Here is the proposed ballot language:
Initiative ____. Shall the ordinance requiring the City of
Cleveland (1) to impose a Facilities Fee of $3.25 on each
ticket sold to events held at each of the three publicly
owned professional sports facilities located within the
city of Cleveland commencing July 1, 2015; (2) to
provide for penalties to any promoter or lessee operating
any of the sports facilities for imposing any Facility Fee
in addition to the proposed ordinance; (3) to repay a 15
year, $30 million obligation legislated from the General
Fund of the City to pay for the maintenance and capital
repairs of First Energy Stadium; and (4) to create a
committee to oversee the ordinance's implementation and
revenue distribution be adopted?
Here is the full language of the FairShare proposal:
Cleveland City Council
Resolution Submitting to the Electors an
Ordinance Ballot Petition Initiative.
By the Committee of the Petitioners; representing the petitioners in all matters relating to the petition or its circulation;
Alan B. Glazen, 10011 Cliff Dr., Cleveland, Ohio 44102
Claudia Young, 701 Lakeside Ave. W., Suite 1206 Cleveland, Ohio 44113
Ryan T. Eberly, 1734 W. 28th St. #205 Cleveland, 44113
Keith C. Humphrey, 15837 Norway Avenue, Cleveland, OH 44111
Larry Collins, 304 Overlook Park, Cleveland, Ohio 44110
Paulius Nasvytis, 701 Lakeside Ave. W., Suite 1206 Cleveland, Ohio 44113
Whereas, Chapter 7 of the Charter of the City of Cleveland, Ohio authorizes a Committee of Petitioners to circulate to the electors of the City of Cleveland, a petition to place an ordinance with full effect of law before the Clerk of the City Council containing no less than five thousand signatures of qualified electors.
Whereas, The Clerk of the City Council of Cleveland must accept such duly and lawfully signed petitions, being represented by no less than five electors who have chosen to make up the Committee of the Petitioners.
Whereas, The Clerk of the City Council of Cleveland must accept such signed petitions and the ordinance language submitted, examine them as allowed by Charter and endorse such petitions with a certificate result thereof.
Whereas, The City of Cleveland, and in some circumstances, in partnership with the County of Cuyahoga, have committed to provide maintenance and capital improvement funding by way of leases to the three publicly owned sports facilities whose partial funding comes from taxes on the sales of tobacco and alcohol in the County of Cuyahoga and the City of Cleveland’s General Fund.
Whereas, The Electors of the City of Cleveland desire to institute an ordinance for the funding for such leasehold maintenance and capital repairs and propose the following funding alternative by way of a citizen initiative petition; now therefore,
The Committee of the Petitioners does hereby submit this lawfully presented ordinance to:
1. Assess a $3.25 “Facility Fee” on every ticket sold to any event at any of the three publicly owned sports facilities located within the City of Cleveland, to wit; Progressive Field, home of the Cleveland Indians; Quicken Loans Arena home of the Cleveland Cavaliers, and FirstEnergy Stadium home of the Cleveland Browns to commence July 1, 2015;
2. Codify by law, penalties for the collection of Facility Fees by any and all business that use the City of Cleveland (or combined City / Cuyahoga County) aforementioned publically owned professional sports facilities;
3. Create a committee to oversee the ordinance's implementation and disbursement of revenue to the City of Cleveland General Fund and to the Gateway Board Economic Development Corporation from the Facility Fees on behalf of the financial commitments agreed to be way of leases from the City of Cleveland; and
4. Notify the Cuyahoga County Board of Elections of the Ballot Initiative to prepare for a vote at the General Election to be held on Tuesday, November 4, 2014; and directing the Clerk of Cleveland City Council to fix the date for submission of arguments, public hearings and to provide for Notice and Publication in accordance with law; now therefor,
Be it ordained by the Council of the City of Cleveland:
Section 1: TITLE
Cleveland Sports Facility Fee and Regulation Ordinance
Section 2: FINDINGS
The people of Cleveland, Ohio find as follows:
