The-News-Leader.com

New sin tax proposal for stadium on county's agenda

June 4, 2007

by Eric Marotta
News Leader Editor
Akron " The idea of a sin tax to pay for a Major League Soccer stadium in Summit County is back, and voters may be asked to decide the issue next November.
Summit County Council President Nick Kostandaras said May 31 that Council will begin consideration of a tax on alcohol and tobacco that would bring in an estimated $95 million for the $180 million stadium.
Kostandaras said the issue would be on first reading at Council's June 4 meeting, which would be followed by a June 11 presentation by representatives of the Wolstein Sports and Entertainment Group, including its president, Paul Garofolo.
Garofolo did not return phone calls seeking comment by press time.
Kostandaras said that County Council may make its final decision on the issue when it returns from summer break July 23, which would leave enough time to get the tax measure before voters in November.
He said details about the proposal, including how long it would be imposed and how much the tax would be on each product, would be available by County Council's June 4 meeting.
Kostandaras said he was an enthusiastic supporter of the stadium project, which the Wolstein Group has said would include a 20,000-seat stadium and a 25-field sports complex, and would host 95 events each year, bringing 1.5 million visitors annually.
"Look at the money that's going to come into the region," he said. "I'm for economic growth and development. I'm not for increasing real estate taxes."
Last year the Wolstein Group proposed a 30-cent tax on a pack of cigarettes in Summit County. That tax, which Garofolo previously said would have produced $210 million to help pay for the stadium, would have required approval by the state legislature, which did not consider the issue before the end of its last term.
State Sen. Kevin Coughlin (R-Cuyahoga Falls), who oversees the stadium project area, said May 31 he had not heard of any new proposals by the Wolstein Group.
In addition to the $95 million from the proposed tobacco and alcohol tax, much of the remainder of the stadium's cost would be financed, project officials have said, under a deal whereby property taxes on the 450-acre development site would be used to pay the construction debt. Garofolo previously said the total debt would be more than $400 million, including interest, over 30 years.
Garofolo in May asked the Nordonia Hills Board of Education to renew an agreement with the Wolstein Group to permit this "tax increment financing" plan. The deal expired at the end of last year.
E-mail: Emarotta@recordpub.com
Phone: 440-232-4055 ext. 4103