Copyright cleveland.com
CLEVELAND, Ohio — Mayor Justin Bibb has proposed a new way to fund stadium repairs for the Guardians and Cavaliers, but the teams seem reluctant to try it. Bibb wants to form what’s called a new community authority; a special district that could levy fees on dining, retail, parking and even additional property taxes near Rocket Arena and Progressive Field. It’s all voluntary, with property owners deciding whether to join the district and negotiating fees. But the proposal could mean that a few extra cents on every beer you drink or hot dog you eat to pay for stadium repairs. The max fee is 5%, so 40 cents for each $8 beer or 25 cents for a $5 hotdog. These are the 5 takeaways from the original article. 1. The Mayor: We need a new game plan Bibb has taken a firm stance, stating he will not use the city’s general revenue fund for another stadium bailout unless the teams agree to explore new funding mechanisms. This position comes after Cleveland and Cuyahoga County approved a $40 million bailout last December. Bibb is leveraging the city’s financial support to pressure the teams into considering alternative, sustainable revenue streams for maintaining Progressive Field and Rocket Mortgage FieldHouse. 2. The proposed solution: A new community authority (NCA) The mayor’s plan centers on creating a New Community Authority (NCA), a special financing district near the Gateway District. This district would generate revenue by collecting small fees on parking, dining, ticket sales and other entertainment activities. The core idea is to shift the financial burden of stadium upkeep away from city and county residents and onto the visitors and patrons who directly use the district’s amenities. This model is not new to Cleveland, as a similar district was recently established on the lakefront to support redeveloping the city’s north coast. 3. How an NCA functions An NCA is a quasi-governmental entity created with the voluntary participation of property owners within a defined geographic area. Once established, it has the authority to levy and collect various fees, such as up to a 5% charge on retail, food, and beverage sales, as well as fees on parking and hotel stays. The revenue generated can then be used to fund public improvements like sidewalks and greenspaces, marketing for local businesses, and, in this case, contribute directly to the maintenance costs of the ballpark and arena. 4. Teams and key stakeholders are hesitant Despite the mayor’s push, the Cavaliers and Guardians appear reluctant. Both teams, along with the Greater Cleveland Partnership, declined to comment publicly on the plan. City Council President Blaine Griffin confirmed that Bibb’s idea initially faced “a tremendous amount of pushback” from the teams. This resistance from the primary beneficiaries of the stadiums presents a major obstacle to implementing the mayor’s long-term funding strategy. 5. Financial urgency drives the need for a new plan The push for a new funding model is driven by a pressing financial reality: the county’s “sin tax” on alcohol and cigarettes is no longer generating enough revenue to cover the escalating costs of stadium and arena repairs. This shortfall necessitated the recent $40 million bailout, which drew criticism from city council members who opposed spending public funds without a long-term solution. The teams may be hoping for an improved sin tax, but County Executive Chris Ronayne said he will not put a sin tax increase on the ballot, as the projected revenue would still be insufficient to solve the funding gap.
