It took The Plain Dealer mere hours to slam Mayor Frank Jackson’s compromise offer on the overly generous 15-year, 100% residential tax abatements.

It’s the fastest the lethargic Pee Dee has moved in years.

The 15-year, 100% abatement policy is before Cleveland City Council for renewal or alteration in the next couple of months.

Any time the PD can support an elite, establishment policy, the Monopoly Mouth is there in a sprint.

The editorial says that the Cleveland State University study was “paid for by the city.”  Not true.  One has to wonder why the editorial made such a mistake.

Council did vote $10,000 but it has not been paid, according to the City. However, there were private funders.  The Gund Foundation contributed $25,000 and the new Downtown Cleveland Alliance, $7,500.

Demanding gifts to those who already have the most is a cultivated habit for Ohio’s largest newspaper.

The quick-triggered editorial didn’t even mention that Jackson’s compromise was only a two-year test, as his 30-page presentation to Council says.  The report notes that the aim of the new policy is to “provide equitable treatment to residents who have lived in Cleveland for years.”  It might have added... and paid their full taxes all the time.

When it comes to mere comment on the staggering injustices of the ruling class here, the Pee Dee is deaf and dumb.  It’s out of touch, out of range.

“Just say, ‘no,’” said the editorial headline followed by a subhead – “Mayor Jackson’s proposal to slash residential tax abatements is indefensible and ought to get a quick reaction from council.”

It started with a sentence that so self-describes the mealy-mouthed newspaper...  “Has Mayor Frank Jackson totally lost touch with Cleveland’s reality?”

It concluded, calling Jackson’s offer “a horrible idea.”

So much also for any real discussion of a public issue.

Jackson, one would think, had asked developers to get off the public dole completely.  Not so.  He simply asks for a cut from 15 years to seven years, but abatements as liberal as 12 years if developers follow certain environmentally friendly designs.

Jackson, pictured, is representing his constituency and the Pee Dee is representing its constituency.  The two shall never meet.

The editorial was simplistic and disingenuous.

The Pee Dee doesn’t mention that only one suburb – Shaker Heights – gives property tax batements as generous as Cleveland.  Other cities, including Lakewood, are less generous:

Lakewood...  5 years at 100%

Cleveland Heights...  7 to 10 years at 30 to 65%

Euclid...  7 to 15 years at 40 to 100%

Parma...  5 to 10 years at 50 to 60%

Maybe the Pee Dee has not noticed that Cleveland is a desperately poor city with its residents unable to carry the burden of freeloading yuppies or gorging developers.

Have the editors of the Pee Dee sent any reporters into the community to find out how homeowners who have to pay their full share feel about the freeloaders?  Have they even thought it might be a tad fair to find the feelings toward abatement of some Cleveland residents who have been paying full taxes?

Can the paper only quote the obvious winners of the 15-year, 100% tax-abated winners?

The PD amusingly says in its editorial...

“The debate over keeping the tax abatement presents Council President Martin J. Sweeney with an opportunity to demonstrate that he’s a leader, not a mayoral lap dog.”

Marty, do not be a “mayoral lap dog,” be a “Pee Dee lapdog.”

The PD editorial leans heavily on the CSU Urban Studies report, but it carefully avoids some of the more depressing news in the report.

It does not mention that 26 of the abated units are worth more than $1 million each.  No taxes for someone who can afford $1-million-plus housing... in a city where numerous homeowners have and are losing their homes in foreclosures?

The paper doesn’t mention this.

In fact, 20% of the tax-abated units have been lost to foreclosures, according to the CSU report.  That’s a fifth of these abated units.

The Pee Dee editorial doesn’t mention that 73% of the people in the abated units don’t generate any extra or new income tax revenue for the city, according to the report.

What it does say...

“Through this tax abatement, the city is gaining, (their emphasis) not giving anything up.  Just what about this does Frank Jackson not understand?”

Have you ever read mocking of the town’s elites in a Pee Dee editorial?

Do either The Plain Dealer or CSU’s report look at other incentive subsidies given in ADDITION to the abatements?  No way.  From my experience, the same abated projects get other government help including low-interest loans, grants and other incentives.  (See at the end of column one example of generous subsidies given in addition to abatements.)

The CSU report also fails to mention other subsidies, a convenient oversight you would expect from CSU Dean Mark Rosentraub, a puppet of downtown developers.

Nor is there ANY reference to the big-hearted piles of public infrastructure money that have gone into and are still going into the areas of downtown where these abated units are located.

Citing those kinds of handsome handouts would be inconvenient to their argument.

It says, as if it had already happened, that for every $1 in abated property taxes, $1.50 is returned.  That, however, is predicated on tax generation as far out as 2020 and no other changes.  There is no certainty in that prediction.

If anyone has followed property tax movement in the city, he or she will find that those who have money employ lawyers to get their property tax values reduced.  On a regular basis.

The editorial, of course, makes no mention of the tax losses to the Cleveland schools.  Some 60% of the budgetary hit awarded by City Council comes from the Cleveland schools.  That’s a hefty budget hit... ignored by the editorial.

“Without an abatement, 60 percent of those CSU surveyed said they wouldn’t have bought in Cleveland.  And one in five people wouldn’t purchase a new home in Cleveland if the abatement were reduced to 10 years or reduced after 10 years,” the editorial quotes the report.

It doesn’t quote the report, however, when it says that 40% would still invest in Cleveland housing without abatement.

It was interesting to read a batch of letters to the editor in last Sunday’s PD.  The letters were testimony to the “out of touch” nature of much of the newspaper’s thinking...

