Posts Tagged Merchandise Mart
Political Laugh-In at Cleveland City Hall Yesterday
Posted by Roldo Bartimole in Economic Development, Politicians on May 21, 2009
Tim Hagan started the discussion saying he was “delighted to be here” and nothing could have changed his mind as four City Council legislative committees “grilled” the Commissioner with banalities.
Commissioner Jimmy Dimora stroked the Council members as he addressed “this august body,” commending them for “all the good work you do in these difficult and challenging times.” Stop guffawing.
“Public service is very difficult,” he stroked and wished them “success in their re-election bids” this year. What that had to do with the business at hand no one knows. He made another inaudible joke about “wards and wallets” as Hagan jibed, “Let me disassociate myself.” Great comedic stuff.
It was fun time, setting the tone for the “serious” discussion that never quite arrived. Any surprise?
Some members concerned themselves with just how wonderful the new facility would be. Let’s get descriptive, why don’t we. Usually, that would usually mean a “state of the art,” defined facility. However, someone came up with “platinum.” Our new convention center would be of Platinum quality.
Hagan said, “That’s where we’re at.” But let’s not be hasty.
Dimora jokingly corrected the label, “It’s silver. I’m sorry.” Hagan had earlier slipped, I thought, in linking the new facility with our hospitals as “the new GM.” GM? Isn’t it headed for bankruptcy?
Matt Zone picked up on the seemingly important platinum/silver high-level discussion. He appreciated the “silver” designation but warned that the level should be “the basement not the ceiling.” Tough stuff.
The “grilling” of the Commissioners continued.
Veteran member Jay Westbrook thanked the Commissioners “for their leadership.” He poked at The Plain Dealer for editorially admonishing the Commissioners to “hurry up” and then to not “go to fast.” He noted that all had gotten “a kick” out of the PD’s confused messaging. Humor is tried but not often achieved.
By this time, nearly an hour into the dull discussion of the $1 billion deal, Dimora noted he wanted to leave. Peter Lawson Jones hadn’t yet appeared. Dimora took his bow out, however, with more applause. How wonderful Mayor Frank Jackson and other officials involved had been. Mutual appreciation was the mode of the day.
When Lawson Jones did appear, Dimora quipped, “Everyone stand up” to salute his colleague. Dimora exited. A bit later, Hagan noted he had join Dimora, noting a bit of lack of trust to leave his colleague alone at their next meeting. Jay Leno, you’re missing some good stuff.
Jokes and laughs all around.
Veteran Mike Polensek took a turn. Polensek often plays the grouch. Now can we expect some fireworks? Nah. It’s the new Polensek. Polite and accommodating. He has just been returned from exile to the Finance Committee. He now was admiring of his leader Council President Marty Sweeney and Mayor Jackson. Nice to see people can change and be accommodating.
Polensek tossed roses to the Commissioners for their “political courage to do what you did” – that is, increased the sales tax to tap into some $400 million dollars from Cuyahoga County taxpayers’ pockets. Usually Polensek is on the other side.
Tedious quips continue in the absence of real talk. Hagan hinted at a “Polensek Park” nearby the new center. Why not pet the purring Polensek.
Hagan then left and Lawson Jones had center stage, a place he finds comforting and satisfying.
Lawson Jones said he expected to be severely cross-examined. About what? His dancing performance of the previous night, he said. More laughter.
Was there any lower to get?
I miss Fannie Lewis. Especially yesterday.
Cleveland Got Short End of Med Mart Deal
Posted by Roldo Bartimole in Economic Development, Politicians on May 8, 2009
May 7, 2009… Who got screwed on the Med Mart deal? Well, you did as taxpayer, definitely. However, so did the city despite the $20 million deal for its properties – 18.5 acres of prime downtown land.
The $20 million was hailed as a victory for Mayor Frank Jackson. I’ll bet this $20 million shot in the city’s fiscal arm will be used up in a year or two by the Jackson administration.
Perfect example. Mayor Ralph Perk sold the city’s sewer system for $32 million back in the 1970s, and used up the money in a couple of years. He did the same thing when he sold the Cleveland Transit System to its present regional system (RTA).
Mayors, always short of revenue, spend any revenue infusion quickly and often to keep patronage going. One-time infusions of money make for bad policy decisions. The money gets spent fast and usually not wisely.
Wouldn’t it have been better if Mayor Jackson insisted on a deal that kept revenue coming to the city year after year?
Why didn’t he offer to lease the property to the County? Of course, that might have cost the County Commissioner’s choice to run the new development some money.
There’s not much thinking that goes on at City Hall. It’s typical of administrations to take a quick revenue fix. That’s what the Jackson Administration did. He’ll grab the money and run. But it won’t go very far.
