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.
is No. 3 in the nation for “megadeals” — massive government subsidies to
corporations that are meant to encourage in-state job creation — but a
new report found many of the deals rarely produce the kind of jobs initially
touted by public officials.
In the Good Jobs First report
released on June 19, Ohio tied with Texas as No. 3 for megadeals,
which Good Jobs First defines as subsidies worth $75 million
or more. Michigan topped the list with 29 deals, followed by New York
no secret the deal with Convergys went sour for Cincinnati. In December 2011,
the company, which provides outsourced call center services, agreed to pay a $14 million reimbursement to the city because the company’s
downtown employment fell below 1,450 — the number of jobs required under
the initial deal. The reimbursement deal also calls for the company to pay an additional $5 million if its downtown employment falls below 500 before 2020.
Good Jobs First report finds this kind of failure is not exclusive to
the Convergys megadeal or Cincinnati; instead, the report argues that
megadeals are expensive and often fail to live up to
their high costs, some of the deals involve little if any new job
creation,” said Good Jobs First executive director Greg LeRoy in a
statement. “Some are instances of job blackmail, in which a company
threatens to move and gets paid to stay put. Others involve interstate
job piracy, in which a company gets subsidies to move existing jobs
across a state border, sometimes within the same metropolitan area.”
For the jobs that are kept and created, states and cities end up paying $456,000 on average, with the cheapest deals costing less than $25,000 per job and the most expensive costing more than $7 million per job.
report finds the number of megadeals per year has doubled since 2008,
on top of getting more expensive in the past three decades. Each
megadeal averaged at about $157 million in the 1980s, eventually rising
to $325 million in the 2000s. The average cost dropped to $260 million
in the 2010s, reflecting the price of deals made in the aftermath of the
Great Recession, which strapped city and state budgets.
subsidy awards are getting out of control,” said Philip Mattera,
research director of Good Jobs First and principal author of the report,
in a statement. “Huge packages that used to be reserved for ‘trophy’
projects creating large numbers of jobs are now being given away more
Ultimately, the report aims to increase transparency for such subsidies, reflecting an ongoing goal for Good Jobs First. To do this, the organization has set up a database (www.subsidytracker.org) that anyone can visit to track past, present and future subsidy deals.
But the report claims much of this work should already be done by the Governmental Accounting Standards Board (GASB), which “has been long-negligent in failing to promulgate regulations for how state and local governments should account for tax-based economic development expenditures,” according to a policy sidebar from LeRoy. “If GASB were to finally promulgate such regulations — covering both programs and deals — taxpayers would have standardized, comparable statistics about megadeals and could better weigh their costs and benefits.”
City Council approved a plan to lease the city’s parking assets to the Port of Greater Cincinnati Development Authority, but the plan is now being held up by a judge’s temporary restraining order (TRO). The plan was passed with an emergency clause, which is meant to expedite the plan’s implementation, but it also makes the law immune to referendum. The judge’s TRO, which will delay implementation for at least one week, will provide enough time to process a lawsuit filed by Curt Hartman, an attorney who represents the Coalition Opposed to Additional Spending and Taxes (COAST), on behalf of local activists who oppose the plan and argue it should be subject to referendum. The parking plan will lease the city’s parking assets to fund development projects, including a 30-story tower and a downtown grocery store, and help balance the deficit for the next two fiscal years. Opponents say they’re concerned about the plan leading to parking rate hikes, and they say the plan will not fix the city’s structural deficits.
Before the final vote on the parking plan, City Manager Milton Dohoney Jr. gave a presentation to City Council that showed options for reducing Cincinnati’s structural deficit, including a reduction or elimination of lower-ranked programs in the city’s Priority-Driven Budgeting Process, a reduction in subsidies to health clinics that are getting more money from Obamacare, the semi-automation of solid waste collection or the introduction of new or increased fees for certain programs, among other changes.
