CLEVELAND — Cuyahoga County’s sin tax on cigarettes and alcohol is meant to cover the cost of stadium repairs at Progressive Field and Rocket Mortgage Fieldhouse, where the Cleveland Guardians and Cavaliers play, but it’s coming up about $40 million short.
“The sin tax is not sustainable, and it’s running out of money,” Council member Jenny Spencer said in a committee meeting Monday. “That’s the core debate that should be happening right now.”
Now, Gateway Economic Development Corporation, the nonprofit that owns the facilities, is asking Cuyahoga County and the City of Cleveland to hand over $20 million each for needed repairs.
In a committee meeting Monday, several council members sounded off in opposition to the ask — delaying the vote to approve the funding for further review of the legislation.
Several Cleveland City Council members, including Spencer, said they’re sick of doling out millions of dollars for stadium repairs while residents struggle to meet basic needs.
“From residents perspective, it always seems that when it comes to stadium funding, money just comes out like a magic rabbit out of a hat,” she said. “It just appears magically, magically. We have $20 million in general fund available. It’s always just like a magic trick, but when it comes to other things that residents need, we don't have the money.”
Gateway reps at the table said the stadiums lease agreements suggest the city and county are responsible for funding the capital repairs, even if the sin tax doesn’t cover the cost.
Council President Blaine Griffin and Mayor Justin Bibb recently introduced legislation to allocate $20 million toward those repairs.
“We have no independent source of funding, and so, we really are reaching out to you to fulfill our obligation, and to the county, to fulfill our obligations under the leases,” GiGi Benjamin, Gateway’s board chair said.
In a statement, Tyler Sinclair, a spokesperson from the Mayor’s office said in part, “This funding is available in the City’s budget due to higher than projected interest earnings and vacancies that went unfilled across various City departments.”
“The lease says what it says,” Council President Blaine Griffin said. “I’ve actually tried very hard to try to find other strategies and alternative ways to approach this. The lease says what it says.
Several council members said the money could be better spent on resources for residents, and they raised concerns about Gateway’s ability to manage their budget, saying there should be more oversight on which repairs are approved.
At the table Monday, Gateway reps confirmed another $30 million ask is on the horizon.
Spencer said all parties need to come together to find alternative funding streams moving forward.
Because of members concerns, Griffin is holding this legislation for further review and will continue the discussion next week.
On Tuesday, Cuyahoga County will consider legislation to allocate their $20 million portion for Gateway.
In a statement, a county spokesperson said, “Cuyahoga County will allocate $20 million towards funding its obligations to Gateway using several sources. The Administration is working collaboratively with County Council, and we anticipate introducing joint legislation to address the majority of the funding at the next Council meeting. We continue to engage in discussions with the City of Cleveland and County Council about long term solutions for Gateway capital obligations.”