2026-10-19 - Finance, Diversity, Equity and Inclusion Committee

12:08Afternoon today is Monday, October 9th, PMS Committee of Finance, Diversity, Equity and Inclusion. Call to order. Call the roll.

12:30Present.

12:32All right, we're going to go through a few of these pieces first until we can get to the IX so that we can try to move pretty fast today.

12:38Okay, first ordinance is Ordinance Number, this is Parks and Rec. Ordinance Number 748-2026 by Councilmember Bishop Starr and Griffin.

12:50This is an environmental request. An emergency ordinance authorizing the Director of Parks and Recreation to enter into one or more contracts with Ohio City Inc. to provide a variety of family and youth programming activities.

13:04Good afternoon. Thank you for having us here today. I'm here with Carrie LaPalma, who represents Near West Recreation.

13:11Near West Recreation has been providing youth and families with accessible, affordable recreational activities and community experiences for many, many years now.

13:21As a part of their 2026 fiscal year, they have served over 1,500 youth.

13:28They have over 200 volunteers and just a variety of programs.

13:33We have been supporting Near West Recreation financially for the past two years, and this would be a continuation of existing support.

13:41I'm here with Carrie, as I mentioned, and then she will provide assistance with answering any questions you have, and we are requesting approval of this item. Thank you.

13:52Thank you. Did you have any comments?

13:58Yeah, I don't have any comments unless anybody has any questions.

14:02All right, this was heard in municipal services and properties, as well as workforce. Are there any questions regarding this? Is the local council person in favor of this?

14:14The local councilman in favor of this? Councilman Davis, I believe?

14:17Yes, sir.

14:18Okay. Councilman Casey and Councilman Polinson.

14:20Thank you, Mr. Chairman. Mr. Chairman, to the Director, again, as I stated in municipal services and property, very, very supportive of Ohio City Inc.

14:29But I really hope that when other organizations that host youth sports around the city start reaching out to the city, that the pocketbook is open as well.

14:43We've had, I know, at least one organization that was denied funding in the past for youth baseball, and it's the oldest and largest organization for youth baseball in the city.

14:56Obviously, you know who I'm speaking of, but I hope that this actually is setting a trend for other organizations that are looking for help for youth sports. Thank you, Mr. Chairman.

15:09Thank you. Just to follow up on that, have we done landscape analysis to really try to figure out if and where we have gaps?

15:16Because I'm going to hear a regular trend about, okay, what's happening in my neighborhood or backyard?

15:21Now, I know that this is an organization that's well-funded and well-supported. I'm aware of the history, but I think you're going to hear a reoccurring message of what about our neighborhood?

15:33So, have we done any landscape analysis to look at all of the different programming and see where or what we need to have focus on?

15:40Because we also have to make sure that we are, you know, judicious on how many programs we could do for directors.

15:47To the Chair, thank you. I appreciate that comment.

15:50As it relates to a landscape analysis, the 2023 needs assessment that was conducted as a part of the development of the master plan demonstrates needs in the community as it relates to programs and services and facilities.

16:06I would suggest that this item specifically was sponsored and originally funded through Councilman McCormick. And then when it transitioned to Councilman Davis, at that time the funding did not come out of Councilmanic dollars, but our departmental dollars.

16:25So, we've been funding it for two years now. We fund other youth sports organizations, community football, for example, certainly not opposed to finding out what other organizations may or may not need some support or help.

16:39Okay, I mean, and the reason I'm bringing it up because I could just think of two major organizations right off hand. And that's the Tri City Baseball League that I know that Councilman Casey has in his area and then buzz, buzz, buzz, buzz, buzz, buzz, buzz.

16:55So, I'm just thinking those two off the top of my head.

16:59But what I want to make sure is that we also don't go down a slippery slope of thinking that we can actually fund everybody's program. But I do believe in equity and making sure that we have fairness that we look at gaps and make sure that we feel any gaps.

17:13Appreciate that. Thank you. That's a bigger plan and hopefully you'll be talking with your chair about how you're going to look at that and roll that out because that's one of the reasons why we do national youth sports. That's the reason why we usually do the thing that Trevail Harp does with NLI.

17:29That we could try to have gaps because I know for a long time, for example, Collinwood didn't have recreational activities on the south side of Collinwood because most of the rec center and the rec centers on Lakeshore. So we have always invested in that.

17:43Those are the kind of things that I want us to make sure we identify as we're looking at gaps. Okay.

17:48Thank you, Mr. Chairman and colleagues and I want to just follow up on Councilman Casey and your line of questioning comments because I think it's right on the mark.

17:58So what transpired here, and again, this is an individual ward or Councilman funded program that's then shifted internally into the division.

18:11And I understand the director's willingness to continue wanting to continue this program, but you just alluded to it, Mr. Chairman, as a result of the mayor supporting the closure of Collinwood High School, the after school program disappeared.

18:26So, so the kids and families in Collinwood, Nottingham SPA, and Euclid Green SPA, which utilize Collinwood High School, the gymnasium, the other things inside the building, it's no longer available.

18:43So there's this major hole. And if you look at a map of the northeast side, you'll see these two major SPA's have no recreational opportunities now at all.

18:53So I would say the administration, if this report was done in 2023, and I want to say public, I believe that we have a very competent director here who's looking at things differently.

19:05I would urge this administration to take a look again at where there are gaps throughout the city, where there's pockets or neighborhoods or holes.

19:15Again, I've got two SPA's now, statistical planning areas with no recreational programs, and as a result of the closure of Collinwood High School, which I don't know why the mayor never took into consideration when he agreed to close Collinwood.

19:29So those are legitimate issues. I'm glad you raised them, Mr. Chairman.

19:33We don't have a pot of gold to fund everything we'd like to in the city of Cleveland, I'm very much aware of that.

19:40But I think we have to really recognize and I can figure out where we can fill in those gaps where needed or where possible.

19:49So again, I thank you for raising those at that issue. Thank you. All right, thank you.

19:55So no other questions or this number 748 dash 2026 stands approved please sign on. Next we have ordinance number 911 dash 2026 as amended by Council Members Bishop star Griffin by departmental requests and emergency ordinance authorizing

20:11the director of parks and recreation to apply for and accept the grant from the Cleveland guardians charities for the baseball and softball summer youth program and the amendment states as follows.

20:24No legal objection to this legislation if amended as follows one in section three at the end insert director of parks and recreation shall provide written notice to the clerk whenever any purchases made through the cooperative process, which notice shall include the details

20:40of any such cooperative purchases. This was dated 1013 26 by Sierra Lipscomb assistant director of law director.

20:49Thank you. The city of Cleveland's been partnering with the guardians charities for a number of years now to support youth baseball programs in the summer, not only does it support baseball but it also supports softball.

21:03And this is a great out of school time program for our youth over the summer costs can include equipment, uniforms, and umpire services. Basically, those things that would be necessary to play softball or baseball.

21:18This is a great positive activity for our youth. The city does not have a cash match to this grant. We are seeking approval to accept a donation for this baseball softball program from the summer, and I'm happy to answer any questions. Thank you.

21:35And I'm looking for a number of total amount is 80,000 to the chair the maximum number, maximum amount of money that we could receive is up to $80,000 and that is based upon cost for buying equipment or uniforms.

21:54So it depends on how many youth participate the more kids that participate, the more money that we would spend.

22:01Okay, and I know that once again just to bring this conversation up one more time. I know that we have the leagues that are ran through the recreation department, but does any of this money go towards any of the other ancillary leads like B buzz or try see or anything

22:17Tri City or anything to the chair that's a great question so the guardians not only support the city of Cleveland summer rec league but they also do support some of these other organizations such as be buzz and oh ball I'm not sure about Tri City but they do

22:33make sure that they support other organizations not just the city of Cleveland. Can we get a list of any of those other organizations that they do serve because once again we're also trying to get a scope of what they are providing as a community benefit.

22:44I'd be happy to do so thank you. Thank you. Any other questions regarding 911 dash 2026 as a mid year Councilman Brian Casey then Councilman Kevin.

22:52Thank you Mr Chairman Mr chairman to the director does any of this $80,000 go to Ohio City through the chair to the Councilman I'm going to check but I believe, no, I believe this money is only to support leagues operated through the city and not through other organizations they get a separate amount of money from guardians charities.

23:16Okay, so just so I understand Cleveland guardians charities give the city $80,000 to disperse amongst our own league, which plays with these other independent leagues, and then the city is going to turn around and give just one of those leagues $100,000 correct to that through

23:38the chair to the Councilman these are two different pots of money. I understand. I understand what I my statement was correct. I think what I hear you saying is the city is providing financial support to near west for $100,000, and then the city is accepting funding from the guardians for $80,000.

24:03So I hear what you're saying, they're not connected. I know they're not connected I'm just, I'm just making an observation observation that the Cleveland guardians give the city of Cleveland $80,000, and that gets dispersed amongst our city league.

24:19Yes, which plays with these other independent leagues, and then the city is going to end on a separate note, the city gives one of those independent leagues $100,000.

24:29Correct. On the separate note, correct. Thank you, Mr. Chairman, and I think that's going to be the issue director that everybody needs to try to look at that landscape analysis so as my colleague Councilman said, everybody knows you're really approaching

24:45this from a different perspective. But at this side of the table, we always got to look at equity. And even though there may be more investment in one area than the other I don't always look at equity as everybody gets the same cut a pie.

24:59I look at how we actually need to invest in certain areas, but that also means that we need to really take a hard look at Collinwood Glen, Glenville, other places, because I know we've been really trying to beef up baseball.

25:12Okay. And if it means that we need to ask for more money we need to start asking for more money. Lord knows these groups don't hesitate to bother to ask us for money.

25:21If we need to ask for more money, then you need to let us know that we need to be advocating and articulating that we need more money in our community benefits conversation.

25:30Okay, fair. Thank you. Thank you, Councilman calm.

25:33You got it. You said everything. Okay, thank you, sir. All right. Seeing all the questions ordinance number 911 dash 2026 as amended stands approved and directed at a probably a good thing to talk through with your chair, as we're starting to try to put together

25:53our wish list and the things that we want for budget, as well as as we start to talk through, making sure that we do operational hearings. Okay, great. Thank you.

26:02Appreciate it. Thank you director appreciate it. Right.

26:06We'll move to the police commission. All right, the ordinance number 1162 dash 2026 as amended by council members house Jones and Griffin by departmental requests authorizing the director of finance to enter into an amendment to lease agreement.

26:32Number 2017 dash 20. Oh, I'm sorry 2017 dash 02 three with mid city LTD for the lease of office space for the Cleveland police commission located at 3631 Perkins Avenue for one additional year with one year option to renew exercise bow by the director of finance

26:54and the amendment states, there is no legal objection to this legislation if amended as follows one in the title line six after Perkins Avenue insert to remove unit three CE and to extend the term.

27:11Number two, after the second whereas clause insert a new whereas clause to read as follows, whereas on separate on September for 2025 the city notified the landlord that unit three CE was no longer needed for use by CPC, and the landlord agreed

27:30to accept the city's proposed reduction in space, and number three in the fourth whereas clause after wishes to insert remove unit three CE and number four in section one line to after LTD to insert remove unit three C, and to this is dated 10 1526 signed

27:50year Lipscomb assistant director of law, director and team, make sure we announce who everybody is so we all know. So good afternoon, Council President and members of Council.

28:02My name is shalina Williams I serve as the executive director for the Cleveland police commission. I'm joined here today by my assistant director, Tim Scott and you can introduce yourself, and also by finance.

28:13Commissioner de Janeiro from real estate. So this is pretty much a traditional lease that basically is we're moving the same like a movement from one area of the facility on Perkins Avenue to another area.

28:29Well, just give you a little background, Councilman and members of Council. So, the police commission has been leasing at this location since 2017 in 2021 they moved to a different suite, a slightly larger suite.

28:44But they've basically been in that suite which is unit four C since 2021 at the same rent.

28:52They, so that now they're seeking to extend the lease for one year with one year option, even though they are looking for replacement space, possibly within the same building, they haven't found a space yet.

