CLEVELAND — Cleveland leaders are betting on the future of the city’s waterfronts. This week, a plan to pay for the long-discussed redevelopment of the Cuyahoga River and Lake Erie access points near downtown was introduced to the city council.
A tax increment financing (TIF) district would leverage future property tax revenue for public infrastructure projects, including the lakefront and riverfront initiatives.
Mayor Justin Bibb’s administration believes the so-called "Shore-to-Core-to-Shore" TIF District would be a self-sustaining avenue for economic growth in the city. Some worry the method could come at a cost to other public services.
Investment in Cleveland’s downtown waterfronts had long been up for discussion when Lisa Redmond opened up Lakeside and the Nuevo Modern Mexican and Tequila Bar on the East 9th Street pier.
“When we first got here we were by ourselves with the wonderful Good Time. We’re buddies for sure,” Redmond recalled.
In recent years, several other businesses have moved into the North Coast Harbor. Redmond said the area is teeming with potential, and she’s noticed the conversation surrounding redevelopment gaining momentum.
“[I’ve seen] just more attention, I would say, in the last eight years for building and wanting to build on the lake, which has been a long-time coming,” she said.
In October, the city unveiled a 60% complete lakefront development plan draft. It included proposals for more recreation, entertainment and access options.
“For me in business - it’s the more the merrier down here,” Redmond said.
The lakefront proposal comes around the same time as discussions of redeveloping an area of the Cuyahoga River when the current Sherwin-Williams headquarters relocate.
“We’re all lined up. And we believe this TIF district is a critical piece in the puzzle to enable us to achieve those things,” said Jeff Epstein, Cleveland’s chief of integrated development.
City leaders anticipate the new development will boost property values. The TIF district would capture a portion of the projected property tax increase and use the revenue to fund public projects.
“Think about the North Coast Connector that we’re talking about, the public park that we’re working on north of the stadium, other public parks and the river walk,” Epstein explained.
Cleveland has traditionally used TIFs to generate revenue on a project-specific basis for things like shopping centers and hotels. Alternately, the proposed Shore-to-Core-to-Shore plan would use the tax growth from a wide geographic area, and the revenue could be used for public projects throughout the city.
Cleveland leaders compare the “overlay TIF” to similar strategies used to successfully fund Easton Town Center in Columbus and Cincinnati’s Over-the-Rhine entertainment district.
Epstein estimates over a 40-year span, the TIF would generate between $3.3 and $7.5 billion. The mayor’s office believes the revenue will drive self-sustaining development in a city that has struggled with a declining tax base in recent years.
Some worry the funds diverted from property taxes will cut the future money for other publicly-funded entities.
“You would call it, on some level, a money grab,” said Zach Schiller, the research director for Policy Matters Ohio. “The tax that homeowners and businesses pay to support the Cleveland Public Library, to support the County Health and Human Services, to support Tri-C… instead of going to those entities, it will go to this fund.”
The Shore-to-Core-to-Shore proposal would carve out the normal revenue allocated to the Cleveland Metropolitan School District. Schiller believes the exception proves the city is expecting CMSD to experience a pinch, as would other entities.
“Let’s set up a mechanism to make sure that there’s no damage, that whatever increases from the revenue they see happening are shared,” he said.
The mayor’s administration believes long-term benefits would outweigh any short-term challenges.
“We have a declining base of tax revenue. And this is a big bet that we’re making to change that trajectory and to increase the pot,” Epstein said.
The legislation will move into City Council committees for examination and discussion. If the full council passes the measure, it would be in effect for 30 years.
For her part, Redmond said she’s grateful to see the conversation about waterfront development moving forward.
“This is the first time in eight years that I’ve seen this much movement. So that is really great to see,” she said.
