Posts Tagged Fannie Lewis
Can You Spare a Dime for Randy Lerner?
Posted by Roldo Bartimole in Economic Development, Media on June 7, 2010
June 7, 2010… The City of Cleveland has refinanced Browns Stadium bonds to the tune of $183,856,270.35 in two refinancing deals.
Did Randy Lerner say thanks? I don’t think so.
And because I know no one will report this: The City of Cleveland from its deflated general fund also had to pay $850,000 into the Browns Stadium capital fund this year. And it has to do the same next year. And the next year. And the next year.
Not to bore you, the draining city will do the same until 2020.
You might think the city then is off the hook. No, no.
In 2021 the city’s contribution rises to $5.9 million; in 2022 it will be $6.3 million; in 2023 it will be $6.7 million; in 2024 it will be $7.1 million; in 2025 it will be $7.5 million.
In case you don’t have your calculator handy those general fund payments total up to $42.8 million rounded off. It actually was more because in earlier years the city had put away $710,909 in the capital repair fund.
Would you like a beer, Mr. Lerner?
But then from 2026 through 2028, the city pays zero. Isn’t that great.
It is unless you know how the game works. That’s when there will be a crisis. The stadium isn’t up to date. It looks so shabby. WE NEED A NEW STADIUM OR WE’LL LOSE THE BROWNS. Heavens, no!
If you look to a recent posting of mine you’ll find that the taxpayers of Cuyahoga County via the extended (an added 10-years after a voted 15 years) “sin” tax already paid $66.2 million since August 2005.
This amount helps pay for Browns Stadium bonds. The tax continues to go to pay for Lerner’s stadium until it reaches $116 million. Although $29 million of the $116 million could go to help the city’s need to pay off its capital fund. Anything above the $116 million is supposed to go to Cuyahoga County. We wait with abated breath.
Could you use a taco, Mr. Lerner? Maybe an extra cushion?
In addition, three other taxes passed by City Council help pay off the bonds: a 2 percent additional admission tax on events of sport, theater, concert and many other businesses; an 8 percent parking tax when you park in Cleveland; and a $2 fee for car rental. The taxes took effect in 1995-96. By 1998, taxpayers had contributed another $33 million via the three taxes. The stadium opened August 21 1999.
The taxes never stop. Tied up like a hog, as Fannie Lewis used to say.
I’ll repeat what I wrote in November 1998, when Fred Nance was at the Council table answering questions about these financial details. Nance, you might remember, also did the original negotiation on the Medical Mart deal. Oh, what ropes tie taxpayers on that one? Only Mr. Nance truly knows.
Nance said back in 1998, “This city as a whole – Council and administration – obligated ourselves (ha) to pay whatever it takes to finish this stadium…” I added in my newsletter Point of View: “He didn’t tell Council that he, as chief negotiator, was also the chief obligator.”
I wrote further: “Council also was reminded again and again by (Mayor Michael) White’s legal consultant Fred Nance of Squire, Sanders & Dempsey, that City Council had authorized the city, by its passage of the legislation authorizing the stadium, to make these additional arrangements. ‘You signed off through the legislation you approved in 1996. I could show you the specific provision if you would like…’ He continued, ‘The answer is (ordinance) 303-96, specifically Section 12 B….’ Clever Mr. Nance. Doesn’t he work for the Cleveland Browns now? Oh, yes. He’s chief counsel.
Yes, all tied up in a pretty bow. As I wrote then, Nance used his best “Gotcha” tones to a hog-tied Council.
I summed it up: “In other words, Mike White can do what the hell he wants and Fred Nance will tell you so any time you want to hear about it. With a smile. Or is it a smirk.”
Now you know which face, don’t you?
And the city tells me it has another small refunding piece of debt of $13.7 million in addition to the refinanced $183 million in debt.
Oh, did I say that there are no property taxes on the stadium. It’s exempted by state law. That diverts some $7 to $8 million a year from the revenue of the Cleveland schools, Cuyahoga County, Cleveland and the city libraries. There are property taxes on the city land upon which the stadium sits. But the City of Cleveland pays those taxes and they are far higher than the rent Lerner pays for the use of the lakefront stadium. The city also obligated itself to provide casualty insurance for the stadium.
Can we get you any mustard, Mr. Lerner?
I’m sure you are interested in what Randy Lerner – made wealthy by MNBA and credit cards, pays to use this very expensive stadium. He pays a measly $250,000 a year. Never an increase, according to the lease. Yes, never over the 30 year lease. He also, however, is responsible for ordinary upkeep of the stadium. The stadium seems to be used, at least in part, maybe a bit over a week each year. The stadium sits on city land. Expensive lakefront land.
