The Guardians, Cavaliers and Gateway Economic Development Corp. are asking Cleveland and Cuyahoga County to split $40 million in repair costs for Progressive Field and Rocket Mortgage FieldHouse.
But officials from the teams, Gateway and Mayor Justin Bibb’s administration received a cold response when they broached the topic at a Monday afternoon caucus meeting with Cleveland City Council.
Cleveland’s share of the money would come from the general fund, which covers basic services. The city can afford to pay the $20 million thanks to numerous unfilled vacancies, Finance Director Jim Hartley said.
Council members vented about prioritizing stadiums when they had neighborhood needs to meet. Some asked what would happen if the city cut Gateway off, leaving the nonprofit without a way to pay what it owes for the stadiums.
“You come to us at a time when we are flush with cash because we are not hiring enough,” Ward 12 Council Member Rebecca Maurer said. “And you know who those people we are not hiring (are)? They are police officers.”
Gateway owns the ballpark and arena and, under the leases with the teams, is obligated to pay for capital repairs. Bibb and Cuyahoga County Executive Chris Ronayne appoint members to Gateway’s board.
There’s a reason this $40 million bill is landing Bibb’s and Ronayne’s desks: The countywide sin tax on cigarettes and alcohol isn’t raising enough money to cover ongoing repairs at the ballpark and arena.
That reality has hung over the city and county for nearly a year and a half. In May of 2023, the two facilities’ nonprofit landlord signed off on $24.4 million in arena repairs, even as the then-chairperson warned there wasn’t money to pay for them. The Cavaliers have fronted the money with the expectation that taxpayers would eventually reimburse the team.
Council members made their frustrations known throughout the meeting. Michael Polensek, who represents Ward 8, waved a box of M&Ms and lamented that concessions were too expensive for his residents. He pointed out that Cleveland was now one of the country’s poorest cities. Ward 16’s Brian Kazy walked out of the meeting before it was over.
Ward 7 Council Member Stephanie Howse-Jones said council could have helped Gateway if officials had asked for assistance sooner.
“We lost a year,” she said. “It is not fair and it’s just flat out irresponsible. Flat-out irresponsible. In order to move Cleveland forward we have to work together. We have to work together. Stop playing the people of Cleveland like they’re dumb.”
Maurer pointed out that the possibility of costs exceeding sin tax revenues had been raised as early as 2019.
What if Gateway doesn’t have the money for stadium repairs?
The teams’ leases require Gateway to pay for capital repairs even if the sin tax is insufficient to cover them. If the city and county refused to give the nonprofit money, it would default on its obligations, Gateway attorney Scott Simkins told council members. What happens after that is legally complicated, but it could lead to the City of Cleveland becoming the owner of Progressive Field, he said.
Neither Bibb’s nor Ronayne’s administrations have introduced legislation authorizing the payments to Gateway. A spokesperson for Ronayne indicated that the county’s share of the request would come to County Council soon.
“We are continuing to work collaboratively with County Council to address capital obligations related to Gateway,” county press secretary Jennifer Ciaccia wrote in an email. “No decisions have been made at this time, but we anticipate introducing legislation soon.”
The countywide sin tax has covered downtown stadium costs for more than three decades. It was first passed in 1990 to pay construction expenses at Jacobs Field and the Gund Arena. In 2014, voters renewed the tax for another 20 years to pay for repairs at the ballpark, arena and Browns stadium.
Officials acknowledged to council members that the city and county needed a longer term revenue source for capital repairs, but didn’t lay one out on Monday.
