Cuyahoga County commissioners clear way for medical mart and convention center

CLEVELAND, Ohio -- Cuyahoga County on Thursday closed a series of deals for the $465 million medical mart and convention center, clearing the way for construction of a project that backers predict will help revitalize the local economy.

Nearly five years after the tax-financed project was proposed, county commissioners approved key land purchases and a business agreement with the county's private partner, Chicago-based MMPI.

Their vote came at their second to last meeting. In January, a new charter government will replace the three commissioners and inherit the downtown Cleveland project. The mart will showcase medical products and technology in a four-story building attached to an underground convention center near the lakefront.

Here are details of agreements approved Thursday:

•Commissioners imposed a hike of 1 percentage point in the hotel bed tax to help pay for operations, which are expected to run $6 million a year. The measure will generate $2.4 million a year for operations.

• Positively Cleveland, the city tourism bureau, agreed to contribute about $16 million over 17 years for operational costs. Positively Cleveland's contribution will come from bed tax revenue, which accounts for most of its operating money.

• MMPI secured cost guarantees from design-builder Turner Construction Co. Under the agreement, Turner must complete design and construction for no more than $348 million. The deal calls for a 32-month construction schedule to be completed 2013.

• The county bought five properties, including $20 million for the existing city-owned convention center, and several parcels on St. Clair Avenue.

• A lease and operations agreement calls MMPI to build on the county-owned property. The county will pay MMPI $40 million a year, and MMPI will pay the county $36 million a year to pay its debt. The agreement allows under some circumstances for the county to use space in city-owned Public Auditorium, and for the city to use convention center space.

Workers will begin this month removing asbestos from several buildings in preparation for demolition. "Starting in the fall (2011), you'll see steel coming up," said Jeff Appelbaum, the county's point man on the project. Earlier this week, Appelbaum briefed all 11 members of incoming County Council, and urged them to form a subcommittee devoted to the medical mart and convention center. "Regardless of whether you have to make decisions, you are going to get calls," he said. "You're going to want to stay informed."

MMPI spokesman Dave Johnson said 41 companies have signed letters of intent to occupy medical mart showrooms, but he declined to name the potential tenants. 'The convention center has 16 signed letters of intent for trade shows and conferences, he said.

The deals approved Thursday mark the end of a process that been controversial at times, particularly when commissioners raised the sales tax a quarter cent without a public vote in 2007 to finance the project.

"We're delighted we've reached this moment," said Commissioner Tim Hagan. "It's important to the long-term vitality of the region."
(Article courtesy of Cleveland.com and The Cleveland Plain Dealer)