CLEVELAND — The cities of Cleveland and Brook Park are ready to set aside a decades-old dispute over land near Cleveland Hopkins International Airport, striking an agreement that — among other things — will make it much easier to redevelop the I-X Center.
The proposed deal would end longstanding tax-sharing arrangements between the two cities at the I-X Center and a nearby business park. Going forward, the city of Cleveland would keep all the municipal tax revenues from both properties.
In exchange, Cleveland would give Brook Park 34 acres of vacant land and $23.45 million in cash — with $2 million right away for legal fees and the rest spread over 33 years, in annual payments of $650,000.
The agreement, which still requires approval from council members in both cities, would clear up snarls that date back to 2001. That’s when Cleveland and Brook Park first reached a truce in a bitter land battle related to a potential runway addition at Hopkins.
That runway project never happened. And 25 years later, both communities are still dealing with the aftereffects.
During a joint interview with News 5 on Monday, Cleveland Mayor Justin Bibb and Brook Park Mayor Edward Orcutt said they’ve found a way to move on — and move forward — gaining certainty and greater control over key pieces of property.
“I think it shows the power of regional collaboration and the kind of spirit we need to have right now for Northeast Ohio and Cuyahoga County to be competitive,” Bibb said.
“I think it’s a great example of two leaders that have put everything aside and are looking out for their constituents,” Orcutt added.
Cleveland, which owns the I-X Center, has been working with real estate developers to turn the huge exposition center into a major employment hub — with an eye on advanced manufacturing, aerospace and defense and other growing industries.
The venue, leased to Industrial Realty Group and Industrial Commercial Properties LLC, hosted its final consumer show in March. The developers took over the I-X Center lease in 2021, with plans to repurpose at least part of the 2.2 million-square-foot facility.
But city officials say they’ve been handcuffed by a perpetual tax-sharing agreement with Brook Park. It’s hard to offer job-creation tax credits and other incentives to employers when Cleveland will only get half of the upside from any investment.
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Under the existing agreement between the cities, the only way to end the tax-sharing deal is to demolish the I-X Center completely. That would cost Cleveland tens of millions of dollars and wipe out a tank-like building that still has plenty of potential.
Bibb said Cleveland did consider demolishing the I-X Center to press the reset button. But the city is seeing interest in the property from major employers.
“I was talking to a nationally renowned site selector, and they were amazed at the breadth and scope of the I-X Center building and its proximity to NASA (Glenn Research Center) and its proximity to the airport,” Bibb said.
Under the proposed agreement, Cleveland also would get the full benefit of tax revenues from businesses and new development at Emerald Corporate Park, a business park that is subject to a tax-sharing agreement today.
Going forward, until 2059, the $650,000 annual payments from Cleveland to Brook Park would make up for the loss of tax revenues from the business park and the I-X Center.
Bibb described that number as "fair but competitive — and an important down payment for us to attract hundreds of high-paying jobs back to Cleveland on a short- and long-term basis."
Orcutt said the proposed terms are the result of "smart and fair negotiations" to modify a complex agreement and end litigation that he and Bibb both inherited.
For Brook Park, the deal promises more bustle next door — just west of the future site of the new Cleveland Browns stadium and surrounding development. And the city will gain control over former residential property that’s been in limbo for decades.
In 2001, Cleveland agreed to buy and raze hundreds of homes just south of Hopkins to make way for a third runway. The city bought more than 250 properties in Brook Park but never followed through on the final wave of house purchases.
In 2017, Brook Park sued Cleveland over the unfinished residential buy-out program. That court fight is ongoing. A Cuyahoga County Common Pleas Court Judge ruled in favor of Cleveland last year, but Brook Park filed an appeal. An appeals court hearing is set for June.
Under the proposed deal, Brook Park would drop the lawsuit. Cleveland would hand over the 34 acres where homes once stood — land that’s languishing today. Then Brook Park would decide what to do with the property, while making offers to buy the remaining homes on a few nearby streets.
“We don’t have any plans for it right now,” Orcutt said of the property, which the city rezoned in 2001 to allow airport-related uses. “The master plan from the city of Brook Park from 2012 does show that it could be a city park. … What we want to do is make sure that we can return that back to, at least, its original zoning, which would be for single or two-family homes. Or just keep it as a park and green space.”
Legislation to authorize the agreement will be introduced to Cleveland City Council on Monday night. Brook Park City Council is scheduled to discuss similar legislation during a caucus meeting Tuesday evening. In both cases, the vetting process is just starting.
The deal also might require approval from the Federal Aviation Administration, since the backstory involves property purchases tied to the scrapped runway project at Hopkins. The cities are still trying to determine what the FAA’s role needs to be.
The mayors said they hope to wrap everything up this year, if both councils sign off.
“We want to be able to move forward together as a region,” Orcutt said. “And our city council shares those same aspirations as well.”
Orcutt described Bibb as a great partner in the negotiations, noting the unusual level of collaboration it required to come up with a solution.
“I’ll still give him crap for taking my football team,” Bibb said with a smile. “But at the end of the day, this is about jobs, growing our economy, growing our region and making sure that Cleveland and Northeast Ohio and Cuyahoga County can compete.”
Michelle Jarboe is the business growth and development reporter at News 5 Cleveland. Follow her on X @MJarboe or email her at Michelle.Jarboe@wews.com.