29:05So that's in their lease expires this month and so that's why we want to extend for a year on basically the same terms and conditions, as you noted when you read the amendment.

29:15In 2024, the police commission lease some additional space 2200 square feet for meeting room space, and in 2025 they decided they weren't really using it and so verbally told the landlord hey look, we're not using the space.

29:30And the landlord said that's fine we won't bill you for it but now we just want to take steps to formally remove that space from the lease. So that's what we're seeking to do with this legislation as well.

29:40Is this a reduction in rent.

29:42It won't be a reduction in rent because we stopped paying for that additional space upon verbal agreement back in 2025, but the rent is, it's going to be the same it's $4 and 56 cents per square foot annually.

30:04Which is built separately. Okay, because, you know, I think, director Williams is doing a good job and we want to do our job to be helpful to support the CPC. I think some of the comments that a lot of people make that this council is not willing to support CPC we are.

30:19We just know that CPC has always said that they wanted to be independent, which they did not want to have any oversight of any city operations in order to be what they felt to me, be able to do credible investigations.

30:32But we are the fiscal side of City Hall and we want to make sure that we're looking at the fiscal operations. Have we ever offered any city space, or is that something that people are still off the table, because will we save money and be able to support

30:48them more if we actually gave or offer city space that have access to meeting rooms and other things as well.

30:58Yeah, we would certainly be open to that we are looking for space currently. Okay. And as Suzanne alluded to, we, we have looked inside the same building that we've been residing in for almost 10 years.

31:10It looks that we may have found somewhere on the sixth floor. But again, we're open. I just know that we have.

31:17I apologize I think 75 year review, I think 75 year review that is a city release a lot of space in there we have other places so I guess what I'm saying is, is there a possibility to do some things that we can actually help them cut costs and actually

31:35use that money for other things is what I'm thinking through when we're doing this consolidation for example the fire station over a mouse, is this potentially something that we will have a big school that we can actually look at integrating some of these things I'm

31:49just throwing it out there as a conversation. No, we don't need to solve it today. I just want to just throw that out there as a suggestion, and hopefully the board and executive director of Williams be open to it.

32:01I know originally everybody wanted more independence but I think it might be time that we start looking at how we can support some of the operations, so that we can cut their costs so that they can actually direct money to where they believe is better fit so just

32:14if we can start thinking that through. Okay, constant Michael police. Thank you. Thank you, Mr. Chairman, my old colleagues just a follow up on your line of questioning.

32:24So the utilities and trash what's that additional cost do we know fluctuates from month to month. Sometimes the bills are 1200 sometimes we've seen them as high as 1800.

32:38Okay, so again, based on the Council President's line of questioning. I was just wondering as well where is there a nonprofit, some nonprofit agency in the greater in the city that has space available so we could also benefit of nonprofit and benefit.

32:56The CPC. So, what I'm hearing is that you want this additional will this lease extension for a year correct. Correct. And during this process you might look at other space that could be available. That's correct.

33:14Okay, I think that's important because, you know, we got. Look at the empty school buildings we got out here. And then we have the other nonprofit agencies in light of things being cut, they're looking some nonprofits are looking.

33:28For possible tenants to come and share space with them. So we can benefit a nonprofit agency within the city and benefit the CPC I think we need to take that in consideration so I, I hear that's what you're talking about or thing about and I'm supportive of the legislation, Mr. Chairman.

33:45Thank you, Councilman Charles slide. Thank you. A question and a comment. One, the, the, or the legislation authorizes the director of finance to enter into the lease just to clarify, is this budgeted within the Department of Finance or is it coming out of the community police commission's budget.

34:03Oh, it does come out of our budget does okay I assume so I just wanted to double check. And then the other I also support rethinking the location.

34:15If there's an opportunity to be in this building or some other city building and I think that, you know, we have a lot of opportunities to think about how we can better serve our residents by making use of all the real estate that we have.

34:29But I want to just say my recollection is very much that there was, in addition to maybe a desire to be off site because there was a feeling that it was a more effective way to provide oversight.

34:43I really remember there being also statements that there was a hesitation or opposition to being in this building specifically because of like an intimidation factor and people are worried about, you know, coming downtown and the building and you know being in the same

35:02building as public safety administration to the degree if that's still occurring I think it's actually counterproductive I think that if we're going to make this thing work we have to be able to be near each other and work alongside each other.

35:14So if there's an opportunity to bring this commission into space in this building or some other city facility, I think that that could simultaneously support your budget, while also kind of breaking down what I always felt was sort of like an argument that was towing towards contempt of each mutual contempt.

35:34So I just wanted to share that. Absolutely. I appreciate that constant site. All right. Any other questions regarding ordinance number 1162 as amended. All right, seeing no questions ordinance number 1162 dash 2026 as amended stands approved.

35:54Council persons. Thank you. Public utilities, public utilities as public utilities here. This is for ordinance number 1246 dash 2026. I do not see public utilities here I move to safety, safety.

36:19We have three pieces for safety. Thank you. First is ordinance number 745 dash 2026 by Council members politic star and Griffin by departmental request and emergency ordinance to amend section 135 that 47 of the codified ordinances of Cleveland, Ohio, 1976 as amended

36:45by ordinance number 879 dash 2029 past August 21 2019 relating to emergency medical service clinical agreements director. Yes, afternoon at 745 correct. Yes, 745 dash 2026.

37:05Good afternoon, council president and committee members ordinance as you stated is 7745 dash 2026, and this codified section 135.47 currently authorizes emergency emergency medical service clinical agreements with the community college and other governmental agencies

37:31in the various area hospitals for EMT or emergency medical technician and paramedic continuing education observation and paramedic and EMT training programs.

37:43This legislation would amend codified section 135.47 authorized EMS clinical agreements with educational institutions, nonprofit or nonprofit organizations, and career or vocational centers in addition to the colleges and other governmental agencies and area hospitals,

38:02these additional institutions will expand the range of EMT and paramedic continuing education and training programs to provide these services and programs to a larger group of individuals and provide them with real life experiences, commission wheelers,

38:19out of town out of state action training and deputy commissioner cheap enough unfortunately had a family emergency so they couldn't be here.

38:28This was heard and workforce and safety Councilman police. Yes, Mr. Chairman, we vetted the legislation and it was approved unanimously.

38:39All right, and constant stars not here but I do see that this was actually vetted through workforce training and youth development.

38:46All right, are there any questions regarding ordinance number 745 dash 2026. Right.

38:54The question is ordinance numbers 745 dash 2026 stands approved. Next we have ordinance number 1116 dash 2026 by council members politic and Griffin by departmental request and emergency ordinance authorizing the director of public safety to enter into an agreement

39:14with Cuyahoga County and the regional forensic science laboratory for the Cuyahoga County medical examiner's office to provide law enforcement related scientific services for a period of one year, with one year option to renew exercise by the director of public safety director.

39:32Yes, this legislation will authorize the city to enter in a contract or contracts with Cuyahoga County for law enforcement related scientific forensic testing services to the regional forensic laboratory of the Cuyahoga County medical examiner's office for a period of one year,

39:51option to renew exercise provided to work the public safety year one of the contract for the term from January 1st, 2026 through December 31st of this year, the amount not to exceed $500,000 the one year option would be for the term of January 1st of 2027 through

40:12December 31st, 2027, in an amount not to exceed $522,500 subject to an annual appropriation. These amounts will be paid from the division of police operating budget, and with me at the table to answer any questions relative to this is

40:31Deputy Chief Ollie pillow and also to my left is Assistant Director Shachner. Right. Thank you. Deputy Chief pillow. Did you want to add anything to the chair council members. I'm only here to answer questions if you have about the amendment.

40:50Right. Thank you. Councilman Palcic. This was heard in public safety. Yes, it was. Mr. Chairman, we thoroughly vetted the piece of legislation was passed unanimously. Okay. All right. Are there any questions regarding ordinance number 1116 as 2026.

41:08Just as a side note, director, do you have or deputy chief. What is the process of how you like notify or deal with families that have loved ones that they're lost like this because I know that there was a homicide committed with a young lady with a over on sofire.

41:30And I know the family had continuously reached out to me to ask about the conditions of how she was found and other things. Do we just connect them automatically with you director.

41:40How does that work or how do you notify the families and stay in touch with them about some of those details. Councilman, the particulars of the victim or the state that the victim is in the medical examiner would go into detail about those.

41:58Our officers would only talk about perhaps the manner of death and the death notification itself, but any details we would leave to the medical examiner's office.

42:06Okay, that's good to know. That's the reason I'm asking that because, like I said, we get asked those questions and I know that I've always had a great relationship with you, but it'd be good for us to have contacts because a lot of times these families come to their council person to ask for how can we advocate to get other information.

42:23Not any criminal information, but just kind of like they really just wanted to know the state of the body when it was found and other things like that.

42:32And to that point, Councilman, once every other year, we hold a program for the citizens of Cleveland, some who have been victims of violence and others who are not just an educational format where we have representation from the medical examiner's office because that is one of our biggest complaints.

42:52People not understanding the process with the medical examiner's office, the notification process or the viewing process.

42:58So we'll hold a conference with the medical examiner's office, the prosecutor's office, the judicial system, as well as the police, to explain the process with a death investigation or a sexual assault investigation.

43:10From the beginning, when we respond, the investigative portion, as well as the prosecutorial portion of it.

43:15That's outstanding. If you could, could you let Council know that too? Because it'd be good for us to be able to, you know, for families to know that.

43:24And I know we have a lot of new leaders in the community that are activists that used to facilitate a lot of that, specifically people like Ms. Pointer and others, but there's a whole new group of people interacting with families out there.

43:37So probably need to bring them up to snuff on how they can effectively advocate for these families when we have these issues.

43:44Absolutely. When the next one comes up, we'll make sure we notify the council.

43:47Appreciate it. Are there any other questions regarding ordinance number 1116-2026?

43:52All right. Seeing no other questions, ordinance number 1116-2026 stands approved. Please sign on.

44:00Thank you, Deputy Chief. Keep up the great work.

44:06Next is ordinance number 1165-2026 by council members Balencik and Griffin, by departmental request, an emergency ordinance authorizing the director of public safety to exercise the option to renew contract CT 6002 PS 2024-0221 with TMT Consolidated LLC, DBA, Cleveland Vehicle Detention Center for the storage of non-commercial impounded vehicles and motor vehicles and one-stop impound services.

44:35For the Department of Public Safety Director.

44:38Thank you. Join me at the table, Sergeant Donegan. He's in charge of the impound unit.

44:43You can answer any questions you may have relative to this legislation.

44:47And the division of police currently contracts with, as you mentioned, TMT Consolidated LLC, also doing business as a vehicle detention center for the one-stop impound services on the contract number, which you already identified.

45:02The original contract was entered into under the authority of Cutified Section 135.42.

45:09And this ordinance constituted the additional legislative authority required for Section 135.42 to exercise this renewal.

45:18So we're here to exercise the renewal to continue the contract with the one-stop impound services.

45:26Thank you. Councilor Mike Balencik.

45:28Mr. Chairman, my colleagues, we heard the legislation.

45:32We've got it. It was passed unanimously.

45:34All right. Thank you. Are there any other questions regarding ordinance number 1165-2026?

45:40Seeing no questions, ordinance number 1165-2026 stands approved. Thank you so much.

45:45We'll go to -- where's that at? I've got it handled already.

45:57Okay. Okay. All right.

46:03And I've got to talk to you about that because our buddy called on us about that, but I'll talk to you about that.

46:14All right. Okay.

46:16This is resolution number 1247-2026 by Councilmember Alex Jones.

46:22An emergency resolution opposing the U.S. Department of Commerce and the U.S. Census Bureau proposed rule,

46:29decennial census of the population of Americans, proposed residence criteria,

46:34and proposed regulations for demographic questions.

46:38Federal Register DLC 2026-18481-91FR57524,

46:49and its comment period extended by Federal Register DOC 2026-2032891FR63207,

47:00which would exclude non-citizens other than lawful permanent residents from the decennial census count

47:06and prohibit the collection of race, ethnicity, and sexual orientation data and urging its withdrawal.

