What the Hell is ‘Economic Development’?
You have to wonder if there is any hope.
Cuyahoga County Executive Edward FitzGerald wants to divert $100 million dollars of sales tax money to something called “economic development.”
In these days of stressful shortages he’s going to give away $100 million of borrowed money? That seems foolhardy to me.
It’s damned foolish if you think about the County’s precarious financial albatross called the Ameritrust Bank Building on its ledgers. It needs every single penny it has. There is no excess in play.
He’s going to borrow the $100 million, says the Plain Dealer, and pay it off with sales tax payments of $8 million a year. Of course, that means he’ll have to pay interest on the $100 million. For how long we don’t know.
So the $100 million will cost many millions more over a long enough time. This is not a good deal. This will squander $100 million plus interest. You can bet the agenda will be strictly corporate. A Greater Cleveland Partnership slush fund, in my opinion. Disgusting.
If the County has surplus money there are better ways of spending it. In fact, saving it wouldn’t be such a bad idea either in these times. A surplus might be helpful. In a very short time.
A PD headline says that the county executive sees the sales tax move as a “change course” measure. Nothing farther from the truth. This is Hagansville all over. Give it away.
Please.
The County Executive apparently hasn’t had enough education about his job or what his county government is doing NOW for economic development. Costly.
Without the $100 million he’s talking about maybe he should inform himself of what taxpayers are now spending for economic development. Or what they call economic development.
Please FitzGerald ask yourself: What’s the payoff to the people of Cuyahoga County?
If there is need for seed money, Cleveland foundations have billions of dollars resting in their accounts. Let them use these vast resources to seed new business. The money after all comes from diverted taxes of dead rich people. It won’t hurt the dead people.
FitzGerald needs to look at what he’s already spending because of prior decisions.
As of the end of March the County has taken and given sales taxes from Cuyahoga County residents and visitors for economic development in the following manner:
- For the Browns Stadium (and its nine or 10 games contributing to our economic life): $77 million. Exactly: $77,226,968.09. As of March 2011.
- For the Medical Mart & Convention Center for the economic development of visitors: $132 million. Exactly: $132,517,603.92. That’s as of March 2011.
- Arts & Culture Tax (and we are always being told that the arts means economic development, right?) $76 million. Exactly: $76,585,569.00. As of March 2011.
- Total so far: $285 million.
By the way, the above institutions getting that $285 million pay not a penny of property taxes and that makes them all primarily on the welfare rolls of the Cleveland schools. That means you Dolan, Gilbert and Lerner. Deadbeat sports owners.
And now who will these new “economic development” gifts go to? What business people? For what purposes?
Does this mean we’ll insure more downtown restaurants, office buildings and other “economic development” that will merely puts older restaurants, office buildings and other developments out of business or crippled? That’s been the process here for five decades anyway.
Here’s what they promised in economic benefits for the Gateway tax loot, according to an ad run May 1990:
- 28,000 good-paying jobs for the jobless.
- Neighborhood housing development for the homeless.
- $15 million a year for schools for our children.
- Revenues for City and County clinics and hospitals for the sick.
- Energy assistance programs for the elderly.
They haven’t delivered a single one of these promises. In addition, Commissioner Tim Hagan and Mayor Michael White lobbied successfully for property tax exemptions to take tens millions of revenue dollars FROM the Cleveland schools. They broke their promise. Nothing unusual. To be expected.
You are already obligated to provide tens of millions more dollars from sales taxes, the most regressive we have. No need to add to the obligations.
These are corporate mouths that never get full. They always need more. They always have their hands out.
Don’t you have a staff that can tell you what you don’t know but should?
What’s your learning curve? Does it depend on what you read in the Plain Dealer?
I’m not even counting what the County’s economic development department does on its own by filtering all kinds of grants, loans and other give-always via the County, state and feds. There are already plenty of programs.
