Oct. 10 update: At its final full session before the Nov. 5 election, City Council on Wednesday approved nearly $854,000 in tax credits for Pure Romance that city officials say will bring the company to downtown Cincinnati for at least 20 years.
Councilman Charlie Winburn, the lone Republican on council, was the only council member to vote against the deal.
Oct. 9 story: City Council’s Budget and Finance Committee on Tuesday approved nearly $854,000 in tax credits over 10 years for Pure Romance in return for the company coming to and remaining in Cincinnati for 20 years.
The city administration estimates the deal will lead to at least 126 new high-paying jobs in downtown Cincinnati over three years and nearly $2.6 million in net tax revenue over two decades.
If the company fails to keep at least 126 jobs after three years or remain in Cincinnati for 20 years, the city will claw back some of the tax credits depending on how egregiously the terms are failed.
Cincinnati in 2011 clawed back tax benefits on its so-called “megadeal” with Convergys after the company failed to keep its total downtown employment at 1,450 or higher.
Pure Romance is a $100-million-plus company that hosts private adult parties and sells sex toys, lotions and other “relationship enhancement” products.
The company was originally planning on moving to Cincinnati with support from both the state and city. But Gov. John Kasich’s administration ultimately declined to provide tax credits, which forced the city to ratchet up its offer from $353,000 to prevent Pure Romance from moving to Covington, Ky., instead of Cincinnati.
Kasich’s administration says
the company didn’t fall into an industry the state normally supports,
but state Democrats and local officials claim the state government
resisted the tax credits because of a “prudish” attitude toward a company that sells sex toys.
“We welcome Pure Romance to the city of Cincinnati,” Vice Mayor Roxanne Qualls said at the committee meeting. “We are glad that the city administration and Pure Romance were able to work out an arrangement that actually welcomed them to the city.”
Pure Romance previously told CityBeat that it hopes to move its headquarters from Loveland to downtown Cincinnati by the end of the year, but the move hinges on whether the company can quickly finalize a lease agreement.
Rich Boehne must be a glutton for punishment.
A former reporter at The Cincinnati Post and The Cincinnati Enquirer, Boehne rose through the ranks at The E.W. Scripps Co., The Post’s parent firm and joined its corporate staff in 1988 as the first investor relations manager. Since then, he’s held a number of positions in the company.
The National Underground Railroad Freedom Center is suffering from a poor economy and continuing financial trouble.
The center announced today that they will be laying off 17 full-time employees, by the end of the year, leaving a staff of 47.
The museum will also no longer be open on Sundays.
Last year, the Freedom Center was caught up in a battle at City Hall when Councilman Chris Monzel attempted to redirect a proposal to give the center $800,000 to pay for speed humps.
At the time this sum was delivered, a $25 million debt remained for the $110 million construction of the center.
The museum has been criticized by state and local officials for requesting public funds after Freedom Center President Ed Rigaud said the center wouldn’t ask for additional public money to balance its books, even after projected and actual attendance numbers dropped dramatically.
Attendance at the center peaked in its first full year open in 2005 at just over 200,000. The numbers have been falling ever since.
For Christmas, the Freedom Center might want to ask for financial independence.
A prominent local anti-gay, right wing group sent a mass e-mail to supporters today seeking money to avoid a $150,000 deficit next year, which is close to what the group's president makes in salary.
The e-mail distributed by Sharonville-based Citizens for Community Values (CCV) states it's ready to “jump into 2011 with both feet!”
A City Council committee wants Cincinnati’s leadership to investigate whether workers in a Clifton Heights development project are being paid what they’re supposed to.
The Strategic Growth Committee on Wednesday passed a motion asking the city administration to report back on wage payments to workers on the U Square development. The project includes a parking garage as well as residential and commercial units.
Under Ohio law, workers on projects funded by cities must be paid a prevailing wage, which is equivalent to the wage earned by a union worker on a similar project.
The city only has money invested in the garage, and the state of Ohio recently ruled that workers on other parts don’t have to be paid prevailing wage.
Council members Wendell Young, Cecil Thomas and Laure Quinlivan produced a video in which they interviewed carpenters who said they were being paid less than the prevailing wage.
At issue is a letter from developer Towne Properties that says the company will pay all workers prevailing wage anyway. Arn Bortz with Towne Properties said his company cuts a check to subcontractors respecting that agreement, so if workers aren’t being paid the proper amount it’s their fault.
City Solicitor John Curp told members of the Strategic Growth Committee that under city and state law, the subcontractors are not required to pay workers a prevailing wage on parts of the project that are not getting public funding. He said the letter from the developer does not hold the weight as a legal contract.
Young, Thomas, Quinlivan and Councilman P.G. Sittenfeld all expressed the need to overhaul the way the city enters into development contracts to better protect workers.
However, City Manager Milton Dohoney hinted that overzealous requirements for high wages could chase off some development projects.
He said that a project like U Square is tied to the Clifton location because of its proximity to the University of Cincinnati, but the city can’t be too restrictive when it comes to businesses that could expand elsewhere.
Dohoney said the city also doesn’t currently have the manpower to do the kind of aggressive enforcement that the council members were asking for.
Councilman Young countered that he would like to see the city be as aggressive with enforcement as they are with making economic development deals.
“We want to change the rules of the game to make sure everyone is treated equal,” Young said.