It’s all too reminiscent. The stink, I mean.
County Commissioner Tim Hagan moans that the
promoters of the Medical Mart – who owe their position here to Hagan –
aren’t putting their money on the table.
Who woulda thought?
Why did Hagan put some $40 million a year in tax
money on the table BEFORE the developer made a single penny of financial
commitment? How typical.
The developer is Merchandise Mart Properties, Inc.,
(MMPI) of Chicago. Christopher Kennedy (yeah, of that Kennedy
family), is MMPI president. Hagan loves to rub shoulders with the
Kennedys. (Refer to...
Should Hagan Recuse Himself, August 8,
'07; and
Suckered Before, Aug. 1, '07.)
“Their offer to us was
unacceptable. They have to say, ‘We’re going to sign a contact
and spend X amount,” Hagan moaned to the Pee Dee.
A little late, isn’t it Tim?
Hagan is repeating the disaster of how he handled
the Gunds on the arena deal at Gateway.
Hagan (and friends) put hundreds of millions of
dollars on the line before obtaining a lease from the Gund brothers –
Gordon and George.
So George and Gordon did what all these greedy
bastards always do. They took Hagan and the taxpayers to the
cleaners. They held out until they got everything they wanted and
more from Hagan and his buddy of the time, Mayor Michael White.
What could Hagan do, he already put the County in
deep debt with taxes for Gateway. He had to give them what they
wanted to move from Streetsboro to Cleveland.
We, the taxpayers, paid and paid and are still
paying. The same will be true of the vaunted Medical Mart and a
new convention center.
The arena is still costing the County tens of
millions of dollars as the growing demands of the Gunds had to be met.
The result... the arena went from a proposed $75 million arena to a very
costly $154 million tab. The Gunds soon after sold the franchise
and pocketed their unearned profits. (A reprint below tells some
of the goodies given the Gunds).
Hagan the Stupid now has set in motion the same
type losing deal with the Medical Mart developers.
The pliant (complicit) Pee Dee allowed Hagan to
moan on Page One, Saturday, and make the pretense that he’s angry and
upset with the Medical Mart promoters. This won’t change the fact
that Hagan again stuck it to the public. The Pee Dee isn’t asking
the tough questions of Hagan and his sidekick, Jimmy Dimora, for again
putting the County’s treasury at risk again.
Neither is the community or its politicians.
Hagan is running for re-election unopposed by Democrats or Republicans.
And people here ask for leadership? What a
joke.
What’s the answer now? Give the marauders
from Chicago everything they want or call the deal off and take the tax
off the public.
When will anyone around here see the true Tim
Hagan? A phony, talentless politician playing way above his level
of competence.
Even worse scenario now, if County voters - tired
of Tax’n Tim's self-imposition of a sales tax hike for the Medical Mart
- turn down the health and welfare levy on the ballot in November.
That would be another disaster to add to Hagan’s
always growing list.
Don’t
Cry for Dick Jacobs, Banshee1
Banshee1, a reader in LakewoodBuzz.com's
Community Forum chooses to slam me for
being nasty to real estate tycoon Dick Jacobs.
Here’s some of Banshee1's criticisms...
“Where did you scrape up
this wretched writer with so much hate and vitriol. The jealousy
of Jacobs’ success and fortune just oozes off your webpage.
“Dick Jacobs was personally responsible for
restoring championship caliber major league baseball to a franchise
that was ready to move out of town after forty years of neglect.
He helped heal the wounds after the Browns bolted out of town…
“God bless Dick Jacobs and what he has done for
the great city of Cleveland. Send Roldo back to the old folk’s
home where he might get an audience for his baseless rants.”
Wow! That’s pretty good slamming. Or
ranting.
The story of Dick Jacobs, however, isn’t that
simple.
What this greedy guy gave doesn’t compare with what
he took.
The whining writer might notice, too, that both
team owners – Gunds and Jacobs – sold the teams not long after we gave
them fancy digs, pocketing amazing profits. Goodbye Cleveland.
Goodbye suckers.
More important, we’ve allowed ourselves to become
confused about who we are. We’re not a football team, or a
basketball team, or a baseball team. We are a Community made up of
Citizens. We shouldn’t allow ourselves to be cheerleaders and
dupes for trivial pursuits. Enjoy the games but don’t allow them
to supersede civic responsibilities.
