Mayor Justin Bibb has proposed the deal to enable Dan Gilbert's decades-long development plans on the Cuyahoga River.
CLEVELAND, Ohio – Mayor Justin Bibb proposes more than $1 billion in public subsidies over the next 45 years for Bedrock’s sweeping long-term plan to remake Tower City Center and the eastern bank of the Cuyahoga River.
Bedrock’s plans are progressing quicker than the other two prongs of Bibb’s strategy. They have been in the works since at least 2021, and city leaders see them as a rare opportunity to breathe new life into downtown in much the same way Gilbert has Importantly, Cleveland’s billion-dollar-plus price tag would not come from the general fund, or the city’s general bonding capacity, which are relied upon to deliver basic city services, Epstein said. It also wouldn’t chip away at the county’s existing tax base. Instead, it would draw upon future increases in property tax revenue from Bedrock’s properties, and from other properties within a designated downtown district.
As property taxes rise due to development, those increases will be given back to Bedrock, so it can pay down its private construction debts. As TIF district proceeds grow over time, Bedrock would be entitled to 40% of it, up until Cleveland has contributed its share. This leaves money in the pot on the front-end, which could be used on lakefront plans.
If Cleveland is the one that issues debt for the infrastructure, then Cleveland will cover the interest costs at an unknown figure. Timing – and the potential for low-interest federal loans the city is seeking – make it difficult to determine this piece of the price tag, Epstein said.Bedrock’s plans, and the city’s contribution to them, are expected to generate a return-on-investment in the billions, Epstein said.
-Create 400 residential units at or below market-rate, including 160 for households with incomes at 30% to 60% of area median income. Five percent of its 2,000-some planned units are to be available for purchase, rather than rent.
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