As an attorney and lobbyist at Keating, Muething & Klekamp (KMK), mayoral candidate John Cranley helped payroll company Paycor finalize plans to move its headquarters — and 450 to 500 jobs with it — from Queensgate in Cincinnati to Norwood, Ohio.
Specifically, KMK helped Paycor and Norwood set up a tax credit deal to incentivize the company’s relocation. Throughout the
process, the law firm called on several of its employees, including
Cranley, to help with the negotiations.
For Paycor, the move comes after more than two decades in Cincinnati. The company originally looked in Cincinnati for bigger headquarters with better parking options, but ultimately couldn’t find a location to its liking, according to a May 2012 memo from the city manager. So when Paycor found a location outside city limits and worked out a tax incentive package with Norwood and Ohio, it decided to move.
Cities and states often deploy incentive packages, ranging from property tax abatements to deductions on income taxes, to attract and retain companies. Pure Romance, a $100-million-plus “relationship enhancement” company, recently agreed to move from Loveland, Ohio, to downtown Cincinnati after securing such a tax deal with the city.
Paycor broke ground on its new headquarters in December and plans to move there next spring. The transition will pull 450 to 500 employees out of Cincinnati, and the company plans to add another 250 to 300 employees over time at its new facilities.
Cranley campaign manager Jay Kincaid says Cranley and KMK won’t comment on the details of their work with Paycor or other clients for ethical reasons. But Kincaid says Cranley was just doing his job after Paycor went to KMK, not the other way around.
“In the legal profession you’re asked to represent clients, and you do it to the best of your ability,” Kincaid says. “At the time I don’t think (Cranley) was even running for office. The firm came to him and said, ‘Hey, we have a job that we need you to work on.’ And he did the work, just like anyone else would at their job.”
Norwood City Council approved the deal with Paycor on Oct. 23, 2012. Cranley announced his mayoral campaign three weeks later, on Nov. 14.
Cranley’s critics argue that a mayoral candidate shouldn’t be helping companies leave the city he wants to lead.
“It is disappointing that John (Cranley) helped Paycor leave the city with its over 450 tax-paying jobs. His efforts undercut the city’s efforts to retain jobs and businesses,” said Vice Mayor Roxanne Qualls, who is running against Cranley, in an emailed statement.
The move comes despite Cincinnati’s various attempts to hang on to Paycor, including previous tax deals. In 2001, then-Councilman Cranley and the rest of City Council approved tax incentives to keep the company in Cincinnati, retain its 142 jobs at the time and create another 25. The city administration estimated the deal would cost the city $225,750 and generate $546,000 in net tax revenue over five years.
In 2006, Cranley and seven council members approved another incentive package to further secure Paycor’s stay in Cincinnati.
But the deals also required Paycor to remain in Cincinnati through 2015. Since Paycor’s move violates the agreement, the city administration says it plans to claw back some of the tax benefits given to the company.
In other words, Cranley in 2001 and 2006 approved tax deals with Paycor that the company, with his help, is now set to break.
City spokesperson Meg Olberding says the clawback process will begin after Paycor moves to Norwood in 2014. So if Cranley is elected by voters on Nov. 5, he would be mayor as the city is taking back some of the money it gave away.
Although the city is taking a hit, Cranley’s relations with the payroll company appear unscathed. Paycor CEO Bob Coughlin contributed $1,100 to Cranley’s campaign on Aug. 20, according to campaign finance reports.
Updated with more details about the tax deals between Cincinnati and Paycor.
Political columnist Howard Wilkinson and longtime photographer Michael Keating are among the 26 employees who are leaving The Enquirer as part of a buyout deal.
This week was the deadline for editors at the newspaper to decide whether to accept voluntary “early retirement” buyouts from employees. Although The Enquirer hasn’t released any details, current and former co-workers of Wilkinson and Keating have begun discussing their departures and posting their well wishes on social media sites.
So far, CityBeat’s emails sent this morning seeking comment haven’t been returned.
Gregory Korte, an ex-City Hall reporter at The Enquirer who now works at USA Today, posted, “I grew up reading Howard Wilkinson's politics column in the Cincinnati Enquirer. It's one of the reasons I got into this business, and I was delighted to work and learn alongside him for so long. And Michael E. Keating? The best political photographer I've ever worked with — he could turn a podium shot into pure art. A real reporter's photographer. Now they're both taking a buyout and retiring. The Enquirer has done just fine without me, but I can't imagine it without these two.”
Another former Enquirer reporter, Ben Fischer, posted, “Howard Wilkinson you're one of the all-time greats. And that goes for baseball fandom, general good guys AND political reporters. Everybody's going to miss your prose and insights this election season.”
Wilkinson confirmed the news on Facebook, adding, “Thanks to one an all. It's been a great ride. But you haven't heard the last from me ... or Michael either... Michael and I were a team; and got to see and do some amazing things over the years. I will always be grateful for that.”
The Gannett Co., The Enquirer’s corporate owner, announced the buyout offer Feb. 9 and gave employees 45 days to decide whether to apply for the deal.
At the close of the offer period, editors reviewed applications and made final decisions; some people who apply for the deal potentially could've been turned down if their position is deemed essential to the newspaper’s operation.
Under the deal, newspaper employees who are age 56 or older and have at least 20 years of service with Gannett as of March 31 are eligible. Although executives said 785 employees meet the criteria, the deal only is being offered to 665 employees “due to ongoing operational needs at the company.”