Ohio senators are pushing a law that would make records of people licensed to carry concealed firearms in Ohio off-limits to journalists. The senators say they were inspired to push the law after a New York newspaper published the names and addresses of permit holders in three counties. Dennis Hetzel, executive director of the Ohio Newspaper Association, says the law will decrease government transparency and limit rights: “I wish the pro-gun forces would be as respectful of the First Amendment as they are of the second, and they should be fearful of excessive government secrecy.”
The superintendent and treasurer of the Cincinnati College Preparatory Academy, a charter school, were indicted after allegedly using school funds to go to “Girls weekends” in Chicago, sightseeing tours through California and Europe and a trip to Boston to see Oprah — allegedly costing taxpayers more than $148,000. Dave Yost, state auditor, said in a statement, “The audacity of these school officials is appalling. The good work by our auditors and investigators has built the strongest possible case to ensure they can never use the public treasury as their personal travel account again.”
The Ohio Department of Transportation and Kentucky Transportation Cabinet are working together to make the case that any delays in the Brent Spence Bridge project will hurt Greater Cincinnati’s economy. Most people involved in the issue agree the bridge needs rebuilding, but not everyone agrees on how the project should be funded. Northern Kentucky politicians in particular have strongly opposed instituting tolls — one of the leading ideas for funding the project.
In public hearings yesterday, service industry officials said Gov. John Kasich’s budget plan, which will expand the state’s sales tax to apply to more service, would drive some service providers out of Ohio and make the state less competitive. Among other complaints, Carter Strang, president of the Cleveland Metropolitan Bar Association, said the plan could make it harder for Ohioans to access legal counsel by increasing costs and reducing employment in the legal sector. CityBeat covered Kasich’s budget proposal in detail here.
State Auditor Yost filed a subpoena to get JobsOhio’s financial records after the agency failed to turn them over. The subpoena puts Yost at odds with Kasich, a fellow Republican who established JobsOhio, a nonprofit company, in an attempt to bring more jobs to the state and replace the Ohio Department of Development.
Hamilton County is launching the Hamilton County Community Re-entry Action Plan, which will help integrate ex-convicts back into society. Commissioner Todd Portune told WVXU the plan will help with overpopulation in jails and prisons: “When you build (jail and prison) facilities, the population in them always seems to rise to meet whatever the (capacity) level is in the facility. You never seem to have enough space. The real answer beyond facilities is that we've got to turn around the lives of the individuals who are in our corrections system that have made bad choices.”
The University of Cincinnati says it won’t block an outdoor display of vagina pictures on campus.
Yesterday, Kentucky’s U.S. Sen. Rand Paul held a nearly 13-hour filibuster to protest any possible use of drone strikes on American soil. Paul was joined by senators from both sides of the aisle in his opposition to using the strikes, which were used in Yemen in 2011 to kill Anwar al-Aulaqi, an American citizen accused of being a high-ranking al-Qaeda official.
The same Cleveland judge who made a woman hold an “idiot” sign for driving around a school bus is making a 58-year-old man hold another sign for threatening officers in a 911 call. The sign will apologize to officers and read, “I was being an idiot and it will never happen again.” The man will also go to jail for 90 days.
There used to be camels in Arctic Canada, but that shouldn’t be too surprising — camels currently reside in the Gobi Desert, which can reach -40 degrees Fahrenheit in the winter.
On the anniversary of Roe v. Wade, House Health and Aging Chairman Lynn Watchman said anti-abortion legislation could come back in the current legislative session. That includes the heartbeat bill, which would ban abortions after a fetal heartbeat is detected, and a plan to defund Planned Parenthood. CityBeat wrote about the anti-abortion legislation last time Ohio Republicans tried to bring it up here.
One Ohio Now, a group focused on the state budget, has a few requests
for Gov. John Kasich. They don’t want an income tax cut when the
revenue could be used to expand Medicaid and raise school funding. In other states, a Medicaid expansion correlated with better health results, and one study found expanding Medicaid could save Ohio money. More school funding could also make up for the last budget's massive cuts to education, which are explained on a county-by-county basis at Cuts Hurt Ohio.
