Today’s public hearing preceding the Cuyahoga County Commissioners' 2-to-1 vote to raise the county’s sales tax by ¼% to pay for a proposed convention center was a very stilted affair. Advocates for both sides of the decision got together at the Cleveland Public Library Stokes Wing to disagree and talk through each other.
Absent was an abundance of information about the proposed center, keeping alive strong speculation that Forest City is the front-runner to develop it with Merchandise Mart installing a Medical Mart at the estimate $400 million site (paid for in part by the $42 million a year raised by the sales tax. The sales tax hike is capped at 20 years and can be rescinded after 10 years if the center and showroom reach a certain level of success).
The PD ran a story recently that speculated the center and medical devices showroom might be built at the former Higbee’s Department Store building and in the air space above (estimated to cost tens of millions) owned by Forest City. Chris Kennedy of Merchandise Mart, Inc. presented his firm’s proposal and promised the showroom would bring in 50 medical shows a year and generate hundreds of millions in convention, lodging, construction and service jobs.
Speakers for organized labor, First Suburbs Consortium, Greater Cleveland Partnership and others spoke in favor of the sales tax.
“The opportunity for this city is unparalleled,” Business owner Ken Lancey remarked. “I say move with all speed on this. If I don’t have all the answers, I think (Kennedy’s) resume speaks volumes for someone who wants to come in and turn the city around.”
“If we can build up the value of the downtown area it will increase our property values in Cleveland,” said Charles Johnson, AFL-CIO field coordinator. “Is it a silver bullet? No. But it’s a start and I support it.”
Afterwards, Johnson elaborated that labor is anxious to build the center using any means necessary to ‘save’ Cleveland, and that the sales tax would probably get voted down by county residents because they probably won’t see the benefit.
Cleveland City Councilmen Mike Polensic, Zack Reed and Brian Cummins as well as members of the Libertarian Party, civic activists and residents worried that a sales tax hike will disproportionately hurt lower income residents (sales taxes do as it affects those who use cash and don't have as high of savings rates. Many urban areas rely on a cash economy because banks may be scarce). After the vote, they vowed to raise the 43,000 signatures it will take to put the issue on the ballot in March.
“I support this project, my concern is the finance mechanism,” said Lakewood City Councilman, a Republican. “There are other ways of funding this.”
“It’s hard enough as a county resident for me to buy gas,” said one county resident. “I dipped into my lunch budget this week to come down here and pay for parking. I won’t benefit from (the convention center). I can’t even afford to take my family to (professional) basketball or baseball games because they’re too expensive.”
But, the comments of county resident Claudette Blackman – who attended hoping it was a Q&A session where she would learn more about the details of convention center/medical mart deal – underscored the weakness of the hearing. After each comment, the commissioners were not expected nor did they respond to questions (they made closing remarks).
Dimora excoriated the councilmen for opposing the sales tax hike, adding, “medical mart wants to come here to make money and their partner, Cuyahoga County will make lots of money. When are we going to wake up and grab that brass ring?”
(Afterwards, Councilmen Reed and Cummins commented that Dimora’s attack after the comment period was out of line and wouldn't lead to any productive conversation. They add that 34% of the county’s residents are in Cleveland – a disproportionate number of lower income residents will pay the higher tax. “I was at the Cleveland Clinic yesterday talking to their CEO Toby Cosgrove about the medical mart,” Reed says. “We can do better than this.”)
In his remarks, Commissioner Peter Lawson-Jones explained he voted against the tax hike because a more equitable public-private partnership is needed. He said:
“I don’t hear anyone here who says they’re opposed to a convention center and medical mart. But, I cannot embrace the sales tax unless it’s as a last resort because it’s regressive and it adversely affects those with lower incomes, and retailers located near the borders of the county. We’ll have 1.5% higher sales tax than county’s surrounding Cuyahoga, and that puts retailers at a disadvantage.
“My proposal is make this a genuine and authentic public-private partnership. Private sources should pay for naming rights, pouring rights and pay for at least 50 percent. The commissioners have the ability to raise the hotel and bed tax right now and that could raise $5 million a year. Back in 2005 that had the support of the lodging industry. I strongly urge you to lobby our state officials to get a grant from the state capital budget. We could also put a dining out tax on the ballot that could raise $16 million annually. That would be a better nexus between the industries that would benefit directly.”
Petitions will go out next week to put the county sales tax hike on the ballot. Some 750 petitioners will be on the street and at festivals like Burning River Fest, Feast of the Assumption and the Cuyahoga County Fair to gather signatures in the next month. To learn more, log on to http://www.getitontheballot.com. A group meeting at the Inner Circle to discuss the getitontheballot campaign will take place this Friday. For more information.







put it on the ballot
Susan Miller Says:The group is called Put It on the Ballot and the website is up. Check the calendar at putitontheballot.com for a time and place to sign petitions or to volunteer.
Here's the scoop:
Tim Hagan and Jimmy Dimora have raised our sales tax by another ¼% without asking us first. That's about one million dollars per week.We want to make that decision for ourselves.
PUT IT ON THE BALLOT
planned sales tax hike unlimited
Susan Miller Says:A planned sales tax hike to help bring a Medical Mart to Cleveland would end in 20 years and could be used only to build a convention center.
TEXT OF SALES TAX AND USE TAX RESOLUTION - 20 YEAR TAX HIKE DEPOSITED INTO GENERAL FUND - NOT LIMITED TO CONVENTION CENTERIt's for the general fund... what else will this pay for?