Cleveland may not seem like a city that comes to mind as a banking center in the United States, but nearly 100 years ago, Cleveland was awarded one of the 12 regional reserve banks that make up the Federal Reserve System.
So how was Cleveland chosen as a Federal Reserve Bank city? In 1914, a well-organized campaign led by a group of Cleveland businessmen, financiers and politicians was instrumental in the decision to locate the Fourth District headquarters in Cleveland.
A Federal Reserve Organizing Committee was established under the Federal Reserve Act legislation, says Mark Sniderman, chief policy officer, Federal Reserve Bank of Cleveland.
“Members were appointed and they were charged with determining which cities around the country should be the headquarters for these reserve banks,” he says.
“Cities were invited to apply, so the business and banking communities in the cities that were interested got together and outlined what their resources and strengths were.”
The Fourth Federal Reserve District comprises Ohio, western Pennsylvania, eastern Kentucky and the northern panhandle of West Virginia.
“The reason for the boundaries of Cleveland’s district was due to the fact that it was steel and coal country,” Sniderman says. “It was an economic cycle in this part of the country that was driven by heavy industry.
“When cities were bidding to become headquarter cities, they were thinking about themselves as the center of an economic region of the country that had its own need for credit depending on what was driving those economic cycles.”
The other 11 banks that make up the Fed are Boston, New York, Philadelphia, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Mo., Dallas and San Francisco.
“From a reputation point of view, getting a Federal Reserve Bank in Cleveland elevated the stature of the city … and would be a validation that Cleveland was a major league city in the financial world,” Sniderman says.
At the time the Cleveland Federal Reserve was built, it held total assets of $613.7 million, making it the third largest of the 12 district banks. Today, the bank has assets of some $79 billion, making it the ninth largest by assets.
The Cleveland Federal Reserve location quickly outgrew its original building and in 1921 construction started on a new headquarters for the bank. Two years and $8.25 million later, the bank was completed in August 1923 at the corner of Superior Avenue and East Sixth Street. The 13-story building is a modern adaptation of an Italian Renaissance palazzo, or fortress palace.
When the new Federal Reserve Bank of Cleveland opened to the public, an estimated 40,000 visitors passed through. In 2012, about 10,000 people visited the Cleveland Reserve Bank. That includes individuals who were part of a bank tour and individuals who visited its Learning Center and Money Museum.
While free tours are given in the building today and security measures are aided by technology, back when the building was first established they didn’t have those luxuries and were worried about robberies.
“In the days when the building was built, they were worried about mobsters like the Dillinger Gang breaking in with machine guns and things like that,” Sniderman says.
As a result, steps were taken to provide as much security as possible. The original vault is housed in its own building and was constructed before and completely separate from the main bank because of its size.
The concrete walls are 6½ feet thick, reinforced throughout with an intricate, interlaced type of fabricated steel. The vault door is 5 feet thick and has a 47-ton, 19-foot-high hinge. Yet, despite its 100-ton weight, the door is so precisely balanced that one person can swing it closed.
Today, much of the purpose for the Federal Reserve System remains the same with obvious changes in technology and banking advancements forcing some adaptations.
“What’s happened over time is technology has changed some of the ways we do business,” Sniderman says. “Banks and financial entities have become more complicated. They deal in a much wider range of products. They interact in so many kinds of financial markets that supervising banks has become a more sophisticated endeavor.”
Today, the Federal Reserve Bank of Cleveland supervises 35 state member banks and 285 bank holding companies, financial holding companies and savings and loan holding companies.
How to reach: Federal Reserve Bank of Cleveland, (216) 579-2000 or www.clevelandfed.org
The Cleveland Medical Mart & Convention Center continues to take shape, and it is already enhancing the region’s economy.
The 36-month, $465 million construction venture currently employs nearly 600 tradespeople on site, 20 percent of whom are Cleveland residents and 51 percent Cuyahoga County residents.
“We’re working for Cuyahoga County,” says Dave Johnson, director of PR for Cleveland MMCC. “This is a public project. Not only is it one of the largest construction projects in North America right now, but it’s certainly one of the largest public construction projects taking place in North America.”
The project has also engaged area small businesses in contract work, with a project high of 35 percent being completed by Cuyahoga County small business enterprises.
“In relation to our goal of 25 percent, we’ve been able to exceed that county goal throughout the project,” says Project Executive Marty Burgwinkle of Turner Construction Co.
In addition to using local tradespeople and businesses to boost the region, Turner strives to streamline operations to avoid wasted labor. The company utilizes Building Information Management (BIM), which generates and manages a digital model of the project for use in construction planning and management.
Executives from Turner gave Smart Business an exclusive video interview to discuss how BIM has been used throughout all stages of the construction of the Cleveland Medical Mart & Convention Center:
Watch: “Cleveland Medical Mart & Convention Center: Building Information Management streamlines operations”
The entire construction project is 66 percent complete, and is on time and on budget to be completed by the original contractual date of Aug. 31, 2013, says Burgwinkle.
Permanent power was installed in the Convention Center in late May, with the entire facility on track to have permanent power by the end of the summer. July saw the topping out of the last structural steel beam for the Convention Center, as well as the last piece of precast for the Medical Mart.
To see the project’s progress for yourself, check out the Cleveland MMCC live webcam.
How to reach: The Cleveland Medical Mart & Convention Center, www.ClevelandMedicalMart.com
Turner Construction Co. – Cleveland, www.TurnerConstruction.com/Cleveland