While the state government is tearing down solar power initiatives, Cincinnati is working to update Green Cincinnati. Environmental Quality Director Larry Falkin told WVXU, “We’re broadening the plan to be not just focused on climate protection, but more broadly on all areas of sustainability.” He added, “It’s going to show us how Cincinnatians can live a better lifestyle using less resources.” The plan was originally drafted in 2007 and adopted a year later to prepare the city for changing environmental realities.
Last year was good for local home sales. The Cincinnati Area Board of Realtors says home sales were at the highest levels since 2008.
A federal judge ended most of his court-mandated oversight of Ohio’s youth prisons last Friday. The ruling shows how much progress has been made in state youth facilities, according to Alphonse Gerhardstein, a Cincinnati lawyer representing juvenile inmates.
Ohio Democrats are now calling for Ohio State Board of Education President Debe Terhar to resign. Terhar is facing criticism for comparing President Barack Obama to Adolf Hitler when she posted an image of Adolf Hitler on her personal Facebook page that read, “Never forget what this tyrant said: ‘To conquer a nation, first disarm its citizens.’ — Adolf Hitler.”
Amy Murray is running for City Council. Murray was appointed to City Council in 2011 when Chris Monzel left and became Hamilton County commissioner. But she lost her seat in the 2011 election, which swept Democrats into City Council.
Cincinnati and Columbus airports saw a drop in traffic, but it seems Dayton International Airport more than made up for it.
The National Council of Teachers wants Ohio to make its colleges more accountable and selective.
An investigation into the massive accident on I-275 could take days. The accident, which is believed to have caused at least 86 cars to crash, led to the death of a 12-year-old girl.
Blockbuster still exists, and it’s shutting down stores and cutting jobs.
A smoke screen company wants to use its product to prevent more school shootings. The smoke screens fill up a room with non-toxic smoke on demand, which could obscure a shooter’s vision.
Update for any women looking to have a neanderthal baby: The Harvard scientist was only saying it’s a possibility someday.
Many jobs the state government claims it’s creating don’t actually exist, according to The Toledo Blade. The Ohio Development Services Agency claims it improved its process for tracking the effects of taxpayer-financed loans, grants and subsidies, but The Blade found errors led to more than 11,000 claimed jobs that likely don’t exist. Part of the problem is that the state relies on companies to self-report job numbers; although the Ohio Development Services Agency is supposed to authenticate the reports, officials almost never visit businesses that get tax incentives. The discrepancy between claimed job creation and reality raises more questions about the efforts of JobsOhio, the privatized development agency established by Gov. John Kasich and Republican legislators that recommends many of the tax subsidies going to Ohio businesses. CityBeat covered JobsOhio in further detail here.
Mayoral candidate John Cranley didn’t repay a $75,000 loan for his Incline Village Project in East Price Hill that was meant to go to a medical office and 77 apartments that never came to fruition. Kathy Schwab of Local Initiatives Support Corporation (LISC), which loaned the money to Cranley’s former development company, told The Cincinnati Enquirer that they worked out terms to repay the loan after the news broke yesterday. Supporters of Vice Mayor Roxanne Qualls’ mayoral campaign say the news casts doubt on whether Cranley is as fiscally responsible as he’s led on while stumping on the campaign trail. As The Enquirer notes, Cranley is very proud of the Incline Project and often touts it to show off his experience building a successful project in the private sector.Hamilton County commissioners are expected to vote on a budget on Nov. 6. This year’s budget is the first time in six years that the county won’t need to make major cuts to close a gap. But the commissioners also told WVXU that it’s unlikely they’ll take up the county coroner’s plan for a new crime lab, which county officials say is a dire need.
