IT’S JUST THE SAME OLD STORY, A PAYMENT
FOR BURDENSOME MONEY-SPONGE Q ARENA

January 30th, 2018

While there’s hoopla over the start of the expansion of Quicken Arena you may not have noticed that we’re still paying for Gund Arena.

They are both the same facility, if you remember.

Cuyahoga County—pushed by Tim Hagan, Mary Boyle, Jim Petro & Mike White—put on the tab back in the 1990s.

On Jan. 15, as the County has done since 1994,sent a check for $8,774,760 to bondholders to continue to pay for bonds financing the arena overruns back in the 1990s.

The payments continue until 2024 and then Cuyahoga County residents will BEGIN to pay on new bonds let by Cuyahoga County: $35-million; $35-million and $70-million. This is for the $140.9-million expansion for Dan “Detroit” Gilbert, also known as the Chiseler.

The County paid $2.3 million of the $8.7-million this monty. Some $6.3 plus million came from the city admission tax, depriving Cleveland residents of this funding source, and the rest from the bed tax.

Cleveland loves to give its revenue to billionaires.

What the hell, Mayor Frank Jackson’s city has money to burn. Why not give it to a billionaire instead.

Some may remember that the arena was to cost $75-million. It originally cost $157-million to build.

The chart below gives the sad story of the legacy of Hagan, Boyle, Petro and White year by year since 1992.

With the payment this year of $8.7 million, the total extra payments for Gund-Quicken Arena totals $173,563,459. That’s $173 MILLION! It costs a lot to be a big leaguer.

That’s $173 million—or more than double what the arena was supposed to cost—and payments have to be made for years to come.

But that’s just the start because the new bond payments of Armond Budish, Jackson and County and Cleveland Council on another $140-million in borrowings will start after 2024. This $140-million is for the expansion, which really is to give Gilbert more revenue-producing space.

You’ll notice that the County did the borrowing, not Gilbert. You know who pays the interest, right? You, the county taxpayer..

The chart of annual bond payments via Cuyahoga County follows:

YEARPAYMENTYEARPAYMENT
1992$1,569,3772005$4,958,754
1993$5,546,4062006$5,734,149
1994No Payment2007$6,344,939
1995$7,700,0002008$2,533,992
1996$8,500,0002009$3,691,943
1997$7,010,0002010$2,493,427
1998$8,250,0002011$2,925,316
1999$7,850,0002012$5,091,820
2000$7,400,002013$6,250,000
2001$8,500,0002014$9,212,937
2002$7,600,0002015$8,898,896
2003$5,978,1192016$9,936,536
2004$6,167,8492017$8,774,760

By Roldo Bartimole…

4 Responses to “IT’S JUST THE SAME OLD STORY, A PAYMENT
FOR BURDENSOME MONEY-SPONGE Q ARENA”

  1. Jeff Hess says:

    Roldo,

    Why are some years—such as 1995, 1996 and 2013—round figures, while others—like 2003, 2008and 2016—are what looks to be precise figures?

    I’m always suspicious of any payment with lots of zeros.

    Jeff

  2. I don’t really know.

    These are the figures given to me by the county
    over the years.

    I wish that the PD ran these figures. They did one year when I alerted them to it but never followed up.

    It’s still not too late for the PD to convey what should be valuable public information.

    It’s especially bothersome since the paper has spent so much time gripping about not being able to get the Amazon data.

  3. Todd says:

    Don’t know if you saw this: Jackson-Aligned Super Pac Raised $325,000 For Late Ad Blitz.

    Jackson raised $325,000 from the likes of Ratner, Haslam, etc. During the last month of his campaign (PAC money)

  4. Todd: Thanks for commenting.

    Isn’t that a list of Cleveland’s ruling and ruining class.

    The criminal action by Cleveland’s elite in squashing the 22,000 signatures shows they will stop at nothing to have their way.

    It’s an elite mafia that has gained almost total power in Cleveland.

    Forest City is leaving Cleveland but will never erase the stench left behind.

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