CLEVELAND, Ohio — New assessments project at least $150 million in capital repairs at Rocket Arena and Progressive Field over the next several years that the publicly funded landlord, Gateway, is on the hook to cover — even though revenue streams have dried up and no replacement funding has been identified.
The latest Facilities Condition Assessments, which are updated every three years, outline roughly $69 million in capital spending anticipated at Progressive Field through 2028, while about $82 million is projected at Rocket Arena through 2029, according to documents provided at Wednesday’s board meeting.
Beyond that, the assessments estimate an additional combined $261 million in repair and replacement needs over the remainder of the leases, which run through 2034 for the Cleveland Cavaliers and 2036 for the Cleveland Guardians. That equates to an average of $17.4 million in spending per team, per year.
Gateway Economic Development Corporation of Greater Cleveland, the nonprofit entity that owns both venues on behalf of the city of Cleveland and Cuyahoga County, is responsible for paying those bills — if they are deemed true capital repairs. Under the lease agreements, Gateway covers the cost of all capital repairs at Progressive Field and those exceeding $500,000 at Rocket Arena. The teams handle routine maintenance.
The problem: Gateway does not currently have any resources to pay for those repairs.
The nonprofit has relied in recent years on a patchwork of reserves, IOUs and a $40 million bailout from Cleveland and Cuyahoga County to cover increasing capital costs. But government officials have made clear that the trend cannot continue.
The county recently had to roll over the debt it took out to pay its share of the $40 million bailout into 2026, because it lacked the cash to pay it outright.
The funding uncertainty made Gateway board members uneasy Wednesday, as they tread carefully around acknowledging their obligation to make the repairs outlined in the assessment without appearing to approve the recommended projects outright — especially without any funding to back them up.
Members did sign off on $2.9 million in budgeted minor repairs at Progressive Field in 2026, but will approve major repair projects individually as they are requested by the teams. At that point, the board will confirm whether the projects fall under capital repairs and how Gateway will pay for it.
But it is expected that the projects will eventually move forward to keep the ballpark and arena in what Gateway board chair GiGi Benjamin described as “very good condition.” That condition, she stressed, is key to avoiding much costlier outcomes.
“The cost of the continual repairs and maintenance, together with a lack of disruption of the operations of the teams, is a good value for the city,” Benjamin told cleveland.com and The Plain Dealer after the meeting. “We’re not asking for a new house; we’re asking to fix up our old one.”
How will Gateway pay for it?
As costs loom for the next wave of repairs — over $20 million worth projected in 2026 — Gateway officials and local leaders acknowledge there is still no clear plan for how to pay for them.
Benjamin could not provide cleveland.com a timeline for when a new funding source may be identified or what it might look like. She credited the teams for collaborating with Gateway on the timeline of their requests and ideas to save money on some projects, but she did not speak to their potential role in figuring out how to close the funding gap.
Cleveland Mayor Justin Bibb has said he will not give Gateway any more bailouts without the teams coming to the table to discuss creating a special financing district that would shift some of the cost of stadium repairs from general taxpayers to those who visit the facilities through fees on things like parking, food and drinks. So far, though, Bibb has said the teams haven’t cooperated.
Cuyahoga County Executive Chris Ronayne also proposed increasing the decades-old sin tax on alcohol and cigarettes to raise more money for stadium repairs, a move the state recently authorized. But Ronayne has since said he will not pursue the increase because it doesn’t generate enough revenue to cover the expected bill.
No other potential funding plans have been discussed.
“Everyone knows that we’re going to need additional resources to accomplish this,” Benjamin said at Wednesday’s meeting. “We’re actively working with the city and county and teams to figure out where that’s going to come from.”
In a joint statement, the teams said they’re committed to preserving their respective facilities “as premier community assets” that can “continue to inspire community pride, foster vibrancy and strengthen the region’s economic vitality.”
In the meantime, Gateway officials stressed they’re trying to be creative with whatever money they do have until long-term revenue streams are identified. They noted one $852,000 expense that was previously approved for electrical maintenance at the ballpark that is on hold, and temporarily deferred replacement of air handling units that has delayed a $4.9 million bill.
Gateway has said it’s also seeking more opportunities to reduce costs by bundling capital repairs with team-funded renovations when possible.
The Guardians, for example, are updating some concession areas and its team shop next year, which has exposed structural and plumbing issues that they say would fall under Gateway’s obligation to fix. They estimate the projects will cost about $8 million, 20% of which Gateway might have to cover, but most of them are repairs that Guardians staff said would be done eventually under the assessment.
Gateway is expected to start approving some of those costs at its February meeting.
But other projects, like elevator and escalator modernizations at Rocket Arena, are being fronted by the teams with the expectation that they will be paid back when new money becomes available. And that’s just what’s known right now.
The unknown
Todd Greathouse, Gateway’s executive director, said the nonprofit is still working to determine who is responsible for replacing or fixing light poles that have been damaged amid a wave of thefts where people have stripped wire from city streetlights. He did not provide an estimate for what that might cost.
Gateway’s board is also expected to consider pay increases for Gateway staff at some point. Earlier drafts of the proposal did not list what the added cost would be, and the item was eventually tabled, but could return this year.
Those pay increases would have to be funded from Gateway’s operating budget, which comes from rent payments made by the teams. That account is currently projected to end the year with a $62,000 deficit, budget documents show, and next year’s expenses are estimated to be even higher.
It’s also not clear what, specifically, needs repaired at each facility or how much each project might cost. Documents provided by Gateway gave only high-level cost estimates for a range of years across categories like structural, mechanical, broadcast and food service; they did not list individual projects.
Gateway declined to release the full assessment, citing its status as a nonprofit, not subject to Ohio public records law. Greathouse said he fears that if the assessments were released, it could give companies a head start on bidding or create security risks.
But he viewed the assessment as good news. The buildings were made to last roughly 50 years, he said, and the assessments suggest they remain “better than most,” more than halfway through that lifespan.
“We’re in our 31st year, and we’re in really good shape,” Greathouse said, adding that now they just need to figure out the funding. “We have a gap to cover, and we just need help to cover that gap.”