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Jan
8
The Plain Dealer published an editorial today that urges exposure and completion of Merchandise Mart Properties Inc.’s plans for a medical mart in Cleveland within the 60 day deadline set by the County Commissioners. The editorial uses quotes from commissioner Tim Hagan to indicate that at least Hagan if not all three commissioners are on the same page.
That’s well and good. However, the editorial’s conclusion is lacking. Here’s what they wrote:
Now that they’ve issued an ultimatum, the commissioners must be ready to make good on it and pull the plug on working with MMPI if a deal isn’t in place within two months.
Here’s what they missed:
What is going to be done with the $15 million in taxpayer money already collected as a result of a tax increase the taxpayers never approved? Maybe I’ve just missed that part of whatever the commissioners have said already. I’m happy to be reminded of whatever I’ve missed or forgotten. I recall that the money wasn’t going into any special fund but rather the general revenue.
If the 60 days passes and there’s nothing sufficient (to whomever determines what that means), then what?
P.S. The Plain Dealer should be transparent and disclose what conversations, dealings and role, if any, Publisher Terry Egger, who is also on the board of the Cleveland Clinic – a locale in the environs of one of Merchandise Mart’s preferred sites for the med mart – has had and is having as the negotiations continue. It would be hard to argue that the PD has a specific interest in the location, specifically, but nevertheless, Egger’s level of participation should be transparent.
By Jill Miller Zimon at 9:17 am January 8th, 2008 in Business, Cleveland+, Economy, Media, Ohio, Politics
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11 Responses to “What happens to $15M in taxes collected if there’s no Med Mart deal in 60 days?”
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What is going to be done with the $15 million in taxpayer money already collected as a result of a tax increase the taxpayers never approved?
My guess: it will be (or already has been) spent. You’ll remember (here) that the General Fund was running a major deficit last year.
BTW, the Cuyahoga County 2007 Midyear Report (here), referenced indirectly through my last post, has something interesting to say on page Sec3:4.
Talking about the $400 million of identified capital projects (including a county administration building, excluding a convention center), the report says: “The statutory debt limitations will limit the use of General Obligation bonds and require the use of other means of debt financing once that limit is surpassed.” As far as I can tell, the report avoids saying exactly what the debt limit is.
The fact that the limit is unstated makes me wonder whether the limit would be exceeded if the needs of all capital projects (excluding an administration building, including a convention center) were added up. Is there an enterprising reporter out there who can confirm/refute my suspicion that the county doesn’t have enough bonding authority (for General Obligation bonds) to fund both a new convention center and all its other capital projects?
Shalom Jill,
The millions were spent and in the pockets of those in favor the microsecond the clock ticked to midnight.
Joseph Bessimer understood Clevelanders.
B’shalom,
Jeff
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I’m finding the posturing about a deadline for Merchandise Mart to put money on the table for the medical mart a little disingenuous. I sat through Chris Kennedy’s entire 45-minute PowerPoint presentation twice, then downloaded the entire thing off MMPI’s Web site and re-reread it. It was clear to me — and it was clear to almost everyone else I talked to who was at the public hearings where Kennedy did his presentation — that Merchandise Mart was not offering and had no intention of putting money into the project beyond a few million in pocket change for “feasibility” studies. It was transparent that Kennedy was basically doing a sort of job interview for the public, and what he and his company wanted was the contract to run both the facilities. He was not offering to help build them, at least not in his lavish public presentation. Surely Tim Hagan must have been equally aware that no money was being offered by MMPI. For him — or his confederates at the Plain Dealer, who never during their cheerleading coverage of the project saw fit to ask “OK, if the taxpayers cover the convention center, who pays for the medical mart?” — to now act shocked and dismayed that there is no funding for the project is hard to believe. If it turns out that since no one else steps forward, the taxpapyers are asked to cover this too cover this too (after being promised that if we’d just pay for a convention center, a medical mart would follow) because of the allged economic benefits to the region, there is going to be hell to pay.
My question then is – how do get them to pay hell – how do we DO that? Aren’t we, in fact, STILL going to be stuck? Totally serious question.
Shalom Jill,
The money is gone.
And yet again taxpayers in Cuyahoga County didn’t even get a kiss.
Unless a group can assemble that rarity of rarities, a slate of electable individuals with vision who are not beholding to those with the money, there will be no change.
B’shalom,
Jeff
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Jeff, do you have no audacity of hope!?
Jill,
Might I suggest that you place a call to Tim or Jimmy or Peter and ask them? You could also perhaps catch one of them at the end of their meeting tomorrow morning on the 4th floor of the County Administration Building and ask. Or you could ask Jim Rokakis.
From county docs back in the summer:
“The proposed investment will raise approximately $42 million dollars per year for purposes of attracting the construction of a Medical Mart & Tradeshow Facility paired with a new Cleveland Convention Center and addressing the demands of the community.” note it doesn’t say attracting MMPI to build a tradeshow facility.
and this
“Medical Mart owners are committed to opening an office in Cleveland to be staffed by senior executives who will not just manage this project but will also look for other real estate and additional private sector investment and development in our community.” Says opening an office, not building an office.
I have never received a response to my questions about where the income will go if they “open” an office here. I mean, will these guys -the top of the crop, live in Chicago and visit from time to time? Will MMPI relocate top brass to the city and allow the county to tax them for their purchases and properties and income? Of course, I left that question on the Medical Mart site, so it is no wonder that it was never addressed.
Oh! I just checked to be sure and guess what? My inquiry is gone; yep, removed. I guess Amanda Marko didn’t have a sweet positive Cleveland + response to that post. Need I say — whitewashing.
Calling or meeting with the guys who are holding our purse strings is best I think. Meeting with them with a video camera with a good microphone is even better I would suppose. Why is it the PD and local news stations don’t ask these “oh duh” questions anyway. Do we need a school of journalism here in NEO?
Susan – you are right. Calls are in order. Thanks for taking the time to read and comment. When I do it and have something to report back, I promise I will.