So I’d like Banshee1 to read a bit more from an old
guy who has kept tabs on all-take, no-give Dick and his doings for many
years. This article ran in my newsletter Point of View,
September 4, 1993, but it’s worth having on the record along with an
addendum. So thanks, Banshee1, for the opportunity. Here it
is, abbreviated...
What a comfortable little
club we have making decisions for us here in Cleveland – The Cleveland
Corporates and their attendants – an array of city and county
politicians.
Gateway paid Tony Garofoli hundreds of thousands
of dollars, in part to “negotiate” a lease with the Cleveland Baseball
and Cleveland Basketball teams.
He must have twisted the hell out of the arms of
Dick Jacobs and the Gund Brothers. Arm sling sales are up.
In addition to getting all the goodies – stadium,
arena, concessions, parking, free loges, no taxes, free garages and
whatever – Gateway has lavished huge administration facilities with
fancy furnishings for Cleveland’s two wealthiest welfare families.
The Gunds – Gordon and George – will have
personal office suites in the $118 million, 21,000-seat Arena and as
tenants and operators of the new arena to open next year will have
provided to them 50 other offices, including offices for guest teams,
in a space of some 30,000 square feet.
Dick Jacobs will have 57,000 square feet of brand
new office space in a separate building on site provided by Gateway,
though its lease says specifically that Jacobs, as lessee, will be
housed “within the baseball facility.”
The Jacobs’ building cost Gateway $7 million,
including an expected $900,000 in furnishings. (More later.)
If you took what Jacobs asks tenants for space at
his Society Center (now Key), a few blocks from Gateway downtown, $38
a square foot (without furnishings), you’d understand what a gift the
office space afforded Jacobs and the Gunds really is.
For Jacobs, at 57,500 square feet at $38 a square
foot annual rent would be $2,185,000. For its 25 year lease that would
mean a $54 million gift.
For the supposedly charitable Gunds, the gifts
from Cuyahoga County taxpayers would be, for 30,000 square feet at $38
a square foot, an annual gift of $1,140,000 and for the 30 year lease
a $34,200,000.
And you’ll remember that Mike White and Tim Hagan
went to the state legislature to get property tax relief for the Gunds
and Jacobs so that the two wealthiest families in Cleveland will not
even have to pay property taxes for the free office space.
Gateway will spend $1,443,800 to outfit the
offices for the Gunds and their team with proper furnishings.
In addition to their personal office suites each,
the Gunds will be provided with a board room for the corporation, six
conference rooms and an executive kitchen.
Nothing too good for our elite ruling families.
The main Conference Center furniture will cost
$20,000 additional and another $15,000 has been provided for
miscellaneous owner equipment.
Specifications for the furniture to be provided
by Debra Brys Interiors aren’t available yet but the specifications
for Jacobs’s administration building at Gateway indicate how lavish
Gateway has been with the taxpayers’ money.
While the Gunds and the Jacobs enjoy their free
loges and their free office suites they will also be able to enjoy
their favorite meals since Gateway has provided them each with
executive dining rooms.
And this happened, let me remind you all, under
the watchful eyes of our best progressive politicians – Mike “Mayor
Businessman” White, Council President Jay “Citizen Action” Westbrook,
Tim “I’m Just Here to Help the Poor” Hagan and Mary “Hardnosed for the
Taxpayer” Boyle.
The Gunds were also given three free loges – one
a double loge. With loges running annually from $85,000 to $150,000
that could mean as much as $450,000 a year or over the length of the
lease another gift of $13 million if prices don’t increase in 30
years. (The Gunds made one loge into a hotel room at $600,000, which
they paid only after it was publicized here.)
Gateway must provide 1,700 parking spaces, a
commitment that has been insured by the city’s $40 million bond issue
to construct two garages for Gateway.
As a hint as to what the Gunds can expect in
their arena one can look to the specifications requested by the Jacobs
for their free administration building.
It includes a custom made 18-foot long, five foot
wide, boat shaped ash veneer conference table that would cost,
according to a custom wood produce maker, as much as $10,000. The
Gunds would have to have six conference tables.