47:14Councilwoman House Jones.

47:16Good afternoon, everyone.

47:23I just really wanted to go really briefly over what I'm -- why I'm proposing this resolution.

47:30I think everyone should know at this moment the changes that this federal occupier is indicating as it relates to the 2030 Census.

47:40And basically what it will do is asking us to actually put on record our opposition to these changes.

47:52The -- what they are changing is basically it excludes every resident -- well, how would I say it?

48:03They are framing it as every, like, U.S. citizen or lawful permanent resident.

48:08Who this impacts is undocumented residents and individuals who may be paying taxes

48:14and actually living in our communities, which can truly be a significant impact in our community.

48:20It also will remove the questions on race, ethnicity, and sexual orientation.

48:27And people are like, well, why is that a problem?

48:30This actually also will impact international students who are here.

48:36You know, we have a big international student population here in the Cleveland area,

48:40refuge and asylum seekers, and temporary workers, which we know are members of our community.

48:49When we look at, like, why does it matter to track all of that information from federal funding opportunities,

48:56tracking of our neighborhood data, when we look at what is left of the civil rights, you know,

49:03Civil Rights Act, Housing Act, Voting Rights Act, you can't keep track of things that you don't track.

49:10And we know there is usually an undercount, and we in Cleveland has definitely been in the undercount,

49:17which has resulted in this body in and of itself losing two awards since the last census.

49:24When we talk about race and ethnicity, it has been collected in some form or fashion in the U.S. since 1790.

49:30And so we just really need to urge that this federal government count everybody, if you all,

49:38if this body decides to be supportive of it, we will get it documented, get it officially on the federal register,

49:47hopefully encouraging the mayor to do the same thing or to do just one comprehensive opposition,

49:54as well as extending, it's a request to extend the opening period, review period, to at least 90 days

50:02and require the federal government to come to communities that are historically undercounted to come and get people's input

50:08based on this rule that they're proposing. So that's what's in front of you.

50:11So first of all, I'm very supportive of this, and I will tell you that I think this is probably one of the most egregious things

50:18I've seen this administration do. I don't even know how you do a census without trying to collect this type of data.

50:25I also think that it would hurt, tremendously hurt, some of the federal funding that we actually get as a city.

50:32So I think that this could have some devastating impacts.

50:35One of the things that I'm really going to push, which I'm glad that you brought this to everybody's attention,

50:40is when we deal with the fair committee with national legal cities for those of us that are dealing with that,

50:45we really need to make a big push. And I know Casey and I are on the board of national legal cities

50:50to really try to push to get alignment for this as well.

50:53Yes, and so I don't know if those deadlines have passed thus far for the things in which I'm assuming they are,

50:59but maybe if there is a process for emergency, even though technically we're going to go after the board meets,

51:06but I still think it should be officially documented because it really is going to be devastating to our communities.

51:11Absolutely. I think this is a very, one of those very important pieces that we need to be on record speaking loudly about this.

51:17Councilman Mike Linsley.

51:18Thank you. Thank you, Mr. Chairman. I wholeheartedly support it as well.

51:21And the thing that I've heard for a very long time in the ethnic community, Eastern European, is that they're like ignored.

51:31So we have in the city of Cleveland, greater Cleveland area, we have large populations,

51:35Italian, Slovenian, Croatian, Lithuanian. They're not even considered. They're not even given an opportunity to indicate

51:43on the forms as to their nationality. They're usually clumped or lopped into this classification as white.

51:51And as you know, Mr. Chairman, you know when you're in Little Italy, they refer themselves as Italians and also their faith.

51:59So to me, I don't understand for the life of me why the federal government would not really want to understand

52:06and get a snapshot of the ethnic composition of a given region, a given state, a given county.

52:15So as it pertains to when you provide programs or fund programs and initiatives, you know what you need to do.

52:22And it's just mind boggling to me what's happening on the federal level.

52:25I'm like most, I'm afraid to turn TV on in the morning to see what they're messing with next.

52:30And I'm living in a world I don't understand quite frankly.

52:35The occupant of the White House, he's out of control. The people around him are out of control.

52:42And you see it daily and that's why I pray at night, God help us.

52:46And that's why I'm hoping our upcoming elections, there'll be some changes taking place nationally.

52:53But I'm totally in support of legislation. This resolution, thank you.

52:57Thank you, Councilman Charles.

52:59Thank you, Councilman Plensic. And I just want to answer my opinion on that,

53:03is that the federal government feels they can't be accused of discrimination and racism if there's no data to support it.

53:10So that is the point.

53:12All right. Any other questions regarding 1247-2026?

53:17Seeing no other questions, resolution 1247-2026 stands approved.

53:22Thank you, Councilwoman. Councilwoman, did you want to just do your other piece too?

53:26All right. All right. Other pieces ordinance number 1245-2026 as amended by council members,

53:33House Jones and Gray, an emergency ordinance to supplement the codified ordinances of Cleveland, Ohio,

53:391976 by amending section 162.01 as amended by ordinance number 1006-2023 passed October 23rd, 2023 relating to compensation by the Cleveland Commission on Black Women and Girls.

53:58And the amendment states as follows. There is no legal objection to this legislation if amended as follows. One, in the title line six strike compensation for and at the end strike the period and insert compensation and terms.

54:13Number two, in section one, at amended section 162.01(c), line two, strike CMSD students and insert school age youths, strike lines three, four, five, and six in their entirety and insert years in the event that A.

54:34And this is dated 1019-26, signed by Stephanie Melnick, Chief Corporate Counsel, Director, I mean, Councilwoman.

54:44Yes. And I know Commissioner Wilson, the mayor's designee is on her way. I thought it would be at 315. So maybe she'll come back and say hi. Okay.

54:51So basically what the amendment that's being proposed is basically expanding the actual individuals who can be on there.

55:05Currently right now if you see it, it's very definitive of specific professions and we had limited to CMSD students only.

55:15And so the commission over the last couple of months have been talking. There have been some changes.

55:21And what we would like for the council's consideration is to changing some of the seats and particularly from a doctor or a doctor of medicine to a healthcare professional as well as instead of CMSD students just making it school age children because we know students go to all types of schools in the city of Cleveland.

55:46And with that, removing or broadening, removing the business, college, university, grassroots, and union representation to changing those to four community members with a demonstrated passion for the work of the commission.

56:01So that's what's before you.

56:03Thank you. And I support the changes. I know this has been your baby. You've been working this. Why did we move the business, college, university, grassroots, and union?

56:12We wanted to just pick four and we just thought that the union one was definitely the hardest one.

56:19We still have not gotten anybody on the commission that was union representation.

56:24Grassroots kind of already fits into the room, but college, university, as well as a business representative, it could be, but we did not want it to limit it to in the event that we come up to what we have now.

56:37I just look at those entities and I know Councilwoman, you are always going to make sure that we look at diversity issues, but I look at those institutions and those institutions have a lot of barriers and things that for black women.

56:55And I just want to make sure that we keep them feet to the fire at the table. Black women need to be in the unions, we need to make sure that we got admissions in the colleges, and we need access to some of the business opportunities and scaling up.

57:08So I know you got it covered. I just want to make sure we don't let none of those entities off the hook.

57:13No, I think also to look at where are the opportunities for the average woman to serve on the commission, which many times people talk about those closest to the problem and closest to the pain or closest to the solution.

57:30You see what I'm saying? And so creating real opportunities for everyday women in the city of Cleveland to have the opportunity to be a thought partner with us and broadening those definitions to give us a pathway there.

57:43Right. This is two years in, and now we feel like there's an opportunity, like I said, to broaden the composition and representation and we'll go from there, look into things and like I said, it will create more opportunities for people to apply and see and if we can get a good mix.

58:00Totally get it totally in support because I also think that there's some opportunities around reentry that I think that women are under underappreciated and undervalued in making sure that we have reentry programs and things to focus with them to.

58:15And that's the thing that it was list of somebody was always feeling like they got missed out. They were leaving and so creating a very general membership access point within reveal maybe some areas that we weren't thinking about to then have voice here.

58:31Okay, thank you.

58:32I don't see any questions.

58:36Seeing no other questions or this number 1245 dash 2026 as amended stands approved, please sign on. I'm going to do this one piece quickly is the director is director Cole here yes, come on up director Cole.

58:52This is ordinance.

58:58Moving kind of fast today but thank you, Commissioner meals appreciate it. We passed the legislation. You guys are ready to go. Okay, thank you.

59:08All right, ordinance number 1279 dash 2026 by Councilmember Griffin by departmental request an emergency ordinance to amend sections to amend various sections of ordinance number 1 94 dash 2021 past March 29 2021 as amended relating to salaries for various classifications

59:28director. Thank you chairman committee. This is our annual piece pursuant to ordinance one a 9.02 a one in which every year in October, City of Cleveland must reevaluate our employment wage scale pursuant to the United States Department of Labor's CPI for a region which

59:52is the Midwest region. This year, it increased by 3.6% so therefore

1:00:00All of our minimum wage rates for non-bargaining employees were adjusted by 3.6% higher, which is what is reflected in a pay ban.

1:00:09>> And just so that everybody can know, you say CPI, you mean Consumer Price Index, right?

1:00:14>> That's correct, Chairman.

1:00:15>> Okay, all right.

1:00:17Any questions regarding ordinance number 1279-2026?

1:00:22Seeing no questions, ordinance number 1279-2026 will be heard for consideration by the full body this evening.

1:00:29Thank you, Director.

1:00:32>> All right, next is Ordinance Number 1246-2026 by Councilmembers Kasey and Slyke.

1:00:38An emergency ordinance extending the moratorium on the review and

1:00:43issuance of all use, building and zoning permits, certificates of occupancy and

1:00:49other license or permit applications, including licenses or permits issued by the Department of Public Utilities for

1:00:57data centers in the city until the earlier of the effective date of any newly enacted or

1:01:04amended codified ordinances, sections regulating data centers, or January 29, 2027.

1:01:14Councilmembers, Kasey and Slyke, would you guys like to speak to that?

1:01:19>> 1246-2026.

1:01:22>> Thank you, Mr. Chairman.

1:01:23Mr. Chairman, you know over the last 90 days, three months or so, both Cleveland City Council and

1:01:29the administration have been working diligently on the future of the city of Cleveland and

1:01:34its residents in regards to the possibility of data centers either expanding in the city of Cleveland or coming into the city of Cleveland.

1:01:43We've gathered a lot of information.

1:01:44We've held public hearings.

1:01:46We don't believe that we're quite ready at this point to come up with a piece of legislation regarding data centers.

1:01:52Therefore, City Council and the administration are both requesting that we extend the moratorium 30 more days in preparation of getting the piece of legislation that will eventually come before City Council, correct.

1:02:12>> Thank you, I will just add on to that and just remind the listening audience that the origin of this moratorium was

1:02:19based around the realization that our zoning code as it exists today has not kept up with the growth of data centers as an industry.

1:02:30It really treats it more as an ancillary use and not a stand alone facilities often of substantial scale using substantial utilities.

1:02:38And the purpose of the moratorium has been to allow us to wrap our heads around all of that and

1:02:45come up with some permanent regulatory fixes within the zoning code that is the work

1:02:50that Councilman Casey and I have been continuing to work through.

1:02:54We've made a lot of forward progress that's been informed by community meetings and

1:02:59this 90 day extension allows us to conclude that work and bring a full solution to this challenge.

1:03:08>> Thank you. >> Yeah, and in addition to that, Mr. Chairman, we're really trying to get this right,

1:03:13no matter which direction we go, and this moratorium is based strictly on the fact that we're not ready to introduce a piece of legislation.

1:03:21It has nothing to do with any outside entities who may be putting pressure on either City Council or the administration.

1:03:30This is strictly done on the basis that we're not ready to take the next step with the legislation yet,

1:03:35and therefore we believe we still need 90 more days in order to get that right.

1:03:41>> Okay, I'm going to ask if Miss Kate, Miss Kate and Miss Saban,

1:03:49if they would like to come to the table if anything, because you guys have been working the closest with this.

1:03:55Please announce who you are and know that most of us know who you guys are.

