Mayor John Cranley plans to address the city’s long-term unemployment problems with a set of new initiatives, some of which could get support from the White House, he told CityBeat Thursday.
One of the initiatives is in direct response to President Barack Obama’s call, heard by millions during the State of the Union Tuesday, to get private companies on board with ending discrimination against the long-term unemployed.
Specifically, Cranley says he helped get Procter & Gamble and other local companies to agree to join the president’s initiative.
“It wasn’t that hard to sell them on it, but they've got a lot of things going on,” Cranley says. “Getting their attention and focus on these things is one of the great powers that I have. I can help ask people to give back in ways they just haven’t thought of before.”
With a visit to the White House planned for Friday, Cranley hopes his quick response to Obama’s call could help the city land future federal grants for programs that address long-term unemployment.
As an example, Cranley points to a new White House initiative that asks cities to develop innovative pilot programs that help the long-term unemployed. The initiative will award federal grants, which Cranley estimates at a couple million dollars per city, to the 10 best proposals.
In preparation, the city is partnering with several local organizations, including the Workforce Investment Board and United Way of Greater Cincinnati, to develop a unique plan. How the city’s proposal looks ultimately depends on the constraints set by the application requirements, but Cranley cited more educational opportunities and subsidies for companies that hire the long-term unemployed as two examples cities might undertake.
The proposal, however it looks, would come in addition to Cranley’s Hand Up Initiative, which he plans to fund through this year’s city budget. As part of the initiative, the city will first partner with Cincinnati Cooks, Cincinnati Works and Solid Opportunities for Advancement and Retention (SOAR) to provide more job training opportunities. Participants who graduate from those programs can then apply to the Transitional Jobs Program, which provides short-term, part-time work opportunities to people as they look for long-term, full-time jobs.
The initiative will begin as a pilot program for the first two years, but it could eventually expand with more partnerships and job training opportunities, according to Cranley.
If successfully carried out, Cranley’s proposals could help break the long-term unemployment trends that keep so many Americans jobless in the first place.
In one study, Rand Ghayad of Northeastern University sent out 4,800 fake resumes for 600 job openings. Ghayad found people who had been out of work for six months or more very rarely got called back, even in comparison to applicants without work experience who were unemployed for shorter periods of time.
In other words, diminishing the discrimination on the employer’s side or ongoing joblessness on the potential employee’s side could be enough to land more people in jobs.
A proper solution to the issue could also go a long way to picking up the nation’s sluggish job market. By the Center on Budget and Policy Priorities’ estimate, nearly 38 percent of the unemployed in December had been unemployed for 27 weeks or longer — the highest rate in six decades. In comparison, the rate was below 20 percent prior to the recession.
For Cranley, the initiatives also present an opportunity to address Cincinnati’s abhorrent poverty rates by giving people a chance to obtain better-paying jobs.
“In the end, we want a city that isn’t just good for future residents,” Cranley says, referencing the economic momentum in Over-the-Rhine, downtown and uptown that might benefit future Cincinnatians. “We need a city solution that grows the capacity and builds the opportunities for residents who are already here and families that are already dealing with poverty.”
In a 5-4 vote today, City Council approved a plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority to help balance deficits for the next two fiscal years and fund development projects in Downtown, but the plan is now being held up by a Hamilton County judge's temporary restraining order (TRO).
The plan was approved with an emergency clause, which means it is not subject to referendum, according to City Solicitor John Curp. Councilman Chris Seelbach joined the parking plan’s five supporters in approving the emergency clause, which is meant to expedite the plan’s implementation by removing a 30-day waiting period.
Shortly after the parking plan was approved by City Council, Judge Robert Winkler signed a TRO that will halt its implementation for at least one week. The judge’s action 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.
Mayor Mark Mallory says the emergency clause was passed to speed up the plan’s implementation in time for the budget that will begin July 1, not to suppress voters: “I don't think that any member of council has ever voted for an emergency clause in an effort to keep voters from being able to reverse the decision that the council is making, so I take exception with that characterization.”
The parking plan got its required fifth vote, up from a 4-3 vote in the Budget and Finance Committee Monday, from Councilwoman Laure Quinlivan, who abstained from voting in the committee meeting because she said she was concerned about the city’s long-term fiscal outlook. She says her concerns were eased after she read the leasing agreement and listened to a presentation from City Manager Milton Dohoney Jr. that gave City Council a few options for fixing the city’s structural deficits.
