BEING GAMED OVER AND OVER AGAIN

December 19th, 2016

Sometimes it pays to go back and take a historical look at the machinations of our civic and political leaders. Our gobbling cabal.

We now are being asked to come up with some couple of hundred million dollars to doll up the Quicken Arena for multi-millionaire LeBron James to show us his incredible talent and Dan Gilbert, his, which is taking public money to put in his own pocket.

We will be raiding the city’s admission taxes, which could go for some really important unmet needs in a city with high poverty, declining population, housing stock destruction, and, of course, a new income tax release.

We will also be taking tens of millions of dollars of bed taxes that could be used to do many, many other things.

Why don’t people get angry? You tell me.

This is nothing new. The sin tax keeps rolling in. As of the end of November Cuyahoga County taxpayers have contributed to our sports world $5.9 million for alcohol; $3.6 million in beer purchases; $2.08 million in cigarette consumption and $1.2 million for wine and mixed drink purchases. In total in November paid taxes of $12.8 million. It leaves, according to a Cuyahoga County document, $16.9 million in the sin tax account.

It has already been hundreds of millions of dollars paid by County residents.

However, Mr. Gilbert—supported by Fred Nance, Joe Roman, Tim Offtermatt, Mayor Frank Jackson, and County Executive Armond Budish—needs to tap another money bucket for his arena needs.

Not from my bulging pocket, says Gilbert.

It bothers me that there isn’t a single institution, a church group, a citizens group, a league of women or men voters that will say, “Hey wait a minute,” why are we tapping another source of public money for private business. Where are our public reps—city or county council— to say, “No.”

Why this incredible socialism for only those who don’t need it.

So just to help pound home the message (I wish I were preaching to a congregation or something larger) I repeat the following article.

It shows that when we need to tap a source of public money for our most wealthy, there is always another pocket to pick, another governmental body to bless it.

And we forget, of course, we’ve already paid these bills from other city sources. We have always been able to find a pocket to pick.

So here is an old article that serves to prove what I am saying is true.

You have to look back to see forward. We forget too soon.

From my archives, 7 January 2009, CRY FOR CLEVELAND OR HAVE I ASKED THAT BEFORE?

In the 1990s, Cleveland had a rather highly educated City Council. I can’t remember the number but the percentage of lawyers among the 21 members was high.

Cleveland also had an intelligent, crafty and feisty Mayor in Michael White.

Today, City Council appears—with a few exceptions—to be inept and even farcical. Mayor Frank Jackson may be steady but one wouldn’t call him artful or exciting.

Does it make any difference?

Here is an example where it definitely didn’t. The city and its citizens have been paying dearly for it ever since despite the best and the brightest at city hall at the time.

I asked the city recently to provide me with payments by the city for two garages the city built during the White Administration for Gateway.

The documents they sent me detailed the costs of the garages to the city since September 1996 through September 2008. Each September and each March, the debt service figures are totaled of payments made.

The cost since 1996: $30 million. All City money.

The city has had to raid its “parking meter collections” and its “parking garages/lots collections”—money that could go into the general fund to pay for police, fire or any other city service—to pay debt on the Gateway garages.

This (money from parking revenue) was a disgraceful method of insuring that the bondholders would be secure.

There was a reason to be highly skeptical that the garage parking revenue would ever be enough to pay the bondholders.

Why? Simple. County Commissioner Tim Hagan and Mayor White, leaders in the subsidy train to Gateway, gave away so many parking spaces in the garage to Dick Jacobs and the Gund brothers. Garage revenue could never pay off the debt.

In order to meet the debt the city—not the teams, not the owners, not a private developer—HAD to build the two garages.

I go back to the days of the Cleveland Edition for my memory of how many parking spots our leaders gave the team owners to utilize free of charge. The two owners got 250 parking spaces each free every single day for their private use—game or no game on those days. Jacobs also got 1,250 parking spaces for each home game or 82 times a year. The Gunds—Gordon and George—got 1,450 spaces for each of 42 games. The free spaces go to premium and loge ticket holders. (These special fans never have to set foot on a Cleveland street.)

No private developer would build if a significant portion had to be free. So White—who admitted that a private developer “would lose money”—came to the rescue, as I wrote, “with City Council as his posse.”

Finance director at the time, Steve Strnisha—also a Gateway board member at the time—sold the deal for White, He promised Council—always eager to have a leaf to hide behind—that the garages would be “a good investment on the part of the city.” Some investment.

Strnisha, who later went to work for Cleveland Tomorrow—now the Greater Cleveland Partnership,—told Council, “The fact is that if these garages are not built… Gateway will not occur.” (Not unless Jacobs and the Gunds were forced to pay their own way.)

REMEMBER this when it comes time for either the city or the county to add money for the garage or garages for the medical mart and convention center. Plans for the new convention center include only 925 parking spaces, far too low for its needs.

So good, the Gateway garages poor financial performance has eaten into the city’s coffers for $30 million. This financial drain will continue for years to come.

Now, the Gateway scheme for paying for the garages had to be legislated.

In fact—presumably to make it more palatable—Mayor White had to add a third garage. The city hall’s Willard Parking garage—it was said—needed to be replaced as it was dangerously decaying. Why not bundle the three garages in one bond issue? So convenient.

So a third city garage was used as an excuse really to build two more at a total cost of some $73 million. This doesn’t include interest. One study at the time said that the Willard—built as a city contribution to urban renewal was attached to the 1916-built Cleveland City Hall—could actually be rehabilitated for $12-million. The Willard was built during the Ralph Perk administration, which puts it in the mid-1970s. The garage was less than 20 years old.