1:04:03>> Kate Nielsen, Senior Policy Advisor, Mayor Pimms.

1:04:07>> Good afternoon, Brooke Saban, Policy Analyst with City Council.

1:04:11>> Okay, just a couple of questions before I go to Councilman Polisigan, if there's anybody else that has any questions.

1:04:17>> I just want to make sure I understand, how many businesses do we have in the pipeline already?

1:04:24That are pending permits or would consider themselves grandfathered in, do we know that amount?

1:04:30>> I wouldn't need to double check that with building and housing, but off the top of my head,

1:04:34I know that there was one that was filed around the time of the moratorium implementation, and I don't know of any additional ones.

1:04:40>> I know there's one that was filed, but then there's a couple that have actually reached out to say, hey, we're looking at trying to expand.

1:04:47And what I want to try to do is, to Councilman Case's point, we have to get it right.

1:04:52But at the same time, we do have stakeholders that have invested a lot of commitment and

1:04:58time as well as resources to go from like 8 megawatts to 24 megawatts and some other things like that.

1:05:05So I just want to try to get a sense if we could, because somebody kind of let me know what we have in the pipeline or what's pending.

1:05:12So that we could try to begin to wrap our arms around if when people start to ask questions about being grandfathered in or

1:05:19ask questions about how this is holding up their great business expansion, we could actually have a scope.

1:05:25Because a lot of times people will panic, but find out that the problem is only minuscule and not big.

1:05:31>> So thank you, Council President.

1:05:33It's my understanding that there's only that one additional pending permit.

1:05:38Legally, any permit has to be reviewed based on the standard for when it was put in, not the pending moratorium.

1:05:46So any permit that was put in before the moratorium began has to be reviewed under the standard by which it was put in.

1:05:55So this proposed moratorium will continue where we've been for the last three months.

1:06:01And as your colleagues have said, so that we can get this right for all the lenders.

1:06:06>> Okay, sounds good.

1:06:07All right, Councilman Michael Polensky.

1:06:09>> Thank you, Mr. Chairman, we're on the same path that I'd like to discuss.

1:06:17When we had the staff and council members,

1:06:21when we visited two of them most recently, that was several weeks ago.

1:06:27The one indicated they wanted to expand, and I don't know if they had actually applied for permits or whatever.

1:06:35So my question is this.

1:06:37We know that there are, well, I'll refer to the administration and staff.

1:06:45How many data centers are there now presently in the city?

1:06:47>> Through the Chair, there's a few different counts on that, but about two dozen.

1:06:55>> About two dozen, okay.

1:06:57We visited the one which I indicated, I've gone past that place a thousand times,

1:07:04if not more in my time here at City Council, never realized what it was.

1:07:09It's nondescript, and rate adjacent to it are high-end condominiums.

1:07:16I, in fact, walked around it, and I drove around it as well, heard nothing, saw nothing.

1:07:26So my question is this, this moratorium will be extended for three months.

1:07:31On those that we have never received any complaints on,

1:07:36those that we have no indication of having an adverse effect on water,

1:07:43on our power system, and I believe the one we looked at was not even on CPP,

1:07:49was on First Energy, I believe, so I don't know what their consumption is.

1:07:53And are not having any environmental impacts.

1:07:57I guess for the sake of discussion here, do we start to look on some of these on a one in one case basis?

1:08:04As the council president said, we do not want to do anything to stop those

1:08:10that are not violating water, air, power issues.

1:08:15We do not want to do anything to stagnate any local business, because they're not going nowhere.

1:08:21They're here, those are here from what we've been told.

1:08:25I, like most, am opposed to these mega centers.

1:08:29I'm dead set against those things.

1:08:31But the ones that we have functioning, and I'll relay this to the administrator.

1:08:36The ones that we have functioning that are in the city right now, have we had any complaints on them?

1:08:43>> Through the Chair, I would need to check our nuisance complaints.

1:08:47I'm not aware of any but- >> I'd like to know that, Mr. Chairman.

1:08:51If the ones that are functioning right now in the city have there been any air quality complaints,

1:08:58any noise complaints, any issues with water consumption,

1:09:05contamination to the sewer system through regional sewer system.

1:09:11Anything that you could be, that can be construed as and

1:09:15identified as having a negative impact on the immediate area where they're at or the surrounding here.

1:09:23I'd like to know that, because as we get into this discussion, as we go further,

1:09:29I want to make sure it's been set at the stable, that we are doing the exact right thing.

1:09:34And we are keeping those centers out of the city that could adversely affect our citizens and our various systems.

1:09:46But those that are there right now, I just want to make sure we're not going to do anything to stop their investment where we have no identified issues.

1:09:56I think we have to be very cautious on this as we go forward.

1:09:59So I'm in support of the legislation, but again, time is money.

1:10:04We want to make sure, when they're making multi-million dollar investments, as one indicated to us,

1:10:10they want to make multi-million dollar investments.

1:10:15We want to make sure that they don't consider making that investment someplace else rather than the city of Cleveland.

1:10:22So I'm on board, I have strong opinions about this whole issue with data centers.

1:10:29What we've seen, what's happened in other parts of the state, where they're not paying their fair share of taxes.

1:10:36Where they're having an adverse effect on utility rates.

1:10:40And the question I would pose to the administration as well, because the ones that we did visit were all on first energy.

1:10:47Were we able to get any data from first energy as it pertains to their consumption?

1:10:52Are they affecting their grid?

1:10:57>> Through the chair, we cannot get any direct data from first energy.

1:11:01And I think what's important to keep in mind through this whole conversation is that the grid is not just PJM and CPP.

1:11:12But I'm sorry, not just first energy and CPP, but rather PJM.

1:11:17Which 13 states are a part of.

1:11:20And so the cumulative impact is a big piece that we're taking into account.

1:11:26>> Okay, obviously we have our work cut out for us, but I want to make sure we do the right thing.

1:11:32And those that are operating right now in the city, we should know or have a right to know if they're having any adverse effect.

1:11:40And if they are, what action is being taken to either cite them or bring them into compliance.

1:11:46I mean, I'd like to know that.

1:11:47I don't know if we through the chair, through the chair of utilities.

1:11:53Do we have any indication, Brian, of any negative implications for the ones that are there now?

1:12:00>> Councilman Casey.

1:12:03>> Mr. Chairman, to Councilman Palencik, probably not because none of them are regulated right now.

1:12:09>> Okay. >> Right?

1:12:10And then that's part of this process.

1:12:12>> Right. >> Any data center that's currently operating in the city of Cleveland is continuing to operate just as they always have been operating.

1:12:19The moratorium is on the expansion of those or the building of new data centers.

1:12:25And currently right now with the city not having any kind of regulations on zoning or

1:12:32utility use or anything like that, then of course there's not going to be any issues.

1:12:38Especially if a data center operator is telling you they don't have any issues and we're operating,

1:12:43we want to expand, that's because there's nothing right now currently around data centers or

1:12:48the noise or the pollution or the health or the utility or anything like that.

1:12:54So moving forward, these next 90 days is what we're going to use to come up with that regulation for

1:13:01current data centers that are operating as well as any new data centers that will be coming into the city.

1:13:07>> Okay, but I think we also should ask and should know if there are complaints as it pertains to an existing facility.

1:13:16We should be, the body shouldn't be informed of what those complaints are and then what corrective action.

1:13:21If there's a noise issue, if there is a effect on those that might be under CPP,

1:13:29if they're having an adverse effect on our grid, our system, we should know all those implications as we move forward.

1:13:36I'd like to know if they're having a negative impact on the surrounding community.

1:13:42I think that's important for us to know because it'll be a part as to how we word the final piece of legislation that will be coming before us.

1:13:50This is an opportunity for us to really rein in those that could have an adverse effect,

1:13:59but also we do want to do anything to affect those that are in the city that are operating,

1:14:07what you want to say professionally or are not having any negative impact.

1:14:12Because as reminded that someone pointed out to me today, do you like using your cell phone?

1:14:17Do you like using your laptop and da, da, da, da, da, da, da?

1:14:21And so you like your local hospital being able to use computers that are always impacted by data centers.

1:14:29And we know that's the reality.

1:14:31We're not going to get away from it.

1:14:32So this is a wonderful opportunity.

1:14:34I want to thank my colleagues, Chair of the Utilities, and all my other colleagues who have been participating in this process.

1:14:41We have to do what is right.

1:14:43We want to make sure that we're all on the same page, but we do not want to have an adverse effect on people who are respecting the community and respecting the city.

1:14:52Thank you, Mr. Chairman.

1:14:53>> Thank you.

1:14:54Councilman Casey, any other questions?

1:14:56>> No, I'm good.

1:14:57>> All right, I just want to, I think that everybody knows that this is a very hot topic or whatever else like that.

1:15:04But we also, as Councilman Palencic said eloquently, we want to make sure that we don't run businesses out of here either.

1:15:11So this is a balance, and I'm looking forward to how soon we can get this done.

1:15:16And I'm looking at this that I love the fact that you guys say about the effective date or J wear it 29th.

1:15:24So if we guys wrap it up, we could actually do it before then, right?

1:15:30>> Yes. >> Okay, all right, thank you.

1:15:32Seeing no other questions, ordinance number 1246-2026 stands approved.

1:15:37Please sign off.

1:15:40Thank you, and thank you for the work on this too, Ms. Sabre, I appreciate it.

1:15:49>> Okay, now we'll have ordinance number 1042-2026 by Councilmember Sliphon Griffin by departmental request.

1:15:59An emergency ordinance authorizing the director of port control to enter into an amended lease agreement with IX Center Corporation.

1:16:08Or a wholly owned subsidiary or successor in interest to incorporate a payroll credit provision into the original lease.

1:16:18And I know that usually we don't do full presentations in finance, but I know that we've been watching this.

1:16:25I did watch the hearing that you had in a couple of hearings, but now want to do it in front of finance.

1:16:32So I've asked Director McNair to make sure that he is able to look into this.

1:16:38I will point out, and I know he's not here, but I was able to meet with the new president and

1:16:45CEO of Team Neil, which is Matt Dolan.

1:16:50And he expressed to me last week how important this lease extension is in order to try to attract a major, major employer.

1:17:00And that is very tough to do in these days and times, so I want to make sure that everybody looks at this very close.

1:17:06So that's why I asked Director McNair to do another presentation so

1:17:10that everybody's aware and understand what is being asked of us here.

1:17:14>> Director McNair.

1:17:16>> All right, thank you, Council President, members of the committee.

1:17:20I am joined here today by Chris and Austin Samarigen from Industrial Commercial Properties representing the ownership group.

1:17:27For our master operator at the IX Center, as well as Jennifer Sheel, our executive for

1:17:32business attraction for the city of Cleveland, as well as Brian Francis, Director of Port Control.

1:17:38As Council President mentioned, we've given a pretty extensive presentation on this.

1:17:42So I will try to move through it quickly, but I do think it's important because there's kind of a lot in here.

1:17:47And I think it makes sense to visually look at it.

1:17:51Part of that is why do we need a lease extension for this building?

1:17:55I think Council President just hit on part of that.

1:17:59But again, just a quick reminder about the IX Center, built in 1942, it's 2.2 million square feet.

1:18:06That's about 1.2 million square foot on the main floor.

1:18:10About 400,000 square feet in the second floor, plus some odds and ends, 55 to 77 foot ceiling heights.

1:18:1816 foot thick concrete floor, variety of overhead bridge cranes, 9 plus chuck docks.

1:18:23Obviously built for manufacturing, built for heavy manufacturing.

1:18:27It's where they used to make B-29 bombers and tanks.

1:18:30Has 25 megawatt substation of power on it, not listed on there.

1:18:35But this closed to manufacturing in Cleveland in 1972, right?

1:18:40Being an important part of our timeline, that was when a lot of manufacturing was first moving south before it then shipped overseas, right?

1:18:47Sat vacant for a number of years before Ray Park stepped in and transformed this into what we now know is the IX Center.

1:18:54Where it has been operating as a trade show facility.

1:18:58Also, important to note that our operators over here have extended the leases of the trade shows in a flexible way.

