Posts Tagged Dolan
Game Being Played by Larry Dolan and Gateway
Posted by Roldo Bartimole in Economic Development, Media, People, Politicians on May 20, 2010
May 20, 2010… It was a pleasure to see The Plain Dealer’s front page today. The PD for the first time in my memory asked a question that needed to be asked: “If Progressive Field needs improvements, who will pay the bill?” It was played prominently on Page One.
If there is any other board that needs PD probing besides the Port Authority it is the Gateway Economic Development Corp., the entity Cuyahoga County set up to own and operate the baseball field and the basketball arena (Progressive Field and the Quicken Arena).
It too has operated in vacuum, unwatched and unattended.
The answers to question about the so-called improvement at the baseball field are evasive both from the Cleveland Indians and from Gateway. True to standard.
Here’s what Indians PR spokesperson Bob DiBiasio said about the big but undisclosed plans, “We’re not there yet. It’s not a question that needs to be asked yet.”
Doesn’t need to be answered? That is strict PR bullshit from someone who never gets challenged by the news media. A happy face he has but not a trustful one for me. If you believe him on this one I have some special mortgage bonds to sell you.
“The Indians have not made any requests for alterations or payments,” was the answer from Gateway’s top operating official Todd Greathouse. Equally evasive. But not unexpected.
Don’t you think that the owner – Gateway – might want to inquire and have that information, especially when it has been in Crain’s Cleveland Business, online in my posts and now in the PD? And it could cost you millions of dollars? Oh why get testy.
It’s the disgusting proof – long tradition – that the owner are not in control of their facilities. The tenants are.
The question is WHO WILL PAY – THE TEAM OR THE PUBLIC?
Let me tell you. You will pay.
The PD – and I hope this ends the marriage the paper has had with Gateway – has been wed to Gateway and its desires from the beginning.
But the writing was on the wall.
Here’s what I wrote in the City News in April 2005:
“Gateway Economic Development Corp. Chairman Bill Reidy let it drop quietly, almost nonchalantly, during a non-eventful quarterly meeting a week ago.
“Reidy said that ‘the city and county would have to step in’ and put up money for Gateway’s capital fund when major repairs are necessary at Jacobs Field and Gund Arena (the original names for the two facilities
“What?” I wrote. Did I hear that right?
“Haven’t taxpayers paid enough for Gateway? Now Reidy wants the taxpayers to dig into their pockets for possibly hundreds of thousands of dollar in capital expenses that Gateway should have been putting aside itself,” I continued.
“Gateway, however, can’t put money aside because it has never charged the teams enough to maintain Jacobs Field and Gund Arena,” I went on.
“What’s so upsetting about this is that at that same meeting new representatives from the city – Chris Ronayne, Mayor Jane Campbell’s chief of staff – and Dennis Madden –Cuyahoga County Administrator – said nothing about this raid on their respective treasuries.” Somebody wake up our officials.
Let me tell you what I expect is happening.
Larry Dolan – and I expect Dan Gilbert won’t be far behind – has set in motion “improvements” at Progressive that will cost in the millions of dollars.
It will take some time.
But there will be money around. The sin tax extension of 10 years has a stipulation that the revenue up to $116 million will go to help pay for Browns Stadium for the City of Cleveland. However, once that total is reached the money – some $68 million had been the estimate – will go to the County. The tax has raised $94.3 million. So it’s not far from the $116 and is coming in at some $13 million a year.
The new money is not to go to Gateway. It is supposed to go to the County general fund. Where it is needed, I might add.
Watch County officials for the rest of this year. They must not be allowed to make any revisions that would send this money to Gateway.
At the time of the Reidy statement, I quoted a County official and wrote:
“’This is our money,’ said a County official. He went on to say, the County has paid an extra $100 million on other bonds and has to continue to paying. Now, it should derive the benefit from the 10 extra years of the sin tax, he said.”
So that’s the game – using more public dollars to boost the revenue of the teams.
