PART TWO
YOU CAN READ PART ONE HERE
The Cleveland corporate/legal/philanthropic establishment survived—not well—the terrible urban renewal mistakes it made and forced upon the city.
It survived the urban violence it so feared too.
Others paid the price.
But it still had another problem: Dennis Kucinich.
However, Kucinich made it easy for the Corporates to steamroller him quickly into the 1980s. It elected Republican George Voinovich.
There was nothing in the way now.
Well, maybe one thing that was beginning to grow. It could be a problem.
Neighborhood community activists. Demanding attention to neighborhood problems.
At the close of 1979, “the community organizing movement in Cleveland was an established, flourishing force in the city’s neighborhoods,” wrote Randy Cunningham, a long-time West Side activist. The book—Democratizing Cleveland: The Rise and Fall of Community Organizing in Cleveland, Ohio 1975-1985—is detail rich.
It tells the rise—then fall—of the movement.
A key event that allowed the corporate/foundation complex to choke back the activism of the period came in 1982.
“We hit the CEO’s country club… and funding died immediately. I mean it was the beginning of the end of organizing. The money just dried up,” one activist told CSU student Jordan Yin, now a professor at Alabama A&M, urban affairs.
Cunningham tells the Gates Mills Hunt Club Country Club episode in rich detail. The idea was to confront Alton Whitehouse of Standard Oil and ask for $1 billion. Whitehouse had also been a Squire-Sanders lawyer.
“Located in exclusive Gates Mills, the Hunt Club was one of the most prominent social institutions of Cleveland’s elite,” wrote Cunningham.
He sets the scene:
Those poor people just didn’t know what was going on. There they were sitting having lunch, totally decked out, with tablecloths and crystal. People were saying, ‘Excuse me, I’m thirsty. Do you mind if I drink out of your water glass?
Shouting between the two segments broke out.
“The hunt club had never before seen so many African-Americans… It was so clear who had it and who didn’t, when you went there,” one demonstrator was quoted saying.
The unplanned trip to Gates Mills included local and national neighborhood activist.
Cunningham writes:
What occurred when the 600 demonstrators (not all Clevelanders) landed at the Hunt Club was not just a political event. It was a collision of worlds that barely recognized each other’s existence, and that never came into contact… The veranda was full of well dressed diners while on the grounds, members in English riding outfits were rending their mounts, gathering for the afternoon’s equestrian events.
One activist said, “You do not embarrass the rich among their rich peers.”
One of the buses on the trip had TV cameras.
The result, seemingly all concluded, was the loss of funding from private sources, including Cleveland’s major foundations.
The corporate/legal-complex that took over city government in the late 1970s and destroyed neighborhood organizing soon after set the stage for an assault on local government.
They now owned the future.
They gangbanged public treasury for all kinds of heavy subsidies—tax abatements and the regressive taxes for three sports facilities that now totals over $1 billion easily, a Rock & Roll Hall of Fame via local taxes and diverted property taxes.
It was a long list.
In the late 1970s Squire-Sanders lawyers wrote a tax abatement law that became state legislation.
Then, of course, Squire-Sanders represented National City Bank in its successful quest for a first tax abatement. It was on land at E.9th and Euclid Ave. The bank build a new office structure with 20-year abatement on a declining scale of 25 percent each five years.
It was the first abatement of an avalanche of similar deals, typically increasing to 20-year, 100 percent property tax-free deals.
When I asked the County to provide the total amount of tax abated land of deals more than $1 million each, in 2016, it reported abatements of $722,339,500.
The Squire-Sanders law obviously took off.
It was only the start of an avalanche of sweet corporate deals.
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With Voinovich at the helm and the powerful City Council President George Forbes steering legislation through Council, there was little to stop the corporate agenda.
Cleveland became the nation’s most impoverished city. It became the city with the highest child poverty rate and high early birth deaths particularly in the black community. And it was losing population.
In the backrooms, more subsidies were being cooked up.
In the mid-70s a domed stadium was sought but a property tax got kicked aside by the voters. The Corporates had been acquiring land (to be used later as Gateway).It set the stage for the next stadium tax – not until Mayor Michael White was elected mayor.
County moderate income voters successfully choose a sales tax on cigarettes, liquor, beer and wine. City low income voters nixed the vote but by not enough to offset the suburban vote.
It set the stage for the biggest subsidy ever that ended with two sports facilities – a baseball stadium and basketball arena. The Gateway Economic Development Corp. became it’s manager as a quasi-public body.
But it left Browns owner Art Modell very unhappy and resulted in the loss of the Cleveland Browns to Baltimore.
White worked the NFL to promise the return of a team with the Browns name and colors.
But that required a third stadium—First Energy stadium on the lakefront.
In all the cost became enormous.
White and County Commissioner Tim Hagan pushed the deal with promises never kept.
In a full-page ad just before the May the stadium promoters made significant promises.