Sources at The Enquirer say executives are looking to shed 26 employees at Cincinnati’s only remaining daily newspaper. It is believed that 19 of the positions will come from the newsroom, while six people will be affected in the advertising department, and one person in the online/digital content department.
As part of reductions mandated by Gannett, The Enquirer has laid off about 150 workers during the past two years. Also, employees have had to take five unpaid furloughs during the past three years.
UPDATE: Some courthouse officials are saying CityBeat's sources are wrong, and that no decision has been made on who will fill Clancy's former job. The officials say applications were being accepted until Jan. 5, and the judges will decide later. One option would be to keep the position vacant, at least temporarily, to save money. Other sources, however, are saying the selection of Jodie Leis-George and Casey DeNoma to share the job is a "done deal" and courthouse officials are seeking political cover for the choice. We shall see in the weeks to come.
(** UPDATE FOLLOWS AT END)
With another round of layoffs hitting The Enquirer and other Gannett newspapers nationwide, time will tell if a separate trend at the media company will occur soon in Cincinnati.
Gannett announced last week that it was pulling the plug on the print editions of two faux alt-weeklies, Metromixin Indianapolis and Noise in Lansing, Mich. Both will maintain an online presence, at least for now.
The move follows the cancellation of Metromix's print edition in Nashville last winter and the end of Velocity as a stand-alone paper in Louisville, which is being folded into The Courier-Journal.
A private, off-campus apartment complex geared toward students and located just blocks away from the University of Cincinnati is facing possible foreclosure.
The Bank of America has filed legal action in the Hamilton County Court of Common Pleas against the owner of McMillan Manor, a five-story, 122-unit apartment building that opened in 2006.
Activists continue to protest Western & Southern’s treatment of the Anna Louise Inn, which has been helping women in the Lytle Park neighborhood for more than a century. CityBeat last week reported the details of Western & Southern’s failure to purchase the property when it had the chance and the company’s subsequent attempts to force the Inn to leave the neighborhood anyway.
The Greater Cincinnati Homeless Coalition, released a statement on Saturday describing the protest banner as proof for local and national leaders that Western & Southern’s actions won’t be tolerated. The statement read: “We will continue to up the ante until you stop attacking the hard-working women of the Anna Louise Inn.”
Josh Spring, executive director of the Greater Cincinnati Homeless Coalition, said in an email to CityBeat that the plane flew for two 30-minute stints on Sunday. Spring said protesters distributed 2,000 flyers outside the tournament’s gates and that the people who learned what Western & Southern was doing generally expressed frustration. The banner was made possible by contributions from several local organizations, including Occupy Work and Wages, Amos Project, the Homeless Coalition, SEIU Local 1, Mount Auburn Presbyterian church and other concerned citizens and groups.
The banner asks people to go to stpws.com to learn more. The website redirects to www.southernwestern.net, which is the site where activists finally were able to publish a satirical video parodying a Western & Southern spokesperson proud of his company’s attacks on the Anna Louise Inn. The video was originally posted in June to YouTube and Vimeo, but was removed for copyright infringement shortly after Western & Southern found out about it. Western & Southern didn’t return CityBeat’s calls back then asking whether or not W&S was involved in forcing the removal of the video. The website includes a change.org petition asking Western & Southern to stop suing the Anna Louise Inn.
Cincinnati’s Historic Conservation Board is scheduled to hear arguments on Aug. 27 that could lead to a conditional use permit and allow the Anna Louise Inn to move forward with a renovation Western & Southern stalled by suing the Inn. It will take place 3 p.m. on the seventh floor of 805 Central Ave.
Read this week's CityBeat cover story on the issue here.
Touts Mandel's Ability To Consistently Repeat Previously Debunked Lies: "Us Serial Liars Need To Stick Together"COLUMBUS, OHIO – The Boy Who Cried Wolf announced his endorsement of Josh Mandel today, ending speculation about who the world renowned liar would support in the Ohio senate race this November. "Josh Mandel shares my ideals, my values and most importantly my less-than-casual relationship with the truth," said the Boy Who Cried Wolf. "Us serial liars need to stick together, and now that Josh Mandel's officially been crowned King of Ohio's Liars, the choice for me is simple. I'm honored to support Josh and I look forward to joining him and his special interest friends on the campaign trail as they lie about Sherrod and distort his record on the issues from now through November." The Boy Who Cried Wolf rose to fame for repeatedly proclaiming that his sheep were being attacked by a wolf, when in fact, no wolf had attacked his sheep. Much like the Boy Who Cried Wolf, Josh Mandel's star has risen largely because of his penchant for repeating previously debunked lies. This week Josh Mandel earned the "Pants on Fire crown" from Politifact Ohio, an award reserved for the worst liar among all Ohio politicians. ### Paid for by the Ohio Democratic Party, Chris Redfern, Chairman
The Gay and Lesbian Community Center of Greater Cincinnati recently held its annual membership meeting and elected leaders for 2012.
Rusty Lockett and John Maddux were elected to another term as board president and vice president, respectively. Lockett formerly served as the center’s clerk before first being elected president in early 2010. Also, he has served as event chairman for Pride Night at Kings Island in September and is convener of the local LGBT Episcopal worship group, called Integrity.