Can we get you a hot dog, Mr. Lerner?
Billionaire Lerner enjoys all the revenue from the 72,000 seat stadium. Seating includes 145 suites and 8,500 club seats. Approximately 100,000 square feet of the facility is committed to restaurants, food concessions and retail facilities. All to the benefit of renter Lerner.
Can we get you a martini, Mr. Lerner?
By the way, the city doesn’t even enjoy full income tax revenue from the Browns players and executives’ salaries. The late Al Lerner, Randy’s dad, got suburban Berea to build him a practice facility for the team. The city income taxes are thus split between Cleveland and Berea.
What a deal Cleveland worked!
What a great use of public funds for our shrinking city of poverty.
The Plain Dealer and the rest of the media go a bit crazy about the criminal aspects of our rotten County government, now under FBI probes. Good that they do. Over and over again.
However, there’s no fuss at all about this legal corruption. It’s not on the radar for critical reporting or analysis. Indeed, just the opposite. Save LeBron. Forget the rest of the people.
And these “journalists” wonder why they are thought so little of by the general public. The real downfall of the so-called mainstream media took place long ago. People knew that they were not getting what they needed in a democracy dependent upon information. They knew that the corporate, civic, foundation, political string-pullers were stacking the deck against them. But what could they do? The news media’s foundation of credibility corroded long ago. I saw it as a young reporter. And got out.
I recently caught the end of the movie “Good Night and Good Luck” about Edward R. Morrow. It told about the death of just a half hour of real TV news. It enlightens very well of the corruption from within the news media.
So, Good Day and Good Luck. You aren’t getting anything even that from today’s corporate news providers.
Joseph Pulitzer once said, “A free press should…always oppose privileged classes and public plunderers, never lack sympathy with the poor, always remain devoted to the public welfare.” Ha.
It happens so infrequently that you might as well admit it just doesn’t happen.
What do we do about it? We aren’t going to do anything about it.
Cleveland Needs a Game-Changer
Posted by Roldo Bartimole in People, Politicians on July 31, 2009
July 31, 2009… You could hear the envy in his voice as he grumbles that when Jeff Johnson walks into a room all eyes moved to him. He takes the air out of the room, said a friendly rival.
Johnson had that effect on people. Youthful, movie-star looks and a smile to go along. Maybe he still has the magic. We’ll soon see.
Johnson, 51, hasn’t lost his looks but the boyishness is gone. He also has to recover from a very bad decision that derailed a political career that seemed destined for big things.
Starting over by running for a seat he held a couple of decades ago does not seem that engaging. Yet, Johnson seems intent on proving himself all over again. He’s hiking daily door-to-door in Glenville as a candidate for Cleveland City Council’s Ward 8.
Johnson has had his share of tough times. Getting caught on camera, seemingly demanding a promised campaign donation that appeared as a payoff, revealed a cocky politician on film. He was lured into performing before a hidden camera for the FBI. I think he was set-up but he played into the drama.
I had seen the same brash Johnson before. So the act revealed by the film didn’t surprise me. It was haughty. Indeed, Jeff was playacting a tough, savvy Cleveland politician, which he really wasn’t. He was a bit naïve but earnest.
He did his time. He did his penance.
JEFF AS HE USED TO BE
So I want to remember the Jeff Johnson I knew. And I want him back at City Hall, hopefully more mature. But hopefully still cocky enough to speak out as I heard him do before.
That’s because Cleveland needs some sparkle. Needs some tension. Needs some hope. Needs some vision.
He walks door-to-door as someone who really wants to be a Councilman. To start over. Council members are servants. At least that’s the way they portray themselves. Less legislators; more clerks. Clerks to get the garbage picked up, dogs to bark less, and drunks to be quieter. Though they complain about these demands they are the ones who trained the public to expect this brand of attention.
Johnson says he’s getting good reception at Glenville doors. People still know him. They also know of his past.
He says he’s “more humble, wiser.” More humble would be wise.
Former Mayor Jane Campbell gave him an opportunity when she became mayor. She brought him back to City Hall. He worked his job – quietly. When Frank Jackson ran against a weakened Campbell, Johnson didn’t bolt to another African-American as many might. He, in essence, repaid his debt for his opportunity to renew.
Jackson, however, dumped him when he took office.
UNWELCOMING CITY HALL?
That’s politics. However, now I believe there’s some skittishness at City Hall. What if Johnson returns on his own power? Voter power.
