The confusion in some media reports and on-line blogs and comments sections is that some have mistakenly led people to believe that the $2 million annual payments for 15-years ($30 million), would off-set future payments of capital repairs as detailed in the remaining payments listed above in what is called the Lease Agreement’s Schedule 14(f). Or, that the expenditure of the $12 million of the current $24 million of sin-tax proceeds would reduce the balloon payments and total amount from Schedule 14(f). The fact is that the $30 million is in addition to the current $39,450,000 Capital Repairs that the City is obligated to pay.
This will bring our total obligations to $82,500,000.
http://brian-cummins.blogspot.com/2013/11/browns-120-million-proposed-capital.html
I would bet that if we could see all the numbers, Cleveland is paying the whole bill. If Cleveland became unwilling to do so, there are other cities who would be more than happy to pick up the tab.
Yes! I'm so happy you went here! I know councilman Cummins AND I was in the room for this. And... Quoting a blog of one councilman? Especially one who is not interested in improvements outside his Ward? C'mon..
I even overheard Councilman Jeff Johnson telling Zack Reed that he's not voting because "I want a new Rec center in my ward" when the Mayor had his press release alongside Joe Banner.
Put flatly, you're not correct in your $82 million assumption as it tries to muddy the distinction between capital improvements and improvements that sin-tax dollars are reserved for. Councilman Cummins lumps together the obligation of the City to maintain it's property with the financing of the FirstEnergy Stadium modernization project. Those two projects aren't interrelated really at all as Haslam is still committing $90 million dollars on things the Sin Tax can't be used for. Atop that, the Cleveland pro franchises (read: Browns, Cavs, Indians) have to pitch the City/County via presentation on things they would like to use that money towards. On top of THAT, there's a list of what the sin-tax can be used on. Do you know what the sin-tax dollars can ONLY be used for things like ADA accommodations (i.e. handicapped ramps, elevators, accessible bathrooms, etc.) and other necessary upkeep for keeping up to code as well as other City/County obligations?
I'm not going to explain the ownership of the stadium, but the stadiums are the property of the City. Yep, that means if the Browns, Cavs or Indians DO leave, the City is on the hook for keeping the place up to code or bulldozing it. That is completely separate and not to be confused with Haslam's ponying up of $90 million for things he's paying for 3/4 of (i.e. new scoreboards, nicer carpets, bars, etc.). He still took over $90 million in loans in the name of his franchise...
To fund the project, the Browns will use a $62 million loan from the NFL, the money from the city and a bank loan to cover the remainder. The city, which owns the stadium, will provide $2 million in funding each year for the next 15 years. The $30 million represents a present-day value of $22 million.
http://www.multihousingnews.com/cit...stadium-modernization-project/1004094323.html
One thing Councilman Cummings is correct on (in my opinion) is that these deals for stadiums being built aren't ever really City friendly. The blog is a blog and it's full of many gripes. Some well guided and some not.
For some more rounded info:
http://lawlibrary.case.edu/2014/05/05/issue-7-sin-tax/
http://council.cuyahogacounty.us/pd.../20140121-ClevelandExciseTax-Presentation.pdf
This all said. The Browns are going nowhere.