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CLEVELAND'S GUND ARENA OVERBUDGET; MUST BORROW $12M
Published December 15, 1994
The Gateway Economic Development Corp., the body in charge of the Gund Arena and Jacobs Field in Cleveland, must borrow $12M to payoff cost overruns of around $30M in the construction of the new arena. The new $148M home of the Cavs cost 25% more to build than expected because the arena was built on a "fast-track" before architectural plans were completed, leaving many costs unanticipated. Gateway Chair Thomas Chema said the bill will be paid through sporting and special events at Gund and neighboring Jacobs Field: "We said we weren't going back [to the public], and we're not." The rest of the overrun will be covered by a $10M capital fund provided by the Cavs, and part of the $14M earned from the Gund family for naming rights to the new arena. Total construction costs for Gateway were $401M (Steven Koff, Cleveland PLAIN DEALER, 12/14). BROWNS NEXT IN LINE? As Cleveland Mayor Michael White campaigns for a taxpayer-funded renovations at Cleveland Stadium for the Browns, PLAIN DEALER columnist Dick Feagler says taxpayers are "sick of the whole stadium subsidation issue. And that the neighborhood playgrounds ought to start getting some attention instead of the Yuppie playgrounds." Feagler: "Sooner or later, all the big-league cities get a ransom note. 'If you want to keep on enjoying your beloved playmates, ... leave a couple of hundred million bucks in stadium renovations and a big piece of the take from the food concessions in the hollow tree. No cops'" (Dick Feagler, CLEVELAND PLAIN DEALER, 12/14). For our profile of Cleveland Stadium.