Cleveland Job Creation Program Could Undermine Living Wage

The Public Meetings Report is produced by Signal Cleveland and Cleveland Documenters.

Anastazia Vanisko and Cleveland Documenters Barbara Phipps, Dorothy Ajamu and Marvetta Rutherford
Dec. 4: Committee of the Whole, Cleveland City Council

Council Member Stephanie Howse-Jones (left) talks about wages in Cleveland. (Credit: Cleveland City Council YouTube)

Incentivizing ‘poverty wages’: Members of Cleveland City Council spent roughly eight hours Dec. 4 discussing dozens of pieces of legislation ahead of the final meeting of the year. One piece brings changes to the city’s job creation incentive program. The committee approved it – and full council passed it later that night – despite concerns about the program undermining a living wage for workers.

Council President Blaine Griffin told council members that the grants and other tools the city used to fund the old program expired. He said the city needed a new tool with more flexibility. The new program will provide tax credits to companies creating 50 or more full-time jobs paying no less than the city’s median wage. According to presenters from the Department of Economic Development, the city median wage is $33,678 annually or $16.19 per hour.

Council Member Charles Slife asked that they use the county median wage, which he estimated at $55,000 annually or $26 per hour, to ensure the companies getting the Cleveland tax breaks pay a living wage.

Council Member Stephanie Howse-Jones agreed. “I do not think we should incentivize people for poverty wages,” she said.

Howse-Jones put forward an amendment to raise the minimum pay to match Cuyahoga County’s median wage.

In response, Kate Warren, special assistant to the chief of integrated development, said raising the minimum may deter companies that were willing to pay an amount between the city and county median.

Council Member Kerry McCormack said the change might drive companies to take their business outside the city limits. He told council members an amendment was added in a previous committee meeting to incorporate community benefits agreements into the program.

Griffin added, “I’m already starting to get some calls and texts in. People are already saying that this would actually kill a couple of deals that are on the table already.”

Howse-Jones withdrew her amendment.

Ending with a surplus: Council members also discussed freeing up surplus funds totaling $56 million from the city’s operating budget for other uses.

Chief Finance Officer Ahmed Abonamah said that $10.1 million would go to the Division of Streets and $10 million to a new Human Resources (HR) software system. He said another $10 million would go to the West Side Market, pending separate legislation.

Council Member Michael Polensek questioned the price tag of the HR software.

Abonamah said that there is a high upfront cost, but it will speed up the city’s hiring process since much of it is currently done by hand. He said council approved a new HR software system in 2021.

Council Member Richard Starr expressed frustration that Abonamah had told council members last January that council getting an extra $5 million from the city’s casino revenue funds would create too large a gap in the city budget when there is now an approximately $56 million surplus.

Abonamah said that a surplus is not guaranteed every year. He said that some of the extra funding was a result of vacant positions.

Griffin said that council can decide how to use money that has not been designated for a specific purpose.

Legislative marathon: Additional legislation approved in committee and passed at that evening’s City Council meeting included:

Byline: Dakotah Kennedy and Cleveland Documenters Karima McCree-Wilson, Timothy Zelina and Anna Truax
Dec. 4: Cleveland City Council

Jenna Muhieddine joined other Clevelanders in urging Cleveland City Council to pass a resolution supporting a ceasefire in response to Israel’s war on Gaza. Credit: Cleveland City Council YouTube

Still no ceasefire resolution: Despite seven weeks of public comments and protests in support of Palestine, Cleveland City Council closed 2023 without passing a resolution calling for a ceasefire in Gaza. A majority of public commenters again spoke in support of Palestine at council’s last meeting of the year.

“Many do not know the basic history. Palestine–prior to 1948–was not an empty land. Today, Israel has annexed and stole almost all of the land while murdering or displacing [Palestinians],” said Jenna Muhieddine of Ward 15.

Muhieddine labeled council’s decision to condemn Russia’s invasion of Ukraine but not Israel’s war on Gaza as “hypocrisy.” She said council members’ own citizens have begged them to “make Cleveland safer” by passing a ceasefire resolution.

As she spoke, she gestured to photos held by audience members of “murdered and injured Gazans.”

Muhieddine told City Council that those who do not support Palestinians will not see another term in office.

Increased police presence: One speaker observed and questioned an increased number of police at City Council meetings following weeks of protests.

“This heightened police presence occurs amidst an ongoing crisis in [the division],” said Kameron Damaska, Ward 17, citing the city’s struggles to employ and retain police officers.

Bibb draws criticism: During Council President Blaine Griffin’s acknowledgements, he asked members of the Omega Psi Phi fraternity to come to the front of the room. As Mayor Justin Bibb greeted them, members of the audience started chanting, “Mayor Bibb, you can’t hide, we charge you with genocide.”

Protestors have criticized Bibb for an Oct. 7 statement expressing support for Israel. He recently made further comments condemning Hamas and calling for a “two-state solution” with Palestine and Israel.

Newly appointed: Griffin also announced the appointment of five people to the Cleveland Commission on Black Women and Girls. The appointees joining the commission are:

Legislation passed: City Council also passed multiple emergency ordinances that included road repair and public improvement projects. It also approved amendments to the revolving loan fund for home repairs for Southeast Side residents and raised the maximum age for new Cleveland police recruits to 54 from 39 years old.

Housing for veterans slated for Union-Miles; market garden planned for Glenville
Byline: Dakotah Kennedy and Cleveland Documenters Pearl Chen and Chanel Wiley

Dec. 6: Cleveland Board of Control

The Cleveland Board of Control approved multiple land parcel purchases from the Cleveland Land Bank. Credit: John G / Shiner Comics

Parsing through parcels: Alyssa Hernandez, director of the Department of Community Development, presented six recommendations to lease and sell land parcels. The board approved all six proposals, and all of the land sold or leased was from the Cleveland Land Bank.

Two pieces of land went to residents looking to expand their side yards for $200 apiece. One resident plans on using their new land – leased at $1 a year for five years – to maintain a market garden in Glenville.

New construction: The Board of Control also approved a land purchase to create housing for veterans in Union-Miles. The project is spearheaded by Union Miles Development Corp. The land sold for $2,600.

Structures Unlimited, a construction company, purchased land in Ward 7 for a new commercial or industrial project. The land sold for $41,639.