The Observation Deck

June 27, 2007

Dear Members of Council,

Our region’s lack of economic prosperity is well known. Recently, the Cuyahoga County Commissioners introduced a worthwhile proposal that can help to work toward revitalizing our local economy. The construction of a Medical Mart and an accompanying convention center would allow our region to capitalize on the assets of our local medical industry. I believe that we should support such a proposal.

The commissioners intend to fund this venture by increasing the sales tax from 7.5% to 7.75%, generating an estimated $42 million annually. Roughly half of these funds would go to pay for the construction of a new convention center; the remainder would be placed in the county’s general fund. While this type of finance mechanism might be considered usual and appropriate in other environments, it is a fatally flawed plan for Cleveland and Cuyahoga County.

According to the U.S. Census Bureau, The City of Cleveland is the poorest major city in America. While we do not represent Clevelanders, recent data reflects that poverty is also rising within our own city. The sales tax hike that has been proposed will have a disproportionate affect on those in poverty within our city and the entire county. It will be detrimental to place an additional financial burden on our working poor and those receiving public assistance in our communities. Additionally, our own local businesses and retail will experience the economic downfall of increasing this tax, causing us to move further down the economic spiral. This tax is not only financially wrong, but is morally wrong.

The part of this proposal that is particularly inappropriate is the circumvention of the voter. Elected officials including Parma Mayor Dean DePiero and Westlake Mayor Dennis Clough have expressed this sentiment. I think it is important for this council to join them in acknowledging the merit of the project and urging the commissioners to place this tax on the ballot. I do not believe that bypassing voters is the way to build support for public projects of this nature.

I ask you to join me this evening in supporting the attached resolution urging the Cuyahoga County Commissioners to advance this project, reconsider the funding mechanism, and place the proposal on the ballot to gain public support.

Sincerely,


Ryan Patrick Demro

Ryan Patrick Demro wrote: Roughly half of these funds would go to pay for the construction of a new convention center; the remainder would be placed in the county’s general fund. While this type of finance mechanism might be considered usual and appropriate in other environments, it is a fatally flawed plan for Cleveland and Cuyahoga

I agree.

The most disheartening part of this scheme is the transfer of $400 million dollars of this tax increase to build a new County administration building. The commissioners are cleverly using a sensible plan for a medical mart to blackmail the community into financing new office space for Tim Hagan and his sidekick Jimmy.

Quick!! On a scale of one to ten where would you rate the need for a new County administrative building?

The economic environment is so competitive that contracts are won or lost on a difference of pennies on a dollar. Companies that leave Cuyahoga County can save 4% or more on their total costs. I wonder why they leave?

Our commissioners and other local politicians are oblivious to the true cause of our economic decline. We have some of the highest taxes in the country and some of the worst job creation statistics. Anyone see a pattern?

Don't look for any opposition to this scheme from local political leaders. They all have their hand in the cookie jar. The word is out: "Support this or no more cookies for you!"

I *gulp* agree with Bill. It's one thing to raise taxes to pay for a project that will provide a good return on the investment. But to callously raise taxes for the Breuer building boondoggle is the utmost in disregard for the taxpaying public. Hagan in particular has in the past shown economic responsibility when it comes to public money. Who cares how much it costs? We can just raise taxes to pay for it!

Last night City Council voted by silence to support the unvoted increase in the sales tax that the Cuyahoga County Commissioners intend to impose on residents this summer.

The move will raise taxes on items from 7.5 to 7.75%, the highest in the State of Ohio.

Ryan Patrick Demro wrote:Last night City Council voted by silence to support the unvoted increase in the sales tax that the Cuyahoga County Commissioners intend to impose on residents this summer.

The move will raise taxes on items from 7.5 to 7.75%, the highest in the State of Ohio.

Don't be too hard on them. Behind the scenes threats and intimidation keep the well oiled machine running. The system works well for the machine.

The people who proclaim that a new convention center would be great for tourism are the same ones who suggest that casinos could save local schools.

It's the typical government solution... all our troubles will dissapear if we just throw a little more money at the problem.

for reference...

http://findarticles.com/p/articles/mi_m ... 13159/pg_1

Bret Callentine wrote:The people who proclaim that a new convention center would be great for tourism are the same ones who suggest that casinos could save local schools.

The sales tax increase is like a slow motion train wreck. You can see every disturbing detail but are powerless to stop it.