Is he a rival to Jackson? Is he a rival to Council President Marty Sweeney? Whether he wants to be or not, the answer is “It would seem so.”
Part of the reason is his experience. The other part is that Council is never heavy with talent. Johnson will stand out whether he wants to or not.
Heads still will turn when he enters a room. It can’t be helped.
The thing about Johnson that I most admired was his insistence upon being heard and being respected. Not so easy when you are in a minor and often a minority of one. That was when Council President George Forbes ruled with an iron fist. And an iron chair.
Forbes tossed the chair at Johnson in a closed meeting that was supposed to be a peace-maker for the two. The chair hit a glancing blow. No blood.
The problem, back in 1988, involved a project promised to Johnson for his ward. Forbes held it up as a tactic to break the young Councilman.
Around that time I wrote that “Johnson had to endure racial ostracism, physical and verbal abuse and all kinds of threats. False rumors were even circulated bout him in an attempt to break his spirit. It didn’t work.” Forbes called him a “mulatto punk.” Tough stuff.
Forbes orchestrated an open attack by other Council members. Obedience was owed.
BEAT UP – BUT STANDING UP
I listened as one black – and only black – Council member after another beat up on Johnson. Forbes was orchestrating.
“I’m embarrassed. My kids are embarrassed. My neighborhood is embarrassed,” said one member. He had been charged with sexual harassment – to speak of embarrassing.
Most brutal of all was veteran member Ken Johnson. He complained that Jeff had the same last name as he. “You have been a disgrace to me, to my people and to this council,” said K. Johnson. Another attack racially tinged.
“You’re too young to get killed… so please sit down and talk,” pleaded Fannie Lewis.
It was the most brutal verbal beating I ever watched.
Nearly overcome with emotions, Johnson responded to his colleagues, “You talk about respect for the chair. I have never across this table called him a name, disrespected him, unless you consider a disagreement disrespect, which I don’t.
“How about respect for me? How about respect for fellow councilmen? Because we gave him authority to be president, we didn’t give him authority to disrespect. And that’s the bottom line – a human being to human being. He has disrespected me… I have not been brought up to accept that from anyone,” said Johnson.
I believe that Johnson earned Forbes respect, if not his tolerance, that day. How could he not? It was his finest moment.
The present Council President, Marty Sweeney, would not like to see Johnson coming back to City Hall. Heavy lies the crown.
Sweeney said that he and the Council would be backing Shari Cloud, a young woman who took Sabra Pierce Scott’s spot as Councilwoman. She’s a three-month rookie. Sweeney’s backing was expected. How vigorously he does works will indicate just how hard-nosed he might want to be with Johnson.
Sweeney has the choice of giving Cloud substantial financial help or waiting through the primary in September to see the lay of the land in the race. Thus, not risking alienating Johnson too much.
At this point, I think Johnson has other thoughts rather than breaking into office fighting. Nor do I believe Johnson has eyes on being Council President, though he may be unlikely to join with the Sweeney leadership crew.
Johnson’s return (along with Brian Cummins in Ward 14) could spice the Council with some progressive thinking. Some backbone, too. A serious void in this Council.
A HISTORY THAT WENT SOUR
Cleveland has suffered a lack of political leadership with a strong progressive quality for a long, long time. I’d say going back to Carl Stokes with a short visit with Dennis Kucinich.
The rise of a black political power hardly resulted in a prolonged period of activist government. The phenomenon did give rise to a more liberal period. It didn’t last long and pretty soon we had a Mayor George Voinovich and then Mayor Michael White. Both represented corporate interests. Voinovich, indeed, had competition on that score with Forbes, who had his own coterie of corporate friends.
William Nelson a political scientist at Ohio State University, in a book entitled “Cleveland: The Elevation of Black Political Power,” helped outline its demise some years ago.
“The decade of the 1970s witnessed a sharp transformation in the character and structure of Black politics in Cleveland. During the Stokes era the fundamental goal of Black politics was the redistribution of power in ways that would allow blacks to control their own destinies and share equally in the rewards of government. The return of black leadership into the Democratic party fold after Stokes’ departure changed the fundamental goal of black politics from community uplift to self-aggrandizement.”
He went on to write: “It has been replaced with a focus on individual benefits and the concentration of power in the hands of a small political elite.”
Well, that’s the situation Cleveland still finds itself. It will take a lot more than a Jeff Johnson to change it.
However, it’s time to scramble again. The town needs a shaking. Jeff, I hope you have not become too careful and too conservative for the job. You’ll need help, of course.
Anyone can see how badly Cleveland wants that jolt.