The original Gund Arena was to cost $120-million. However, it came in at $154-million. Now we are told the renewal for the same arena—now clumsily-named Rocket Mortgage Fieldhouse—is $185-million. In other words, $31-million more than the original overrun cost of the arena. That is $341-million total. Not counting interest.
It’s only money, folks. Not to worry.
Let me tell you Cleveland and Cuyahoga County people something strange. YOU ARE STILL PAYING FOR THE ORIGINAL GUND ARENA. The next payment of about $8 million due Jan. 15, 2020. Still not the end. The debt continues on for Cuyahoga County bonds.
The PD never covered this issue honestly. It was a co-conspirator cheerleader. Still is.
The arena—granted first to the Gunds—worth $3.4 billion and now by Dan Gilbert—worth $6.5 billion (Forbes rated)—has always been a public burden. Check the LOOKING BACK 1997, Vol. 30 No. 6 issue of Point Of Viəw below. It likely tells as well as one can how rapacious these billionaire owners are. A bitter taste of elite corruption. You will see how rent owed by the Gunds became debt to be collected by them.
It could not so continue.
Thus, eventually to avoid a very, very embarrassing bankruptcy of the Gateway Economic Development Corp., established to operate the baseball and basketball facilities, the team owners promised to pay Gateway’s operating expenses. In return, the teams grabbed naming rights of the facilities. We have never been allowed to know the price of naming rights.
One more thing: The Gund Arena, The Quicken Arena, The Rocket Mortgage Fieldhouse, none of them pay a penny in property taxes to the city or the Cleveland schools on the $154-million or with the added $185-million.
IT’S TAX FREE. FOREVER.
Below I’ll give you a sense of the tens of millions of dollars the Cavs, Indians and Browns take from Cleveland school children. It’s more than upsetting.
This weekend we got what passes as journalism from the PD (Propaganda Dealer).
The paper allowed Cavs CEO Len Komoroski to answer questions. No critic was consulted. No neutral voice was sought. Only the team’s most biased voice got to comment on the expanded facility.
Nor were any documents cited on the cost the public helped pay. This is shoddy stuff. Yet it follows the PD’s track record since the mid-1980s when the first try for a stadium failed.
The team owners, Dan Gilbert, gets credit for chipping in $45-million. That’s what he’s credited doing. However, no documentation. Take it on faith.
No mention either that while the PD cites the team’s 62 percent share of the renovation costs NOT A SINGLE DOCUMENT OF COST IS PROVIDED.
Nor does the PD even hint that 100 percent of any new revenue goes to—you guessed it—Gilbert and the Cavs.
From the beginning the paper of record has failed miserably to cover the Gateway Economic Development Corp., the vehicle that built and manages the two major league venues with very heavy public expense.
It has been likely a billion dollar drain on an economically ill city and county. The figures don’t include the heavy drain on the Cleveland schools.
Originally, the campaign to fund these venues PROMISED no tax abatement. Indeed, it promised in a full-page PD ad “$15 million a year for schools for our children.” (their emphasis).
Laugh or cry.
Here were other promises made but not kept:
—28,000 good-paying jobs for the jobless.
—Neighborhood housing for the homeless.
—energy assistance for the elderly.
—$33.7 million in public revenues.
Such blatant liars should at least be questioned.
Not at the PD. Not ever.
You would think that an up-to-date newspaper would provide adequate data for its voting public. Not so.
The property tax issue is a perfect example.
Mayor Michael White and County Commissioner Tim Hagan, both Democrats, lobbied successfully to excuse ALL sports facilities of the need to pay property taxes on the structures. You are supposed to pay taxes on 35 percent of assessed value.
The last time I checked was in 2015. Here were the results:
The $276-million Browns stadium would pay an annual tax of $9.6 million per year. The Cleveland schools lose $5.76 million of that amount each year.
The $176-million Progressive field would pay taxes of $6.2 million a year and the Cleveland schools would lose $3.72 million of that annually.
The $113 million Quicken Arena would pay taxes of $3.9 million a year and the Cleveland schools lose $2.4 million of that sum annually.
:
Every year! For the 15 years of operation total: Still zero.
So, the three sports facilities—all tax exempted—are valued totally at $565-million and assessed for tax purposes at $197-million (35 percent of appraised value) pay no taxes.
With the renewed Arena, er, Fieldhouse, the taxes should go up.
They remain the same: ZERO.
Click on the image below to download the entire issue of Point Of Viəw.
Click on the image above to download the entire issue of Point Of Viəw.