Gateway returns to the public trough for stadium repairs
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The city of Cleveland and Cuyahoga County this week voted to approve nearly $40 million in public funding to pay for repairs at Progressive Field and Rocket Mortgage FieldHouse.
Why it matters: The teams' leases stipulate the public is responsible for repair costs, but the lone funding source — the county sin tax on cigarettes and alcohol — is no longer sufficient to cover their demands.
Between the lines: These are repairs outside the parameters of the "Q Deal" and the Progressive Field Deal, agreements that have already encumbered hundreds of millions of public dollars for major facelifts.
State of play: The Guardians want additional funds for more seating, a subroof and a new emergency generator.
- The Cavs are waiting on reimbursement for new elevators and broadcast control room upgrades.
Follow the money: At its meeting Tuesday, the Cuyahoga County Council voted to borrow $14.5 million in new money and use $2.5 million from the general fund.
- The Cleveland City Council voted the day before to contribute $20 million as well — taking $10 million from other city projects, $5 million from a minority business credit program, and $5 million from the general fund.
The intrigue: These contributions are one-time measures to cover the existing shortfall, but won't satisfy future obligations.
- Signal Cleveland reports Council President Blaine Griffin and County Executive Chris Ronayne are in talks to raise the sin tax, which would require a change to state law.
What we're watching: Also mentioned at the city council Monday was the idea of a "New Community Authority" (NCA) as a long-term solution.
- Another NCA has already been proposed to fund infrastructure at the Cleveland lakefront.
- Residents could be looking at all sorts of new fees and surcharges at downtown businesses in the coming years.
💠Sam's thought bubble: The city council proceedings reminded me of a similar vote in 2020, when members authorized an unprecedented 60-year tax increment financing arrangement with developer Scott Wolstein for the Flats East Bank project.
- Both votes occurred in the final council meeting of the year, and featured members expressing outrage and opposition in a committee meeting before ultimately voting in favor.
- In both instances, council members Brian Kazy and Jenny Spencer voted against.