“Once again the Plain Dealer has positioned itself as the organ of proprietary interests and, as such, a divisive rather than unifying voice of the region,” wrote another, who went on...

“Where is the broadside that, in all fairness, should be levied at the corporations that receive massive taxpayer subsidies?”

Another writer noted...

“I also find it ironic that this newspaper publishes executive compensation, yet editors obviously don’t see anything obscene in said compensation.”  The writer went on to note, “As to the media, they investigate only the ‘little’ people.  Maybe if the media had started earlier, investigating the real thievery going on, we might not have so many executives and politicians being indicted.”

Reporters and editors identify with the people they talk to (and lunch with) and they talk too often, too much to those in the community who are comfortable and powerful.

They never seem to meet the People.  Therefore, they don’t reflect the ordinary person’s views well at all.

The Pee Dee’s stinging abatement editorial is a perfect example of failing to see what you don’t want to see.  All the give-aways cited below for our Fat Cats aren’t enough for the PD’s taste.  And, “so it goes.”

If the PD really cared about Cleveland, it would be leading an editorial charge to preserve the city’s residency law.  Without a residency law, the city will suffer a severe housing setback as city workers move to the suburbs.

Following is loot given to Wolstein Flats project in addition to tax abatement for housing portion.  The Pee Dee totally ignores this disgusting form of bribery...

-    BDOHS (port authority) will provide $11 million in loans.

-    City of Cleveland will provide $6 million in Core City loans.

-    Cleveland Public Power will provide $3.4 million in services.

-    Cleveland Water Division will provide $740,000 in infrastructure costs.

-    Cleveland will provide another $1 million from its general obligation bonds.

-    The County, City and Cleveland schools will forgo $11,140,000 in property taxes under a TIF (tax abatement) program to help the project.

-    Cuyahoga County will provide $1 million in subsidies.

-     The State of Ohio will provide a grant of $3 million for “environmental remediation,” matched by a loan from Cuyahoga County of $1 million, both committed from the 2005 Clean Ohio program.

-    Tax exempt Parking Revenue Bonds estimated at $8,540,000 will be repaid from Public parking facility revenues.

-    Tax-exempt infrastructure bonds estimated to be $9 million are secured by annual payments by the Northeast Ohio Regional Sewer District.

-    The sum of approximately $4,550,000 will be made available through the Federal Highway Administration.

-    The federal government has appropriated and the city shall obtain and make available when required for eligible project costs a grant of $1,464,735 from the U. S. Department of Commerce National Oceanic Atmosphere Administration (NOAA grant).

-    All rental and condominium units (some 300 units) will be tax abated at 100% for 15 years.  No cost estimate given by the city, port authority or county.

-    The City agrees to enact legislation as necessary to amend and extend the CRA residential tax abatement program to assure that all residential improvements are eligible for the full 15-year, 100% abatement of real estate taxes.  No cost given.

-    The Regional Transit Authority (RTA) will construct a transit station on the RTA Waterfront Rail Line for the project “…all at no cost or expense” to the developer.  No total or estimated cost mentioned.

-    The City “shall take all necessary action to vacate all existing streets within the project site to the extent no longer require as public improvements for the project, and any easements which impair or adversely affect the development, construction or occupancy of the project, or which lie within the project site and are no longer required for use as public improvements for the Project.”  No cost estimate given.

-    The City of Cleveland “shall convey to the developer all the land owned by it (the city) within the residential site not necessary for public improvements by official quit-claim deed…”  No cost estimate given.

-    Under a section called “public improvements,” it states: Public improvements necessary to support the Residential project will include but may not be limited to the following….

-    Abatement, demolition and environmental remediation (including all necessary earthwork and soil clean-up) of the Project properties as they exist as of the execution date of this Agreement so as to allow for construction of the Residential Project.

-    On-site paving and landscaping for all areas from the building lines of the Residential Project to the street curb as well as the public spaces of the Riverfront Park described below.

-    A Riverfront Park extending from the southern boundary of the Project along the Cuyahoga River’s edge north to the Norfolk & Southern rail line with an eastern edge defined by a realigned Old River Road and a new street network described below. The Park may include but not be limited to the following elements: a riverfront boardwalk, gather places; pavilions; project signage, retail kiosks; and a marina for transient boater use.  The Riverfront Park shall be planned in such a manner so as to receive the proposed extension of the Towpath Trail…

-    Utility improvements, replacements and/or upgrades sufficient to provide necessary storm and sanitary sewer, water, electrical, gas and thermal heating and cooling services for the Residential Project and the permanent improvements in the public right of way (e. g. street lighting) and property (e.g. Riverfront Park fixtures and appurtenances) for ongoing and seasonal needs.

-    Street improvements, realignments and additions to serve the Residential Project and its associated parking facilities, including all necessary traffic control equipment and signage…

-    Bulkhead repair, replacement and improvements sufficient to maintain the long-term integrity of the eastern edge of the Project site bordered by the Cuyahoga River.

-    The Public Parking Facilities and Private Parking Facilities estimated to consist of a minimum of 1,600 spaces in total and sufficient to serve the retail and residential uses of the Project by way of four structured facilities and no fewer than two surface lots, including all necessary equipment, landscaping and appurtenances.

-    An allocable share of land acquisition costs associated with the square footage occupied by the Public Improvement as a percentage of the entire Project square footage (Residential Project plus Public Improvements.)

-    Any and all soft costs which may be attributable to construction of the Public improvements including but not limited to architectural and engineering services, lighting, traffic and parking consultants, permits/fees, testing and inspection, temporary utilities, financing fees and costs and capitalized interest on bonds or loans.

 
Repeat... The Plain Dealer totally ignores this disgusting form of bribery.