A recent $5 million donation has jump started plans to build a Rock and Roll Hall of Fame in Cleveland.
The donation from the New York Board of the Rock and Roll Foundation is part of $17 million of private funds that will be used to build the hall, according to Steve Strnisha, Cleveland's finance director.
Strnisha said the proposed $84 million hall of fame, which has been in the works since 1986, also has $68 million of anticipated public sources. The public financing includes a $38 million revenue bond issue by the Cuyahoga County Port Authority, an $18 million bond issue by the city, a $5 million bond issue by Cuyahoga County, and $7 million from Ohio's capital budget.
The port authority is expected to issue its bonds next spring, Strnisha said. Construction of the hall on the shores of Lake Erie is expected to begin shortly after, he added.
The port authority bonds are expected to be repaid with revenues from corporate sponsors, proceeds from a countywide hotel bed tax increase, and a tax on hall admissions, Strnisha said. He added that the authority is looking for a state or private development entity to back the bonds if revenues fall below expectations. The bonds would be secured ultimately by a letter of credit and sold on a variable-rate basis, Strnisha said.
All the bond issues will be issued in the first quarter of 1993, Strnisha said.