Steelyard Secrets Reader’s Note
September 28, 2005
After the completion of Steelyard Secrets, the Cleveland-Cuyahoga County Port Authority said that it had included incorrect information in an internal e-mail that it had supplied to Policy Matters Ohio regarding the fees and proceeds from the Steelyard Commons financing. While the information on the Port Authority itself is correct, much of the information on Ariel’s fees and proceeds on page 10 of the report (see full report) is not. Some of those shown in fact went or will go to other parties. Port Authority President Gary Failor provided a correction to that information. NEODF President and Ariel partner Annette Stevenson asked that it be included in the report.
The following numbers, which show a different division of these monies, are based on Failor’s correction:
a) The $500,000 in fees was not paid to Ariel Ventures, LLC. It was paid to the two owners of NEODF, Cohen & Company Investment Partners (CCIP) and Economic Development Fund (EDF). CCIP, which received $370,000, is owned by some partners at Cohen & Co. EDF received $130,000 (EDF is owned by the three partners at Ariel, Annette Stevenson, Radhika Reddy and Irene Zawadiwsky, Stevenson said).
b) Of prepaid annual compliance fees of $723,404 to be paid over the next 8 years, 70 percent will go to Ariel Ventures and 30 percent to Cohen & Company Ltd.
c) As stated in the report, the Port Authority will be paid 45 percent of the estimated total of $1.78 million to be received on the NEODF loan between now and 2013. However, Cohen & Company Investment Partners will get 40.7 percent and Economic Development Fund, 14.3 percent.