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Council clears sale of city parcel to Rust Belt Riders after ground‑lease plan shifted to sale
Summary
Council approved repeal and replacement ordinances to switch a previously authorized ground lease with composting firm Rust Belt Riders into a sale at appraised fair market value of $790,000, with reductions for environmental remediation costs.
Cleveland — The finance committee voted to repeal previous ground‑lease legislation and approve an emergency ordinance authorizing sale of a city parcel on East 70th Street to Rust Belt Riders Composting LLC at the appraised fair market value, adjusted for any environmental remediation costs.
The committee heard a recap of a project first legislated in March: Rust Belt Riders intended a long‑term ground lease on city property to construct a new composting facility and a retail operation, and projected an estimated $3.5 million investment, retention of roughly 30 jobs and creation of about 15 additional jobs. As the deal progressed, the company’s lenders requested outright ownership of the parcel, and city staff sought to accommodate that need.
City staff said the sale price is the appraised value — $790,000 — “minus any environmental remediation cost,” and that the appraisal assumed no contamination. The Department of Economic Development and county environmental partners performed a Phase II site assessment earlier this year that found soil contamination levels that could require precautions if excavation occurs.
Rust Belt Riders representatives told the committee they plan to “build up” rather than excavate and that the company needs land ownership in order to secure financing from banks. Nathan Rutts and Michael Robinson of Rust Belt Riders said ownership would allow them to borrow at reasonable rates.
Council members asked about the unknown remediation cost and whether the city would bear any overage. The city’s brownfields manager said the city removed drums and dumped waste earlier in the year and developed a soil management plan with the Ohio EPA; he said he did not expect remediation costs to exceed the appraised amount and that the buyer would be responsible for any cleanup cost over the sale price. Rust Belt Riders confirmed their understanding that the buyer would assume remediation costs.
The committee approved ordinances 960‑2025 and 961‑2025 to repeal the prior ground‑lease authorization and to proceed with the sale. City staff noted contractual language still needs clarification to specify remediation responsibilities and other terms.
What wasn’t decided: The committee approved sale authorization but the final purchase contract and remediation allocations were to be clarified in the sale documents. The ordinance authorizes the sale; the precise remediation dollar amounts and construction approach remain to be finalized in the contract.
Provenance: Committee transcript includes the department presentation, Rust Belt Riders’ remarks, discussion of appraisal and remediation, and the committee’s approval of ordinances 960 and 961‑2025.
