Posts Tagged Cleveland Cavs
Do Taxpayers of Cleveland & Cuyahoga Have to Always Carry the Cost of Institutions that Serve a Much Wider Area of Northeast Ohio?
Posted by Roldo Bartimole in Economic Development, Politicians on May 6, 2010
May 6, 2010… I read in the New York Times Friday that plans are being formulated to redo Progressive Field. Who knew?
A Gateway official says, however, that there is no big redo coming. Further, at this point, both teams leasing sports facilities are responsible for capital improvements.
But don’t you know that it is coming: We need a new stadium! The Indians might leave town! What we’ve heard before we will hear again. It’s only a matter of time.
It does bring up the question of how Cleveland and Cuyahoga County can continue to afford to build and support major institutions that serve a larger geographic area. Not only sports but cultural.
It does seem past the time for thinking about how we preserve the many facilities, institutions and infrastructure assets of Cleveland. The city is rich in major sports and cultural institutions, relics of a wealthier era. How can they be preserved? Who will pay for them?
Most of the actual institutions servicing Northeastern Ohio residents physically are in Cleveland or Cuyahoga County. Does that mean only those residents enjoy those venues? Of course not.
Progressive Field, Quicken Arena, Browns Stadium, Playhouse Square’s stages (Allen, Ohio, State, Palace theaters), the Cleveland Art Museum, Severance Hall and the Cleveland Orchestra. Even the highly subsidized downtown assets of Cleveland. These are places that serve a wider area of northeast Ohio, not just Cleveland or Cuyahoga residents.
But the bill to pay for these important institutions seems to fall, at least the public portion, most heavily upon Cleveland and Cuyahoga taxpayers. Every day in almost every way. And, unfortunately, they are regressive sales taxes weighing heavily on lower and middle income people. None are progressive taxes. Thanks to people like Tim Hagan and Mike White, George Voinovich and George Forbes.
In the latest County Auditor reports we get an idea of the tax burden here:
- The Medical Mart/Convention Center – Cuyahoga taxpayers have contributed via the quarter percent sale tax hike – $94,379,438.38 since only January 2008. Cuyahoga residents will be paying this tax for 20 years.
- Browns Stadium – Cuyahoga taxpayers have contributed via various alcohol sales taxes – $64,609,806.86 since August 2005. The tax previously amounted to some $266 million to help pay for some of Gateway’s costs at the baseball and basketball facilities. The tax was levied for 15 years for Gateway and 10 more years for the football stadium, taking us to 2015. Hopefully, not to be renewed.
- The Arts & Culture tax – Cuyahoga taxpayers have been paying this tax on cigarettes – $60,724,894.40 – Cuyahoga has been paying this tax since February 2007. It’s a tax that I believe will be extended on and on.
That adds up to some $220 million in taxes (not counting the $266 million for Gateway) on Cuyahoga taxpayers with tens of millions more to be collected before these taxes run out.
These taxes will continue for many years.
Cleveland and Cuyahoga County are both losing population. That means there are fewer people paying these taxes.
We see the effect it has had on RTA. The transit system depends also on the shrinking sales tax, one percent of the 7.75 sales tax, highest of any county in Ohio. Fewer people mean less purchasing thus less sales tax revenue. Population losses and higher percentages of poor people suggest further erosion of sales tax revenue.
The burden of these seemingly small taxes is heavy. They go from taxes on almost all alcoholic drinks, cigarettes, to parking and other revenue, such as the city’s parking revenue.
The latest tax increase county taxpayers are enduring is the added sales tax of one-quarter percent that raises some $40 million a year for a convention center and medical mart. These facilities serve far more than the people of Cleveland or Cuyahoga County. Why should the burden be limited to only Cuyahoga taxpayers?
In addition, almost all of these publicly subsidized institutions pay no property taxes, leaving the costs of fire, police, school, roads and many other services funded by property taxes. Home and commercial property owners pay more in higher property taxes. And tax abatements – which essentially go to higher income housing – to new and renewed housing also eats into revenue sources
But why does Cleveland have to pay the entire public cost of the Cleveland Browns playing field? Why do Cuyahoga County taxpayers have to pay essentially the entire cost of the playgrounds of the Cleveland Cavaliers and Cleveland Indians?
Most of the residents can’t even afford to attend these high-priced events.
The local taxpayers can no longer afford the many publicly-dependent institutions that provide entertainment for a much wider – and much wealthier – audience than the people of Cleveland and Cuyahoga County.
This is a problem of the entire northeast Ohio area, its residents and its taxing structure. The financial burden then should be shared more widely.
