Transportation & Mobility Committee Meeting – June 24, 2026

The committee met to discuss two forthcoming ordinances from the Department of Port Control (passenger boarding bridges and a building automation system contract) and to hold a detailed hearing on a proposed amendment to the settlement agreement between Cleveland and Brook Park regarding the IX Center and related properties. No votes were taken; these items are scheduled for introduction and passage in July.

Port Control – Passenger Boarding Bridges

• The Department of Port Control requested authority to purchase up to 12 passenger boarding bridges (including removal, disposal, and installation) for Cleveland Hopkins International Airport, at an estimated cost of $26 million. The bridges are for gates A2, A6, A8, A10; B3, B7; and C3, C5, C6, C7, C9, C11. This is the second phase of replacements; the first group (nine bridges) is already in design-build with Arrow Bridge.
• Councilman Casey confirmed the bridges are owned by the city and that FAA and PFC funds will cover costs. Councilman Jones asked about total bridge inventory and the replacement timeline; the assistant director noted the bridges are over 30 years old and that design will begin soon, with installation subject to construction season.
• Councilwoman Gray inquired about removal phasing to avoid passenger disruption. The assistant director said the project will coordinate with airlines to ensure seamless and safe operations.
• The item will be introduced in July; no action was taken today.

Port Control – Building Automation System Contract

• The committee discussed a proposed one‑year requirement contract (with three one‑year renewal options) with Siemens Industry Inc. for labor and materials to maintain, repair, upgrade, and expand the Apogee building automation system at the airport.
• The assistant director explained the system monitors alarms (fire, flood, HVAC) and automates response. It is somewhat proprietary due to legacy components. Councilman Casey asked about the lack of an RFP; the assistant director stated the contract was awarded without an RFP because of proprietary issues, but future procurements may use an RFP. Councilwoman Gray noted that Siemens’ headquarters is in Georgia, not Cleveland; the assistant director confirmed Siemens maintains local on‑site staff.
• The item will be introduced in July; no action was taken today.

IX Center Settlement Amendment – Discussion

Background and Rationale

• The committee heard Ordinance 664‑2026, an emergency ordinance authorizing the mayor and directors of law and port control to enter into a first amendment to the 2001 settlement agreement between Cleveland and Brook Park concerning the IX Center, the Emerald Park Joint Economic Development Zone (JEDZ), and 34 acres of land in Brook Park. The amendment would abolish the JEDZ and all tax‑sharing at the IX Center, giving Cleveland full control of revenues from those properties.
• Chief of Development McNair and Chief Legal Officer Griffin explained that the 2001 agreement was based on an expected third runway that was never built. The current arrangement sends a significant portion of tax revenue from Cleveland‑owned land to Brook Park; the proposed deal ends that perpetuity feature. Brook Park has already passed its own legislation approving the terms.

Financial Terms

• One‑time payment: $2 million to Brook Park (from law department settlement funds).
• Annual payment: $650,000 for 33 years (total ~$21.45 million), paid from a special revenue fund that will collect all tax revenues from the IX Center and Emerald Corporate Park. The annual payment is offset by the $300,000 Cleveland currently sends to Brook Park from the JEDZ.
• Land transfer: 34 acres of vacant residential property Cleveland owns in Brook Park (acquired for the never‑built runway) will be returned to Brook Park. An appraisal valued the land at $4.3 million, but the city cannot develop it due to Brook Park zoning and FAA restrictions.
• Airport rent: The IX Center pays ~$2.7 million annually in rent to the airport (to cover bonds/airline costs), which would continue unchanged.

Revenue Projections

• Currently, Cleveland receives only about $228,000/year in tax revenue from the IX Center (2024); at peak (2018) it was ~$500,000. The JEDZ (Emerald Corporate Park) currently generates ~$610,000 total, of which Cleveland gets half ($305,000).
• The administration projects that if the 40 developable acres in Emerald Corporate Park were built out similarly to existing uses, they could generate $700,000/year in new tax revenue. A single advanced manufacturing tenant with a $72 million payroll (as described by Executive Attraction Officer Jennifer Sheel) would yield about $1.8 million/year in income tax for Cleveland (after the current sharing, net would be ~$1.08 million).
• Chief McNair stated that over 33 years, a $25 million total payroll would produce a net benefit of ~$2.5 million; a $70 million payroll (like the prospect discussed) could yield $40+ million in net revenue for the city after incentives and the annual payment.

Concerns Raised by Council Members

• Confidentiality of prospective tenants: Councilwoman Sheel (under NDA with site selectors) stated she is working with a company that has a $72 million payroll and 700 jobs, but no letter of intent or LOI has been signed. Councilmembers expressed skepticism given prior unfulfilled promises.
• Role of the master lessee (ICP/IRG): The IX Center is under a 13‑year master lease with an affiliate of ICP and IRG. The lessee controls all leasing; the city cannot veto tenants. Councilman Casey noted that in five years the lessee has brought in zero industrial tenants. Chief McNair said the lessee wants a lease extension to make capital improvements, but a lease extension may be conditioned on attracting manufacturing jobs.
• Potential Haslam Sports Group interest: Multiple councilmembers raised concerns that Haslam Sports Group (HSG) has expressed interest in leasing up to 1.5 million sq. ft. for three years to keep trade shows at the IX Center, then potentially move them to a new facility near the new Browns stadium. Councilman Palencick and Casey argued this would directly compete with downtown convention assets and harm Cleveland’s economy.
• Lack of anti‑poaching agreement: Brook Park did not sign an anti‑poaching agreement; Councilman Palencick and others worried the 34 acres returned to Brook Park could be used to lure businesses away from Cleveland.
• Absence of detailed financial projections: Councilman Jones and others requested a multi‑year projection spreadsheet showing revenues, costs, and net benefits under various scenarios; the administration committed to providing more detailed projections.

Key Outcomes

• No votes were taken on any item; all are expected to be introduced and voted on in July.
• The administration agreed to provide: (1) a copy of the master lease for the IX Center; (2) names of the principals of ICP/IRG; (3) a projection spreadsheet for the settlement agreement; (4) confirmation of the status of Concourse D’s lease; (5) an appraisal of the 34 acres; and (6) clarification of the annual rental payment amount.
• The committee will continue to review the settlement agreement and will likely hold additional discussions before the July vote.