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.
Despite problems with staff and records, a report is calling changes to Ohio’s youth prisons system a model for the nation. The report from a court-appointed monitor praised the Ohio Department of Youth Services for reducing the number of offenders in secure confinement and spreading services for youthful offenders around the state. However, the report also points out staff shortages, inadequate teachers and inconsistent medical records. Advocates for youthful offenders claim the bad findings show a need for continued court supervision.
There’s a new sheriff in town, and the old one is becoming a visiting judge. Simon Leis, who served as sheriff for 25 years, is best known for going after an allegedly obscene Robert Mapplethorpe exhibit and prosecuting pornographer Larry Flynt. As visiting judge, he will take on cases other judges are assigned but can’t get to due to full dockets.
An appeals court is allowing City Gospel Mission to move to Queensgate. The special assistance shelter wants to move from its current Over-the-Rhine property to Dalton Avenue, but businesses and property owners at Queensgate oppose the relocation. In its opinion, the Ohio First District Court of Appeals said opponents to the relocation “have not raised any genuine issues of material fact in support of their constitutional attack upon the notwithstanding ordinance in their capacity as neighboring businesses and property owners.”
Butler County nonprofit services are worried that a greater need for their services in 2013 will force more budget tightening.
U.S. retailers did not have a good Christmas. Holiday sales were at the lowest they’ve been since 2008. The disappointing sales have forced retailers to offer big discounts in hopes of selling excess inventory.
Former president George H.W. Bush is in intensive care “following a series of setbacks including a persistent fever,” according to his spokesperson.
The Food and Drug Administration says FrankenFish, a giant, genetically modified salmon, is environmentally safe.
Fun fact: More Iranians worry about global warming than Americans.
Colleges are now helping students scrub their online footprints.
Antifreeze now tastes bitter to deter animals and children from eating it.
Scientists have developed a highly advanced robot boy capable of doing chores. Keep its face in mind, for you could be looking at the first of our future robot overlords.
An institutional shareholder at Cintas Corp. will make a motion at the company’s annual meeting later this month seeking to have an independent chairman appointed to its board of directors to improve oversight and increase company performance.
Representatives for the North Carolina Retirement Systems (NCRS), which represents the pension investments of retired North Carolina state employees, said objective oversight is needed at Cintas to represent shareholders and “reverse a five-year trend of underperformance.”
At the company’s annual meeting on Oct. 14th, the pension fund will also support a proposal seeking an advisory shareholder vote on executive pay and will oppose appointing nominee David Phillips to the firm’s board of directors.
The various proposals are supported by Risk Metrics/ISS Governance Services and Glass Lewis, which offer proxy services to institutional shareholders.
Although Cintas is the largest uniform rental company in North America, its stock has underperformed the S&P 500 and its peers for the past five years, according to pension fund representatives. Cintas’s share price is down 18 percent during that period, while shares of its largest publicly-traded competitors are up 83 percent and 4 percent respectively.
Also, Cintas has lost market share in recent years, a trend that accelerated in 2008.
“These proposals offer an opportunity to make real change at a company that is underperforming and failing to address the concerns of shareholders,” said State Treasurer Richard Moore, who manages NCRS, in a prepared statement. “I encourage other institutional investors and shareholders to vote for these proposals and for improved governance at Cintas.”
Some shareholders contend that current Board Chairman Richard T. Farmer and his son, Cintas CEO Scott Farmer, have stacked the 11-member board of directors with friends and close associates that too closely follow the Farmer family’s directives. Cintas began as a private company started by Richard Farmer’s grandfather in 1929, before it was taken public in 1983.
Another institutional shareholder, CtW Investment Group, first proposed blocking Phillips’ appointment to the board due to what it described as an undisclosed conflict of interest and weak leadership in his role as the company’s Nominating and Corporate Governance Committee chairman.
“As lead director and chairman of the Nominating and Corporate Governance Committee, Mr. Phillips bears responsibility for many of the company’s questionable governance practices, which include … inadequate response to legitimate governance concerns,” Michael Garland, a CtW executive, wrote in an Oct. 1 letter to other shareholders.
The letter continues, “As discussed above, nominee Phillips serves as trustee of Cincinnati Works, which received over $200,000 in charitable contributions from foundations controlled by insiders and affiliates of the Company. We question the need for the Company to engage in such significant charitable contributions with one of its directors, especially considering the amount of such contributions as a percentage of Cincinnati Works’ annual revenue.”
In July, yet another institutional shareholder — the Manville Personal Injury Settlement Trust — filed a lawsuit alleging the firm’s board of directors isn’t fulfilling its fiduciary duties and fosters a corporate culture that ignores safety regulations.
