Mayor Frank G. Jackson announced today that on Monday, December 8, 2014, his administration will be introducing to Cleveland City Council an ordinance for a $100 million bond as an investment in the future of the City of Cleveland. The $100 million bond will invest in four key components vital to Cleveland’s future: roads and bridges, the city’s emergency response fleet, various city-owned facilities, and new neighborhood projects.
“This bond is important because it will make investments not only in the facilities and services that our residents depend upon every day, but will also leverage private dollars to grow and build sustainable neighborhoods in some of the most economically challenged areas of Cleveland,” said Mayor Jackson. “To grow Cleveland, we need to create neighborhoods that produce and consume. This bond will help attract and leverage private investment and create the right economic conditions to establish those neighborhoods.”
During a press conference held in the Mayor’s Red Room, Mayor Jackson was joined by private investment partners who support the bond issuance. “I look forward to continue working with our private partners as we bring about stronger economic growth in all our neighborhoods,” said Mayor Jackson.
“City Council recognizes the need for significant investment in our properties, infrastructure and neighborhoods,” said Cleveland City Council President Kevin J. Kelley. “I look forward to reviewing the legislation and we will work quickly, but cautiously, to review and scrutinize all aspects.”
The first component of the bond is $35 million for repairs, maintenance, and resurfacing of city roads and bridges.
Investments in city roads and bridges will allow the city to utilize outside resources to fund the majority of street resurfacing and repair project costs, such as the Northeast Ohio Area-wide Coordinating Agency (NOACA) road resurfacing program. The resurfacing program funds 80 percent of a street or bridge repair cost if the municipality commits to the remaining 20 percent. The city is committed to using these resources and others to address problematic street conditions.
The second component of the bond is $20 million to upgrade the city emergency response fleet. New vehicle purchases will improve operating efficiencies for the city waste management and snow fleet. The city will also be replacing aging ladder trucks and pumpers for the Division of Fire and purchasing new passenger cars and motorcycles for the Division of Police.
The third component is $20 million to upgrade city facilities and make investments in future critical projects. Some of the facilities and projects that will benefit from this portion of the bond include the Willard Parking Garage, city recreation centers and parks, a new city kennel located at Detroit Avenue and West 93rd Street, and allocations towards the purchasing of Division of Police body cameras.
In recent years, the City of Cleveland has funded a $4 million new Fire Station, an $18 million new Third District Police Station, and $14 million in city-wide repairs to various police stations, fire stations, recreation centers, and parks.
The final $25 million will go towards new city neighborhood projects and investments outside of the city’s central business district. Previous public investments in city neighborhoods have resulted in positive private investment occurring; however, some neighborhoods, in spite of public investments, have not seen equal private investment.
The City of Cleveland believes that, through focused neighborhood planning and continued investment in the city infrastructure and facilities, the $100 million bond issue will provide essential public capital intended to leverage private investment in neighborhoods where it has been lacking.
“With this investment, we will not only have better roads, bridges, facilities, vehicles, and recreation centers, but it will also stimulate economic growth, and promote more private investments in the city’s neighborhoods that have the greatest challenges to private investments,” said Mayor Jackson.
The private investment partners in attendance on Wednesday’s press conference were: Ms. Beth E. Mooney, Chairman and CEO of KeyCorp; Mr. Alan Zang, President, NE Ohio, US Bank; Mr. Paul Clark, Regional President, PNC Bank; Mr. Jerry Kelsheimer, President & CEO, Fifth Third Bank, Northeastern Ohio; Mr. Sean P. Richardson, Executive Vice President of Commercial Banking, North Coast Region, First Merit Bank; Mr. Dan P. Walsh, Jr., President, Greater Cleveland Region, Huntington Bank; Mr. J. Stefan Holmes Senior Vice President of First Merit Bank; Mr. Brian Tucker, Vice President of Corporate Affairs of Dollar Bank; Mr. Larry Slenczka, Vice President of Community Development for Dollar Bank; Carrie Carpenter, Senior Vice President, Regional Director of Public Affairs Charter One & Citizens Commercial Banking; Ms. Diane Downing, Senior Vice President of Corporate Affairs of Huntington Bank; Mr. Bill Elliott, Senior Vice President of Dollar Bank; Mr. Michael Taylor, Senior Vice President, PNC Bank.