The County already has helped contribute with the city an additional $100 million plus to pay Gateway bondholders from run-overs. The bonds were let by the Commissioners. And we are still paying. And we still will be for years.
Do you not know this?
You government guys are in the business of giving away tax money and developers and “entrepreneurs” are in the business of taking as much as they can get.
It’s time not only to clean out the illegal corruption at the County, but time to deal with the legal corruption. The latter takes much more than the criminals the FBI concentrates upon.
While everyone focuses on the corruptive scandal of County Government, no one is talking about investigating the legal corruption that has been rampant in the past 20 years in Cuyahoga County.
Now Fitzgerald wants to take $100 million, plus interest, for “economic development.”
Does this mean more handouts to multi-millionaires and billionaires? Of course it does.
Who does he have in line to govern this tidy sum? Tim Hagan, Dave Abbott, Joe Roman, Dennis Eckart and Joe Marinucci?
Can’t he and we think of any other needs that County residents might have if there’s loose money hanging around?
Do you think the children of Cleveland might need some recreation facilities? Playgrounds? Safe parks? (And I don’t mean another redo of Public Square for the casino guys.) Classes of all kinds to keep kids busy and out of mischief in the summer. Health clinics. Homeless services. Real needs.
How about replacing some revenue stolen from the Cleveland children via tax give-aways?
Do you think there aren’t going to be many youngsters that could use a job this summer? Can you look around and see a few tasks that need to be done? Streets and lots to be cleaned. Graffiti removed? Elderly poor to be supported in many ways.
Why not a County Peace Corp. for hard hit areas? East Cleveland alone easily could use all that money and more.
If money is given to those who have none to perform tasks that are not now being done, doesn’t that add to the economic development of the area? Will they spend that money here or take it to London or New York City as Randy Lerner does? Are we just suckers?
Don’t the many give-aways make anyone at the Plain Dealer sick or can’t they even think in these terms? Are they so removed from what’s happening to so much of the community? The same with local television. Mostly useless garbage they call news.
The public thus remains ill-informed.
Is there a single PD columnist that can get off his or her ass and give assessments of needs in the streets? And I don’t mean from the bar or barber shop.
When are we going to get a dose of reality in this town? Probably not until there is Arab street rioting here. That’s the last time anyone seemed to pay any attention. Do we need flames to wake us up?
Quite frankly, another $100 million for something we’re going to label “economic development” makes me ill.
The government raises taxes, I thought, to deal with needs of the people, not to stuff more money in the pockets of developers, of sports “entrepreneurs,” and other hustlers.
Get real, FitzGerald.
You weren’t elected to be Businessman of the Year. You were elected to get the government to govern here.
I have a friend who says I should give FitzGerald a break. He’s doing a good job. I’ve actually said the same thing to others. I agree with the PD editorial Sunday that praised him for setting a new “structure and culture” for County government.
And I will admit that he’ll use another $8 million a year for college scholarships, childhood education and patrols to hit crime hot spots. Those are good choices. I applaud them.
But this corporate welfare is a major wrong $100 million step I see coming. It continues a “gimmie” culture that needs to end.
We need real concentration on needs not wants. We don’t need new condos, restaurants and parking garages built with public funds. Especially when they put the older ones out of business.
Let the private sector take care of itself for a while.
We’ve been pushed in the wrong direction for a long time. It doesn’t have the bang for the buck. So let’s change our ways.
Roldo Bartimole celebrates 50 years of news reporting this year. He published and wrote Point of View, a newsletter about Cleveland, for 32 years. He worked for the Plain Dealer and Wall Street Journal in the 1960s.
19 Responses to “ROLDO: What the Hell is ‘Economic Development’?”
Richard
What this town needs is another “non-profit development corporation” plum for picking. Indeed, “Cleveland is a Plum”. Just ask Joe Roman or Fred Nance about the “Best Location in the Nation” for picking.