WHEREAS it is the goal of the people of Cleveland to initiate a fair funding method for the maintenance, upkeep and capital repairs of the municipally owned facility now known as FirstEnergy Stadium and for its pro-rata portion of the maintenance, upkeep and capital repairs for the co-owned facilities in partnership with the County of Cuyahoga, Ohio and with respect to the contracts already authorized to the Gateway Economic Development Corporation to maintain and repair the facilities known as: Quicken Loans Arena and Progressive Field; and
WHEREAS the current method of paying the City of Cleveland obligations to the lessees of these facilities places an undue and unfair burden upon City residents by imposing taxes on the consumption of alcohol and tobacco products; and
WHEREAS it has been reported by the facility lessees that over 50% of all attendees at Cleveland’s sports facilities reside outside Cuyahoga County; and
WHEREAS the poorest residents of the Northeast Ohio live within the boundaries of the City of Cleveland; and
WHEREAS imposing and regulating a Facility Fee on each ticket sold at any event at these three sports facilities is the most equitable method available for funding the maintenance, upkeep and capital repairs of the publicly-owned venues; and
WHEREAS in the face of the severe state fiscal cuts to the local government fund and the local budget crisis, the revenues from Facilities Fees would negate the need to cut City services which Cleveland City Council and the Mayor of Cleveland have publically stated will be required in order to maintain the lessor obligations previously negotiated; and
WHEREAS the sin taxes that currently fund the maintenance and capital repairs of these sports facilities have no guarantee to provide for the projected useful life of the facilities; and
WHEREAS it is the hope of the people of Cleveland that there be city law reform that will eliminate the problems and costs caused by a sin tax and cause legislation to be affected that charges the users and attendees of the sports facilities to pay for the use of the facilities;
THEREFORE the people of the City of Cleveland do hereby enact the following ordinance establishing the Sports Facility Fee and Regulation policy of the city.
Section 3: DEFINITION
"Facility Fee" - Means a "surcharge” not a tax as currently defined in Ohio Revised Code Section 715.013.
Section 4: PURPOSE
The purpose of this ordinance is:
a) To direct the City of Cleveland to impose a Facility Fee of $3.25 on the sale of each ticket for any professional sports event or other ticket-purchased event (excluding usage for non-profit corporations) and use to raise revenue on behalf of the City of Cleveland, Ohio to cover its obligations for the maintenance and capital repairs in excess of $500,000.00 per year or as otherwise negotiated in the current leases commencing July 1, 2015.
b) To direct the Mayor’s office of the City of Cleveland to impose, collect and distribute the revenues from the Sports Facility Fee on a yearly basis to; i) replace from the General Fund the previously legislated fifteen year, $30 million authorization to fund the repairs and maintenance of the facility known as FirstEnergy Stadium with funding from the
Sports Facility Fee, ii) use the yearly difference collected to pay its obligations to the Gateway Economic Development Corporation for the facilities known as Quicken Loan Arena and Progressive Field, iii) to pay any excess Facility Fees collected beyond Section 4(b)(i) and Section 4(b)(ii) to pay, on a yearly basis, directly to the debt bonds issued on behalf of the City of Cleveland and secured by the General Fund, effective immediately upon passage of this ordinance.
Section 5: REGULATION
The City of Cleveland shall establish a system to impose the Cleveland Sports Facility Fee and Regulation Ordinance as soon as possible under Ohio law. At that time, the Cleveland City Council shall promulgate regulations that include, but are not limited to, the following provisions consistent with Ohio law:
a) The assessment of $3.25 per ticket sold at each of the three professional sports facilities located in Cleveland, Ohio as a Facility Fee;
b) The city shall establish a system for collecting the Facility Fee from all lessees or promoters with regulations to assure good business practices, auditing and compliance; and
c) Organizations who hold a qualified IRS 501©(3) designation and who contract to use the facilities shall be exempted from the Facility Fee; and
d) Define and collect penalties assessed to any event promoter or lessee for imposing any type of Facility Fee beyond the Cleveland Sports Facility Fee and Regulation Ordinance referenced herein; and
e) Distribute the Facility Fees and penalties, if imposed, to the appropriate sources as defined in Section 4.