A lawsuit filed on Oct. 23 asks the Hamilton County Court of Appeals to compel the Hamilton County Board of Elections to scrub UrbanCincy.com owner Randy Simes off the voter rolls, less than two weeks after the board of elections ruled Simes is eligible to vote in Cincinnati. The case has been mired in politics since it was first filed to the board of elections. Simes’ supporters claim the legal actions are meant to suppress Simes’ support for the streetcar project and Vice Mayor Roxanne Qualls’ mayoral campaign. Proponents of the lawsuit, who are backed by the attorney that regularly supports the anti-streetcar, anti-Qualls Coalition Opposed to Additional Spending and Taxes (COAST), argue they’re just trying to uphold the integrity of voting. The dispute hinges on whether Simes’ registered residence for voting — a condo owned by his friend and business colleague, Travis Estell — is a place where he truly lived or just visited throughout 2013. Currently, no hearing or judge is set for the lawsuit.
Pure Romance officially signed a lease for new headquarters in downtown Cincinnati, which means the $100-million-plus company is now set to move from its Loveland, Ohio, location starting in January 2014. Pure Romance originally considered moving to Kentucky after Ohio reneged on a tax deal, but council ultimately upped its offer to bring the company to Cincinnati. As part of its deal with the city, Pure Romance will get $854,000 in tax breaks over the next 10 years, but it will need to stay in Cincinnati for 20 years. The city administration estimates the deal will generate $2.6 million in net tax revenue over two decades and at least 126 high-paying jobs over three years.
One in six Ohioans lived in poverty in 2012, putting the state poverty rate above pre-recession levels, according to the U.S. Census Bureau.
Two Butler County students were arrested yesterday after they allegedly threatened to go on a shooting spree on Facebook.
Rachel Maddow accused Ky. Sen. Rand Paul of plagiarizing his speech off Wikipedia.
The Taste of Belgium’s next location: Rookwood Exchange.
Pollinating bees could deliver pesticides in the future.
Early voting is now underway. Find your voting location here. Normal voting hours are 8 a.m. to 4 p.m., although some days are extended. Check out CityBeat’s coverage and endorsements for the 2013 election here.
Council Member P.G. Sittenfeld is circulating a small business petition to stop Cincinnati from privatizing parking services. Sittenfeld threw his support behind the petition in a statement: “Individual citizens have made clear that they are overwhelmingly against outsourcing our parking system. Now we're going to show that small businesses feel the same way. I hope that when council sees that the small businesses that are the engine of our city are strongly against outsourcing our parking, we can then nix the proposal immediately.” The petition asks city officials “to find a smart, resourceful, sustainable alternative to address the budget situation.” City Manager Milton Dohoney says parking privatization is necessary to avoid laying off 344 city workers.
Gov. John Kasich’s expanded sales tax is going to hurt a lot of people. The tax is being expanded to apply to many items included in households’ monthly budgets, such as cable television, laundry services and haircuts. The revenue from the sales tax expansion will be used to cut the state income tax by 20 percent across the board, lower the sales tax from 5.5 percent to 5 percent and slightly boost county coffers.
City Council and local residents are not impressed with the USquare development. At a City Council meeting Tuesday, Vice Mayor Roxanne Qualls described the development: “I have to say that it is underwhelming. And that’s about the kindest thing I can say about it. And also really repeats, on many different levels, virtually all of the mistakes that have ever been made in the city and in neighborhoods when it comes to creating public spaces.” But architect Graham Kalbli said he’s excited about the plan: “Because we’ve taken a vacant strip of land and really made kind of a living room for the Clifton Heights community. We wanted to do that, that was one of our overriding goals.”
The Hamilton County Board of Elections is subpoenaing 19 voters who are suspected of voting twice in the November election. Most of the voters being investigated filed provisional ballots then showed up to vote on Election Day.
David Mann is officially running for City Council. The Democrat has served as a council member, mayor and congressman in the past.
Traffic congestion isn’t just bad for drivers; it’s also bad for the environment and economy. The Annual Urban Mobility Report from the Texas A&M Transportation Institute found traffic congestion cost Cincinnati $947 million in 2011 and produced an an extra 56 billion pounds of carbon dioxide nationwide.