C J Paparosa
there is not one thing in this city or county that does not revole around patronage or nepotisim it is the entitlement mentallity that what kept most of thease politicians in power and a city and county down — what can you do for me and mine ?
Eric Johnson
Well stated Roldo! ‘Trickle Down Economics’ is not effective at any level! I remember the arguments for the ‘sin’ tax for Gateway and the Browns “mistake on the lake” stadium. Where are we revenue-wise as county because of these investments?
It is time for “Filter-Up Economics” that improve access and quality of life for the Joe Average Taxpayer. Businesses has a job to produce profit at the best possible margin. Government has THE job to service the well-being of its citizenry with community responsibility and fiscal efficiency
Roldo Bartimole
Thanks for your responses.
The party goes on – Gov. Kasich giving $56 million and possibly up to $100 million to Diebold and some $93 million goint to American Greetings to remain here proves you don’t need a gun to perform robbery anymore.
These two companies enjoyed profits and rewards for years from the places where they had long been located and from their many, many workers over the many years.
But loyalty is a word that isn’t in the corporate dictionary.
Allen Freeman
I agree with your assertions wholeheartedly, Mr. Bartimole. But it’s easy to rant on a blog about this issue, and this topic maybe the most important one in the last 50 years to Cuyahoga County’s future.
So let’s get past the rant and get to the action steps.
Mr. Bartimole, how about appearing at the next County Executive press conference and significantly challenging Mr. FitzGerald directly on your points and these decisions? Make Mr. FitzGerald fully address the points questions you are asking here?
Or launch a public campaign against the idea with action steps that will show FitzGerald the great public disapproval of such a plan?
Of equal blame in Cuyahoga County politics is that many complain but few step up. Who will step up in Cuyahoga County to make noise and force action against wasteful tax-and-spend ideas like this one?
Weelll said..
GREAT writeup…FYI..Mr.B..THOUGHT…HOW many wannabe Yups,etc.ARE there…for REAL…OVERKill…SUPPOSEDLY Warehouse Dist.has a 90% occupancy rate…A ‘rough figure’…GIVE cred for creating a cohesive,clean,etc.deal…ok fine…X is happening n yet BUILDING,planning like it is Mana?! SOMEHOW the disfunctionality is…grant u get visitors,etc.etc.n so on…MEDICAL MART…MAYBE…least makes MORE ‘sense’,etc.CAN make a arguement for said…BUT CONSIDERING PAST whutever…n THAT gets into WHY or HOW can THIS chicago outfit do X or supposed to while OUR highly paid ENOUGH guyz could NOT? n SURE good ol CH,etc.dont want to hear THAT….WAY the finance thing got setup,etc. AM i..ME…being cheap..maybe..WONT lie… .25% on a HI cost HI tax item ADDS up FAST…think like a AUTO…I THINK THAT STILL GOES by were U LIVE WHICH IS *$*@*….. do NOT have THAT on a stove or a or A…..OR A….”OTHER” firms say *$*@ this n go bye bye ACROSS COUNTY line…hey….ON A X%# $s job CUTS INTO profits OR…OR fears of COUNTY C firms TRYIN to battle COUNTY U KNOW WHO I mean…..OUR version of SOuthernization of LOCAL econ……
UNIV.CIRCLE,etc.ALriight..ok…THIS econ n health (cultural engine) engine…BUT LOT of it is sooo semi nuanced,secret,esoteric,n dare I say DA*PA related THAT….Im afraid allllll gonna have is Mr.TechnoGeekSquid go in to do X w/router farm, save the day n then stop by for a bagel (n TRY n hit up the babe serving the bagel…)…hey…OCEANS of delivery trucks n janitors running around the place……n REST TRYIN TO CASH IN ON……. SOME LEARNED HARD WAY…….MAYBE gettin a LITTLE OFF topic BUT…botanical garden…FANTASTIC,etc.BUTttt….
AND it gets BACK TO A CMSD…FINALLY the STEM school thing n alllll THAT…..