The commissioners want a new County administration building
They will spend $60 million dollars on the purchase and tear down of the old Ameritrust Building and have nothing to show for their time and money except an empty lot. They won't even have a hole in the ground, that will cost extra. The cost of the building? Over a half a billion dollars.

How to fund this boondoggle? Tie the building of the new administrative building to the creation of a medical mart which is also tied to the building of a new convention center.

The irony of the whole train wreck is that the medical mart is the one big idea that might actually have some positive affect on the area's economy. It would be a first step in synergizing our medical infrastructure at the Clinic and our technological infrastructure at Case and Cleveland State.

What do we know for sure?

There is no need for a new County Administrative Building.

That building convention centers offer no net economic benefit to a community.

That the Medical Mart can be built without a new convention center.

That the new level of taxation will have a further depressing affect on the areas economic health.

And.... None of that matters. The County will get it's new building, Forest City will get its new convention center, and the few remaining citizens in Cuyahoga County will get the shaft.

Last night City Council voted not to send a resolution to the County Commissioners asking them to explore finance mechanisms other than a sales tax increase to fund a convention center and Medical Mart.

Antonio NO
Butler NO
Demro YES
Dever NO
FitzGerald ABSENT
Madigan NO
Seelie NO

Bret Callentine wrote:The people who proclaim that a new convention center would be great for tourism are the same ones who suggest that casinos could save local schools.

It's the typical government solution... all our troubles will dissapear if we just throw a little more money at the problem.

for reference...

http://findarticles.com/p/articles/mi_m ... 13159/pg_1

At least with a casino, it becomes a voluntary tax

I fail to see how this big project is going to pick Cleveland up by the boos-straps and kick it into shape. There have been many other projects that claim just that and look what happened.

Gund Arena, Jacob’s Field, The Rock Hall, and the Science Center. We all know what happened with that. Cleveland is still sliding into a big slump and a larger sales tax is only going to make thing worse for the people who have to scrape pennies to but food for their baby’s.

This Medical Mart is just another cop-out in a long string of running scared tactics. That City has been mismanaged by thugs, crooks, and cronies alike. If they truly want to help the city and its residents the need to start from the ground up. I have seen the “Silver Bulletâ€Â￾ fall just short of the target too many times to count on this “Medical Martâ€Â￾

P.S. I hope that is not the real name!

Jim

But it's not even the "Medical Mart".......this is a tax to pay for a new County office building AND a convention center. Even if you buy into the economic development theory of a Medical Mart, it seems like a new reason to do what none of the voters would approve (build a convention center). To make it even more objectionable, add in the County office building. It would be cheaper to buy the largly vacant BP building and lease out the half you won't be using then it will be to tear down the Ameritrust tower and build a shiny new boondoggle.....

Jeff

Quick Thought of the Day…


Take 400 mil and rebuild the schools, hire quality teachers, and provide strong willed non perverted security guards. What happens next you ask? People will see that Cleveland cares about its future and not just the quickest way to make a few more rich people. Then they will come back.

I would think the best thing to do would be to find a way to get this tax on the ballot.

While I don't like governance by referendum, sometimes it is necessary.

Imposing a higher sales tax with no tax payer representation is, to put it nicely, high-handed. Voters are some of those little details that the commissioners don't want to deal with. Because voters will tell them they don't want to underwrite the three projects.

The sales tax is already burdensome enough that people who can pay for the gas to shop in Avon Lake or Avon will do so, particularly for expensive items.

I heard a man on WCPN talk about how important it is to get a business plan for the region together and show the world that we can be world class.

I'd be surprised to find out that some of the world-class leaders in the medical equipment business couldn't form a group and fund a medical mart privately. But why would they want to do this when they can get nickels and dimes from the pockets of the people of the poorest city in the United States?

As much as I love Forest City developing in Lakewood, I don't love Forest City wanting the nickels and dimes from the pockets of the people of the poorest city in the United States for the convention center they want to build.

I agree with Bill as well. Raising taxes (when they're already high enough) is not the best way of going about this.

Good column in PD

http://www.cleveland.com/news/plaindeal ... xml&coll=2

Beyond what is said here, it would be nice if they also mentioned that in addition to the "Medical Mart" this tax will also pay for the new county building. Who knows where the leftover funds will go. Any ideas?

Jeff