CLEVELAND, Ohio — Opponents of a plan to spend millions of tax dollars to expand and upgrade Quicken Loans Arena are uninformed, two Cuyahoga County officials say.
Members of Greater Cleveland Congregations, a non-partisan coalition which represents 100,000 people across 43 congregations and partner organizations in Cuyahoga County, has been the primary opponent of the renovation proposal, which would cost the city, county and Destination Cleveland about $160 million. The group demands that the public invest the same amount in health, human and social services.
“It becomes very clear that after listening to our friends, who we like and who we agree with, that they have very little understanding of what the county presently does and how it spends its money,” Council President Dan Brady said at the end a Feb. 14 council meeting, after nearly all of the 200 people who attended to oppose and support the project had left.
“And so I guess part of our job will be to try to educate people in this community as we go through this process about what the county has done and what this county continues to do for the people in this county outside of this part the particular project,” Brady said.
The county budget allocates $230 million annually on health and human services, paid for by two dedicated property taxes.
The $368 million general fund budget this year also includes $3 million for workforce programs, $8 million to demolish blighted buildings and several million in economic development loans.
“Projected over 18 years, the county will spend billions of dollars, many times the amount demanded by the GCC,” county Executive Armond Budish said in a statement in January when the GCC announced its concerns. “And that doesn’t even include the monies to be spent by the city of Cleveland. We as a county recognize the importance of taking care of those in need and helping people get on a career path out of poverty. We are already investing more than ever in health, human and social services. And we will continue those efforts.”
GCC lead organizer James Pearlstein and board member Pastor Richard Gibson of Elizabeth Baptist Church, said Monday that more city and county support is needed to provide services to communities. They said they are tired of seeing millions being spent by the city and county on downtown development.
They are proposing a meeting with Cavs owner Dan Gilbert, to persuade him to provide $35 million to a new Community Equity Fund, which would support two new mental health centers, job training and capital investments in neighborhoods.
The GCC proposes adding a tax on food, beverages and merchandise bought at the Q to keep the fund solvent. Pearlstein and Gibson don’t have specifics but said the fund would be overseen by a community-based board working in partnership with a foundation.
Pearlstein and Gibson said they have spoken to other community group leaders.
“I do believe there is significant interest in the community but also some fear of taking a position against county and city government and the business community,” Gibson said. “Part of our role is to be the voice and to provide the public pressure for those who for whatever reason feel the need to be silent.”
County Council’s committee-of-the-whole begins deliberations Tuesday on legislation to sell $140 million in bonds to renovate the arena.
If approved, the plan, which involves no new taxes, will cost a total of $282 million over 17 years, with loan interest and creation of a rainy day fund.
Here’s how the bill breaks down:
- The Cavs will pay $122 million for the renovations through increased rent payments.
- Cleveland will provide more than $88 million, using its admissions tax on tickets to Q events from the years 2024 through 2034.
- More than $44 million will come from the budget of Destination Cleveland, which will give up a piece of the county bed tax it receives.
- The county will provide $16 million, by dipping into the reserve fund it set up for the convention center and Hilton Cleveland Downtown, both of which are complete.
The Feb. 14 council meeting drew the largest crowd since council was formed six years ago.
“I wish that a lot of our friends had been able to or would have attended some time the dozens and dozens and dozens of council meetings that have taken place over the last six years to get some kind of a sense for how much this county does about the very issues that they are concerned about,” Brady said as the meeting concluded.
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