1:19:04That allows them to continue to exist and operate, but gives us the flexibility that should we have the right tenant or

1:19:09the right tenant needs to grow, gives us the ability to move through there.

1:19:13Also, important note, the current lease with our operator runs through January 31st, 2039, right?

1:19:21So we've got about 13 more years of that going on, and we'll hand it over to Ms. Sheil for a moment to talk a little bit more about the business development case.

1:19:32And then we'll come back around and introduce our operators and let them talk about themselves.

1:19:40>> So I've spoken a lot about the features of this building and its ability to attract large employers.

1:19:45Especially those that use machinery and equipment, which really demonstrates commitment to a facility and a region.

1:19:54So they're very hard to move that machinery and equipment.

1:19:58And then also timelines because of the amount of tech development that's going on right now have shortened.

1:20:05So we're looking at companies that now want to get into a building within six months, and this building allows us to do that.

1:20:14Council President, you mentioned Matt Dolan.

1:20:17I work very closely with Team Neo.

1:20:18I coordinate very closely in business attraction and retention with them.

1:20:23And their knowledge both within the state and within the country through Jobs Ohio of our competitive advantage is really notable here.

1:20:33So they've been huge proponents of this lease extension so we can get deals done quickly.

1:20:39And I spoke last time too about right now the current lease is shorter than the lease that we would want with one of our major employers.

1:20:47So this is, I also spoke a little bit about our competition with other cities that can,

1:20:54I say, move a little bit more nimbly than us because they have had more revenue in the past.

1:21:00So they are able to write cash incentives, which we're not.

1:21:03So we're really trying to lean into the assets we do have and where our comparative advantage is.

1:21:09And the IX Center is one of the most notable assets that we have.

1:21:16>> The other question that I want to bring into this too, why a 49 year lease?

1:21:21One of those, the longest lease that the FAA will allow with on there, but it is also close to what they call Tanamount to Ownership, right?

1:21:29Which can give our operator mortgage ability so that they can go out,

1:21:33get loans and capital to make substantial investments in the property.

1:21:38I kind of made that, again, this is not unique, even in Cleveland.

1:21:42We gave a 60 year land lease over for the West Side Market to the Cleveland Public Market Corporation,

1:21:47had the conversation with Councilman Polintik at the last thing he said, yes, but that is a civic asset.

1:21:51And I said yes, but the through line on this is that at the Cleveland Public Market,

1:21:57they're getting a lot of philanthropy making big investments in there.

1:22:00But it's also allowing them to take that money, raise private capital.

1:22:04It's allowing them to use tools like new market tax credits.

1:22:07Philanthropy is not going to invest in a manufacturing center out by our airport, right?

1:22:11They're going to have to bring, this is the public private partnership, right?

1:22:14They're going to have to bring the private capital to the equation.

1:22:17For banks to be able to invest in them, they need a longer term lease.

1:22:21You pair that with what Ms. Shields said, obviously, for the types of tenants that we're looking for,

1:22:25we need to have lease allow them to get to the type of term that they need.

1:22:29But with that, I want to hand it over to Mr. Samarajan and Mr. Samarajan to talk a little bit about ICP as our operator.

1:22:37We've got a few slides here.

1:22:42>> Thank you, Tom, appreciate it.

1:22:44If you're not familiar with the company, Industrial Commercial Properties is headquartered here in Greater Cleveland.

1:22:50And we have right now probably about 47 million square feet we own in eight states.

1:22:54But Cleveland and Ohio are near and dear to us since we grew up here.

1:22:58Born and raised, and we have developed probably over 65 million square feet in our history.

1:23:06We took over the IX Center about four years ago from Ray Park.

1:23:11We actually bought out his leasehold, and it was with the previous administration that we kind of got brought into this whole thing.

1:23:18And we've been working through trying to get this lease extended for quite a long time.

1:23:25We have quite a few national tenants in our portfolio, both locally and nationally.

1:23:30And we think this facility will attract a major manufacturer, if not multiple major manufacturers.

1:23:37This is just an example of one of the projects we did.

1:23:39We bought American Greetings when they packed up and built their new facility in Westlake.

1:23:44We worked very closely with Katie Gallagher and her team.

1:23:48We had one company in this early on, which was American Greetings.

1:23:52We ended up converting this to like 12 or 13 different companies.

1:23:56Believe it or not, Progressive Insurance closed down a data center in Colorado and brought it in here to co-locate with what they were doing on the east side.

1:24:04We have multiple corporations in this facility and

1:24:09probably have 2,500 to 3,000 people working in 13 different companies.

1:24:17>> So I think also wanted to walk through kind of what are some of the core deal points of the lease extension.

1:24:22And again, as a matter of a reminder, council authorized the administration to go into lease negotiations in 2024 through ordinance 1241.

1:24:34And what we are here today talking about is the financial incentive that we're tying to that.

1:24:38But we do think it is very important that you guys know and understand some of the protections that we've been talking through with our operator

1:24:46on how we make this good for the city.

1:24:50So again, just some reminders, currently this expires in 12 years and three months.

1:24:57The new lease will expire 49 years from execution.

1:25:00So that is not in addition to the 12 plus years, it is from whenever we sign it, right?

1:25:07Also, and this was for Director Francis over there.

1:25:10This is one of those kind of non-negotiables from Port Control's point of view.

1:25:15As a part of this, there is roughly 50 acres, I think it's like 46 or 47,

1:25:20that is kind of west of the IX center that is going to be reclaimed back in their hands, right?

1:25:25So currently this is part of the lease hold that will be removed and given back into Port Control so that they can develop that as they see fit.

1:25:34Lease rate is to be determined by a fair market value appraisal.

1:25:39That is something that just came back.

1:25:41We're able to share that appraisal I think today with our partners over at ICP.

1:25:46So again, we do have that information, happy to share it with you once we've had a chance for some conversation over here.

1:25:55The IX center, again, just a reminder, owned by the Department of Port Control.

1:25:58So lease considerations have to be paid to Port Control, right?

1:26:03Also need that appraisal because FAA mandates that it be at fair market value.

1:26:07And frankly, that is one of the reasons that we are coming to you today for this financial incentive.

1:26:13And then I know, I believe it was Councilman's life asked at one of the hearings that we have a side by side old lease versus new lease.

1:26:21I think these remainder of the deal points are essentially the new things that are going into the lease.

1:26:26We have shared a copy of the lease with council that you've had for a couple of weeks.

1:26:32But that bottom one there, again, this was kind of non-negotiable and very important to Port Control, right?

1:26:39So there are early termination rights built into this, not less than ten years from the effective date, right?

1:26:46Because we need to ensure that our partners have the ability to sign somebody moving.

1:26:51But then there is a mapped out process for if we need to terminate.

1:26:55Because I think we all know what we've gone through to acquire the IX center.

1:27:00We're going through a two plus billion dollar airport modernization plan right now.

1:27:04This property is not needed.

1:27:06But if 50 years from now somebody says, boy, we really need that third runway.

1:27:11We don't ever want to have to go through what we went through before.

1:27:13So it's just kind of mapped out clearly about what that process looks like, that both sides can agree to.

1:27:19Again, we've kind of come up with this term of preferred industries for within there.

1:27:25We want our operators to be able to go out and do their jobs.

1:27:29We are trying to set this broadly with the type of industries that we want to see in the building.

1:27:35These industries mimic a lot of team NEOs, kind of core industries that are growing for the region, right?

1:27:40So a lot of manufacturing and advanced manufacturing.

1:27:44We mentioned the aerospace, the ground vehicle and ground vehicle components.

1:27:48These are all things that the building was built to do.

1:27:51Microelectronics and semiconductions, aviation, mechanical repair.

1:27:56Again, we are trying to be broad, but we're trying to set it up with the types of businesses that typically have higher payrolls because we have real skin in the game now, which we'll talk about in a little bit.

1:28:07And so this is really a fail safe for us, right?

1:28:10Lots of conversations on data centers around here.

1:28:14We didn't go through this whole process so that a two million square foot building could be set up as a data center with a very low payroll, and all of a sudden we're losing money to Brookview.

1:28:22So there is kind of a fail safe that we're building in there.

1:28:25But again, there's a process for which we can work through that.

1:28:30The master operator cannot assign the master lease in the new lease.

1:28:34Again, very pleased with our current partners.

1:28:37We think it is important that the city of Cleveland knows who they are doing business with here.

1:28:41So they will not just be able to assign that to somebody.

1:28:44There will be a reasonability clause, but our ability to protect there.

1:28:48And then the last one that I know was a big topic of conversation.

1:28:53On premise parking is limited to tenants of the property and events being held at the property.

1:28:59All other parking on property is prohibited without the express written consent of the city of Cleveland through a license agreement.

1:29:05This is standard to how the city does that today.

1:29:08Councilman Casey, I believe you asked that as through Commissioner Kim Johnson in public work.

1:29:13So again, this is not unique.

1:29:16There have been times that I know that the Cleveland Clinic has wanted to take out a parking arrangement on the meaning lots for a period of time.

1:29:23So they enter into a lease agreement.

1:29:26But we thought it was important that if facilities are built around here and

1:29:32if the city so chooses at once to allow parking there, that is the city that is making that decision.

1:29:38And that is the city that is financially benefiting from that decision.

1:29:43Lease and sentence.

1:29:45This is what the ordinance is structured to, and again, it can be a little bit complex.

1:29:51So start to walk through this from like in a vacuum to some real world scenarios of what it comes.

1:29:58So kind of in a vacuum, right, as a way to incentivize our master operator to getting high quality and high payroll tenants.

1:30:07We are extending payroll credits against the base rent that they pay through here.

1:30:13Now, this was something that Ms. Schiele kind of flagged as we go through, we started looking around the country, right?

1:30:22And there are, you'd be amazed how many municipalities pass like income tax increases and things like that.

1:30:30To build facilities like this, that they can own and just give to companies.

1:30:35So that they will come and bring their jobs there and the city can collect the income taxes, right?

1:30:40And so, now that can be a very expensive proposition.

1:30:43And frankly, building this building would cost an historical amount of money today.

1:30:48So we started looking at, all right, we know that we are restricted by the FAA that has to be at fair market value.

1:30:54If we want to be competitive on a more national landscape, how do we do that?

1:30:59Jennifer started looking around the country, there are lots of ways.

1:31:04People use payroll tax credits, they use number of jobs to tax credit.

1:31:09There's all kinds of different ways that you can back into more competitive lease rates.

1:31:14And I think through conversation amongst all parties, we landed on the income tax, or the total payroll tax credit.

1:31:22Frankly, it's the simplest way to do this, right?

1:31:26We looked at it against the entirety of the IX Center, so it doesn't matter if there's one company in there, 15, which the total payroll.

1:31:34We'll talk a little bit about the arrangement we went through with Brooke Park.

1:31:37But because of the settlement agreement with Brooke Park, we had already created a holding tank where all revenues from the IX Center were going into financially to make that payment to Brooke Park.

1:31:48So it's there, it's easy, we have Central Collection Agency, right, can monitor all these things.

1:31:53So baseline, again, credits are based on total payroll of the entirety of the premises.

1:32:01If there's not enough payroll, there is no incentive, right?

1:32:05That is the most basic of protections that we have.

1:32:08We are not reducing the amount of the lease that they are paying for low amounts of payroll.

1:32:12They have to get to places that we know that we can make money on, right?

1:32:17So if the total payroll in the building is less than $25 million, no reduction in rent, right?

1:32:25If they go between 25 million and essentially 50 million,

1:32:29that leads to a 10% reduction in rent, between 50 and 75 million dollars, that's a 15% reduction in rent.

1:32:37And then if you go above $75 million, 20% reduction in rent, and again, that is in a vacuum, so what the hell does that mean, right?

1:32:45So here is what that starts to look like.

1:32:50If it's shown with a hypothetical $2 million in rent, we didn't pick that number out of thin air, right?

1:32:58That was, there was an appraisal done a couple of years ago.

1:33:01It was around $2 million, so for conversation purposes, it's not a bad way to look at it.

