Posts Tagged The Q
Plain Dealer Gives Free Boost to Gilbert’s Subsidized Restaurants
Posted by Roldo Bartimole in Economic Development, Media, People on October 20, 2009
October 20, 2009… Well, thank you Plain Dealer for the free publicity. Just what independent downtown restaurants needed – two new publicly-subsidized restaurants in the Quicken Arena to draw business away from other restaurants.
The Pee Dee Tuesday in a prominently displayed Metro front page applauded the opening of two new restaurants by the “Iron Chef” (Michael Symon).
The Pee Dee devoted four columns, eight inches deep with a nice headline: “Symon opens 2 restaurants at the Q,” accompanied by an attractive photo of the business and one of Symon.
“The superstars won’t all be on the court this season at The Q,” sings the Pee Dee. Zip-a-dee-doo-dah, zip-a-dee-ay. My, oh my, what a wonderful day! Plenty of sunshine headed their way.
Now we’ll have a celebrity chef on our subsidy list, too. What can be better in these dark days when so many can’t even find a job?
We – the public – paid dearly for the restaurant facilities at the Quicken Arena and now Dan Gilbert gets the benefit. So when he gets a monopoly casino, he can have more restaurants that compete with the independent downtown restaurant business.
Yes, let’s give it all to the billionaire. Doesn’t it make you feel good?
And remember, these restaurants have the luxury of not having to pay property taxes. Oh, boy. The entire Quicken Arena facilities are tax free! Tim Hagan and Mike White – flying to Columbus in a private corporate plane – got the legislature to exempt all the Q property FOREVER! What fun guys.
And isn’t this exactly what Dan Gilbert will do in the casino he can build if Issue 3 passes – build new restaurants that will attract or keep business from privately-owned restaurants throughout downtown.
Why aren’t they screaming?
Let’s shut down Cleveland street business and force everyone into the Quicken Arena, Progressive Field or Browns Field. Let everything be a sports bar.
Let me tell you again what we gave the sports franchise owners at the Quicken (formerly Gund) Arena. Sammy’s at the Arena has space for 323 guests, 63 at the bar. Didn’t matter that a Gateway board member – Denise Fugo – was given the restaurant business, requiring her, of course, to leave the board.
Here’s what taxpayers helped provide – a $1,841,380 restaurant sporting $178,750 of new furnishings and some $350,000 worth of kitchen equipment. Total bill: $2,370,134.
Remember: No burden of paying those nasty property taxes either.
No wonder Sammy’s says it serves “off-site private residences, yachts, businesses and anywhere else.” Yachts, of course.
Altogether, food concessions at the Quicken Arena cost $6,119,520.
Some of the cost at Sammy’s included 300 restaurant chairs, costing more than $100,000; bar stools at $500 each ($13,500 total); and terrazzo tables at $13,415 each. One sports bar kitchen cost $263,000.
Concession stands with grills and pizza service were well spotted on two levels, I wrote back in 1994, ranging in cost from $62,000 to $132,000 and totaling in cost $1,048,350. The Press, of course, got some special treatment with a banquet kitchen at $121,050. No wonder they’re such boosters and don’t write about the corruptive side of professional sports. Usually, right before their eyes.
Hey, nothing’s too good for our sports heroes and their owners.
The “beer room” (need it cold) cost $63,700. The automatic system for dispensing the beer cost $200,000 and to dispense soda, only $180,000.
There’s a lot more including ice cream outlets at a hefty cost of $198,000.
But when you’re having fun, what’s the difference. Especially when you don’t have to pay. The politicians – all legal, they say – provided major league service – free of charge essentially.
They’ll do the same for the Medical Mart, don’t worry.
The Pee Dee, of course, never told the public any of this. They only cheerlead, they don’t lead.
The Quicken Arena, in addition to Cavs games, has 175 special events during the year, Cleveland promoters tell us. The public, which sprung for most of the dough to build this special place, gets ZERO from the extra events, a gift to billionaires – both the Gunds and Gilbert.
That’s the way our system – free enterprise – works. Free.
By the way, if you can afford these fancy priced places in the Q, you won’t have to bother touching a Cleveland street. You can simply drive to the tax-free Gateway garage because we also provided – at great cost to the City of Cleveland – 1,700 free spaces to the sports owners in the garage for special people.
So when the Pee Dee promotes these new restaurant facilities without telling you the back story, do you think this is professional journalism at its best?
If you do, send a complimentary note to Susan Goldberg, the Pee Dee editor for her and her staff’s fine work.
How Much Money is Lost to Abatement?
Posted by Roldo Bartimole in Economic Development, Media on July 24, 2009
July 22, 2009… Civic corruption comes in many forms.
We have been hearing a lot about corruption these days. However, the focus is very narrow. Unnecessarily so.
The Plain Dealer simply ignores the corruption that makes today’s hyper Cuyahoga County sleaze activity look minor league. Even little league. We’re going to talk about multi-million dollar corruption. Nothing petty. And all legal.
