Covered by Documenter Michaylah Burch (notes)
What happened
Cuyahoga County is moving forward with a $1.7 million loan to support a development in Cleveland. It just may have to wait a little longer than expected to get the taxpayer money back. The loan is to Fairmount Properties for the long-planned construction of a Meijer grocery store in Cleveland’s Fairfax neighborhood. The project, located at Cedar Avenue and East 105th Street, would also include 199 apartments.
New pecking order
The committee discussed and advanced a tweak to the original loan approval. Now, instead of sharing secondary lender status with Cleveland, the county – and the city – will be third or fourth. That means other lenders would get priority in getting their money back.
The loan vote
The committee advanced the resolution in a 3-1 vote. Council Member Sunny Simon voted no. Simon took issue with what she said was a rushed process. She said Cuyahoga County Director of Development Paul Herdeg tried to bypass council and a loan committee. In the July 18 full Cuyahoga County Council meeting, Simon voted in favor of the legislation, which passed. But first, she warned that the county may not get the $1.7 million back.
Worth the risk
Council Member Scott Tuma asked if the new agreement was worth the risk. It is, according to Herdeg. Terri Hamilton Brown, Cleveland’s interim director of Economic Development, agreed. Cleveland contributed its own $1.5 million loan to the project. The most important issue is addressing Fairfax’s designation as a food desert, Brown said. Huntington Bank is the primary lender. And, according to Herdeg, it will not loan money until supporting loans close.
Left wondering
Documenter Michaylah Burch asked, “Will the new apartments at Cedar and East 105th be income-based? Or are they primarily for employees of Cleveland Clinic, University Hospitals and the other medical organizations in the area?”