1:33:08So again, if it's less than $25 million, there is no reduction in rent.

1:33:14So you're looking at income taxes of up to 625,000, 2.5%, right?

1:33:20No reduction in rent, so nothing off that $2 million rent.

1:33:25And that 25 million to $50 million range, right?

1:33:29You get roughly, 10% off of roughly $2 million rent is a $200,000 credit, right?

1:33:35If you look at the income taxes, it could range from 625 to 1.25 million.

1:33:41That means we end up on the positive somewhere between 425 and 1., a little over $1 million.

1:33:48Again, if you go 50 to 75 million, now at the 15%, that would equate to a roughly $300,000 rent credit, right?

1:33:57But even when you do that, we're looking at making a net positive of $950 to $1.5 million in income taxes.

1:34:06Again, total payroll of $75 plus million a year, 20% off roughly in rent, or 20% exactly off the roughly $2 million in rent, so about $400,000.

1:34:16Seems like a lot, but if you start to look at the total income tax we're getting, it would be plus a minimum of $1.475 million.

1:34:25Again, a couple very important caveats out of the bottom.

1:34:28If we do not collect the payroll, there is no rent credit, right?

1:34:32That is our most basic protection in here.

1:34:35Also, very important for all of you to recognize these estimates don't take into a park the Brook Park Settlement Agreement payment, which is very important.

1:34:45So now I think it's important for us to remember, all right, what happened in that settlement agreement as it comes through here.

1:34:52So again, if you see there in blue, that is the IX center property.

1:34:56That wasn't the only property in that.

1:34:58The pink up there is the Emerald Parkway Business Park that we had a joint economic development zone agreement.

1:35:03We're splitting taxes at Brook Park, we're splitting taxes at IX, so the relevant parts here,

1:35:10we abolished the Emerald Park GEDS, so we were previously splitting all revenues up there 50-50.

1:35:17Now all of that comes to the city of Cleveland, right?

1:35:20There is also about 40 acres of developable land that had gotten stuck there because of that joint economic development agreement.

1:35:27Unlocks that property and ends the tax sharing.

1:35:30Similarly, the IX center, if you go back and look at that property, 2024 being the most recent year, it's key later on.

1:35:39We made $228,000 on the IX center in 2024, all revenues, right?

1:35:47This also unlocks roughly 47 acres of land that could be developed next to it, ends that tax sharing.

1:35:54In exchange for that, we owe Brook Park $650,000 a year, and this is where I always say the math is a math, right?

1:36:00So, important to look at the math as we go through here, and I always say, as we continue work through this,

1:36:09at the end of the day, I know that there's a lot of numbers here, I know that it can get a little bit confusing.

1:36:15We will be judged on the fact that when all the dust settles on this, 30-ish years ago,

1:36:20we traded NASA Glenn Research Center for the IX center, financially.

1:36:25NASA pays $3.5 million in income taxes annually. We collected $228,000 in revenue, this facility last year.

1:36:34So, that unwinds this. We are now trying to set ourselves up for success.

1:36:39Do the types of deals that you were talking about with Mr. Dolan, the types of deals that our master operator here has great experience in helping make a reality.

1:36:48Here's what that starts to look like in all the things going around.

1:36:52I'm still very proud of myself for using the Wizard of Oz Emerald City icon for Emerald Parkway. That was fun. I don't get to have much fun. Good job.

1:37:00But if you see the square at the top there that represents the IX center, I carved it up into four quadrants for a reason, right?

1:37:15That represents, we'll say, about 500,000 square feet of a tenant that goes in there.

1:37:20So, again, a reminder of the trade shows that are in there.

1:37:26Now, again, we made $228,000 last year. Because of the settlement agreement with Brook Park, we now collect all revenue from the IX center, right?

1:37:34So, the trade shows saying, we'll say that in 2024, that would have been $475,000.

1:37:40So, let's say that there's $20 million of payroll in the rest of the building. That's about $500,000.

1:37:47That's why you see that line coming down from the IX center.

1:37:53It's about $975,000 of revenue that is coming into fund 60, SF001.

1:37:59That is the fund that you guys created in the Brook Park settlement agreement, right?

1:38:03Where we said all revenues from the IX center and Emerald Parkway will go into this.

1:38:08That's what we use to pay Brook Park.

1:38:11So, you've got the 975 that comes in from the IX center. 2024, we collected $305,000 through the Emerald Park jets.

1:38:20Now, because we don't pay anything to Brook Park, we collect all of that. That's $610,000.

1:38:26So, if you start to look now in sub fund 60, we've got $475,000 in revenues from the trade show.

1:38:34We have $500,000 in new revenue from payrolls that are created inside the IX center.

1:38:40That does not take into account any money on the roughly 50 acres that could be developed that would come with both property taxes, income taxes, all that kind of stuff next to it.

1:38:50That takes into account $610,000 coming from Emerald Parkway that we have today.

1:38:56That does not take into account, we're trying to be conservative, any new revenue coming from the land next to Emerald Parkway.

1:39:02If we can find somebody to invest in and build on that, which means there's about $1.7 million in revenue that is coming in.

1:39:11Because that payroll threshold is less than $20 million, there's no rent correct that we have to pay DPC.

1:39:20But we do have to pay Brook Park $650,000, that's a red line you see going out.

1:39:25So, in that scenario, we're still netting $935,000, which last I checked is better than $228,000.

1:39:37Again, we start to walk through these scenarios, this is assuming that there is $35 million in payroll throughout the building,

1:39:45which would translate to about $875,000 just in payroll, right?

1:39:50So, you've now got $1.35 total from the IX, the money from the Emerald Park coming in.

1:39:56Only this time, you see that that triggers that 10% rent credit, which is about $200,000.

1:40:03And as a reminder, legally, we have to keep port control whole, right, to the FAA regulation.

1:40:10So, we are now using the income taxes that we're generating to help offset that lease.

1:40:16To them, having reduced lease allows them to offer a lower lease rate, right?

1:40:21That's the problem we're solving for, to the type of tenant that we want to get.

1:40:25$650,000 out to Brook Park, our net benefit, $1.1 million.

1:40:33In a $60 million payroll scenario, again, you start to go through here, you see that rent credit going up.

1:40:38They're doing a great job, they're helping us bring these tenants in.

1:40:41$1.635 million in the positive, this is what it looks like in an $80 million scenario.

1:40:48Again, $2 million positive, that is a tad bit better than $228,000.

1:40:55So, yes, we are absolutely- >> Thanks.

1:41:00One is, in 30 some odd years, the 650 drops off.

1:41:04And in 30 some odd years, you should have development on both those vacant parcels, which are not included.

1:41:08>> Yes. >> I mean, that's a big-

1:41:09>> And as we also said, as we were going through the Brook Park thing, that $650,000 is a fixed payment on an annual basis.

1:41:16That will be worth less every single year, right?

1:41:20So, ten years from now, $650,000 won't be worth what $650,000 is today, right?

1:41:26Payrolls will continue to rise, traditionally as they come.

1:41:30I think when we looked at, when this deal was consummated with the NASA Glenn Research Center,

1:41:37they had $1.9 million in income taxes that they were paying to the city.

1:41:42That's now $3.5 million today, right?

1:41:45Because again, just inflationary wages rise, right?

1:41:49So again, we've given them a fixed amount.

1:41:51We're collecting rising amounts.

1:41:54So again, it's like we are trying to get creative here.

1:41:57We are solving for the type of problem that enables us to get more competitive in what we can offer.

1:42:03Look, you look at some of the other cities and counties throughout the country that are doing this kind of stuff, right?

1:42:11We don't have the capital right now to just go out and build a bunch of buildings.

1:42:14That's why we're doing things like the site readiness fund to try to get them to be able to lower that cost for private sector partners to come in and invest, right?

1:42:24It's a much more cost-effective way for us to do it.

1:42:28But I am excited, we've talked about this a lot on our side of the table.

1:42:32We're trying to make this so that everyone can win here, right?

1:42:37Even on the Brook Park side of things, they had a long-term agreement with us.

1:42:42So they're getting what they need out of this.

1:42:45The Department of Port Control is picking up 50-plus acres of land, right?

1:42:50Our master operator is getting a long-term lease which is going to enable them to go out and market and operate the property that the way that they see fit.

1:42:58We should end up with substantially more income taxes over the length of time.

1:43:03And again, this isn't an exercise in fiction, this is something that we are working on every single day.

1:43:09I think the reason that Mr. Dolan spoke to you is because Jennifer has been working her tail off with a whole host of people in trying to help make a tenant come to reality.

1:43:19And again, we go back to these quadrants, the tenant that we're talking to right now is looking at about 500,000 square feet and can come in in this range, right?

1:43:28That gives them the ability to expand, or it could be other tenants, they have to join them, right?

1:43:34There's a world that we can get far beyond what we're showing on this page, right?

1:43:38There's no guarantee, and I think that's important to note too.

1:43:41The last thing I'll say, Councilman, I know you've said this, it's like we've had these conversations before and they didn't materialize.

1:43:47We understand that.

1:43:48The company that, like so many people have been working on attracting here, may not happen.

1:43:53We are not doing this for any one particular company.

1:43:56We are trying to set this building up for success long-term with an operator who knows how to do this work.

1:44:02>> Sorry, I just want to add, part of my role is that we don't want to sit and wait, right?

1:44:14Because we have one person that we've had visit this site that could fit into that.

1:44:18It doesn't mean that I didn't also go with the Samaritans into another company that could fit this profile as well.

1:44:24And that they're continuing to market, because we're not going to sit anymore and wait.

1:44:28We're going out there and we're being aggressive in finding manufacturers that are of this caliber,

1:44:34that have this kind of payroll, that are looking for this kind of facility.

1:44:38So we're going to keep that pipeline full, and that's my job.

1:44:45Your guests want to say anything?

1:44:50>> Okay, Councilman Slyth and then Councilman Polintsek.

1:44:53>> Thank you, and this was heard two weeks ago at Transportation and Mobility Committee.

1:44:57We had a great discussion.

1:44:58It was ultimately recommended for approval, not unanimously, I'll note.

1:45:03However, I am supportive of this, and the way that I can, I think the biggest question is the obvious question.

1:45:09Why is the rent credit necessary, and to make maybe a more digestible analogy?

1:45:16My wife and I bought our house two years ago, it's a nice house, I put some work into it.

1:45:21If I listed it for sale, I could probably make a little bit of money off it, but I don't think I could list it for California prices.

1:45:26It's just not in line with the real estate market here, no matter how much I love it.

1:45:30And the challenge with the IX Center is because the IX Center was purchased by the airport with federal dollars,

1:45:38the FAA basically is involved in the setting of the price.

1:45:43So there's not a scenario where I'm selling my house and you can offer me less than asking price and we can negotiate.

1:45:49There's no room to negotiate because the IX Center has to be leased at what the federal government determines the value is.

1:45:56And the value is not based on it being an industrial facility, it's based on it being airport land.

1:46:01What's the cost of airport land across the country?

1:46:03So the IX Center, even within our own region, is not competitive to bring in

1:46:09manufacturers because of this inflated value we have to pay to meet federal requirements.

1:46:16So what this rent credit allows us to do is sort of to negotiate on the back end.

1:46:20To allow us to maintain the obligation to make port control whole per federal guidelines.

1:46:27But then also recognize that if we want to bring job creators into this space,

1:46:30we need to have an ability to offer leases that are competitive with the market.

1:46:36So if that's an easier way to explain it, it helps me understand it at least.

1:46:41But the end point is exactly what Chief McNerid said is that the general fund,

1:46:47the bottom line, this $2.035 million is $2 million new into the general fund

1:46:54that we can use to provide city services and we are, in order to get that $2 million,

1:47:01we are basically sacrificing $400,000 to the general fund to transfer that over to the airport.

1:47:08Thank you.

1:47:09>> Councilor Michael Palazzi.

1:47:10>> Thank you, thank you Mr. Chairman, mineable colleagues and to the Tom and to the folks that are here from ICP.

1:47:19And first I want to thank, publicly thank Director Francis.

1:47:23He helped me with trying to get back a 25 year old Air Force young lady who was killed.

