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Council directs payment-in-lieu to Hermann Park fund; members debate citywide use of PILs

Cleveland City Council Finance, Diversity, Equity & Inclusion Committee · November 11, 2025

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Summary

An ordinance was approved directing a developer's payment‑in‑lieu into a dedicated Hermann Park renovation fund (preliminary estimate $585,000; PIL amount cited $660,000). Council members debated whether PILs should be spent in the project's ward or applied citywide and raised concerns about developers avoiding on-site affordability.

The committee approved ordinance 13-10-2025, which directs payments in lieu (PILs) from a tax-abatement agreement into a fund dedicated to renovating Hermann Park (to be renamed Judge Raymond L. Pianca Park upon completion of improvements).

Councilwoman Spencer, the bill sponsor, said she had already committed $200,000 of her net funds toward the park and that the PIL payment is expected to be $660,000. Committee materials included a preliminary estimate of about $585,000 for initial park renovations.

The measure prompted debate over whether PIL dollars should remain in the ward where the associated development occurs or be used citywide. Council staff said the city's tax‑abatement legislation permits flexibility and that each PIL would be negotiated and come before council for direction. Councilman Brian Casey warned the arrangement could look like a way for developers to avoid building affordable units while still profiting from neighborhood upgrades, saying it "just looks like a big developer doesn't wanna put affordable housing in, and he's just gonna pay his payment in lieu."

Spencer stressed that developers do not direct where PILs go: "Council directs where the PILs go. Developers do not," and said the ordinance is intended to bring needed investment to a legacy park in her ward rather than to benefit the developer or his future tenants.

Committee members approved the ordinance with no further recorded objections; staff said the PIL will be received at certificate of occupancy and that the park investment is a forward-looking allocation to be acted on when funds are realized.