Leslie Ghiz is taking the judge’s seat a little early. The former city council member was elected to the Hamilton County Common Pleas Court in November, but she was appointed to the seat early by Gov. John Kasich to replace Dennis Helmick, who retired at the end of 2012.
The magic of capitalism: Delta is already matching a low-cost carrier’s fares to Denver at the Cincinnati/Northern Kentucky International Airport.
The U.S. Postal Service is ending Saturday mail delivery starting Aug. 1. The Postal Service has been dealing with financial problems ever since a 2006 mandate from U.S. Congress forced the mail delivery agency to pre-fund health care benefits for future retirees. Riddled with gridlock, Congress has done nothing to help since the mandate was put in place. This will be the first time the Postal Service doesn’t deliver mail on Saturdays since 1863.
It’s unlikely zombies could be cured by love, but it’s possible they could be cured by science.
The next Michael Jordan has been discovered:
Hamilton County once again froze new work on a $3.2 billion project that will retrofit Cincinnati’s sewers because of a dispute concerning the city’s established bidding requirements. City Council in 2012 passed and in 2013 further adjusted rules that require companies bidding for lucrative sewer contracts to meet specific local hiring and training standards. City Council says the requirements will produce more local jobs, but Hamilton County commissioners argue that the rules favor unions and cost too much for businesses. Councilman Chris Seelbach and Commissioner Chris Monzel were originally working on a compromise, but prospects fell through after City Council rejected the deal. CityBeat covered the conflict in further detail here.
Covington, Ky., is publicly welcoming Pure Romance to the other side of the Ohio River, which could cost Cincinnati and Ohio up to 120 jobs and $100 million in revenue. Pure Romance was initially planning to move from Loveland, Ohio, to downtown Cincinnati with some tax support from the city and state, but after the state’s tax credit agencies rejected the plan, the company has been getting better offers from out-of-state sources, including Covington. Ohio officials say they denied Pure Romance because the company isn’t part of a target industry such as biotech, energy or logistics, but emails have suggested that the Republican state government is worried about the deal coming off as politically embarrassing because some of Pure Romance’s products include sex toys.
Ohio coal officials repeatedly complained about the state’s water pollution rules to Gov. John Kasich, whose administration then carried on the complaints to the Ohio Environmental Protection Agency (EPA). Kasich’s office insists it was just trying to collect “different viewpoints and then work together to challenge each other to do the best job possible,” but environmental advocates say the governor was putting unfair pressure on a state agency just trying to do its job. The conflict might explain why the Ohio EPA’s top water-quality official, George Elmaraghy, was forced to resign after claiming that coal companies are pursuing permits “that may have a negative impact on Ohio streams and wetlands and violate state and federal laws.”
The tea party-backed pension reform effort on Thursday sued to change ballot language approved by the Hamilton County Board of Elections. The lawsuit says the current ballot language is making “conjecture and partisan argumentation” by claiming the pension amendment will force the city to raise taxes, fees or other revenues to cope with stricter requirements for paying back Cincinnati’s $872 million pension liability. If it’s approved by voters, the amendment would effectively privatize the city’s pension system so future city employees, minus police and firefighters, would be required to contribute to and manage an individual 401k-style plan; currently, the city pools city employees’ retirement funds, makes its own contribution and invests the funds through an independent board. CityBeat covered the tea party-backed pension amendment in further detail here.
Hamilton County sheriffs are rolling out a three-phase plan to move homeless squatters out of county buildings and especially the Hamilton County Courthouse, where much of the city’s homeless population has been sleeping and defecating. Sheriffs will first set up bathrooms, such as portable potties, and try to identify the needs of the squatters and whether they should be connected to mental health or other services; during the month of the first phase, homeless people will be allowed to remain in the buildings. Then sheriffs will get more strict and forcibly remove people but still connect them to special services. Finally, the affected buildings will be cleaned up.
