Does Cuyahoga County really want to put more tax money into another iteration of the original Medical Mart, now the Global Center of Health Innovation?
County officials have talked about a $30 million bond issue to retrofit the building into an adjacent part of the new Convention Center, a $450-million effort financed by a non-voted sales tax increase of .25, another Tim Hagan legacy we pay. It was for 40 years. It will have 27 more years in January.
Time does fly.
So add another $30 million and you can already smell the pliable County Council extending the sales tax, the most regressive tax, in a decade or two. Likely without a public vote.
The Plain Dealer reports that Dan Brady, Cuyahoga County Council president, favors the $30 million deal. What would former City Council President George Forbes think of that. Brady, then a progressive, wanted George’s scalp for siding with the usual money guys. Now he does likewise.
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(This morning the PD reported Brady would soon retire in a month or two. Good luck, it’s not usual for old pols to step aside. Both he and Dona Brady, his wife, who voluntarily left City Council recently, are doing what is unusual for politicians, who often stay too long.)
The Convention business, of course, has been like a balloon smacked by a pandemic bullet. A deflated business. With a bleak outlook.
So why add space now?
Because they don’t know what else to do with the property.
It’s already been a huge burden financially. A white elephant that served its purpose. The purpose: To build a new convention business.
Back in the early 2000s, a deep recession brewing, the usual suspects were having a tough in selling the public on a new convention center. But they hit upon an idea.
A Medical Mart in Cleveland, home of the Cleveland Clinic. That would be a good sales pitch.
And it did work.
With the help of then Commissioner Hagan. Tim had a friend.
The old county regime hired MMPI. Hagan’s connection to the Chicago firm was a Kennedy friend – Chris Kennedy, son of Robert. MMPI got the lucrative contract. A no-bid deal. Packaged with a bow of monthly payments.
Here’s what I calculated MMPI walked away from Cleveland, according to County figures:
—$333,333 a month for 30 months or $10,000,000.
—$83,333 in “supplemental rent” for 30 months or $2,500,000.
—$12,000,000 for a “developer” agreement payment.
—$4,000,000 in construction cost reserve.
—$1,354,730 for “operational expenses” (July-October).
For a total payments through October, 2013, of $29,854,730.
Add the $3,000,000 final payment to get them out of town and you have a neat cost of $32,854,730.
Not a bad paycheck for a firm that should have never been in town. Thank you, Tim Hagan.
I wanted an assessment from someone who knows the convention business and knows Cleveland. How did he see this new deal?
So, I reached out to Heywood Sanders, interim chair, Dept. Public Administration, at the University of Texas San Antonio. Convention business is his specialty. He has a book on the subject, “Convention Centers Follies.”
Sanders wrote back in an e-mail:
“Only in Cleveland could county leaders conceive–in the midst of a global pandemic that has collapsed the worldwide convention and meetings market – of proposing to spend $30 million to refit the failed ‘Global Center for Health Innovation’ into more convention center space. With a justification by a consultant study from the firm that in 2003 told Philadelphia that an expanded center would boost convention center-related room nights 500,000 a year to 783,000 (last year it did 395,500).
You might think that having spent $465 million on a thoroughly failed “Med Mart,” repurposed as the clearly, fully flopped “Global Center” as well as the money-losing, can’t-pay-its-debt Hilton hotel, the county leadership would actually think about market realities.
But no, throwing good money (by the tens of millions) after bad (hundreds of millions) is the way the public’s business is done in Cleveland and Cuyahoga county. At least Jimmy Dimora provided some additional amusement value,” Sanders wrote.
This continues the push here by civic/corporate/political force to want resources to be directed toward downtown and other development to the detriment of the larger community, especially the part that has dire needs.
And disproportionally pays the regressive tax.
The County Council appears to be as docile as city council, willing to grant the desires of the corporate forces. We saw it in the sports development, in the latest arena $140 million bonds for a redo (despite 20,000 signatures to put it to a vote, thwarted by city council). We saw it in the secret funding against a city school measure by downtown developers.
The greed is overwhelming. The community, as we saw when church forces backed down on the arena 20,000 signature, is weaponless.
We have an election coming but I see little hope that it will bring change.
The forces—our local “evil geniuses” as exposed nationally in Kurt Anderson’s book of that name—have no shame for what they do. And no intention to do any better.
And no reason to stop.