Section 6: OVERSIGHT COMMITTEE
A Cleveland Sports Facility Fee and Regulation Ordinance Oversight Committee shall be appointed to oversee the implementation of the Cleveland Sports Facility Fee and Regulation Ordinance. The Committee will comprise 11 members by way of the following:
3 - Cleveland City Council members appointed by the President of Cleveland City Council; and
2 - Cuyahoga County Council members appointed by the President of Cuyahoga County Council; and
1 - Community member appointed by the Mayor of Cleveland; and
3 - Community members appointed by the Committee of the Petitioners; and
1 - Representative of the City of Cleveland Law Department; and
1 - Representative of the Cleveland Finance Department.
Responsibilities of the Committee shall include:
a) Oversee the implementation of the Cleveland Sports Facility Fee and Regulation Ordinance;
b) Make recommendations to the Cleveland City Council regarding appropriate regulations, in accordance with Section 5 above;
d) Oversee the disbursement of revenues generated through the enacted Facility Fee to ensure that funds go to i) the General Fund to replace any obligations previously legislated on behalf of the maintenance and capital repairs for FirstEnergy Stadium, ii) to Gateway Economic Development Corporation to fund the pro-rata commitments required by lease obligations from the City of Cleveland for the maintenance and repairs of Quicken Loans Arena and Progressive Field, iii) to pay off the obligations made by previous legislation to pay the debt/bondholders for the construction of the facilities; and
e) Report annually to Cleveland City Council on the implementation of this ordinance.
Section 7: SEVERABILITY
If any provision of this ordinance or the application thereof to any person, entity or circumstance is held invalid, the remainder of the ordinance and the application of such provisions to other persons, entities or circumstances shall not be affected thereby, and be it,FURTHER RESOLVED: that the City Council of the City of Cleveland, Ohio does hereby request that the Board of Elections of Cuyahoga County order the consolidation of this Cleveland Municipal Ordinance number______, in the statewide general election of November 4, 2014 consistent with the provisions of state law; and,
FURTHER RESOLVED: that in accordance with Article XVIII of the Ohio Constitution and Chapter 7 of the City of Cleveland Charter, the Council Clerk shall fix and determine a date for submission of hearings for or against said proposed initiative and said date shall be published in accordance with state laws; and be it
FURTHER RESOLVED: that each ballot used at said Municipal Election shall have printed therein, in addition to any other matter required by law the following language:
Initiative: Yes: No:
Initiative ____. Shall the ordinance requiring the City of
Cleveland (1) to impose a Facilities Fee of $3.25 on each
ticket sold to events held at each of the three publicly
owned professional sports facilities located within the
city of Cleveland commencing July 1, 2015; (2) to
provide for penalties to any promoter or lessee operating
any of the sports facilities for imposing any Facility Fee
in addition to the proposed ordinance; (3) to repay a 15
year, $30 million obligation legislated from the General
Fund of the City to pay for the maintenance and capital
repairs of First Energy Stadium; and (4) to create a
committee to oversee the ordinance's implementation and
revenue distribution be adopted?
FURTHER RESOLVED, that the Clerk of Cleveland City Council, the Cleveland City Council and the Mayor of the City of Cleveland are hereby authorized and directed to take any and all actions necessary under law to prepare for and conduct the November 4, 2014,
General Municipal Election and the City Council hereby authorizes and appropriates all money necessary for the Mayor and Council Clerk to prepare for and conduct the November 4, 2014 General Municipal Election consistent with law.
IN COUNCIL, CLEVELAND, OHIO,
PASSED BY THE FOLLOWING VOTE:
AYES: -
NOES: -
ABSENT: -
ABSTENTION: -
DATE: ________________