This was the deal that the late Fannie Lewis claimed, “This ties up the city like you tie up a hog.” She couldn’t have been more correct.

Lewis was likely the least formally educated member of that above-average Council but wisest as to the best interests of her constituents.

Finally, excuse me for laughing: Gateway was given $3.1 million by the city to coordinate construction of the garages for the city.

Can you cry for Cleveland? Or have I asked that too often?

By Roldo Bartimole…

4 Responses to “BEING GAMED OVER AND OVER AGAIN”

  1. Gail Long says:

    Again it is greed over people. Where is the County Administration when it comes to issuing bonds to update their own hospital – MetroHealth?

  2. Gail: You know from experience better than most why, because those that have get and those that haven’t pay. And the County Council and the City Council and the two leaders (Budish & Jackson) are putty in the hands of the Greater Cleveland Partnership and the 80 or so corporate/legal members want what they want.

  3. Michael Fiala says:

    There is never an excuse for the lack of leadership. (And that means to call me out!)

    Consider: The Neighborhood Leadership Development Program
    … ‘a connection for community change’ http://www.nldpcleveland.com/whoweare.php

    It’s now led by Mike White, the former mayor.
    Now a friend of mine joined this program, despite my misgivings. When I heard the former mayor was leading the charge, I recommended that he ask the program to teach him how to read & interpret the city budget. Why? Because the answer to many city issues are: ‘follow the money’. Neighborhoods and its leaders often scrounge for money and it’s because the city has given away the keys to our revenue sources.
    It’s insidious.

    Quite awhile ago, my friends and i did street theatre to oppose the first Browns stadium creation deal in the mid 1990s. We had a skit; w me as ‘Mayor Wit’, w street title, “Our Stadium,’ ripping on ‘Our Town.’ The word, at the time, was there was no other opposition to the city’s deal.

    Deliver me from the neo-liberals, with their gentler, kinder socialism for the rich, capitalism for the poor.

    In 1877, after the mass strikes (with some being violent), the city of Cleveland was afraid. It led to creating ‘scientific charity’ as the ‘soft’ side of the hammer for the marginal worker while the hard-side would be Gray’s armory for the city militia to shoot strikers in the street. (Thank you, Dan Kerr, for that bit of history.) That ‘soft side’ also has its propaganda: cater to the poor, but never call out your ‘benefactors.’ Not surprising.

    The Catholic nuns used to beg on the streets of downtown for money. It was bothersome to the business district, appearances, … so they created Catholic Charities, institutional charity.

    Consumer capitalism and its festival, XMAS/Saturnalia, runs from Buy-Nothing-Day, aka Black Friday, the day after Thanksgiving to the Super Bowl. Bread & Circuses for the masses. Distraction, distraction, distraction.

    The churches have been bought off. By definition, they are tax-exempt. And afraid. At least, almost all.
    Chief Wahoo opposition has a following, but not Stadia funding opposition.

    Well, ‘not one stone will be left upon another’ when the hammer falls in the not-too-long that’s coming for this city. Water-refugees, global warming, international crises will make the great lakes a mecca for the world. And Cle(a)veland un-prepared for the civic challenge.

    Thanks, Roldo, for reminding us of the cataclysm of the present & past. And the need for a mass uprising, with the ability not only to get power to pay attention, but to coalesce for use of that power for bringing some justice.
    m

  4. Satinder P S Puri says:

    YES TO GO CAVS, BUT NO TO CORPORATE WELFARE: An Imaginary Conversation with a regular Clevelander!

    Hey Bro, can you spare a dime for Dan Gilbert?

    Who?

    Dan Gilbert! He is the owner of the Cleveland Cavaliers — affectionately know as the Cavs.

    Really!

    Well, he is super-rich with assets of $5 billion that is five followed by nine zeroes just in case you did’nt know.

    Huh!

    The Cavs were the 2016 NBA Champions.

    They were!

    Now Mr. Gilbert has a big payroll for these basketball players who earn big bucks.

    How big?

    The current annual payroll for 2016 is over $130 million — $130,497,470 to be exact. Lebron James, for example, earns over $30 million per year — $30,963,450 to be exact.

    Oh, my!

    The Cavs play in the Quicken Loans Arena — also known as the Q — it is located downtown.

    Never been there.

    The Q was built in 1994. It is only 22-years old. The Republicans held their national convention in July.

    Make America Great Again!

    Mr. Gilbert wants to upgrade the Q. Says it will cost $140 million. Wants taxpayers in Cuyahoga County to share the cost 50/50 meaning folks like you and me will have to somehow come up with $70 million.

    And our elected officials County Executive Budish and Mayor Jackson in a county with loads of existing debt ($1 billion) and high poverty rates (37% in Cleveland) — are cooking up schemes taking money from here and there and bending over backwards to help a billionaire.

    Mr. Budish has stated that the Cavs are very good for the county’s economy.

    Mr. Budish, however, forgot to state that while downtown Cleveland is a pocket of prosperity, none of the prosperity downtown being experienced by the 14,000 residents is trickling down to the rest of Clevelanders. With billions invested downtown the poverty rate in the 10-year period (2001-2010) climbed from 31 to 37% for adults. For children, the latest rate is over 50%.

    And, if they are not successful in coming up with the $70 million Mr. Gilbert may take his team and move to some other city.

    What say you?

    FUHGEDDABOUTDIT!

    Also, Mr. Gilbert has promised, if the taxpayers give him the $70 million he needs, Cleveland will not only host an NBA All-Star game — he will give away 15,000 free tickets, every year, to attend events at the Q including 10,000 for basketball games.

    Bro, may be you will get a free ticket to the Q a.k.a. Clevelands Living Room.

    GO CAVS!

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