The fact is that the PD actually promotes this BIG kind of corruption. It’s they’re kind of corruption. They push for it editorially. Always have; always will.
I’ll show you how it works.
We’re talking about tax abatements. You will read about a number of cases in which huge amounts of money have been given to very special people. Very special rich people.
Most of the abatements are for 20 years or are tax exempted properties, meaning they will never ever pay any taxes. These cases represent large abated properties. They are only a small number of abatements given since 1977 when the program began in Ohio.
Yet over the years they will cost HUNDREDS OF MILLIONS of lost tax dollars.
The lost revenue ordinarily would go to four levels of government. Presently, property tax revenue is shared by the following entities with the percentage of the total in parenthesis: Cleveland schools (55.13 percent rounded), Cuyahoga County (21.24 percent), City of Cleveland (15.68 percent) and Cleveland libraries (7.96 percent).
Rather than guard the public’s resources, slated for the common good, city and county officials – typically backed by The Plain Dealer’s editorials and lack of critical coverage – cater to the self-interests of Cleveland’s Establishment. Their actions have and are shameful.
‘I requested information from Joann Jackson of the County Auditor’s office about how much abatements cost us. I limited the search to a few big properties.
Here’s what I found in examining certain property tax revenue for the last two years:
BROWNS STADIUM
The amount paid to Cuyahoga County this year and last year for property taxes on the Browns Stadium: ZERO.
Browns Stadium should have paid property taxes of $8,081,230 this year and $7,973,804 last year on the physical structure alone. That’s $16,055,034 over the two most recent years. Total value of the Browns stadium, including land, is slightly more than $300 million (Market value with taxes on 35 percent of that figure.)
That is a gift of $16 million in ONLY the last two years to the billionaire Lerner family, owners and users of the Browns. (This property will NEVER pay a penny in taxes on the structure as it has been tax exempted by state law, passed under pressure of local politicians – mainly Commissioner Tim Hagan and former Mayor Michael White – and the Plain Dealer.)
I reported recently that the city also has paid $102.8 million on stadium bonds, owes $160.3 million more in payments due and has to come up with $44.55 million in capital improvements now and in future years. The State of Ohio chipped in $37 million more; RTA $3 million; City Water Dept. $2 million; Northeast Sewer District $2.24 million; and the city’s water pollution control division another $500,000. Lerner’s annual rent: $250,000 with no increase over 30 years. How hard is it to become a multi-millionaire?
Having given so much, why burden the Lerner family with having to pay property taxes. Shameful to ask that. The city, by the way, also pays the property taxes due on the land beneath the stadium. This year that bill was $452,724.
QUICKEN ARENA
The amount paid to Cuyahoga County in property taxes this year and last year for Quicken Arena: ZERO.
Quicken (formerly Gund) Arena should have paid property taxes of $3,816,609 this year and $3,765,873 last year. That’s $7,582,482 over the two most recent years. Total value of the Quicken Arena, including land, is slightly more than $50 million.
This is a gift of some $7.5 million to the billionaire Dan Gilbert, Cavs owner. (This property also will NEVER pay taxes on the structure because of the actions of Hagan and White in passing legislation to EXEMPT forever all new stadia and arenas in Ohio.)
Citizens of Cuyahoga County built the arena for some $157 million but Gilbert controls it. Having given him the arena, why should we even suggest that he pay property taxes. Let’s not get greedy, citizens.
PROGRESSIVE FIELD & GATEWAY GARAGE
The amount paid to Cuyahoga County in property taxes this year and last year for Progressive Field: ZERO.
Progressive Field (formerly Jacobs Field) should have paid property taxes of $4,882,764 this year and $4,817,856 last year. That’s $9,700,620 over the two most recent years. Total value of the baseball stadium, including land, is slightly more than $69 million. (This property will NEVER pay taxes on the structure because state legislation pushed by Hagan, White and the Plain Dealer was passed to EXEMPT all new sports facilities in Ohio FOREVER.)
The amount paid to Cuyahoga County in property taxes this year and last year for the Gateway Garage: ZERO.
The Gateway Garage, built by the City of Cleveland for the new sports facilities should have paid taxes of $652,963 this year and $644,283 last year. That’s near $1.3 million. The value of the garage is $10.5 million.
This is a gift of some $11 million to the billionaire Dolan family, owners of the Cleveland Indians.
Cuyahoga County citizens paid most of the some $180 million for the stadium but the Dolan family controls it. Why bother to ask them to pay property taxes? It might be seen as pushy.
We also note that the citizens of Cleveland alone built two parking facilities, one tax abated, at a cost of more than $40 million.
Are you seeing a pattern here?
KEY CENTER, MARRIOTT HOTEL & GARAGE
The amount of property taxes paid to Cuyahoga County on Key Center, Cleveland’s tallest office building: ZERO
Key Center, built by multi-millionaire Dick Jacobs, should have paid $5,399,922.84 this year and $5,328,139 last year. That’s more than $10.7 million. Total value of the 57-story Key Center building, including land, is $72.4 million. (This property, in addition to $10 million, zero interest loan, was given a 20-year tax abatement, 100 percent tax abatement by Mayor George Voinovich and Council President George Forbes.)
