While Mayor Jane Campbell quickly responded to the alarming news that Cleveland now rates No. 1 in the nation in poverty, the gears of government and corporate power are busy seeking again a way to finance publicly a new convention center.
The attention of Cleveland politicians and private power interests for the last two decades has been centered not on subsidizing people with severe economic needs, but owners of sports teams, hotel, restaurant and other downtown demands.
The result was the historic Plain Dealer headline: “Cleveland No. 1 in big-city poverty.”
In the past year or two, a convention center and funding of the arts has taken the attention of public and private officials more than the growing needs of low-income residents now a significantly growing population. It’s nothing new. George Zeller, of the Greater Cleveland Economic Opportunities agency, in his annual Poverty Reports documented and reminded us repeatedly for years of Cleveland’s staggering poverty statistics.
Yet, the leadership in the last decade or so – headed by former Mayor Michael White, Cleveland’s second black mayor, and returning County Commissioner-elect Tim Hagan, liberal hero – has dedicated its public duties to the private needs of Wealth.
Someone noted to me recently that Tom Johnson, Cleveland’s progressive mayor, was born 150 years ago this year. I have not noticed a celebration of the man who fought Privilege in the city where leaders now serve Privilege on bended knees.
There is no will to fight poverty in the nation and there is no real will to do so here. The pressure of strife and riots, which spurred some concern for those suffering in our society in the 1960s, was quelled. Thus, the needs of the disadvantaged have been stricken from the priority list of public and private officials for many years. The poor suffer in relative silence.
Unfortunately, the only thing that seems to divert our attention from our incapacitating, self-absorption is violence. We see that in the reaction to the terrorist attacks of 9/11. We saw that in the riots of the 1960s.
Nevertheless, the time bomb still ticks. “(The number of black men in prison) is actually a social catastrophe right now. And, no one seems to be paying attention to it. Many of the politicians turn away from it. Because to give it any attention gives the impression that they're soft on crime," stated Salim Mawakkil, a senior editor of In These Times out of Chicago, in a conversation to Bill Moyers on his show last Friday.
Moyers in his public TV show revealed some startling statistics. In 1950 there were some 252,000 Americans imprisoned. By 2002, there were 2-million incarcerated and 6.6 million if you count parole, jail and prisons. Watching the show, he had stats up quickly that showed, as best I can remember, 84,000 blacks in jail in 1954 and more than 800,000 now. Those are devastating statistics.
As in the rest of the society, these problems have been left to fester here in Cleveland.
Some can rate Cleveland a major league city in baseball, basketball and football because of its new facilities. At the same, Cleveland has become a basket case as a community.
The Census data show Cleveland tops the list with most overall poverty, 31.3 percent and tops of the list with children in poverty at 46.9 percent, leaving Newark, N J., in an enviable position for them of not being the worst in the nation. Cleveland now has the dishonor.
Cleveland faces the dilemma of losing not only major-league status as a city, but also being a national symbol of has-been cities.
Gateway chairman Bill Reidy, the Establishment’s new fix-it and go-to man, has been holding meetings as boss of a new convention facilities authority to determine whether the city needs a new convention center. Really, his job is to provide a palatable story, and we do need it.
Since the County Commissioners just gave some $400,000, added to the $50,000 toward his new study group, which means that in their minds, this must be the biggest city problem.
Reidy, as head of the authority, tried to indicate to me that he was neutral on the subject, and that his only task was to find out if a convention center was truly necessary.
That’s pure bullshit. The skids merely need to be greased in a way that spending $600 million of scarce tax money to subsidize more downtown hotels and other businesses can be made appetizing enough to the paying public.
Reidy made his remarks following an infrequent Gateway Economic Development Corp. board meeting last week.
Reidy, a favorite of Mayor Campbell and the County Commissioners, retired from PriceWaterhouseCoopers a couple of years ago. He has become a private figure who gets high marks for competency. He’s also a former finance director of the City of Cleveland under George Voinovich.
Gateway voted last week to refinance two bond issues for Jacobs Stadium. One set of bonds will enable savings of $3.5 million via lower interest rates.
