Cavs hire Bibb’s finance director, as city prepares to deliver massive subsidies for Dan Gilbert’s riverfront project – Information Global Web

CLEVELAND, Ohio — A top architect of Mayor Justin Bibb’s plan to remake downtown Cleveland, which is expected to provide massive public subsidies to Cleveland Cavaliers owner Dan Gilbert’s riverfront project, is taking a job with the Cavs.

Cleveland Chief Finance Officer Ahmed Abonamah has been tapped as the team’s next chief financial officer, according to a Cavs spokesman.

The move has raised the eyebrows of City Hall observers, including a government watchdog, who are concerned about the ethical implications of Abonamah’s transition.

Since Abonamah was hired by Bibb in 2022 to oversee the city’s finances, he’s played an instrumental role in launching the mayor’s downtown revitalization efforts. Those plans are expected to include tax subsidies for Gilbert’s project, which had been seeking upwards of half a billion dollars in public funds.

Last year, Abonamah was deeply involved in establishing a special downtown taxing district that included a carveout for Gilbert’s properties because the city has long-intended to offer separate tax subsidies directly to his project.

Abonamah on Wednesday told cleveland.com he consulted with Cleveland Law Director Mark Griffin in the lead-up to his Cavs interview process and “took the steps we needed to do under Ohio ethics law to ensure that I wasn’t running a foul — and no one at the city was running afoul — of the ethics requirements.”

Catherine Turcer, executive director of good-government watchdog group Common Cause Ohio, told cleveland.com that just because someone’s actions get an official OK, it doesn’t mean there aren’t still concerns.

“We shouldn’t immediately assume that because the ethics commission said there wasn’t a problem…it doesn’t necessarily mean that it meets the smell test,” Turcer said.

Asked about the ethics of such a move, Abonamah told cleveland.com he sees a critical distinction between Gilbert’s Bedrock company, which is slated for the city subsidies, and his separate company, Rock Entertainment Group, which includes the Cavs.

“I’m not working for [Bedrock],” Abonamah said, adding, “There’s sort-of the initial appearance, and then there’s reality. And I think the reality is that my day-to-day work is not going to put me in a position that would have the perception of something not above-board happening.”

Bibb’s office downplayed any ethical concerns about Abonamah’s move.

In a statement, Bibb’s spokeswoman, Sarah Johnson, said that “while we understand the concerns being raised, we want to assure the public that all decisions made by Ahmed in his role with the city were in accordance with ethical guidelines and regulations.”

Johnson added: “The city of Cleveland takes the integrity of its finances very seriously.”

A Cavs spokesman responded to questions from cleveland.com, but not one that asked specifically if Abonamah’s work at City Hall played a role in the decision to hire him.

The spokesman said the team “evaluated and interviewed multiple individuals from a variety of diverse backgrounds for the role and are confident [Abonamah’s] experience and leadership will bring a new, additive dimension to our team.”

It remains to be seen how much Cleveland intends to provide Bedrock in public subsidies for its $3.5 billion plan to transform Tower City Center and the adjacent riverfront. At least some of the city subsidies are expected to come in the form of a tax-increment financing deal, in which property tax gains resulting from Gilbert’s development would be redirected back to the project, rather than flow to social services, libraries, parks and other usual recipients.

Bibb’s administration on Wednesday is expected to introduce to City Council the first of two pieces of legislation needed to establish the tax-increment financing plan for Bedrock.

As an employee of the Cavaliers, Abonamah will be required to keep his distance when it comes to certain issues with the city.

Bibb’s spokeswoman told cleveland.com that there is a “strong ethical wall” in Ohio law that prohibits Abonamah, for the next 12 months, “from communicating with anyone in City Hall regarding matters in which he was personally involved.”

Ahead of the Cavs interview process, Abonamah said he “disconnected” from city business related to all of Gilbert’s companies, including the proposed Bedrock tax-increment financing deal, and a lease deal with the Cleveland Charge for the city-owned Public Auditorium.

He also resigned his seat at the Gateway Development Corporation, which approves requests from the Cavs for arena improvements using taxpayer money.

He told cleveland.com that he and others at the city “spent quite a bit of time” understanding Ohio ethics laws and “what they mean in practice for someone in my position.”

Abonamah acknowledged there were “good reasons to ask questions” about the ethics of the move, but in working with Law Director Griffin and Chief Ethics Officer Delante Spencer Thomas in recent months, “we fully analyzed the issues and came away with good confidence…[that] we didn’t see any ethics issues.”

Turcer, of Common Cause Ohio, said this scenario emphasizes the need of individuals to pay close attention to what’s happening in city government, and seek a good understanding of how public officials stoke development in downtown Cleveland.

Residents should be asking a lot of questions “to really encourage good ethical behavior and good decision-making going forward,” Turcer said.

Abonamah adamantly denied any kind of tit-for-tat arrangement when he spoke to cleveland.com. And he said the Cavs provided no impression that they were hiring him because of his city post.

‘If anyone thinks — whether it’s Rock Entertainment Group or any other organization — that hiring me would get them a particular kind of favor, then they’re going to be disappointed,” he said.

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Cavs hire Bibb’s finance director, as city prepares to deliver massive subsidies for Dan Gilbert’s riverfront project – Information Global Web

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