The ad headlined boldly: WHO WINS WITH ISSUE 2?” It placed a sign, “WE ALL DO” above a photo of many children.
It promised:
• 25,000 good-paying jobs for the jobless
• Neighborhood housing for the homeless
• $15 million a year for school for our children
• Revenues for City And County clinics and hospital for the sick
• Energy assistance programs for the elderly
Despite the italicized ending the promises were obviously lies.
They didn’t end there. This was an all-out sham.
It went on: NO PROPERTY TAX • NO SALES TAX • NO INCOME TAX • NO TAX ABATEMENT.
Of course the only “no property tax” was for the sports facilities and team owners themselves. And the no “tax abatement” became full tax abatement as a state law to give ‘full tax exemption.’
For Cleveland schools, promised $15 million a year, the cost has been in the hundreds of millions of dollars. It would mean more than $300 million for the schools.
They got zilch.
This vote signaled a life-time of massive subsidies to three sports teams, all owned by billionaire families.
The Indians and Cavaliers have been playing since 1994. Between them they have escaped some $10 million a year in property taxes. That’s 27 years or $270 million in free property taxes. The Browns have been back 22 years, at close to $10 million property tax (2017 figure) that’s some $220 million.
The millions a year promised and the tens of million of property taxes not paid total some $790 million in lost revenue, most of it from Cleveland schools.
Soon you were talking money. Promised. But somehow disappeared.
Then there were the costs.
The first 10 years of the sin tax (by the way, a sales tax) cost $240 million.
But as you can see by this older chart there are so many other subsidies that it is difficult to tell how much we taxpayers are giving the billionaires.
And then along came billionaire Al Lerner who took the football team from Modell.
Of course, we had to build another stadium. I wrote that the city “barked” the football stadium, and they did.
I wrote how the Plain Dealer pandered to the desires of the wealthy class of Cleveland. They couldn’t bow lower.
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Here are some of the taxes and gifts for the new tax exempt Browns stadium:
• EXTENDED SIN TAX: $110,682,300 (COLLECTED AS OF MARCH 2013)
• STATE OF OHIO: $37,050,000
• RTA CONTRIBUTION: $3,000,000
• CITY – WATER DIVISION: $2,000,000
• Northeast SEWER DISTRICT: $2,246,760
• TAX EXEMPT COST: $240,000,000 (About $8 million annual 30 years)
• FREE USE OF CITY LAND—2017 VALUE: $19,000,000.
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The Established Corporates were not done.
And then they wanted the Rock Hall so Cleveland could ROCK.
But it took hard cash, not rocks.
ROCK & ROLL HALL OF FAME SUBSIDIES:
• $92,000,000, constructed on free city land.
• $8,500,000 for Inner Harbor by State of Ohio costs.
• Cost supported by TIF of properties at Tower City—ongoing.
• Supported by 1.5% Cuyahoga County Bed Tax—ongoing.
• Supported by 3% surcharge on city admissions tax—ongoing,
• $5,000,000 from Cuyahoga County.
• $8,000,000 from State of Ohio.
How the admission and bed taxes will contribute during the pandemic shortfalls might mean other sources have been tapped.
And don’t forget the biggest theft of public funding.
Finally, they wanted transport to these activities.
For Gateway, the city built two (money-losing) garages. RTA built a walkway from Terminal Tower at $13 million.
But they also wanted transport to the Browns field and Rock Hall. This one really hurt.
RTA was forced to totally finance the near useless Waterfront Line to connect to the Rock Hall from Tower City. RTA had to pay the full $69-million. Why? Because Dick Pogue (Jones-Day) and the boys couldn’t wait for the necessary federal environmental studies. IT WAS FULL SPEED AHEAD. It was only public transit money. And who uses public transit? Not the Dick Pogues of the world.
NOW COMES THE PLINTH
It truly never stops.
Here come the Browns-owning Haslams offering to play do-gooders, taking the rest of the lakefront property, if their plan works.
Mayor Mike White, desiring as did the NFL, a quick answer to the return of the Browns, simply chose to build—on city land—on the lakefront.
The biggest opponent of that placement: Eddie Rybka, former councilman.
Now Eddie Rybka, chief of regional development, seems to want to give the rest of the downtown waterfront to the Browns. Bad move, Eddie.
BUT here we go again.
Being played by the money men.
They’re talking about a couple of hundred million dollars. NO. NO. NO.
It will be at least a half billion and maybe lots more.
For what?
So Haslam and a few others can profit from a publicly-financed development that will open waterfront property to development—housing, retail, restaurants and whatever can be tax abated.
The money-go-round continues.
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James Aronson, a New York journalist and a founder of the National Guardian, called Roldo Bartimole’s Point Of Viəw, “perhaps the sharpest critique of the media—and the city it serves—being published anywhere,” in his 1972 book, Deadline for the Media. In 1991, Roldo was awarded the Joe Callaway Award for Civic Courage by the Shafeek Nader Trust.