that require food assistance, especially during the pandemic.
In some ways Shaker Heights can be compared to the Chestnut Hills section in the city of Philadelphia. It too is affluent, large beautiful homes, several prominent private schools, and easy access to Center City Philadelphia but also lower/middle income groups. It also is home to the Philadelphia Cricket Club, the oldest country club in the USA.
But Philadelphia still has a very vibrant professional and business community in Center City. It is also the 8th largest population statistical area in the USA. Cleveland was the 7th largest city in 1960. Today the vast Union Trust/Union Commerce, Huntington Bank Building stands empty awaiting a major restoration. Built in 1924 it once had the largest space on one floor of any privately owned commercial office structure. Only the Pentagon had more. But it symbolizes the challenge that faces Cleveland and other old cities like Rochester, Buffalo, Toledo or Detroit. If we could reverse that trend and revive the local economies, housing prices in Shaker would increase well above their replacement value.
Shaker faces a major challenge partially due to the pandemic. A few weeks ago the lenders for Shaker Square foreclosed on the property.. The square now is dominated by restaurants which have been devastated by the lockdowns and limits on seating etc. Some of you may know Edwin’s which is regarded as the best French restaurant in Cleveland. It also has an outreach to train ex convicts to be chefs after they return to normal life. It’s a good example of the quality of some of these places. See link to news item.
https://www.news5cleveland.com/news/local-news/cleveland-metro/historic-shaker-square-is-in-foreclosure-a-victim-of-the-pandemic-management-company-says
But there is good news as well. Many will know that Shaker has rebuilt CLA and Van Aken Center. Van Aken Center was rebuilt by RMS Realty (the Ratner, Miller and Shafran families). They are now proposing a new 225 apartment there overlooking the SHCC golf course. At 183 feet it would be the tallest building in Shaker. That has to be a big plus for the tax duplicate and also positive economic multiplier for the community.
Occasionally there is criticism of the regulation of housing renovation in Shaker. We should recall a few factors. Shaker Heights has always had strict standards to meet for new construction, additions and the like. I still have the form approving our house in 1930 plus the building card which shows approvals granted including a new garage floor in 1977. Attention to detail has deep roots in Shaker.
Around 80% of Shaker Heights is part of the Shaker Village Historic District which reflects the planning and architecture of this area mostly prior to 1940. By implication, the city has been very careful to preserve the character of houses. The median age of a house there is now 90 years.
I have included a link below to a recent article in Shaker Life which discusses the renovation of a home on Van Aken built in 1924.The house was built by the Vans to promote building in Shaker and also to establish the Van Sweringen architectural standards. In this case the architect was Bloodgood Tuttle whose houses usually had superb interior details and some unusual features. Jeff Chokel lived in one of houses on Coventry for over 35 years. It was typical of his style. In 1924 the Vans hired also Small and Rowley and Howell and Thomas to build these demonstration houses. There were 440 building permits granted that year, only exceeded by 477 in 1925.
https://shaker.life/great-shaker-homes/the-art-of-restoration/
Closing thought. Capitalism is said to be a process of creative destruction. In many ways we see technologies rise and fall and with that we find many opportunities to grow if we are imaginative and resourceful enough to seize the moment. In the 1920, the age of the Vans, it was autos, radios and refrigerators that were the opportunities as the rapid electrification of America happened. In our time it’s been computers, software, the internet and all those odd sounding high technology companies like Google and so many others. I sometimes regret that mortality means I won’t see how that evolves.
Thanks for your time and attention. Happy Presidents Day
Joe Blake
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