The Cleveland City Council approved a new TIF district for Bedrock’s $3.3 billion Cuyahoga Riverfront project, which will include apartments, offices, retail, parks, and a practice facility for the Cavs.
The plan involves allocating up to $1 billion in subsidies into the project, with funds derived from higher property values, redirecting taxes that would have been earmarked for the county library or Tri-C back into the riverfront development.
This has sparked discussions, with some arguing that it will drive substantial economic growth and job creation, while others contend that the initiative may not significantly benefit Cleveland’s broader population
Cleveland Scene reported:
Discussion revolved frequently around Bedrock’s upfront investment, $25 million in spending that, as legislation passed in tandem guaranteed, would be dedicated to the neighborhoods surrounding Downtown—including $5 million in a Minority Business Credit Fund, $3 million for workforce training, and $1 million for mentorship for job seekers.
That community benefits agreement, which Council had been urging to be included in the Shore-to-Core TIF, would provide immediate results, as Ward 10 Councilman Anthony Hairston said: “Not 15, 20 years down the road, but at the onset of this project, at the beginning stage of this project.” That includes a promise from Bedrock for 40% minority and female-business hiring for construction, 20% of workers being city residents and an emphasis on Cleveland-based firms.
But some studies show that the incentives passed along to wealthy developers do little to improve life for residents, shifting economic burders to homeowners across the city. And that regional services are forsaken at the expense of infrastructure enjoyed by relatively few.
“While I’m a Cavs fan, like I’m sure most of you are, [the TIF] underlines that city residents are getting only a small amount in relation to the $3.4-billion project,” Zach Schiller, head of research at Ohio Policy Matters, told Council.
Schiller worried that a special TIF for Bedrock could spell bad news.
“I just don’t understand why you think that the public library, or mental health services, or Tri-C, or protecting the elderly, or all the other things that are no longer going to be exceeding these funds are less important,” he said.
