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Friday, September 9, 2011

Mitchell's Ice Cream to buy former nightclub spot, move headquarters and kitchen into Ohio City

CLEVELAND, Ohio -- A homegrown ice cream company plans to move its headquarters to Cleveland, transforming a former nightclub building into a commercial kitchen and shop.

Mitchell's Ice Cream inked a purchase agreement Tuesday to buy the former Moda building in Ohio City. With an expanding lineup of shops and sales to restaurants and grocery stores, the company has outgrown its kitchen in Rocky River.

And its co-founders, brothers Mike and Pete Mitchell, want to be part of the growing food scene around the West Side Market, in a neighborhood being cast as Cleveland's Market District.

"We have no interest in having a store anywhere outside the Greater Cleveland area," Pete Mitchell said. "So we want to make sure we have a presence in the city of Cleveland."

Founded in 1999 and based in Rocky River for about eight years, Mitchell's has focused on the suburbs: Bay Village, Beachwood, Rocky River, Solon, Westlake and - coming up - Avon and Strongsville.

For their foray into Cleveland, the brothers considered downtown and several near-West Side neighborhoods before choosing a building at 1867 W. 25th St. in Ohio City.


View full sizeRUL, Ltd.The new logo for Mitchell's Ice Cream. The company, founded in 1999, is updating its branding materials and plans to launch a new website soon.

That property gained notoriety as the home of Moda, a nightclub that lured politicos and celebrities - and, eventually, large crowds and brawls. Moda closed in 2006, after the club's owner pleaded guilty to laundering drug money through his business.

Since then, neighbors have resisted proposals to fill the space with another bar or club.

Mitchell's plans to renovate the first floor, about 8,600 square feet, for its kitchen and an ice-cream shop along West 25th. The second floor would be used for offices or maintained as apartments.

Mike Mitchell would not comment on the purchase price for the building, which last sold to Rialto Corp. for $80,000 in 1999.

"They're a fantastic retailer with a great product moving into what has been a troubled property in the neighborhood," said Eric Wobser, executive director of neighborhood development group Ohio City Inc.

The company hopes to move by spring 2012.

The new headquarters, kitchen and shop would employ about 35 people. The city of Cleveland and Cuyahoga County are working with Mitchell's to cut the cost of the $2 million project.

Cleveland has offered Mitchell's $220,000 in loans, through programs aimed at reviving vacant properties and supporting retail businesses.

Mitchell's will assume the balance - $76,798 - on a $120,000 loan that the city provided for the Moda redevelopment in 1999. The loan term will be extended to 20 years.

"We've been working to find a buyer for this property for a number of years," said Tracey Nichols, the city's economic development director. "This is really a hole in the neighborhood."

Cleveland Mayor Frank Jackson is focused on the Market District's transformation into a food hub encircling the West Side Market, said Chris Warren, the city's chief of regional development.

Cuyahoga County is talking to Mitchell's about a $50,000 forgivable loan, tied to job-creation in the city.

"There's a lot of attention on the huge projects, the Medical Mart and the east bank of the Flats" said Cuyahoga County Executive Ed FitzGerald. "But we actually think that the biggest part of our portfolio should be in investments in small businesses that want to expand and need a little bit of help."

by:

Michelle Jarboe McFee, The Plain Dealer