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.
