Steelyards Tax Abatements? - oops, we forgot 'em!

Cleveland may not get Steelyard's tax millions
Big-box retailers get 10-year abatements from Ohio

Thursday, February 08, 2007
Plain Dealer

Two years ago, Cleveland promised to direct $18 million in property taxes from the controversial Steelyard Commons shopping center to pay for the extension of the Towpath Trail into downtown and to support mom-and-pop shops in nearby neighborhoods.

But now, that promise might not be kept.

City officials said they discovered late last year that Steelyard's developer, Mitchell Schneider, and several big-box retailers locating on the former steel mill site are eligible for a 10-year property tax break, which would take away millions intended for the trail, neighborhood stores and even city schools.

The state automatically grants the 10-year tax break to a property owner who successfully completes a voluntary environmental cleanup on his site....

Ken Silliman, Mayor Frank Jackson's chief of staff, said they also will try to persuade Wal-Mart and the others to give up the tax break. "There's certainly no guarantee that we can get them to do [that]," Schneider said.

City Councilman Joe Cimperman, who represents the neighborhood that includes Steelyard, said the city needs the tax money.

Schneider said a new law that takes effect next month could help him direct his portion of the taxes to the city. The law allows a property owner to voluntarily give up his tax break. More....

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I had to read this article twice to believe it! How in the world could former Mayor Campbell, Mayor Frank Jackson and their staff's miss something of this magnitude.

Looks like the "Mom & Pop" type stores once again suffer from the incompetence at City Hall.

I love Cimperman's "we need the money" and Jackson's chief of staff Sillyman thinking maybe the businesses will not take the tax break.

I would ask - Why, because you guys screwed up and made promises you can't keep?

You would think that Jackson, wanting to be Mr. Regionalization & Economic Development, would know that when Brownfield cleanups are done there is usually incentives as in tax breaks given by the state and some time the federal government.

Great Job Frank! How are them bike paths in the projects coming along?

KING