The catch is that Gateway – heavily and mostly paid for by the public – will not get the savings. In fact, a second savings of $800,000 will go to the Indians, said a consultant, by lowering the payments made from luxury loges and seating, part of the team’s portion of paying for Jacobs Field’s construction.
The savings by refinancing, by rights, should go to Cuyahoga County. A County official said that the County is owed some $80 to $90 million that excess sin taxes funds are supposed to help pay.
The $3.5-million will be used for the new scoreboard at the Stadium. In other words, it will be a further subsidization of the stadium renters – Larry Dolan and family. This subsidy comes despite the original announcement by the Indians and Dolan that the team itself would pay to replace the fancy new scoreboard at its expense.
Some promises are just for public consumption. Who checks back?
At the same time, figures released on the latest cost of Gateway via the sin tax (other tax revenue finances the stadium and arena) has hit the $225 million mark. Smokers, who cannot in the stadium, have contributed $76 million; drinkers (alcohol beer, wine and mixed drinks) have contributed nearly $150 million.
Of course, Gateway pays no property taxes on either the Jake or Gund. I asked Reidy, the public servant, whether Gateway would pay at least the amount of increase on the facilities should the new school tax levy pass. “We don’t have the money,” he said.
Well, you just gave it away.
The $225-million in sin taxes over 14 years now also could have gone into other consumer spending rather than line the pockets of Dick Jacobs, Larry Dolan and the Lerner family, all very, very rich people. (As the original sin tax sunset nears next year, remember it was extended 10 years to pay for Browns Stadium. So we will be paying for 25 years.)
To be fair, Reidy and Gateway did make a deal with the two teams to save Gateway from bankruptcy, a situation that would have been embarrassing to both the teams and Gateway. The baseball team now pays some $l.79 million a year and the basketball team owners, the Gund brothers, pay some $1.1 million a year. That essentially covers Gateway’s operating budget. However, the Indians no longer pay any rent, formerly based on attendance, and are looking for a 10-year extension of its lease as part of the deal. Gateway pays to maintain and operate the facilities. The Gunds never have paid any rent for Gund Arena.
The present three County Commissioners – Tim McCormack, Peter Lawson Jones and Jimmy Dimora – are being led around by the nose by those interests that want a new convention center. Read: the business community and Sam Miller and the Ratner family. The latter need a boost for their sinking Avenue at Tower City, a failing retail venture.
Hagan already has been talking out of that other side – corporate - of his mouth about the need for new convention facilities.
Another mark of Cleveland politics shows up in the selection of legal counsel for the Gateway bond refinancing. The law firm, Climaco, Leftkowitz, Peca, Wilcox and Garofoli, represents Gateway as disclosure counsel. The firm helped write the atrocious lease that has given both teams free reign for years. The firm, Hagan-buddies, has taken well more than $1-million in fees from Gateway.
In addition, George Forbes’ law firm represents Gateway as underwriter and placement agent counsel. I asked Reidy how Forbes was chosen. He hemmed, hawed, and said, “I can’t tell you.” He referred the question to Tim Offtermatt, Managing Director of A. G. Edwards, the bond underwriter.
Offtermatt said Forbes was chosen by “informal consultation with city and county officials,” but that he had made the choice. Oh yeah, we’re sure the commissioners and Mayor Campbell – both with members on the five-member Gateway board – simply allowed Offtermatt to choose at random.
The truth is that Forbes, kept out of the public patronage line by White for 12 years, is now significantly back in line under Mayor Jane Campbell. She’s thrown other bond business his way.
Campbell didn’t really need to know, but the same Census material that revealed Cleveland to be saturated with poverty also noted that the white population of Cleveland now stands at 41 percent, a significant minority. Blacks make up 54 percent of the population.
Forbes would be a significant ally for Campbell in the mayoral election next year. Any black candidate should know that Forbes has his hooks in Campbell, and thus some dependence upon her re-election. That’s where George’s friendship could come in handy if a black runs against Campbell.
Cleveland’s leadership must come to the realization that the city is no longer a major American city, and bring its community desires into balance with its resource capacity. Time to think small and take care of those who live here.
from Cool Cleveland contributor Roldo Bartimole
mailto Roldo@Adelphia.net
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