Mr.Bs security…HEY…HE SHOULD be safe..HE N OTHERS JUST SAYIN in THINKING wha rest of us….
TEAMS….AMAZED MORE FOLKS DONT just say *$*@ it…WHY Gosh WHY are WE PATRONZING THESE $@* who charge US *$*@ out the tailpipe on it allll n then LOSE, trade,etc.etc. THE WHOLE THING…maybe xplains RECENT ATTEMPTS AT civic thing via a CERTAIN PLAINDEALER art n architecture writer…ME n HIM ONCE got into it…MAYBE NOT being fiar BUT HEY…..this **$@…
NATIVE populace…CAN UNDERSTAND WHY feel way do…SOME DO n ARE $**@…n have X mentality…BUUuuut….FEEL hung OUT to dry…SOME of it is the drugs n rest doin *$*2 or feel like gotta put out to WHUTEVER TO GET SOMETHING or something done n SAD commentary…THIS HIGHJACKED feeling…I DO keep seeing these comments bout REVOLUTION…hope not…CAN understand WHY got the *$*@ do….
Weelll said..
Yup or young thing…this semi fickle whutever party hearty daterapenite thing that sorta voyeaurastic whutever at LATEST greatest Scene til THAT fades n move on to….think a CERTAIN ol Eastside flats owner who FLATTENED OWN deal…had VISIONS OF ….lets see IF ifffffffffffffff E&Y survives THIS LEHMAN ordeal….FAIR chance a A.ANDERSON redux moment….I LUV how see stuff like DREAM club being *$* n shut down or ATTEMPTS at said n THAT HAS THE ACTION,$ AND PEOPLE vs…. SURE *$*@ happens..think MODA…n wha does THAT say…..
I THINK alllllllllllll these *$*@8 weirdesque overdone wannabe Yup n Yup chasin NGO nirvana stuff lastgasphope lets rally round THAT is OVERDONE….n SEEMS OTHER cities SEEM TO BEAT OUR guyz to the punch…U ReAaaaaallly have to WUNDER WERE THE H CSU n others ARE….Allllllllllllllll that ‘brainpower’,state $,etc.n its like Yeahhhh Okkk sorta whutever n check out some electronic whutever via MAGNET n life goes on…..n fling said OVER to CHINALand n wunder WHY FEW can afford ANYthing…yeah THAT pitch I am making…while waitin for………. MEDICCCCCCCCCCCCCCCCCCCaiiiidddddddddddddd!!!
Weelll said..
n sad sick part…a KASICH looks like semi sane El Hero…BARELY….MINDBOGGLING….I GUESS MASTERPLAN…when near everything abandoned,etc.run on in,scoop it up n whutever wherever….ALMOST want to egg,push Homies on to *$*@* rest of it…..SAD part…”THEY” would agree w/me…BUT not B4 peddle ‘stuff’ TO said Yups,etc. Its alllllllllllllllllllllllll fun…….
Weelll said..
MODERATION?! CAN understand lawsuit time….LET me guess…..
Weelll said..
Ok Coolcleveland…FOOD for thought…yeah callin u out..TO A POINT…THINK bout it..yeah generates some buzz…BUT FINALLY THIS tiny little whutever semi used by X while LITERALLY stepping Into,OVER,AROUND welll HEYYyyy til WHUTEVER survivors ‘left’….HOW wiggedout do u want your cornflakes..or find..SERIOUSLY…..COLLEGE thing..TO A POINT..GOT educated ALLLLLLLLLLLL over the place…ANDdddddd…..WHA if Reallly help folks out w/thier problems just hang around n all THAT….AGAIN…have to ask..SEATTLE n others doin it….GOT a GOOGLE….Wha OUR guyz n galz dont have the vision thing or what….CONFERENCE here!!! COFFEE,cake,coke…U get the idea Time….
Weelll said..
wha gonna let *$*@ unravel n KASICH,OHIO,etc.’steps in’…
Weelll said..