My other suspicion, Dolan will use the improvement to help the revenue for the team and make it more valuable for sale purposes. Forbes in assessing the value of MLB teams puts the Indians at $391 million team value. Dolan bought the team for $323 from Dick Jacobs.
Do you think we ought to put a Dolan in as the County Chief executive to help rule whether the Cleveland Indians should get a helping of that $68 million coming due.” Matt Dolan has moved into Cuyahoga County to run for chief executive. Who would he represent in such a deal – his family or county taxpayers?
I think I know the answer.
My question is whether the Plain Dealer will deal with this money grab honestly. I hope so. But the PD’s record on this score is about as good as guys named Hagan, Dimora and Russo.
Here is the PD story:
Here was my take on the improvement deal: click here.
Perfect Solution Where New Cuyahoga County Officials Can Meet
Posted by Roldo Bartimole in Media, Politicians on March 28, 2010
March 28, 2010… I have the perfect place for the new Cuyahoga County Council to meet. It shouldn’t cost a penny. County taxpayers already paid for construction. And even to furnish it!
It’s a building the County constructed in Jacobs Field.
It’s not far from the present County Administration building.
The building wasn’t even in the lease. It was a gift.
I was told at the time that there was an unsightly ramp. Such a problem. So we – thank you Michael White and Tim Hagan especially – built a 57,500 square foot administration building “to hide the ramp that would have been visible to the public from Ontario Street,” Gateway boss Tom Chema told me. I guess they didn’t think of some far less costly solution. Shrubbery perhaps?
The truth is that Dick Jacobs wanted an office building for his Cleveland Indians staff. And what Dick Jacobs wanted our County Commissioners and Chema gave him.
So why doesn’t the County ask the Dolan family to vacate one floor of the five-story office building we built for them? (Come to think of it, maybe Matt Dolan, candidate for County Executive, could expedite this process with Larry Dolan, team owner and his dad.)
Back in 1990 I reported on this give-away. Neither The Plain Dealer nor any of the hot shot TV news stations touched it. Is that unusual?
Here are some of the facts:
The building, not called for in original plans or lease, cost us $7 million. That included furnishings. Yes, we even furnished it for Jacobs. It cost $900,000. Telephones, desks, computers, etc. All free.
Jacobs, of course, certainly knew the value of such real estate.
Here’s what I wrote in the Free Times at the time:
“Downtown real estate developer Dick Jacobs, of course, knows the value of that Gateway gift. Indeed, Jacobs, owner of the new Society (now Key) Center a few blocks away, asks tenants to pay $38 a square foot in his building. (His Society Center was property tax free, as was – and is – the stadium and the free building. You see rich people are not expected to pay taxes as the rest of us are made to do.)
“If Gateway did the same, instead of charging no rent, the space given Jacobs in the administration building would be worth $2,185,000 a year. With no increase over the 25-year lease that would be more than $54 million in free rent.”
Since 1990, that would have meant more than $30 million to the County. Didn’t happen.
And there’s a perfect table for the new commissioners to meet around.
At Jacobs’ request the County provided an 18-foot by 5-foot boat shaped table for a conference room. That should fit for the 11-member Council. If not, I’m sure it could be expanded.
The table had an ash veneer, according to the plans. I don’t think some of the special treatment asked by Jacobs will interfere with government business. The table called for inlaid wood shaped to replicate the stitching of a baseball.
There might be one problem. The table also called for a metal etching of the racist symbol of Chief Wahoo to be inlaid at each end.
I checked at the time with some firms that make custom tables. One said that with the inlays the cost would be about $10,000 for the table.
Good enough for our certainly new tax-conscious commissioners, don’t you think?
I asked Chema at the time whether he reported this magnificent gift to the Internal Revenue Service. “Absolutely not,” Chema said.
So there’s plenty of room for the commission at no cost in a building we taxpayers built.
The inattentive Plain Dealer offered today (Sunday) three possible meeting places. The cost estimates for the three range from some $687,000 to $1.2 million. The PD story is here:
Time to save some public money. Time for a billionaire family to give back to the community. Time, indeed, for us to assert our public will.
C’mon Matt, you can help. Have a talk with dad.