At least 10 Cintas facilities nationwide have been cited for safety violations by the U.S. Occupational Safety and Health Administration (OSHA) in just over the past year.
OSHA imposed a $2.78 million fine against Cintas last year for violations that led to the death of Eleazar Torres-Gomez at the company’s laundry facility near Tulsa, Okla., in March 2007. Gomez died after he jumped onto a conveyor belt to dislodge clothes and was dragged into an industrial dryer, where he burned to death.
Federal and state inspectors have issued citations against Cintas facilities in Alabama, Arkansas, California, Illinois, Indiana, Ohio, Texas and Washington.
Since 2003 Cintas has been cited for more than 170 OSHA violations in its facilities, including more than 70 citations that OSHA deemed could cause “death or serious physical harm.”
Cintas representatives say the company has adequate safety procedures and blame the accidents on workers who don't follow their training on how to handle machinery.
Based in Mason, Ohio, Cintas is the largest uniform supplier in the United States. Cintas reported $531 million in profits for the 2008 fiscal year, which ended in May.— Kevin Osborne
For once, executives at The Enquirer probably are happy to have the newspaper deemed average.
Jim Hopkins, who operates The Gannett Blog, recently tallied the circulation losses during the last five years at the media giant's 10 largest newspapers. Hopkins compiled the data from Gannett's annual reports to shareholders.
After a few months of preparation, two Ohio legislators today formally introduced an economic development plan that a nonpartisan group has said could create up to 16,000 jobs in the state.
State Sens. Eric Kearney (D-North Avondale) and Nina Turner (D-Cleveland) have submitted Senate Bill No. 278, known as “Forward Ohio,” for the State Legislature’s consideration.
A tea party-backed pension amendment yesterday cleared the hurdle of 7,443 petition signatures required to appear on the November ballot. Cincinnati for Pension Reform, the group behind the amendment, had previously paid nearly $70,000 to petitioners to gather signatures. The amendment would privatize pension plans so the city and city employees hired after January 2014 would contribute to individual retirement accounts that the employee would then manage by independently selecting investments. That’s a shift from the current system in which the city pools pension funds and manages the investments through an independent board. But unlike private-sector employees, city workers might not qualify for Social Security, which means they’ll lack the safety net that typically comes with risky 401k-style plans. If workers do qualify for Social Security, the city would have to pay into the federal entitlement program, which would cost the city more money, according to an Aug. 5 report from the city administration.
Cincinnati is cutting ties with SoMoLend, the local startup that had previously partnered with the city to connect small businesses and startups with $400,000 in loans. SoMoLend has been accused of fraud by the Ohio Division of Securities, which says the local company exaggerated its performance and financial figures and lacked the proper licenses to operate as a peer-to-peer lending business. The Division of Securities won’t issue a final order until after a hearing in October. SoMoLend’s specialty is using crowdfunding tactics to connect small businesses and startups with lenders.
Ohio Republicans are considering bringing back the “heartbeat bill,” the controversial anti-abortion bill that would ban induced abortions after a heartbeat is detected, which could happen as early as six weeks into a pregnancy. The bill could be reintroduced next week. That would come just a couple months after Republican legislators and Gov. John Kasich approved a slew of anti-abortion measures through the two-year state budget.
The Ohio Senate will today hear testimony from the Health Policy Institute of Ohio about projections that show the state could save money if it takes up the Medicaid expansion. As part of Obamacare, states are asked to expand their Medicaid programs to include anyone at or below 138 percent of the federal poverty level. In return, the federal government will pay for the expansion for the first three years and wind down to paying 90 percent of the costs after that. The Health Policy Institute previously estimated the expansion would save Ohio roughly $1.8 billion and insure nearly half a million Ohioans in the next decade.
Councilwoman Laure Quinlivan is touting Cincinnati Safe Student Housing, a website that allows university students to pick from housing options that passed a free fire inspection. The website was unanimously approved by City Council following several university students’ deaths to fires, which council members argue could have been prevented with stronger standards.
The new owner of the former Terrace Plaza Hotel says he will reopen the building as a hotel. Alan Friedberg, managing principal of the company that bought the building earlier this year, says the process of bringing back the building will take a lot of time and work, considering it’s now been vacant for three years.
Four Greater Cincinnati hospitals have been recognized for protecting the LGBT rights of patients and employees by the Human Rights Campaign Foundation: Bethesda North Hospital, Good Samaritan Hospital, the Veterans Affairs Cincinnati Medical Center and Cincinnati Children’s Hospital Medical Center.
