The Beat: Daily Business Poll
CLEVELAND, Ohio -- Dining, drinking, parking a car and booking a hotel room might cost patrons at the Flats East Bank project a bit more than folks in other parts of the city.
Cleveland City Council is considering legislation to create a new community authority, a public-private partnership of sorts that could collect surcharges on spending in the 23-acre waterfront district. Consumers would pay a 1.5 percent sales-tax surcharge, a 2 percent bed-tax surcharge at the Aloft hotel and a 2 percent parking-tax surcharge at lots and garages.
A seven-member board, composed of four City Council appointees and three people chosen by the developer, would determine how the money - an estimated $1 million a year, on average - gets spent. Potential uses for that cash range from security to lighting to maintenance of public areas, including green space, streets and a riverfront boardwalk.
New community authorities have been around for years in other parts of the state, but the proposed Flats authority would be Cuyahoga County's first. Traditionally, these funding mechanisms tap special assessments on real estate; however, a short-term provision in state law allows for other revenue sources, including surcharges on consumer spending.
If the Flats proposal wins the necessary government approvals, a latte on the east bank of the Cuyahoga River might cost you a nickel more than one in the Warehouse District. A $100 restaurant tab would come with an extra $1.50 in costs. And a hotel bill might include a $3 surcharge, depending on the night.
Are those costs reasonable? Let us know in the adjacent poll. And share your questions and feedback in the comments.