SAD sick part…afraid DEVELOP X, goooooo thru allll THIS *$*@* n THEN someone SWOOPS in n bye bye….OR may as wellllll….soooo gut the thing,idea,WHUTEVeerrr…
Weelll said..
WISH U THE BEST ROLDO…least ARE CARRIED..give Coolcleve CRED for THAT….SHOCKED ACTUALLY..then again A WAY to see X…AS they say takes OTHERS,strangers,etc.to see faults,good,’other’ n life goes on…..
DO appreciate arts,etc.thing….I MAY get *$*2 but least NOoooot the *$*@* F’ing SATANIC SPORTS thing..sure likes of Cleve Crunch,Gladiators,etc.MAY be thorn IN side of…maybe minor..but least DOESNT leave this *$*@*$in ones whutever…..yeahhh GLADIATORS I THINK are this farm team of sorts FOR…..STIllllll….
Roldo Bartimole
Allen, I think my confronting days are past. I don’t get
to meetings anymore. Though, if an occasion presents itself
I’ll do as you ask. Maybe in the meantime, you and some others
of like mind might do come confronting. It takes a whole city to affect
change.
Anastasia P
I think it’s not quite correct to say FitzGerald “wants” to spend $100 million on economic development. I believe it is mandated by the charter, although I’ve looked through the charter and can’t find the dollar figure. I’m sure it’s in there. So you have to look at who wrote the charter and what their intentions were. Well, despite its high dudgeon about SOME “secret meetings” that weren’t really secret at all, the Plain Dealer has never shared where when, how and by whom the charter was actually written. Is it the work of the Greater Cleveland Partnership? Given the funders of Issue 6 and the committee chairs of the transition team, I would lean toward “yes.” So you pretty much have to look at what it is the heads of companies like Eaton, RPM, and the banks want. Then you will have your answer.
Roldo Bartimole
The point is that “economic development” can be read anyway
one desires.
I read it as more legal corruption for private interests.
FitzGerald best use that money, for instance, it getting the County out
of the Ameritrust complex, investments in kids’ education and
recreation, even socking away some for the County’s future.
He can define it as he wishes and who’s to argue? It’s all for
“economic development, even if it is to bolster the County’s
bond rating.
Economic development,however, has become the province
of the downtown gang and that’s where it will mostly go.
I suspect the Browns so-called development of the lakefront
will be front and center. As the PD editorial revealed Sunday
“Oh, it”s wonderful.”
The worst part is that FitzGerald appears to want to borrow
the $100 million and pay out of sales taxes each year until
that’s paid off. So it will actually cost a whole lot more than $100 million.
I’ve been on this course before.
Seems to me that’s right up Fred Nance’s alley. He’s taken the lead on
the latest Cleveland gimmick – lakefront development, for the umpteenth
time.
Nance remains regional manager of Squire-Sanders-Dempsey-bond-counsel-firm. He’s leading on the lakefront deal as general counsel of the Browns and special consultant to Mike Holgren, Browns president. His bio say that
“Much of his practice in recent years has included high-stakes negotiations in valuable community interests.” Valuable to whom, one might ask. He, of course, headed the city’s deal
for the Browns $300-million or so deal for the football
stadium and then ends up as general counsel for the Browns. These and more facts about Nance, however, seem to slip by the adoring editorial and news coverage of the Plain Dealer and TV news.
It’s as if the media, always too accommodating to these
downtown interests, believe everything in Nance’s pr
produced bio.
Richard
I will believe in reform when they stop scapegoating Jimmy and Frank’s petty theft and start cuffing and stuffing their well known pimps.
I think it was Sam Miller who said ” All politicians are whores. That’s how you treat them. It’s what they understand.”
C J Paparosa
hey he got elected he intitled? his turn
Chuck Soder
Richard, when did Sam Miller say that? I can’t find anything online that resembles the comment.