Ohio Attorney General Mike DeWine rejected a ballot initiative that would have legalized marijuana in Ohio. DeWine claims the summary for the ballot initiative is untruthful and leaves out various important details.
Mason, a Cincinnati suburb, was ranked one of the top 10 places to live by CNNMoney. Maybe CNN really likes Kings Island.
Ohio Sen. Sherrod Brown was in Cincinnati yesterday to call on the U.S. Department of Veterans Affairs to expedite processing on benefit claims. The VA currently has a backlog of 500,000 veterans, according to a press release from Brown’s office.
Introducing Elon Musk’s Hyperloop, a proposal for a railway system that would use high-pressure tubes to shoot passengers around the country. It’s estimated traveling from Los Angeles to San Francisco, which normally takes about five and a half hours, would only take 30 minutes in the tubes.
Tuesdays will be market day at downtown’s Fountain Square beginning in late spring and lasting until early fall. And to fill the market, the group that manages the plaza is accepting applications from interested vendors.
The Cincinnati City Center Development Corp. (3CDC) will operate the market for 21 weeks, from May 1 to Sept. 25. The midday, mini-market will be open from 11 a.m.-2 p.m.
Politics is often a game of strategy, and an area anti-tax group is well-known for taking the offensive on most issues it advocates. A recent dispute over a referendum on a payday loan law, however, has the group facing stinging criticism for getting its facts wrong and overstating its own influence.
City Council’s Budget and Finance Committee on Sept. 16 unanimously approved a proposal that will allow the city administration to study whether city contracts should favorably target minority- and women-owned businesses and report back with the results in February 2015.
City officials support the measures because reported city contract participation rates have plummeted for minority-owned businesses and remained relatively flat for women-owned businesses since Cincinnati dismantled its previous minority- and women-owned business program in 1999.
The study, which the city now estimates will cost $450,000 to $1 million, is necessary because of a 1989 U.S. Supreme Court ruling that requires governments to empirically prove there is a racial or gender-based disparity before enacting policies that favorably target such groups.
It’s also unclear if the latest participation numbers are accurate. As part of the city’s previous business program, minority- and women-owned businesses were required to report as minority- and women-owned businesses. But the classification has been voluntary since the program was terminated, which could be leaving out businesses who choose not to report.
“We need to put all of Cincinnati to work building Cincinnati,” said Vice Mayor Roxanne Qualls, who introduced the August motion, in a statement. “To make sure that the city has an open, fair, inclusive process that ensures everyone benefits from our public investments and from private development that we support with public money, we need an updated disparity study.”
Cincinnati hasn’t undertaken a disparity study since 2002. That study found evidence of disparities but ultimately recommended race- and gender-neutral policies to avoid legal uncertainty that surrounded the issue at the time.
Officials claim they couldn’t conduct another study until the city administration finished implementing suggestions from OPEN Cincinnati, a task force established in 2009 to reform the city’s small business program after Mayor Mark Mallory and his administration were accused of neglect.
The study has also been stalled by cost concerns. Some
critics argue the money would be better spent elsewhere, but, in an uncommon moment of consensus, all council members have backed funding.
The city manager’s proposal calls for conducting the study between February 2014 and January 2015. The city administration will report the results to City Council and take public comments on the study in February 2015.
Pure Romance on Tuesday announced that it is moving to downtown Cincinnati despite a decision from Gov. John Kasich’s administration to not grant tax credits to the $100 million-plus company, which hosts private adult parties and sells sex toys, lotions and other “relationship enhancement” products.
Pure Romance will now move 60 jobs and its headquarters
from Loveland to downtown Cincinnati. It expects to create another 60
jobs in the process.
In a statement that thanked City Council and City Manager Milton Dohoney for their support, Pure Romance CEO Chris Cicchinelli cited downtown Cincinnati’s growth as a reason for remaining in Ohio.
“We look forward to playing an active role in the continued resurgence of this region’s urban core and know that Pure Romance professionals will add to the dynamic and exciting growth being enjoyed in downtown Cincinnati,” he said.
The move will receive support from the city government, which previously offered $353,000 in tax breaks to the company.
Pure Romance was originally considering moving to Kentucky after Ohio
refused to give the company tax credits.
Kasich and other Republican officials justified their refusal with claims that Pure Romance
just didn’t fall into an industry that Ohio normally supports, such as logistics and energy.
But Democrats, citing other companies that obtained tax credits despite not being within traditional industries, argue that Kasich’s administration only denied the tax request because of a prudish, conservative perspective toward Pure Romance’s product lineup, which includes sex toys.
Pure Romance is looking to move downtown by the end of the year, but the time frame hinges on ongoing lease negotiations.