We hear a lot of talk about regionalism. This could be a most rewarding form of regionalism.
Why do Cuyahoga County residents alone have to pay for the culture tax that provides funds for some of our major (orchestra, museum) cultural institutions and many smaller arts and culture institutions?
The time is coming – really it has passed – when all the institutions this once wealthy city enjoyed and afforded can be supported by a shrinking and far less wealthy population.
We’re running out of the resources to finance what we have. Too institutionally rich; too economically deprived.
Now is the time to let the people of Lake, Summit, Medina, Lorain, Geauga know that they need to share in the burden of the cost of Cleveland and the treasurer of Cleveland and Cuyahoga County that they enjoy. Of course, some of the same type institutions in outlying areas should share in the wider financing method, whatever that becomes.
It’s time to think about a more regional tax approach to service the wealth of institutions in our communities. It ought to start with capturing taxes on a progressive basis from the beginning.
It’s a matter of fairness. The tax burden must be widened to a larger pool. It should also go where the money is.
Jacobs-Ratner Fight Continues with Issue 3 Vote
Posted by Roldo Bartimole in Economic Development, People, Politicians on October 27, 2009
October 27, 2009… Damian Guevara in the Cleveland Scene last week had a take on the Issue 3 that has been neglected by most, including me, but touches on a damaging game among Cleveland developers. They vie among themselves for advantage no matter what the cost to community.
It has cost us plenty over the years.
Guevara points out that Forest City Enterprises would be a winner if the measure passes. And that its rival, Jeff Jacobs, wants to stop it, making him the winner.
The battle between the two families – Jacobs & Ratner – has been going on in Cleveland for years. Neither cares much about the damage they cause the city.
“The question for Greater Clevelanders,” writes, Guevara, a former Plain Dealer reporter, “Do you trust wealthy pro-casino interests – in this case, Cleveland Cavaliers owner Dan Gilbert – to deliver on the latest promise of blue-collar and hospitality jobs, multi-million-dollar tax payments and yet another facelift of downtown Cleveland?”
I’d say no.
He calls the manipulation of the constitution inherent in a “yes” vote for Issue 3, a “deal-breaker” for many.
But the beneficiaries are clear, he notices.
“For all the vagueness of the constitutional amendment,” he writes, “there is some astounding specificity to be found in the amendment’s wording, the list of designated parcels put aside for casino construction. In Cleveland, this includes 83 acres of real estate. The Cleveland casino will, parcel-for-parcel, go on land owned by Forest City Enterprises, or the adjacent Scranton Peninsula in the industrial flats, just across the Cuyahoga river, all owned by Forest City.”
Of course, the major opponent to Gilbert’s casino desire is Jeff Jacobs, son of the late Dick Jacobs and a developer and casino operator himself.
The Jacobs-Ratner (Forest City Enterprises) battle has a long history of rivalry in Cleveland. Damaging to the city, too.
When Dick Jacobs built what is now Key Center he made it taller than Forest City’s Terminal Tower. There had been an unwritten law in Cleveland no building should be taller than Terminal Tower. That’s why the Sohio building remained shorter. They are all Public Square buildings.
Some called it developer penis envy.
When Jacobs got a special deal on the Marriott hotel, Sam Miller of Forest City demanded equal tax breaks for his Ritz-Carlton. He got it.
The biggest battle was fought over Chagrin Highlands, a plot of land more than 500 acres that the city allowed for development in 1989. Unbeknownst to anyone, Dick Jacobs was made a principal thanks to George Forbes. When Jacobs wanted to build a retail center at the same time as Beachwood Place was expanding, Mayor Michael White caused the city to sue Jacobs.
The suit stopped Jacobs’s plan; Beachwood Place, with Ratner interests, went ahead with its expansion. The suit was later dropped.
It was Jacobs vs. Ratner on the new County administration building. Jacobs sold his East 9th property to the County for that purpose while Forest City still owns its offering to the County, the mostly empty Higbee department store building.
The two factions also fought over placement of the Medical Mart/Convention Center with Jacobs winning with the location of the present city’s center.
Originally, when the plan was passed by City Council years ago for a convention center, Scranton Peninsula was its location, with Forest City promising other retail and housing development there.
So around and around these two major Cleveland forces go.
Another question to be answered is whether any principals in the deal, if passed, will be from the Ratner or Miller families. Gilbert isn’t talking about that.
Hate to make a choice on this one but I’m pulling for Jacobs this time.
Guevara’s piece can be found here: http://www.clevescene.com/cleveland/cash-of-the-titans/Content?oid=1690218