Are we dealing in plain old political trickery or something
a lot more sinister?
There should be a Federal
grand jury to examine just how the Cuyahoga County
Commissioners came to buy the decaying Ameritrust Bank block
(Euclid Avenue, East 9th Street and Prospect Avenue) from
Dick Jacobs for a new central administrative headquarters,
then decided the effort was beyond the County’s financial
means, and finally turned it over to a single bidder who now
wants to borrow from the County about half its bid price of
some $35 million.
That’s the long way of
saying something stinks real bad here.
The bid by K&D Group from
the beginning struck me as a backroom deal made with at
least two County Commissioners – Tim Hagan and Jimmy Dimora
– to help them save face on a smelly deal that could have
significant financial damage to Cuyahoga County and its
taxpayers.
The K&D
bid – $500 over the minimum sought by the County – always
had the taint of a bid to cover the embarrassment of Hagan
and Dimora bailing out
Jacobs,
a favored downtown developer. The properties had been
left empty and abandoned for more than a decade by Jacobs.
K&D, proposing other developments in the area, would
naturally be seeking favor with the Commissioners, a fount
of public subsidies and favors. Thus the bid that
appears a counterfeit.
We have a
real problem in this overwhelmingly Democratic-controlled
County. There is no competition among local politicians to
serve as a countervailing force to the well-ensconced Hagan
and Dimora.
So they do
as they please and laugh at us.
The County
thus does favors for too many interests with little or no
public examination.
Certainly,
the local press, led by The Plain Dealer, offers very
meager scrutiny of county government’s operations.
Both
Democratic incumbent Commissioners – Hagan and Peter Lawson
Jones (who offers some public responsibility) – on the March
4th primary ballot are running unopposed for re-election.
In fact, only two of nine County Democratic office-holders
have opposition, Treasurer Jim Rokakis because some people
don’t like his independence and put a name in opposition,
and Recorder Patrick O’Malley, opposed by Nelson Cintron, a
former ally upset by O’Malley’s role in the recent Cleveland
City Council recall vote.
Crain’s
Cleveland Business quotes Hagan saying of the K&D $15
million request, it “needs to make a compelling argument”
for him to agree to the loan. Oh, gee, you think?
The K&D
bid, as phony as it always seemed to me, kicked the
commissioners’ decision beyond the primary date, saving
Hagan and Dimora, who both favored the offer, embarrassment.
Now, a prolonged discussion of the loan could get the County
past the general election and possibly into next year
without resolution.
Maybe by
then the sleepy citizenry – helped by the drowsy Pee Dee –
will forget all about the financial fiasco created by Hagan
and Dimora to bail out Jacobs with taxpayer money.
What is it
going to take to wake up the public? I guess if the
foreclosure and bank financial crunch gets as bad as some
believe it will, we will be the first County to default or
go bankrupt.
As
citizens, we will have deserved it for our lethargic
approach to citizenship.
Cuyahoga County Disaster Number Two
Is
Squire-Sanders attorney Fred Nance negotiation with
Merchandise Mart Properties (MMP) or for Merchandise
Mart? I can’t tell.
MMP wants
total control of the city’s proposed new convention center
along with a medical mart.
Here’s
Nance in the Pee Dee...
“They (MMP) want to do everything
from soup to nuts - build it, lease it out, manage the
development.”
Nothing
said about paying for it, however.
They keep
calling it a “public-private partnership.” Unfortunately, I
know what that means, the “public” pays and the “private”
takes. It’s not public-private partnership. It’s
a shell game and we all should know in whose pocket the
peanut ends.
What the
public needs to know is where MMP’s money is and who will
carry the losses, surely to come. So far, we see no
MMP investment and we know exactly where the burden will lie
– with the public sector.
This is
another Cuyahoga County Commissioner Tim Hagan special,
taking the public right down Sucker’s Lane.
Exaggeration Easily Taken
Memo to
Plain Dealer reporter Steve Litt... You may have
overlooked the fact that a couple living on Wade Park Avenue
had the kitchen modernized in 2001 for $14,500. Please
add that investment to the $4.3 billion count that resulted
from – as you wrote in a Sunday piece Feb. 10th – RTA’s
Euclid Avenue Corridor project.
I have to
admire Litt for trying to lift the spirits of Clevelanders
every so often with claims of vast development based on
questionable accounting.
The last
time he claimed such progress was from Gateway.
Litt
usually doesn’t mention the public costs of these projects.
In his
front-page Sunday piece, Litt went far afield to come up
with his $4.3 billion of investment, much of which would
have taken place without the Euclid
Corridor project.
I find it
a bit amusing that the RTA project, which should have most
to do with public transit, especially in a city plagued by
poverty, now is hailed mostly as a development tool.
Indeed,
once we see the completion of the $200 million public
transit project we very well could see a transit plan which
inconveniences more of the transit-dependent customers than
it helps.
Most of
the investment – such as hospital and non-profit expansion
in and around University Circle – would have taken place
whether or not there was a new Euclid Avenue transit system.
Indeed, the transit system – via buses – will be much like
the present system – a bus along the main street.
A
letter-to-the-editor by Bernard Scheidler said it as well as
I could. In part, Scheidler wrote...
“I believe it is erroneous to say
that $1.3 billion in Cleveland Clinic projects were a
result of the Euclid Avenue protect. The same goes
for the $183 million Stokes Cleveland VA Medical Center
and the $258 million Cleveland Museum of Art projects.
How can the Plain Dealer say that the $36.4 million John
Hay High School came about as a result of the Euclid
Avenue project?”
Litt waits
until near the end of his long, two full-page piece to quote
a public official with a view that casts doubt on the Litt
thesis.
In the
second to last paragraph (the last is used to cast doubt on
the previous paragraph) Litt finally allows a short breath
of caution, quoting County Treasurer Jim Rokakis.
Rokakis notes that this “rebirth” would, as Litt summarizes,
“have only limited impact on the city as a whole.”
Rokakis also notes that much of the development is
tax-exempt.
Indeed,
Litt almost totally ignores the very substantial public
subsidies and tax abatements given even to the profit-making
aspects of the developments.
Also
ignored is the fact that Tower City, the terminus or launch
of the Euclid Corridor’s trajectory, has been sinking with
the loss of retail outlets.
A question
that remains in my mind is whether Cleveland can afford all
the institutional venues – art museum, Severance Hall, et al
– plus the hospital outlets and the sports facilities, all
of which pay no property taxes. The jobs, particularly
at the hospitals, do help significantly but the financial
weight upon city services and lack of revenue make the value
problematic.
With all
the talk about regionalism, one thought presents itself.
Why don’t
surrounding counties – Lake, Geauga, Mentor, Lorain and
Summit – help pay the burden that essentially lies, not
simply on Cuyahoga County, but on the City of Cleveland
where most of these non-taxing entities exist?
Certainly as the population has spread, many people from
these outlying counties enjoy the benefits without paying
the costs.