About three months since George Shoup was appointed receiver for the city of East Cleveland, the corporate bankruptcy specialist said his office is nearing an answer about the financial hole in the city.
Shoup was appointed by the Ohio鈥檚 Court of Claims to get East Cleveland out of financial distress under a state law that took effect in 2025.
The city has been under fiscal supervision for all but a few years since 1988. The state auditor鈥檚 office has been unable to complete audits of the city because of missing records. Former mayor Brandon King was convicted of theft in office last year. His predecessor, Gary Norton, was removed from office by recall and pleaded guilty to federal obstruction charges.
Tuesday's Financial Planning and Supervision Commission meeting was the third since Shoup鈥檚 appointment.
鈥淭he city will survive," Shoup said. "The question (is) will the city be able to pay all of its bills? Maybe not all of them, and maybe not timely, but the city will find a way."
Shoup projects about an $800,000 deficit for the year but said that could be filled with unpaid taxes or unspent American Rescue Plan Act funding the city has to spend by the end of the year.
About $6.5 million is in the ARPA fund, according to Mayor Sandra Morgan. Her office is proposing spending much of that money on projects, including the demolition of the long-vacant Huron Place Apartments.
The plan, according to Morgan, is to partner with the county land bank to demolish the building in the fall.
The city would spend $800,000, half from ARPA funds and half from community development block grant funding and the rest of the $3.2 million cost would be paid by the Cuyahoga County Land Bank, which took control of the property in 2024.
鈥淚t鈥檚 a clear and present danger," Morgan said. "Everything known to man is around and in that building.鈥�
Morgan referred to illegal dumping, wild animals and people who have sought shelter inside over the years.
According the land bank's director of community stabilization, Adam Stalder, much of the demolition cost will be funded by a state grant.
"Cuyahoga Land Bank acquired Huron Place Apartments from state forfeiture to remove it from the cycle of disinvestment that has plagued the highly visible property for more than a decade," said Stalder. "As required by the program, the City of East Cleveland has committed to providing the 25% local match."
The city is also hoping to restart a partnership with Cleveland Metroparks to hand over the historic Forest Hill Park on East Cleveland鈥檚 border with Cleveland Heights with $2 million of ARPA funding.
The receiver, under state law, has authority over city spending. Shoup told council he鈥檚 now working on a balanced budget that may cause some pain as he addresses the city鈥檚 long-running structural deficit.
鈥淭he city will be here and we'll find a way, but it's going to take some pain and it's going to take some time,鈥� Shoup said. 鈥淎nd I don't have all the answers yet, but we will.鈥�
