Failure To Communicate

• time: 0 min. 24 sec.

On December 16, 2008, the current developer of the Cedar Center project, Peter Rubin, President and CEO of The Coral Company, gave a presentation to the Cleveland Heights/University Heights School Board. His presentation was followed by Jeff Rink, Director, Public Finance with Key Bank. Mr. Rink presented a basic overview of the 30 year "Tax Increment Financing" proposal.

The following links provide a definition of "Tax Increment Financing" from various sources:

• Wikipedia - Tax Increment Financing
• Ohio Development Services - Tax Increment Financing

It could be viewed as peculiar, the first acknowledgement of significant financial responsibility, a 30 year long encumbrance, did not take place in a South Euclid venue, but at a school board meeting in another municipality in front of their residents.

It is most unfortunate that the financial circumstances surrounding the city owned properties have yet to be revealed to the taxpayers of South Euclid. The Plain Dealer published rare commentary from South Euclid city officials concerning the use of taxpayer money at Cedar Center. Those statements were extremely vague, inconsistent, and admittedly ambiguous.

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City officials have not yet revealed the amount of money they intend to request from the CHUH School District. According to applications submitted by South Euclid for public funding requests to Cuyahoga County, $13 million was the estimated "minimum."
It is unclear why the Mayor, or any city official, did not attend to address the Board personally, or participate in the presentation. Law Director, Michael Lograsso was in the audience but was non-participatory.

Please reference the following link to view the full text of an application for public funds submitted by South Euclid to Cuyahoga County:

• http://www.scribd.com/doc/3322049/BrownfieldApplication

A number of questions come to mind:

• How is it possible that the City of South Euclid and The Coral Company entered into a development agreement which presumptuously uses “Tax Increment Financing” as a significant factor of their financing equation, without having secured approval from the CHUH School District first?

• What will happen to the financing plans if the CHUH School Board members turn down the proposed TIF arrangement?

• If the CHUH School Board agrees to a 30 year commitment of a minimum $13 million for the construction of a shopping center in another city, how will the CHUH taxpayers respond the next time a school levy increase is needed?

• Exactly how much public money has gone into this project thus far?

• What is the total amount expected to be spent including all financing obtained from public loans, grants or other funds, plus, legal fees, interest on loans, property taxes, heating, electric, snow plowing, landscaping, maintenance, etc..........

To view evidence of significant financial undertaking, please see:

• Irreconcilable Details

Below:

Peter Rubin, President & CEO of The Coral Company presents his financing and development considerations to the Cleveland Heights/University Heights School Board:

• time: 9 min. 55 sec.

Below:

Jeff Rink, Director, Public Finance, Key Bank gives his preliminary pitch, minus any actual dollar amounts, to the School Board and the people of Cleveland Heights and University Heights. This video clip is in a two part format:

• time: 9 min. 48 sec.

• PART 1

Below:

Continuation from video above.

• time: 7 min. 45 sec.

• PART 2