Follow the Money: Economy Effect

EAST TOLEDO - FOX Toledo News has been following the money in the past few weeks when it comes to how much of your money goes into big projects.

Certainly residents get frustrated, but sometimes that frustration needs to be directed toward something, not someone.

It's tough to imagine what happens in places like New York so drastically affects us here in Northwest Ohio, but that's what happened. Private money for big ticket items like the Marina District starting drying up.

"It's just now ready for development," said Marina developer Larry Dillin. "Unfortunately the timing of that happens to match with the worst economic crisis we've seen in a generation or two. So we have to be now, unfortunately, a little more patient work through that."

Over $18 million in grants, $2 million in loans and $13 million in city capital improvement dollars have gone into the project, but nothing is literally going up.

"Along the way, by the way, we had a fair amount of economic distress in the last year to two years which didn't help matters," said Toledo City Councilman George Sarantou.

"Once that economic bubble burst, we suffered just like most other parts of the country," added Councilman Frank Szollosi.

One of the biggest obstacles for the project these days is the lack of banks lending money.

"I will concede that the economy hasn't been that good and commercial credit has dried up," Szollosi said. "Lines of credit and banks around the country virtually cease to exist."

But the city has not given up on the project.

"The city of Toledo should be commended for sticking with this kind of public investment project in pattern with a private developer in these economic times," Dillin said. "Projects like the Marina District have been canceled all over the country."

No one is canceling this one right now, but with economic times the way they are, and unemployment as high as it is, there are some concerns about how capital improvement money is used.

"I'd like to see that kind of thinking with the CIP money," Szollosi said. "Something that's going to save our tax payers money in the short and long term as opposed to that sort of big flashy projects. I think think that's kind of in the past."

So how will the economy, money, and a new mayor all factor in?

"These are nice things to do and there was probably hope that would kick-start something in our community, but unfortunately, because of the way the economy has gone and a recession, that's not going to happen right now," said Toledo Mayor-elect Mike Bell.