Jacobs ordered the conference table to have
inlaid strips of wood that would appear as baseball stitching and an
inlaid metal logo of the team, the buffoonish Chief Wahoo.
Jacobs also ordered via Gateway 13 leather
Arpeggio lounge chairs that list, according to a sales consultant for
$1,456 each but might, in this week economy, actually sell for about
half.
Another 400 or so chairs, most partly
upholstered, will be given to Jacobs.
In addition to business offices, the building
will provide for a Heavy Hitters Club Room, including an executive
dining room for marketing season tickets to corporate prospects.
Also provided are 11 credenza cabinets, five
cocktail tables, seven dining room tables, none bar stools, 28 dining
room tables, four sofas, and other tables and chairs, plus a lectern
with another custom—made Chief Wahoo logo on the face.
I asked Chema if he had reported all these free
gifts to Jacobs to the IRS but he thought that rather ridiculous and
answered, “Absolutely not.”
The Gunds likely will have as generous equal
treatment as Jacobs. It’s said that the Gund negotiator, Richard
Watson of Spieth, Bell, McCurdy and Newell, was the toughest of
negotiators.
Specifications are rather detailed and specific.
Even the requirements known are rather specific, down to contract
agreements to, before presenting the offices to the Gunds, “clean
light fixtures, polish metal surfaces and faces of glass and mirrors.”
One Gund suite will be painted with Honey White Sherwin-Williams
semi-gloss and the other with a Sherman-Williams to be selected by the
architect.
Oh, by the way, “vacuum carpet and similar soft
surface products.” (Really, this is in the document).
The taxpayers and voters, they’ve been
anesthetized.
AN ADDENDUM
Jacobs bought the team in 1986, for some $45
million, sold it for $320 million after taking another $60 million when
he sent the team public, and then back to private.
So don’t cry for Dick
Jacobs.
I remember, in 1988, Jacobs came before City
Council seeking tens of millions of dollars in UDAG loans and tax
abatements. Jacobs revealed his resentment of even having to
appear publicly to plea for these incredible tax gifts. Jacobs was
so resentful that his public benefactor George Forbes had to check
Jacobs’s sour reaction. “Be cool,” he told Jacobs. Jacobs
spoke in mumbles, the best not to be heard. In the audience, I
raised my voice demanding Jacobs speak up so the public could hear his
testimony. I remember at another meeting Council members desired a
fig leaf from Jacobs to hide the fact they were giving him so much tax
money. They asked that he contribute a pittance of help to
neighborhood projects. Jacobs was affronted by the request, though
millions of dollars were on the table. Jacobs had bundled his
multi-million dollar model (for Ameritrust Center and a Hyatt, never
built) to the meeting in a black garbage bag. He walked out with
the bag and more than $120 million in subsidies.
So don’t cry for Dick
Jacobs.
George Forbes and George Voinovich gave Jacobs the
530 or so acres at Chagrin Highlands to develop. He was given the
luxury of cherry picking 40 acres of the land described as “without
doubt one of the finest pieces of real estate between N. Y. City and
Chicago.” Voinovich added highway construction of some $150
million. Jacobs has been developing the land to enrich him.
Former Mayor Michael White called the Jacobs deal for Chagrin Highlands
“a dirty little deal done in the backroom.”
So don’t cry for Dick
Jacobs.
Jacobs was given UDAGs and 20-year tax abatements
worth tens of millions by the same two politicians.
So don’t cry for Dick
Jacobs.
Gateway bought Italian marble coffee tables (from
Lucca,
Italy) to satisfy Jacobs’ demand for them in loges. Gateway was
told the marble was unsuitable for this use. Gateway paid $330,000
for the marble, which quickly became damaged and broken.
So don’t cry for Dick
Jacobs.
Gateway built and furnished the Terrace Club within
Jacobs Field. It’s the largest restaurant (900 seats) in downtown
Cleveland. It cost taxpayers $5.1 million to construct. The
furnishings cost $1,054,320. I could give you the cost for tile,
stone, chairs, even the fabric for the chairs... but why go on. On
game days, fans aren’t allowed in the restaurant unless they’re members
($800 a year in 1994).
So don’t cry for Dick
Jacobs, Banshee1. Cry for Cleveland.