CLEVELAND — Editor's note: The video in the player above is from a previously published, related story.
Cleveland City Council and Cuyahoga County Council now have the final details, or "term sheet," related to the deal between Cleveland Indians and Gateway Development Corp., the nonprofit that technically owns the stadium built by tax dollars.
The Indians and Gateway agreed to a deal in August – with the backing of Cleveland Mayor Frank Jackson and Cuyahoga County Executive Armond Budish – that would keep the team at Progressive Field until at least 2036. The team agreed to stay in exchange for a major upgrade to the aging ballpark that is estimated to cost $435 million.
Nearly two thirds of the price tag will come from taxpayers, including $117 million from the city, which is tapping parking revenue and taxes on concert and sports tickets. The county is offering $138 million from taxes on alcohol and cigarettes and on hotel stays and other sources. Gov. Mike DeWine has offered $30 million but will need lawmakers’ backing. The soon-to-be Guardians are contributing $150 million.
The terms are now public and breakdown the financing in more detail. The term sheet also says the city of Cleveland has offered to sell the Gateway East Garage next to the ballpark. As a city asset, some revenues from the garage would be used to help pay off the renovation.
“As set forth in Section 2, the City will contribute $2 million annually from the operating revenue of the Gateway East Garage with the City covering any operating revenue deficiency sufficient to meet the $2 million annual contribution. The City will also contribute $333,000 in annual naming rights revenue with the City covering any naming rights revenue deficiency sufficient to meet the $333,000 annual contribution. For the next two years, the City will also make the Gateway East Garage available for the Team’s purchase at a $25 million purchase price. In the event the Team purchases the Gateway East Garage, the City will use the sale proceeds to fund the City’s annual $2 million commitment towards the Public’s Ballpark Contributions and shall assign future naming rights sale proceeds to the Team as a 100% credit against the above-referenced $333,000 annual payment.”
You can read the full term sheet below:
Cuyahoga County Council will begin considering the term sheet this coming Tuesday. It is unknown when a final vote could take place.
MORE RELATED HEADLINES:
- RELATED: Cleveland, Cuyahoga County still waiting on final details of $435 million Progressive Field deal
- RELATED: 'I think the club did a good job': Gov. Mike DeWine reacts to Cleveland Indians changing name to Guardians with 3News' Russ Mitchell
- RELATED: Cleveland Indians reach agreement to renovate Progressive Field, extend lease through 2036