This was a gift given by Voinovich and Forbes in 1988. Jacobs was yet to get a stadium built for him. The new stadium gave him an advantage to sell it to the Dolans for a pricy $320 million.
Oh, there’s more that Dick got.
The Marriott Hotel, attached to Key Center, should have paid $1,123,027 last year and $1,208,098 the previous year. That’s slightly more than $2.3 million. Total value of the 25-story Marriott Hotel, including land, is $15,594,500. (This property, in addition to another $7.9-million, zero interest loan, was provided a 20-year, 100 percent tax abatement by Voinovich and Forbes.)
As if that were not enough, Voinovich and Forbes gave Jacobs the ability to build a parking garage beneath the city’s Mall A, which is located in front of the Marriott Hotel. It’s called Memorial Park Garage.
Memorial Park Garage should have paid property taxes of $230,835 this year and $227,767 in property taxes last year. That’s some $457,000. Total value of the parking garage under Mall A is $5.2 million. (Voinovich and Forbes cancelled a contract with a top bidder to deliver the parking garage contract to Jacobs for 65 years. Jacobs hired Forbes’ favorite parking lot operator for the facility; Voinovich’s old law firm, Calfee & Halter, made $443,000 (paid by Jacobs) representing the city in the law suit resulting from the city’s action to give the deal to Jacobs. Jacobs offered to increase parking places from 600 to 1,200 but it was cut to 900 in the final plan. Revenue payments also were reduced down under the Jacobs plan.)
Forbes and Voinovich didn’t stop there. They were even more eager to fill Jacobs’s pockets.
The two – Voinovich and Forbes – offered the same sweet deal as Key Center to Jacobs for the west side of Public Square. It was to be another office building and hotel. You may notice that the west side of Public Square – which in 1989 had working office buildings that Jacobs then knocked down – remains a parking lot. Has been a parking lot since the early 1990s.
Further, other downtown buildings, damaged as tenants moved to Key Center, sought and got tax reductions. Squire, Sanders & Dempsey, for example, moved into Key Center from the Huntington Building. The law firm wrote the state legislation for tax abatement in the 1970s. (As an example, Jacobs’s E. 9th corner, left vacant for years. He was rescued, however, by the County Commissioners, who bought the complex of buildings for new County offices. It remains vacant, of course.)
The absurdity of these abatements hasn’t penetrated the minds of politicians or editors, however.
WYNDHAM HOTEL
The amount paid in property taxes on the luxury Wyndham Hotel for this year and last year: ZERO.
The Wyndham Hotel, built public subsidy upon public subsidy, should have paid property taxes of $339,500 this year and $334,987 last year. That’s some $674,000 over the two most recent years. Total value for tax purposes of the 200-plus luxury hotel at Playhouse Square is $4.7 million, including land. That’s very low.-
The luxury Wyndham was soaked with government subsidies in addition to the tax abatement, including a $5.5 million zero interest loan; a low interest state loan of $4 million; a tax incremental financing deal worth several million dollars over 20 years; the city helped purchase part of the land for $2 million then invest $1.5 million to improve the site and sold it to Playhouse Square Foundation for less than $1 million. The subsidies came to some $136,000 per room. “Credit” this rotten deal to Mayor White and then Council President Jay Westbrook.
RITZ-CARLTON HOTEL
The amount paid in property taxes this year and last year for the luxury Ritz-Carlton: ZERO.
The Ritz-Carlton, a luxury hotel at Tower City, should have paid a total of $1,718,020 for this year and the last year on four parcels tax abated for Sam Miller interests. The market value of the properties is $31.1 million.
This amounts to a generous gift of $1.7 million to the multi-millionaire Miller. The hotel piggybacked on the Marriott for an abatement. The city also gave a $7.9 million, zero interest loan for the 207-room hotel built into Tower City. Why not help a multi-millionaire if you can?
That covers only nine tax abatement projects in Cleveland. There are many, many more. Admittedly, these are among the largest.
In any case, the total cost of these abatements for ONLY TWO YEARS totals some $48 million in lost tax revenue. Two years remember. Tax revenue sliced away from Cuyahoga County’s tax collections. Taxes that you – if you are a property tax payer in Cuyahoga County (or even a renter for that matter) – have to make up.
You won’t see this on the front page of The Plain Dealer. They avoid such information as if it were the plague. Indeed, the paper and its editors will fight to keep the public from being informed about this issue. In future, I’ll try to show how they have done this and flesh out the issue of abatements.
There someday will be more buildings built in downtown Cleveland. The issue of tax abatement will arise again. So I hope you will print out this information and keep it handy.
Of course, developers today are getting tax abatements on new housing development, especially in downtown Cleveland. It helps to offer a tax abatement to buyers. You can get a better price if you tell a prospect that they will be saving thousands of dollars by not paying taxes.
The wealthy love NOT PAYING TAXES. It’s a major ingredient of wealth. Believe it.