Longtime Berding critic calls FC Cincinnati stadium situation 'madness'

A longtime stadium opponent of using public money for stadiums called FC Cincinnati's antics "madness" and said it was the right move to cancel a meeting about the team's Oakley proposal.

Cincinnati lawyer Tim Mara hasn't forgotten about Paul Brown Stadium. He fought against that deal and Jeff Berding in the early 2000s, and he continues to level criticism at the FC Cincinnati manager now.

“It is clear that FC Cincinnati is playing the supporters of the three potential stadium sites against each other to secure the most lucrative deal for the team,” Mara wrote in a statement Wednesday. “The only way to end this madness is to “just say no.’”

He praised the Greater Cincinnati Redevelopment Authority's decision to cancel a meeting regarding the club's Oakley site proposal.

Authority chairman Charlie Luken, the former Cincinnati mayor, canceled the meeting until the team has picked a single site. "It is clear FC Cincinnati is still looking at three sites," Luken told Enquirer columnist Jason Williams. "I do not want our authority to be used as leverage."

FC Cincinnati general manager Jeff Berding issued a statement in response late Tuesday stating the team "respects the decision" of the authority.

Berding said his team has "worked tirelessly to select a site by March 31, 2018 to keep FC Cincinnati in line with critical MLS and stadium development timelines."

Berding has not said when the team would officially pick Oakley, Newport or West End as its stadium site. The only time Cincinnati City Council is scheduled to meet before March 31 is Wednesday. No votes concerning FC Cincinnati are on the agenda for that meeting.

"Berding’s statement that FC Cincinnati needs additional infrastructure incentives for its stadium beyond that already approved by city council and the county commissioners should be proof to all that (the team) intends to squeeze every possible dollar from the taxpayers,” Mara said.

An Oakley deal was approved by Cincinnati City Council in November. In that ordinance, the city agreed to allow the redevelopment authority to own the stadium and lease it to the team.

The authority's "approval has always been represented as the next step to move the Oakley site forward," Berding said. "Other steps needed are completion of the traffic study and a vote by City Council with respect to public infrastructure incentives, and no final decision on Oakley can be made before these necessary actions."

Berding said that authority financing would allow for improvements, which would benefit Oakley with jobs, inclusion, prevailing wages for construction workers and increased visitors to the neighborhood.

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The involvement of the redevelopment authority, formerly known as the port authority, could mean tax-exempt financing and leaseback options that would shield stadium developers from tax payments and other liabilities.

For example, if the authority owned the stadium, it would exempt all the materials used in construction from state and local sales tax.

The city appoints half the redevelopment authority's 10-member board, and the county appoints the remaining half.

Hamilton County Commissioners President Todd Portune said the county is facing challenging budget issues next year. He lamented the idea of the redevelopment authority taking over.

"The thought of the loss of any revenue at all ... goes directly against the grain of what we have to do and what we are planning to do for 2019," he said referring to the county's consideration of a tax hike to address a $28 million budget deficit next year.

Dick Spoor with the law firm of Keating Muething & Klekamp has worked with FC Cincinnati as it navigates public and private funding options.

He explained that it's not unusual for the redevelopment authority to issue bonds and hold property to assist new developments. He said a deal could mean less money for the county and the Cincinnati Public Schools system.

Don Mooney, a lawyer who works with Cincinnati's teachers' union, said whether the schools get payments in lieu of taxes depends on whether how the deal is structured and if the stadium is determined to have a public or private purpose. A public use could mean little or no money for the schools.

In the past month, the team had prolonged negotiations with Cincinnati Public Schools regarding a land swap in the West End.

Despite the school board holding its ground on payments and the team stating it was shutting down the West End deal, discussions have continued in the background. A West End Community Council committee met Saturday to discuss a potential community benefits agreement with the team.

Newport is also still an option for the team. A deal there would be less complicated, Spoor said.

A so-called super TIF has been in place at Newport's Ovation site for over a decade. Eighty percent of property, sales and income taxes generated by the development would be reinvested in the project. The team would also not be required to pay prevailing wages for construction, Spoor said.

A final stadium deal is the next hurdle faced by FC Cincinnati to continue its quest to win an MLS franchise.

Berding told reporters Sunday that he doesn't expect the MLS to make a decision about his team until after FC Cincinnati's home opener April 7.