1:47:31And I want to just say that to get her through the airport, thank you very much.

1:47:35My family was very appreciative.

1:47:39This is where I'm at, I had asked at the last meeting for a tour, never got it, okay?

1:47:46>> We've been waiting, we're kind of surprised.

1:47:48>> Okay, because I want to go through that to the center, regardless with the transpires today.

1:47:54And just let me just say this, Tom McNerid's a very competent and capable director.

1:48:00So my comments are not directed at him personally, nor at ICP because I did some inquiry with friends that I have.

1:48:11And I'm an industrial real estate community and they speak highly of you, even though they're competitors, okay?

1:48:20That you're a very aggressive company, you've done many things with a lot of abandoned factories.

1:48:27I would hope you would do more in the city with all the abandoned junk we have all over the place.

1:48:32But I'm looking at this, I've become very jaded in dealing with the administration.

1:48:40I saw what happened with the Browns deal, which probably will go down as the worst deal ever in the history of the city of Cleveland.

1:48:47This latest Browns deal that took place last year, where we got taken to the cleaners.

1:48:53The ongoing issue with Burke Airport, that fiasco,

1:48:58losing another 18 schools in the city of Cleveland, which the mayor supported.

1:49:02I've become very jaded in dealing with the administration.

1:49:05I've become very skeptical in dealing with the administration, because it seems that we're on the losing end constantly.

1:49:11So, this is where I'm at, you want to extend the lease for another 23 years, correct?

1:49:19>> 30, 33, 36, 38.

1:49:25>> So, it was, you want the lease to go, 49 on top of what we, okay.

1:49:34So we're in 2026 now, okay, to go to what year?

1:49:45>> It'll be 49 from the date of execution.

1:49:53>> I might be the only one here when the lease comes up, okay?

1:49:57>> I mean, so the fact of the matter is, that's a long time, that's a very long time.

1:50:08>> In airport development, it's the norm.

1:50:12If you go to any airport around the country, when you see any industrial development, this is not, we're not pushing for 75 now.

1:50:20We're going 49 years, and if you think about it, the lenders out there, what are they going to want to know?

1:50:25They're going to want to know that when they loan the money, they can get the money back.

1:50:28So think about what loan terms are usually in a home or other commercial properties.

1:50:33Those are 15, 20, 30 year, plus you want a real manufacturer who's going to come put hard equipment on the ground.

1:50:40You want them to invest hundreds of millions of dollars, maybe billions of dollars of equipment on the ground.

1:50:46Do they want to be able to get the building taken out from underneath them in a short period?

1:50:49So if you set it up short, first of all, why even when we give you back the 47 acres, if you can go quick, you're going to make development there, right?

1:50:59Hopefully, they'll be MROs, they'll be FBOs.

1:51:45>> See again, Mr. Chairman, we're not talking about the airport, you're a private business.

1:51:55>> No, no, but I'm talking about when private developers come onto an airport property, what are the transactions that occur?

1:52:01And this is very in line.

1:52:03>> Okay, well, nobody has given that examples of where that's happened in other places, okay?

1:52:09>> You have to be furnished, that's all right.

1:52:13>> What you alluded to, as Tom alluded to, the Ordinance 1241, the original piece that was passed,

1:52:19where we were going to have this great occupant and it never transpired.

1:52:26And nobody would even give us any indication as to who it was, that's why I voted against it.

1:52:31>> Okay. >> Because I said to myself, why am I voting on something?

1:52:33I don't even know who's going to be in there, okay?

1:52:36And then there was a question surrounding, again, was it going to be an Amazon facility?

1:52:41Was it going to be a million buildings, could it have been a data center?

1:52:46There was all kind of rumors circulating, so I said to myself, no, I'm not touching this thing.

1:52:51>> Stop reading the newspaper.

1:52:53>> The red line, the red line, is that the specific lease agreement, the red line?

1:53:01>> It will be, right now it's including the blue shaded or green shaded area, the 50 acres.

1:53:07That's all the parcel and it will be reduced down to effectively the red lined area.

1:53:12>> So the 50 acres will be under control of port authority?

1:53:19>> Through the Church of the Councilman, yes, it will return to port controls.

1:53:23>> And then the port control will determine or make suggestions to the body or

1:53:29submit legislation as it retains to that 50 acres as it retains its development.

1:53:35>> Through the Church of the Councilman, yes, so we would have the opportunity to actually market that property to potential users that would,

1:53:44highest and best use would be for aviation purposes specifically.

1:53:47>> So who's allowed to park on that 50 acres now?

1:53:52>> I don't know specifically, but we've been utilizing the 50 acres for the IX activities.

1:53:59>> So the 500,000 square feet that you leased to Jimmy Haslin or

1:54:06his subsidiary, whatever it is, does he control the parking?

1:54:13>> No, no, and most of the people I believe, most of them park on now the east side of the street, or east side of the building.

1:54:23>> So again, you're telling us right now that in light of the fact that he has a three year lease,

1:54:30correct, for the exhibition use 500,000 square feet, that he cannot use that for Browns parking.

1:54:40Is that what I'm hearing, or someone needs to tell me that at the table?

1:54:44>> There's no way he's using that for Browns parking, the way our new deal is structured.

1:54:48>> To the director, what's in the lease agreement?

1:54:55>> The current lease agreement? >> Or what will be in proposed in this lease agreement for that parking?

1:55:01>> So in the current lease agreement, again, this is entirely within ICP's control of whatever they would do with that property.

1:55:10In the future lease agreement, we are saying that unless it is for

1:55:14either a tenant inside the building or an event specific to the building, right?

1:55:19>> But he's a tenant, he's a tenant now.

1:55:21He has a lease, so three years.

1:55:23>> The intention is the trade shows, and again, I'm sure that is something that we can work through.

1:55:28Again, that would be then like a sub to a sub, like we are all aligned on the intention here,

1:55:34and we will make sure that the attorneys board that appropriately.

1:55:37>> You have to understand, that's a big concern here, because now he's realized he doesn't have enough parking.

1:55:42>> Through the chair, the Councilman Palantik, this is exactly why we flagged it and raised it to you and are all committing to it.

1:55:47>> Okay, what is, because I left my big IX center file in my office.

1:55:53>> That I've accumulated over the years.

1:55:56What is the rent being paid right now for the, per year?

1:56:01>> Through the church of the Councilman, it's currently approximately 2.7 million annually.

1:56:06>> 2.7 million, okay, and then you've indicated the reduction formula if there is a major tenant to go in there.

1:56:17The overall payment to Brook Park is what, 27 million?

1:56:24>> Through the chair, it's 650,000 times 30 years.

1:56:28>> Plus we did up front.

1:56:34>> Yes, 23.45 million dollars.

1:56:37>> So you're indicating at the table that we will exceed the payment that we're making to Brook Park with this proposed deal.

1:56:50>> So through the chair, Councilman Palantik, yes, and that is why we say the math is math.

1:56:55And I think it's important to look at the numbers as they come through, because it takes into account the money that goes to Brook Park on an annual basis.

1:57:03It takes into account any rent credit.

1:57:06And as I also said at Transportation Committee too, and look, I think this is important and we're trying to be transparent about this.

1:57:13Does this mean that we will not also try to incentivize further some company that's coming in?

1:57:18No, we may, right?

1:57:21I think that that is a reality of trying to get the type of sounds you want, but this is a math that we need to show, right?

1:57:27We need to take all of these things into account in totality, and it always needs to be a good deal for the city of Cleveland.

1:57:35>> Well, that's the way I've always approached it, my votes reflect that.

1:57:39I want the best deal for the city of Cleveland.

1:57:42I want people to make money, I'm a capitalist, okay?

1:57:46If you don't make money, you're not coming to Cleveland.

1:57:49If you don't make money, you're not staying in Cleveland, that's the reality.

1:57:53And so we want people to make money, but at the same time, I've always approached it, I want a fair shake for the city.

1:58:00I want a fair and equitable result for the city of Cleveland.

1:58:03Is the lease drawn up already?

1:58:11>> Through the chair to Councilman Palencic, I believe the Jonathan McGrawy who's the attorney for

1:58:15port control has been working with Sarah Risner who's the attorney for

1:58:21the master operator and they are going back and forth with them.

1:58:27>> Okay, because the young lady is shaking her head yes.

1:58:30Because I just made a request, we have to make sure that the parking is protected, okay?

1:58:37I'm not about to give the guy that took the Browns out of Cleveland, I'm not about to give him one frickin' parking spot.

1:58:43Not one frickin' parking spot, okay?

1:58:46Because now they realize they don't have enough parking for that edifice they're building up, Jimmy's world.

1:58:54The, you've indicated the rent being paid.

1:58:57Mr. Samaritan and Junior Samaritan indicated that you need the 49 years, and the lease will run out when?

1:59:10>> 2075, man, that is a long, long time, 2075.

1:59:21>> I hope to be around that we can talk about it and celebrate.

1:59:24>> Well, maybe if you're in-

1:59:26>> Maybe you'll give me an extension.

1:59:27>> You might be in the West Reserve Historical Society stuff, okay?

1:59:34That's when you'll be in 75 years.

1:59:37Okay, I've got to make a decision what I'm going to do here.

1:59:41I do want to come out regardless of what transpires with the council.

1:59:45>> May I have one comment about the parking?

1:59:46>> Yes.

1:59:47>> With the 50 acres that we're giving back, we're just going to have enough parking to support the bill.

1:59:52>> Yeah. >> If you look at the layout, there isn't going to be room.

1:59:55>> I understand, yeah.

1:59:57I hope you, through the chair.

2:00:00I hope you can bring in a major manufacturing. Cleveland was, as we all know, the arsenal

2:00:05of democracy. This city helped win the Second World War with the plants and factories that

2:00:11are here, but now most of them are lay abandoned or in derelict condition. So I want to see

2:00:16manufacturing come back. I think it's critical for the growth and future of our city. But

2:00:22I also want to see the exhibition space state, if possible, pass the three years because

2:00:29people have failed to understand the revenue that comes into the region because of that.

2:00:34It's been downplayed, but I've seen the numbers that draw into the City of Cleveland, the

2:00:38parking tax, et cetera, et cetera. I've seen those numbers. So people who want to dismiss

2:00:45the exhibition space at the IX Center is wrong. That was an economic engine as well.

2:00:53So I'd like to see as much of the space utilized. I'd like to see the whole building, 2.2 million

2:00:58square feet fill up. And obviously you have a massive basement under the building as well,

2:01:04which I'd like to see at some point with hopefully tenants in there as well. This

2:01:08is an important building. I've always been on record opposed to the demolition. Even

2:01:13when we had the discussions 25 plus 30 years ago, I've always been opposed to the demolition

2:01:19of the IX Center. There's nothing like it between New York and Chicago. And so I want

2:01:24to see it utilized, but I also want a fair deal for the people of the City of Cleveland

2:01:28who've been getting screwed lately. We've been screwed lately and, and I don't like

2:01:33it and I don't like it. And, and I said, I've become very jaded in dealing with the administration

2:01:39over the things that they have put us into or taken from us. So thank you, Mr. Chairman.

2:01:46I'll, I'll decide what I'm going to do. Thank you. Thank you. Councilman Chris Farsh brief,

2:01:53um, the little of a city is jobs, housing and schools. Um, and as someone once said,

2:02:02there's nothing wrong with Cleveland that 10,000 new jobs can't fix. So, uh, we definitely

2:02:07have an income problem in this region. And if, uh, if we can get, uh, some jobs out

2:02:12there, uh, that's going to be good for us. That's going to be good for all of us. Uh,

2:02:16so I've been listening to this conversation. It feels like for a couple of months now,

2:02:20going back to the whole Brooke park exchange and bringing it to head today. Um, I'm in

2:02:25support. If you could add my name to the piece, I'd appreciate that. Um, Madam clerk.

2:02:30Yeah. And, uh, that's all I have. Thank you.