“I think the mayor was a tough bargainer,” Tim Hagan told Erick Trickey of Cleveland Magazine. “He did have something of value to the project: that is Public Hall.”
Only Public Hall had value? That’s laughable.
Hagan, of course, had reason to pat Jackson on the back. Hagan got what he wanted.
Hagan has been steering this disaster from the beginning. He forced the one-quarter percent increase in County sales taxes without public input or vote. (You can see past postings here that go into how stinking this deal really is and who profits from it.)
“Today, the public makes an investment in the future of this city, county and the region,” happy Hagan said at the City Hall announcement with Jackson. Of course, the region isn’t paying a penny in this some $1 billion (with interest) deal.
The PD reported: “Jackson said the transaction is a big step toward a grand regional project to capitalize on Cleveland’s global medical prominence. Once again, regional project paid for by Cuyahoga County taxpayers alone.
What else would he say? He made the deal.
The $20 million has some big holes in it for the city. As the letter of agreement by the county to the city notes the city will lose property taxes and parking meter revenue. No cost figures are given for these losses. It’s not convenient to be too open.
One big cost to the city may be its school system. It has to make the schools whole, supposedly.
The city is responsible to make the Cleveland schools whole on property taxes. In other words, the city would be responsible alone – the County has no responsibility – to make up the property tax revenue lost by the city’s schools.
This signals Hagan’s intention of providing a tax haven for MMPI, a private business.
The school system actually would lose the most revenue as it gets some 60 percent of the property taxes on private land. The County and City also lose revenue. The deal says, “The city would be responsible for making up any property tax shortfall, if any, to the City of Cleveland School District as a result of the purchase of the property from private land owners on St. Clair Avenue.”
It gets worse.
“The City agrees to support the County as it seeks tax abatement for the entire Convention Center complex before ANY PUBLIC BODY or regulatory authority, including the GENERAL ASSEMBLY of the State of Ohio (my emphasis added).
What that suggests to me is that Tim Hagan and Mayor Jackson will go to the state legislature to not only have the project tax abated but TAX EXEMPTED. It will NEVER EVER pay property taxes in that case.
Hagan and former Mayor Michael White did the exact same thing for then Jacobs Field and Gund Arena. They flew down to Columbus in a private corporate jet and lobbied successfully for a full tax exemption. Now any sport facility constructed in the state by a government entity pays no taxes. This scheme has cost the Cleveland schools tens of millions of dollars in property taxes since.
So it isn’t abatement. It’s exemption. They never pay a penny of property taxes on the buildings EVER.
This means not only the convention center but the medical mart, a private business of MMPI (Merchandise Mart Properties, Inc.), will not pay property taxes on its business operations. Thank you, generous Tim Hagan, the man who has given away more tax revenue than any politician in Cuyahoga County’s history.
Hagan, known as Tax’n Tim, is also king of tax give-aways.
I think another strange part of the agreement states, “The County urges the City to apply $2.5 million of the purchase price to the restoration of Perk Park in downtown Cleveland.” The park was developed in the early 1970s by Ralph Perk. It sits behind the Ohio Savings Building, built by the Carney family. The irony, of course, Hagan married into the Carney family, which became his political birthright in Cuyahoga County.
The deal also calls for the $20 million to provide for the city’s need to relocate employees now house in the Convention Center. They include the Dept. of Parks, Recreation and Properties, the Division of Parking Facilities, City Cable operations, its Photo Lab and the Dept. of Consumer Affairs.
How much will that cost to relocate these departments?
No price tag is put on the cost to move and house of these significant city resources that now reside in the city’s facility. They must move. The move will cost and the new digs will cost this year, next and so on.
It does say that the “cost of relocating these employees and their equipment in significant.” What it doesn’t do is give a price, which will be ongoing. The city, of course, assumes this burden.
The agreement also calls for the County or MMPI to hire “at least” 10 of the city’s full-time Convention Center employees. However, the city has 27 full-time employees so that suggests some of that $20 million might be going to pay the wages somewhere of up to 17 full-time city employees.
Again this could be an ongoing cost, not just a one-year cost.
No mention, of course, about paying these employees who now enjoy city pay scales and benefits.
The city also has a list of some 100 part-time employees at the Convention Center. Depending upon the size of the event, the city employs 20 to 30 extra people at events. No mention of what happens to them.
There is no mention of paying the city for events that are already scheduled at the Convention Center. The center has 43 schedule events for 2010, some as small at 10 but others in the 3,000 to 4,000 attendee range.
All in all, that $20 million now looks skimpy for 882,270 square feet of space (443,040 square feet at Public Auditorium and 451,130 at the current convention center, including the grand ballroom).
Anyone want to buy a bridge? See Tim Hagan.