An upcoming report will likely place legislators and police and fire officials in conflict over the state’s police and fire pension system. Supporters of the pension system claim it’s financially stable, but a state consultants predicted that an actuarial report will soon show the pension system is failing to make its required commitments and will be unable to play for health care benefits beyond 15 years. Despite the problems, pension officials say they want to avoid more changes until the most recent changes are in place for one year. The most recent reforms will be officially in place for one year on July 2014, but they won’t show up on actuarial reports until late 2015, which means further changes would have to be held off until 2016 at the earliest under pension officials’ suggestion.
A lengthy, scathing report from the state’s independent prison watchdog found skyrocketing violence and drug use, high staff turnover and low staff morale at the Toledo Correctional Institution.
Two private organizations and the city of Cincinnati are working to place 21 bike share stations with 10 bicycles each in Over-the-Rhine and downtown Cincinnati by spring 2014.
The reason reported mayoral primary results seemed to stall midway through counting: a memory card mix-up. Hamilton County Board of Elections Director Amy Searcy says the memory cards were never in an insecure environment, but some memory cards were locked up and left behind, while others were accidentally taken to a warehouse instead of the Board of Elections.
At four times their usual number, bats are forcing health officials to recommend rabies vaccinations and other disease-avoiding precautions to people in Kenton County in northern Kentucky.
Cincinnati’s largest mall, currently known as Forest Fair Village and previously named Cincinnati Mall, Cincinnati Mills and Forest Fair Mall, is apparently not for sale, despite early reports from The Business Courier.
Social robots can easily replace humans as dogs’ best friend, according to a new study in Animal Recognition.
In-person early voting is underway in Ohio. Find your nearest polling booth here.
The first of three debates for Ohio’s U.S. Senate seat is
today. Incumbent Democrat Sherrod Brown and Republican challenger Josh
Mandel will meet for the first time to prove who has the better vision
for the state. Democrats have repeatedly criticized Mandel for
dishonesty and dodging questions. Republicans have criticized Brown for
supporting President Barack Obama’s policies, including the auto bailout
and Obamacare. A more substantive analysis of the candidates’
differences can be found here. In aggregate polling, Brown currently
leads by five points. The debate will be at 12:30 p.m. on C-SPAN.
Paul Ryan, the Republican candidate for vice president, will be in Cincinnati today. Ryan’s event will take place at Lunken Airport at noon. Mitt Romney, the Republican presidential candidate, was in Lebanon Saturday. With the second presidential debate between President Barack Obama and Romney tomorrow, both campaigns are turning up the events in Ohio, a state that is widely considered a must-win for both candidates. According to aggregate polling, Obama still holds Ohio by 2.2 points despite a nationwide post-debate bounce in the polls for Romney.
Bicyclists rejoiced Saturday as McMillan Street was converted back into a two-way street. William Howard Taft Road will undergo a similar transition Oct. 20. The conversion of both roads came thanks to the approval of Vice Mayor Roxanne Qualls, who pushed the motion in order to revitalize the business sector in the neighborhood.
The rest of Ohio’s school report card data will be released Wednesday. The report card data grades schools to see how school districts are doing in a variety of categories. The release for the data was initially delayed due to an ongoing investigation by the state auditor that’s looking into accusations of attendance reporting fraud at some school districts. Previously, the state auditor released preliminary findings criticizing some school districts and the Ohio Department of Education for some findings regarding attendance fraud.
A new report found Cincinnati still has a lot of work to do. The city ranked No. 10 out of 12 similar cities. Cincinnati excelled in job creation and housing opportunities, but it did poorly in categories regarding migration and age.
Bob Taft, former Republican governor of Ohio, is going green. The Ohio Environmental Council is rewarding Taft for standing up for the environment during his gubernatorial term.
Ohio’s stricter laws for exotic animals convinced one pet owner to move her two tigers to Indiana.
Some guy broke the sound barrier with his body yesterday.