2:02:33We have the same friend, I use that all the time. Councilman Kevin Conville, and I like

2:02:42meaningful jobs with many benefits. So we're talking about how much, um, dollars you think

2:02:48an hour in with, um, healthcare, the whole nine yards, jobs mean nothing to me. Not

2:02:55meaningful. The work is therapeutic and the chair to, uh, anyone over there that can

2:03:04answer many jobs. Jennifer, what was the average wage on the, uh, so in the, in one

2:03:11of the most recent, um, uh, attraction efforts that we've partnered on, um, this, uh, this

2:03:19manufacturer had 80 million, uh, payroll and about 700 jobs. Um, they also paid most

2:03:25of the healthcare. Um, and, um, they had some other benefits that we, uh, that I was

2:03:33able to take a look into, um, through this, this effort. So, um, so you're talking over

2:03:39a hundred thousand per person per person that we, for this one, 700 jobs, 80 million. Yeah.

2:03:46And it was a, you know, there's a, there's a hierarchy here, but the average, right.

2:03:50There's, I would say the average wage, um, was about 75,000 average wage, total payroll.

2:03:57I was just dividing it. Yeah. He was, he was just trying to do in total, but I would

2:04:00say if you're looking at sort of like the median or the midpoint, you'd see, you'd

2:04:03look at 70, 75. So these are very good jobs, very, very, very good jobs. And so through

2:04:09the chair to, uh, the land that Cleveland will still own, um, is how many acres is

2:04:17that? Through the chair, right around it. Cause see, we get, we can build up. If you

2:04:24got that much money coming through, we could put something there and build up. Cause then

2:04:32you have businesses that will want to cater to the other business and that will bring

2:04:38in more, more dollars. And that's what you want. There's a multiplier effect. Suppliers

2:04:44and users like type industries for sure. And they'll want to cater to that business.

2:04:50Through the chair to the councilman, um, it's not just the 50 acres that port control will now be

2:04:56able to influence for aviation use, which is the highest and best use. And you know,

2:04:59they've got, they've been looking at a master plan, um, that would be the best for the city

2:05:04and for the airport. But we also have those additional 40 acres that were part of the,

2:05:08the broke a park settlement agreement. So we have 90 acres, um, that is now under our

2:05:14control that wasn't before. So we're really putting our land to our use. So through the chair,

2:05:21have anybody, uh, any company, uh, this company moves in, have any company have, uh, put any

2:05:29interest out for that land? Cause that's what you want to move by. You want to move by water,

2:05:34you move by, um, something that you close to digested time. You move to inventory control.

2:05:43So through the chair to the, uh, the councilman until we have that land, we know that it is

2:05:48ours to be able to market. Um, it really is not wise for us to be putting that out there as

2:05:55available, but we do know generally speaking that there is interest and opportunity for

2:06:00aviation based companies to expand at airports. Um, so, so there certainly are businesses and,

2:06:07um, specific types of businesses within aviation that we will be pursuing

2:06:12to occupy portions of that 50 acres of land that we would reclaim.

2:06:16You know, it don't do through the chair at the time. I was still be looking for a business

2:06:21right now, man. You don't wait for the business to start coming. You start planning ahead of time.

2:06:26And so, so this happened to odds, you start bringing it in, you don't wait until the deal

2:06:32is done. You do overlapping. And, uh, I mean, that's just where I'm at through the chair,

2:06:38through the church at the council. What I'm saying is until we know that that land is ours,

2:06:43we can't, we can't act as if it is, you don't execute on it now, but you start doing assumptions

2:06:49through the chair, as I mentioned, as I mentioned, uh, the chair to the councilman,

2:06:53we already know of businesses that are out there that, that we can pursue. Yes, sir. Thank you.

2:07:02I don't think we have any councilman Brian Casey. Thank you. Mr. Chairman, Mr. Chairman,

2:07:11to the director or chief, um, when will you be able to make an announcement on this mystical

2:07:18magical, um, company that you say is going to somehow want to come to the city of Cleveland

2:07:28that you're pinning your hopes of this deal on. So through the chair, the councilman Casey,

2:07:34again, I would not say that we are pinning the hopes of anything on this deal. I would say that

2:07:38we are working to set this building up for success longterm, regardless of the company that

2:07:44many people in Northeast Ohio have been working to attract, um, related to that particular company,

2:07:49uh, Michelle, I don't know if there's anything you want to say. Um, there's, I would say that

2:07:55it continues to mature. Um, and luckily we've had this incredible partnership with ICP and they've

2:08:00been very close to the deal, um, as well. And in fact, getting closer and closer with that,

2:08:06with that manufacturer. But like I said before, it's, it's not just about this manufacturer. We

2:08:11also, um, we would be silly if we just sat and waited. Um, we've toured the facility with

2:08:16another really good employer, um, that I've also visited their manufacturing facility that's not

2:08:21here, um, and tour that the IX with them. We've also had site selectors with major interest in it.

2:08:26So we're not sitting around waiting for just one manufacturer. This is an incredible opportunity

2:08:31and we're going to continue to market it now that it's back in our control. All right. And then

2:08:35Mr. Chairman to the chief, aside from this one company, or I don't know for your title, but

2:08:42aside from this one company, how many other, how many other people have at least toured the IX center?

2:08:48I mean, because other manufacturers and any, any, any, probably it's in the last 24 months,

2:08:56eight to 12 companies. The problem is there are no, and I brought this up last time, there are

2:09:01no seekers out there. Every year ago you approved the lease extension. It hasn't even gotten signed

2:09:06yet. Everybody in the world understands what's happening at this site and is waiting for us to

2:09:12get into business. So let's Mr. Chairman, the chief, we passed legislation a year ago,

2:09:20extending the lease and it has not, according to our leasees, it has not been extended yet. Well,

2:09:26the reason being, one of the reasons is that it was solely predicated on bringing the a tenant in

2:09:32kind of that chicken or egg concept. Now we've gone to the point of let's get our deal done

2:09:37and then go find our tenant. So just a year ago, it was, we'll extend the lease if you bring a

2:09:44tenant in. A tenant hasn't been able to come in. So why, let me just ask you this. Wait a minute,

2:09:51hang on chief. Mr. Chairman, to our friends at ICP, why would you trust the administration then?

2:09:57I mean, you've been dealing with this, with, with them for 13 years now, right? Nobody,

2:10:02nobody knew has come into the IX center. We've been dealing with them for about four years.

2:10:05Okay. Okay. Four years. Oh, that's okay. Because the, the, so for four years you've

2:10:11been dealing with the administration, even the administration has admitted you haven't

2:10:16brought any new tenants in. We, you haven't been able to get your lease extension. I don't

2:10:23understand the marriage here. Let me, let me clear, let me clear. I don't know. Hang on, hang on,

2:10:26hang on. I don't understand the marriage, um, between the two, how it looked. We're hearing

2:10:33from one point, you just said we can't get something done because it's taken a year to

2:10:38get the lease extended. And then we're, go ahead. Yeah. So you asked why we don't have somebody

2:10:43first. And the reason being is because our deal is not inked. The reason that the city

2:10:49has been somewhat hesitant is not only did we find, didn't have the original deal inked with

2:10:55the manufacturer, but Brooke park was getting all the revenue. So to the city's credit and to the

2:11:02administration's credit, which candidly has done a nice job turning Brooke park around, getting

2:11:08this whole deal structure that you guys approved. Now we actually have a format and a basis as

2:11:13which to go forward, which is actually good for the city of Cleveland. So that pumping the break,

2:11:18even though that hurt us, maybe getting somebody in right within the last 12 months, actually is

2:11:24way better for the city of Cleveland. Back to you, uh, councilman Palensic, where it's a great deal

2:11:30for city. So you don't have to give your revenue away. So we can all cry over spilled milk and

2:11:35what's happened backwards. Let's get this deal signed. Let's get this property on the market.

2:11:39It will lease. I'm leasing way more challenging property than this. We're not in the game yet.

2:11:45Let's get the property under the right lease structure. Let's get it in the market. Let's

2:11:49improve the property and secure multiple corporations. It's going to happen. All right.

2:11:54Well, Mr. Chairman to the other side of the table. I hope so. Right. I'm just, I'm just gonna, I'm

2:12:00always the one to play devil's advocate. I don't believe a word that comes out of anybody's mouth

2:12:04on that side of the table. And I hope eventually you're able to, I could just give you a 30, 40

2:12:10years, everything through the chair, through the chair. And I hope so. My last question though,

2:12:17is since you've become the operator at the IAC Center, have you or have you not become any way

2:12:25associated with or a partner of anybody associated with the Haslam Sports Group? No. Not at all.

2:12:32Except for our transaction where they're leasing on a short-term basis. Except for. So the answer.

2:12:36But that's, I'm not part of their group. Okay. No, I said, have you, that was the question,

2:12:40right? Have you been, have you, have you done business with, associated with anything with the

2:12:45Haslam, does the Haslam Sports Group now? The short-term extension on the operating show.

2:12:50It wasn't an extension for them. It was brand new to them. That's all I want to know. The extension

2:12:55for us. Okay. Thank you, Mr. Chairman. Thank you. Thank you guys. Good luck. All right. Thank you. Are

2:12:59there any other questions regarding ordinance number 1042-2026? Go ahead, Councilman Conner. So,

2:13:07I mean, you've narrated, you've narrated well through the chair and listening to Brian Casey

2:13:13also. Is there anyone from our side that's working with them, championing it or monitoring

2:13:21what's going on through the chair to, to the director? So through the chair, the Councilman

2:13:29Conner, are you, are you talking specifically on the business attraction side? Yeah, both sides.

2:13:34So through the chair to the councilman, you're, you're asking if you, anyone from the city council

2:13:43is engaged with the business attraction? Oh, okay. From the administration side, they're engaged. I just want to pass this.

2:13:53Oh, um, do not monitor. Through, through the chair to Councilman Conwell, yes, right, on several different

2:14:01levels. One, um, I try very hard to stay in my own lanes and try to work, um, at a level where I'm

2:14:08helping the, helping other people move things forward, right? Right, right, right, right.

2:14:12Jennifer Sheil heads our efforts on business attraction and she is doing a great job coordinating

2:14:17and working with people across the economic development sectors of, of Northeast Ohio,

2:14:22in addition to working closely with our master operators here. And again, her, her job is not

2:14:27necessarily like, oh, I'm sitting around looking for a tenant for the IX center. She is looking

2:14:31broadly throughout the country targeting, uh, companies from specific industries that we think

2:14:36we have a real chance of getting here, uh, and bringing them, you know, we also have David Lucas

2:14:41who is working more on the business retention side of things. Um, you know, I have been, uh,

2:14:47very involved in this mainly because, uh, to, to Councilman Casey's point, uh, is a lot of these

2:14:53things we're going, I've been in this role for about 10 months now. I think that that previous,

2:14:58uh, legislation had passed to enable a lease extension. Uh, though we are good partners with

2:15:04our friends at ICP probably weren't great friends with them when I said, well, one with this tenant,

2:15:09I don't think exists anymore too. I cannot in good conscious recommend that we move forward

2:15:13with this until we solve this Brook Park issue. Um, and while that took us a minute to kind of

2:15:18get our arms around, move forward, it is enabling this where we can really benefit from. Otherwise

2:15:23we would all be working our tails off to do one of the biggest economic development deals in

2:15:27Brook Park's history, uh, which is not what I came here to do. Uh, right. So, um, you know, we,

2:15:33we, again, there have been many people from the administration working on this. We also have a

2:15:39great partner who does this stuff on a daily basis, right? We're trying to empower them to

2:15:43just be able to move forward. We're trying to empower Jennifer to just be able to go try to

2:15:47find the companies we are trying to work to ensure that port control has the additional land

2:15:53necessary to move the airport forward. So again, um, there's a lot of folks working very hard,

2:15:58um, to make as many people win as possible here. I know you don't like to lose. I hate to lose.

2:16:04You and me both. Yeah. All right. All right. Seeing no other questions, uh, ordinance number

2:16:121042 dash 2026 stands approved. Um, everybody please sign on. Thank you. That concludes this

2:16:21committee of finance, diversity, equity, and inclusion. Uh, next meeting will be next Monday

2:16:27to the call of the chair.