Cleveland will throw a $20 million lifeline to Gateway Economic Development Corp. to pay for repairs at Rocket Mortgage FieldHouse and Progressive Field.
With three votes in opposition and 13 in favor Monday night, council approved the plan proposed by Gateway and Mayor Justin Bibb’s administration.
That money would help Gateway, the nonprofit that owns the stadiums and approves repairs, cover $40 million in mounting repair costs at the ballpark and arena. Cuyahoga County Council is considering paying the other half of the bill.
The money would take pressure off of Gateway for now, but it wouldn’t solve the long-term problem of paying for the home of the Guardians and Cavaliers. Repair costs have outpaced Gateway’s usual source of funds, Cuyahoga County’s sin tax on alcohol and cigarettes.
The Bibb administration is considering creating a special district around the stadiums called a “new community authority,” mayoral advisor Emily Collins told council members. The district would charge a fee to be determined later on participating businesses to help Gateway pay for repairs.
Council President Blaine Griffin said he had been talking with Cuyahoga County Executive Chris Ronayne about increasing the sin tax, which was extended another 20 years in 2014. The move would require a change in state law and a countywide vote.
Cleveland moving money around to pay Gateway
Several council members resisted the $20 million ask last week, and Griffin postponed a vote until after the Thanksgiving holiday. On Monday, representatives from Bibb’s administration said they would swap money from other projects in an effort to lighten the hit to the general fund, which covers basic city services.
The city would take $10 million from other bond-funded projects that do not currently need the cash, officials said. According to a list that the administration provided to council members, those projects are:
- $7.5 million for a new SWAT headquarters
- $2 million for firefighter turnout gear
- $300,000 for a Cuyahoga River boat dock to be used by firefighters
- $120,000 for the North Marginal bike path near Burke Lakefront Airport
- $80,000 for safety improvements on Warren Road
Another $5 million would come from a minority business credit program funded with American Rescue Plan Act dollars. The swap wouldn’t delay those projects, and the administration would find other money to backfill them, officials said.
That would leave $5 million to come directly from the city’s year-end general fund surplus for the stadiums.
“Basically we’re borrowing money from ourself,” Griffin said in explanation.
Council added an amendment requiring the Bibb administration to report back in April on how it would refund the projects.
Three council members – Michael Polensek, Brian Kazy and Jenny Spencer – voted against elements of the $20 million proposal. Ward 12’s Rebecca Maurer recused herself, telling council staff she was doing so because a family member worked at the arena.
Polensek said the teams “have got to pay more” for repairs and for neighborhoods experiencing a “continuing malaise.”
“We can boast that we are a major league city, that we have baseball, football and basketball,” he said. “But what we have is minor league neighborhoods and minor league city facilities and minor league services.”
Spencer said she didn’t support bringing the legislation for a vote now but could possibly support it later after solidifying a long-term funding plan.
“I just don’t think that I want to be the one here today that keeps kicking the can on this important conversation,” she said.
