CLEVELAND — Cleveland’s lakefront development vision is taking another important step forward with a public hearing on the creation of the North Coast Waterfront New Community Authority (NCA).
This authority is a crucial part of the city’s plan to revitalize the downtown lakefront area.
But what exactly does this mean for Cleveland’s future, and how will it impact local businesses and residents? Let’s break it down.
What is a New Community Authority (NCA)?
A city presentation describes a New Community Authority (NCA) as an economic development tool authorized by state law that allows property owners and lessees within a designated area to voluntarily opt-in to charges designed to fund improvements and services for the area. Essentially, it’s a way for businesses and property owners to invest directly in the growth and development of their district.
By participating in the NCA, businesses and property owners opt-in to contribute to charges such as parking fees, hotel fees or food and beverage fees, all of which go toward financing improvements within the district.
Once established, the NCA allows for several types of charges that can help fund improvements in the area. The key point here is that property owners and lessees in the district must opt-in; it’s a collaborative effort to support the revitalization of the area.
One example of an NCA in Ohio that Cleveland officials are citing is the Banks district in Cincinnati. This NCA charges a 1% amenity fee on food and beverage purchases made within its district. Cleveland officials claim this generates about $500,000 annually, which goes toward supporting local marketing efforts, establishing a Designated Outdoor Refreshment Area (DORA), and funding various community programs.
Where would the North Coast Waterfront NCA be located?
What charges could be put in place within the North Coast Waterfront district?
A city presentation shows several types of charges that could be put forth via the North Coast Waterfront New Community Authority. Some of the stated maximum charges include:
- Up to $5 per vehicle parking fee
- Up to $2 charge on admission or tickets
- Up to 5% on gross receipts from retail, food and beverage, and/or ticket sale
- Up to 10% charge on hotel stays
- Up to 10 mills on the assessed value of properties in the district
- Special event and boat docking fee
It is noted in the city's presentation that these fees could help fund a variety of public infrastructure projects within the district, such as the creation of a land bridge, park development/maintenance and the creation of multi-use paths.
North Coast Waterfront Development Corporation Executive Director Scott Skinner said public spaces are a key component of the Lakefront Master Plan. "There's well over ten acres of dedicated open public park space," said Skinner. "Parks don't pay for themselves, right? It's really difficult to finance those."
Skinner added that these charges help to move forward with what is a financially complex plan.
"It gives us the capacity, the financial ability to start to execute on some of the Lakefront Master Plan that we've all seen 100 images of, right?" said Skinner. "It's a really complicated thing to develop, but this is putting another tool in the toolkit that will allow us to actually execute on a Lakefront Master Plan and in a way that we haven't seen before as a city or region."
Who would make up the North Coast Waterfront New Community Authority Board?
The board would be comprised of at least seven people as required by the state. Cleveland is looking to have nine people on the board. Four people appointed by City Council would "represent interests of present and future resident and employers of the NCA." One person appointed by City Council would represent the local government. Four people appointed by the City would represent the City's interests.
What are the next steps?
According to Skinner, the creation of the North Coast Waterfront New Community Authority will be heard in Cleveland City Council Finance Committee following the public hearing. Should it advance out of committee, it will then be heard by the full city council.
Our Danielle Wiggins had more on this story during 3News at 4 on Tuesday.