Media should reveal what public funds are subsidizing at Brook Park dome
by Roldo Bartimole
(Plain Press, July 2025) Now that the Republican state legislators and Gov. Mike DeWine have shoved $600 million FREE dollars into the hands of the Haslam group to build the property tax free domed stadium it’s time the public be told what its taxes are buying.
We don’t know how extravagant the Haslams will be now that their fists hold the free money.
But in 1990 we didn’t know that about the then proposed baseball stadium and basketball arena, also subsidized by public money.
Neither did the newspaper, television or radio outlets make much of an issue of what the public was subsidizing.
THAT SHOULD NOT HAPPEN AGAIN.
If the following material was reported widely the public, I believe, would have demanded that Gateway not bow to every demand of the owners of the Cleveland Guardians and Cleveland Cavaliers.
I hope the same mistakes will not occur in the subsidizing of the Browns.
The three team ownerships DO NOT SHARE any of their profits and don’t fairly share in the costs.
I am hoping that especially the news media pay close attention to the plans for the domed stadium and its costs.
Here hopefully is an example:
Gateway dines on taxpayers
– From Point of View, Vol. 26 No. 20 (June 11, 1994)
As County taxpayers shell out hundreds of millions of dollars for Gateway it’s become clear that they not only subsidized playing facilities for the city’s wealthiest citizens – Dick Jacobs and the Gund brothers, George and Gordon Gund – but some of the fanciest restaurants and food concessions going. On lavish, upscale restaurants at Gateway have cost $7,526,027. What a ride county’s taxpayers have been given by three county commissioners and some of the premium digs for its ballplayers.
The locker room facilities for the multi-million-dollar players cost some $637,000, including wooden lockers at about $1,000 each for a $50,000 cost. weight room and equipment cost $240,000.
And you don’t think they bring their field uniforms home for the weekly wash & dry, do you? That’ll be $90,000 for laundry facilities.
The Swimex that allows for a swim against gushing water: $150,000; a sauna, $5,000; steam room, $5,000; rehabilitation equipment $12,000; appliances, including kitchen, lamps and can you believe it hair dryers, $20,000. Inside batting cages, $40,000. Courtesy of county taxpayers. Nothing is too good for the wealthiest of our community, be they ball players or team owners.
Downtown restaurants – hoping for big business from the fans Gateway’s stadium and arena games – may be in for some tough competition. And we’re not only talking about game consumption of hot dogs and beer.
Taxpayer money has helped build two of the choicest restaurants in downtown Cleveland – the exclusive Terrace Club at Taxpayer’s Field, also known as Jacobs Field, where ordinary fans are not allowed on game days – and in the arena, “Sammy’s at the Arena,” another Flats. Terrace Club, where on game days only members dine, ($800 to join a year and open only to loge and special seat customers) cost taxpayers $5,155,893, and seats some 900, including the bar, the largest such facility downtown. Sammy’s at the Arena cost $1,841,384, with furnishings of $178,750 and kitchen equipment of some $350,000, for a total, according to Gateway officials, of $2,370,134. Sammy’s will seat some 323 – 63 in the bar, a good-sized place.
A look the per seat cost, would work out this way: two-tiered Terrace Club cost: $5,666 each; Sammy’s $7,337 per seat.
Best of all, since taxes are limited to a cap of $400,000 of the dilapidated Central Market site, the two restaurants are burdened by no property taxes.
That’s a cost most downtown restaurants, unless they are in a tax-abated building, must endure.
Sammy’s – co-owned by Denise Fugo, an original member of the Gateway board of directors, who resigned from the board, and then sought and got the restaurant business -will occupy 15,885 square feet of the new 20,500 seat arena to open sometime in August. Beneficiaries of the restaurant business will not be only the operators – Sammy’s in the Flats in the arena and Levy of Chicago for the Terrace Club – but the team owners who have contracted with them to do business. Concession business, under the lease, goes to Jacobs and the Gunds exclusively. They, then contracted for the operators under a private agreement so we don’t know how it is split. There are, of course, other eating facilities in both the stadium and arena, including a special sports bar in the arena to be operated by ARA concessions.
The total cost of Sammy’s with the sports bar will be $4.9 million. Added to that will be other food operations to bring the total cost for all food operations to $6,119,520.
Under an agreement whereby the Cleveland Cavaliers took over the purchasing of some equipment for the arena, Gateway saved itself some costs. The Cavs took over the purchase of some $21-million worth of equipment.
