Despite Some Pushback, Cleveland City Council Approves $20 Million for Rocket Mortgage FieldHouse and Progressive Field Repairs

Rocket Mortgage FieldHouse Credit: Photo by Mark Oprea

After a lengthy and at times raucous debate, Cleveland City Council has approved legislation to spend $20 million in city funds to pay for repairs at Rocket Mortgage Fieldhouse and Progressive Field. The legislation passed without comment at the council’s regular Monday night meeting – but only after two finance committee meetings where members vocally aired their grievances.

The additional funding is necessary because the Gateway Economic Development Corporation, the nonprofit that owns and manages repairs to the ballpark and arena, doesn’t have enough money to pay for repairs slated to both facilities. In recent years, repair costs have been higher than the countywide “sin tax” on alcohol and cigarette sales. Because the city is responsible for repairs per the lease, the city of Cleveland has been required to pony up the cash to pay for them.

The repairs at Gateway include upgrading 30-year-old elevators and broadcast equipment, while repairs at Progressive Field include replacing seats and upgrading air handling and video systems. The total cost of the repairs is $40 million. Cuyahoga County Council is considering legislation to match the city’s $20 million.

At finance committee meetings, council members railed against the money coming out of the general fund. “From the residents’ perspective, it always seems that when it comes to stadium funding, money just comes like a magic rabbit out of a hat,” Ward 15 councilmember Jenny Spencer said at the Monday, Nov. 25th meeting. “It just appears magically. Magically, we have $20 million in general funds available. But when it comes to other things the residents need, we don’t have the money.”

City council president Blaine Griffin responded that the city is obligated under the current lease to pay for repairs. If the city doesn’t pay, the teams could withhold rent, he said. “Somehow, several years ago, this city made a commitment that they wanted teams as part of the economic engine in the central business district,” Griffin said. “There are some legal obligations that this city has with this lease.”

After council balked at the repair costs coming out of the general fund, the city came back to the table this week with a new proposal. Under the new legislation, only $5 million of the $20 million will come from the general fund. An additional $10 million will come from general obligation bonds earmarked for projects that don’t need the funding right now, while $5 million will come from American Rescue Plan Act funding that is allocated towards a future project.

“We’re borrowing money from ourselves in order to pay for this,” said Griffin. “We’re using money from projects that do not need to be funded (right now) and from the general fund.”

At Spencer’s request, city council added an amendment to the legislation requiring the city to return to council in April of next year to show how it intends to fund those future projects. After railing against the deal, most council members fell in line and voted for it at the finance committee meeting. Councilmembers Brian Kazy, Jenny Spencer, and Mike Polensek voted against it.

Polensek directly addressed team representatives during the finance committee meeting, asking them to step up and pay more. “We can boast that we’re a major league city, but what we have is minor league neighborhoods, minor league city facilities, and minor league services,” he said.

Ward 3’s Kerry McCormack presented the other side of the equation, praising the teams for investing in downtown. “These teams can be major economic drivers,” he said. McCormack also said teams that do not invest in downtown should be “called out.”

To help with future funding gaps, the city of Cleveland is eyeing the possibility of creating a New Community Authority (NCA) that would raise revenue. In a presentation before the finance committee, Emily Collins, a senior advisor to Mayor Justin Bibb, said the NCA could be “a piece of the revenue puzzle, but it won’t fill the entire gap on its own.” NCAs work by collecting money from property owners and tenants surrounding the stadium. Owners and lessees who are being taxed must vote to approve the NCA. The taxes can come from a wide range of sources, including parking fees, food and beverage fees, hotel fees, and property value charges.

Griffin committed to bringing officials from the Cavs and Guardians as well as the Gateway Economic Development Authority back before the finance committee in the future for a “deeper dive” into how the city can pay for facility repairs while also facilitating economic development.

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