Shorebank exporting development concept to Cleveland unit.

The bank that President Clinton holds up as a model for community development is expanding across state lines.

Shorebank Corp., Chicago, said last week that it will move into Ohio by opening a unit called Cleveland Development Bancorp.

The unit -- Shorebank's first banking operation outside Illinois -- will include a commercial bank, a real estate development business, and a not-for-profit affiliate to create jobs.

Shorebank, with assets of $272 million, rose to fame during the 1992 presidential campaign when candidate Bill Clinton cited it as the prototype for a proposed nationwide network of community development banks.

The proposal led to community development legislation now in Congress.

So far, investors have put up $20 million to capitalize Cleveland Development and its subsidiaries. More than $10 million has come from Cleveland Development Partnership, the Ford Foundation, and the Federal National Mortgage Association.

"This venture is a prime example of how major financial institutions can effectively work with community development banks on a complementary basis," said Charles Rial, president of Cleveland Development.

"Community development banks ... can expand the market for community development lending for all responsible lenders," he added.

Cleveland Development Bancorp will operate Shore Bank and Trust Co., a for-profit bank; CDB Development Co., a for-profit real estate developer; and Cleveland Enterprise Group, the jobs affiliate.

Shore Bank and Cleveland Enterprise are open for business, and CDB Development will come on-line later.

"This is more than lending," Mr. Rial stressed. "The role of the nonbank affiliate is critical."

As the company has done in Chicago, its real estate development company will rehabilitate some of the worst-buildings in the eight neighborhoods targeted, with the intent of changing people's confidence in those areas, said Mr. Rial, who had been with Shorebank in Chicago since 1988.

Shorebank conducted three years of study on where to expand. It chose Cleveland for several reasons, including its economic development record and its commitment to neighborhood development.

"cleveland has got a unique position among American cities today," Mr. Rial said.

alison Meeks, Ohio's superintendent of banks, said she plans to visit South Shore in Chicago to learn more about the bank and how its Cleveland subsidiary will operate.

"It's going to provide greater diversity in the banking services offered in the area," she said.

Community development lenders make loans to people and businesses who generally are not served by mainstream banks because they live and operate out of low- and moderateincome areas.

Cleveland Development Bancorp At A Glance

Headquarters:

Cleveland

President:

Charles Rial

Parent company:

Shorebank Corp., Chicago

Subsidiaries:

Shore Bank and Trust Co. CDB Development Co.

Affiliate:

Cleveland Enterprise Group

Some of CDB's Investors:

Ford Foundation, Fannie Mae, Cleveland Development Partnership

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