Gateway says that deal limited the $6.1 million in purchasing of food equipment to a $6 million tab for Gateway, thus the taxpayers. There will be plenty of food in the arena for all tastes. A dozen concession stands with grill and pizza service will dot the two levels of the arena with each costing from $62,000 to $132,000 to feed the hungry fans, that is. The cost of the concessions total $1,048,350. A pizza conveyer oven, of which there are a number, go for $11,500 each. And a special room for the Cleveland sports reporters will cost taxpayers $121,050. No wonder all those reporters love the sports facilities, and you can see how the goodies add up to $6 million. With food must come drink. And they will be quenched at the arena. The beer room costs $63,700 and the automatic system for distributing beer costs $200,000. The soda distribution system cost $180,000. “Beers of the World” stands and portable service cost $103,500; and a lower-level liquor bar costs $43,100; and a “Libations” concession in the upper stands, $19,900. Nachos will be big. Four stands and portable serving stations will cost $83,850. And a couple of nacho warmers go for $950 each. Ice cream doesn’t seem the most likely of edibles for a basketball game, but four outlets went for $198,250.
Some downtown restaurateurs contacted say that the Terrace Club represents probably the largest restaurant in Cleveland. One warns that downtown restaurants are expecting enough business from Gateway to help them survive but that “too many are waiting for Gateway to save them.” The Terrace Club restaurant and Sammy’s represent more than a heavy tax burden on the taxpayer and an unfair competitor for other restaurants which have to pay taxes but a perfect example of what is happening in major league sports. Segregation by income.
Major leisure sports are using tax-subsidized facilities to-a separate fans by class. Many people comment on the mostly white crowds at Taxpayer’s Field. Since almost half the 42,000 seats are held by season ticket holders, that alone rules out lower income fans, both white and black. And the lack of tickets at game time probably rule out a lot more lower income fans who are likely not to purchase via a ticket firm with credit cards.
The Terrace Club restaurant’s promotional pitch to fans who own loges, are season ticketholders or sit in special seating, already served by waiters, reveals the class distinctions it creates. Beyond having to have special tickets and a $800 fee to even enter the restaurant, a three page “policy handbook” says that “all charges for food, beverages, tax, gratuities, and game seating premiums will be charged to the Member’s account. For pregame or game time use of the Terrace Club, cash, personal checks, and credit cards are not accepted at any time. An 18 per cent gratuity plus applicable sales tax will be added to all food and beverage charges.”
Further, a dress code is outlined. “Slacks and collared shirts are appropriate for men. Dresses, skirts, dress shorts or blouses are appropriate for women. Blue jeans and tailored shorts will be allowed in the Terrace Club, but running or gym shorts, cutoffs, sweatpants, torn or soiled jeans, t-shirts and other abbreviated attire will not be allowed.” What, no tuxedos necessary?
The Terrace Club has also become a favorite of the charity set who need to be seen and courted for their donations. The promotional booklet suggests why it might attract tilt: need-to-be-seen crowd: “Perfectly situated above the left field lower deck seating, the Terrace Club overlooks the playing field. The upper level, bar and two-tiered dining room are completely surrounded by seamless glass.” Dick Jacobs can even make a buck on organized charity. The scoreboard at the arena came in at a cost of $4,000,350, far less than the ad drenched scoreboard at Taxpayer Field. The baseball scoreboard was almost as much over cost as the Cav’s scoreboard cost in total.
Tom Chema told board members that Sony was “contributing “all those TV sets one sees mounted around the stadium. But even he couldn’t resist a snicker since the Sony scoreboard cost $10,322,000, about $3 million over budget. HOW many TV sets can you buy for $1O-million? Or even the $3 million overrun?
With cost figures still coming in from the stadium and arena, both show that there are budget overruns in the cost of each facility. What would make taxpayer’s really scream would be if the Pee Dee and Tee Vee would tell the real story of what the cost projections were for the stadium and arena when originally proposed compared to the final cost, and what the interest costs of the bonds add to make the REAL cost of Gateway.
A press release outlining opening festivities for the arena has Gordon Gund saying, “We want to open this wonderful new building with a series of exciting events that will be fun for everyone. The people of northeast Ohio will soon see what we mean by ‘entertainment like you’ve never seen before.
Better yet, Gordo, tell us about costs like we’ve never seen before.
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