The parking plan’s other supporters were council members Roxanne Qualls, Yvette Simpson, Cecil Thomas and Wendell Young. Council members Seelbach, P.G. Sittenfeld, Chris Smitherman and Charlie Winburn voted against the plan.
The plan, which CityBeat previously covered (“Parking Stimulus,” issue of Feb. 27), 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. The deal will produce a $92 million upfront payment, and the city projects that additional annual installments will generate more than $263 million throughout the lease’s duration.
Opponents say they are concerned the plan will give up too much control of the city’s parking meters and garages, which they say could lead to spikes in parking rates.
Under the initial plan, downtown rates will remain at $2 an hour and neighborhood rates will be hiked to 75 cents. Afterward, parking meter rates will be set to increase annually by 3 percent or the rate of inflation on a compounded basis, with actual increases coming in at 25-cents-an-hour increments. That should translate to 25-cent increases every three years for downtown and every six years for neighborhoods, according to Meg Olberding, city spokesperson.
The city will be able to bypass the so-called “cap” on parking meter rate increases through a unanimous vote from a five-person advisory committee, approval from the city manager and a final nod from the Port Authority. The process, which begins with an advisory committee that will include four members appointed by the Port Authority and one selected by the city manager, will allow the city to raise and lower rates to adjust for changing economic needs, says Olberding.
Opponents also say the money from the parking plan is being used too quickly, which does little to alleviate the city’s structural deficits.
Dohoney previously argued the plan will help reduce the deficit by generating recurring revenues through long-term economic growth and development.
“The situation that we’re in requires that we accelerate growth right now, not later,” he said Monday. “If we do not do that, then we’re going to have further negative ramifications to deal with.”
With the lease agreement approved, it is now up to the Port Authority to develop and publicize the bond documents that will further detail the framework of the parking plan.
in the same meeting, City Council unanimously passed a resolution
asking the federal government to take up comprehensive immigration
Update: This story was updated to reflect Judge Robert Winkler's actions.
The Ohio Turnpike will remain a public asset, according to The Columbus Dispatch. Many Ohioans have been worried Gov. John Kasich would attempt to privatize the Turnpike in order to pay for transportation projects; instead, the governor will try to generate revenue for state infrastructure projects elsewhere, perhaps by using the Turnpike’s tolls. Kasich will unveil his full plans Thursday and Friday.
The asbestos lawsuit bill is heading to Kasich to be signed. The bill attempts to curb duplicate lawsuits over on-the-job asbestos exposure. Supporters of the bill say it will prevent double-dipping by victims, but opponents say the bill will impede legitimate cases. Ohio has one of the largest backlogs of on-the-job asbestos exposure cases.
City Manager Milton Dohoney has released some of the potential bids for the city’s parking services, and one bidder is offering $100 to $150 million. Dohoney says the budget can only be balanced if parking services are privatized or the city lays off 344 employees. But Councilman P.G. Sittenfeld is speaking out against the privatization of the city’s parking services. In a statement, Sittenfeld said, “Outsourcing our parking system robs the city of future revenue, and also will mean higher parking rates, longer hours of enforcement, and more parking tickets.”
LGBT rights are becoming “the new normal,” but not for Western & Southern or American Financial Group. In the 2012 Corporate Equality Index, the Human Rights Campaign gave 252 companies a 100-percent score for LGBT rights. Cincinnati-based Procter & Gamble got a 90 percent, Macy’s got a 90 percent, Kroger got an 85 percent, Fifth Third Bank got an 85 percent, Omnicare got a 15 percent, American Financial Group got a 0 percent and Western & Southern got a 0 percent. The rankings, dubbed a “Buyer’s Guide,” can be found here.
The Sierra Club says Cincinnati has some of the best and worst transportation projects. In its annual report, the environmental group praised the Cincinnati streetcar, claiming the transportation project will attract residents and business owners. But the organization slammed the Eastern Corridor Highway project because of its negative impact on the Little Miami River and the small village of Newtown. The Sierra Club says the purpose of the report is to shed light on the more than $200 billion spent on transportation projects every year.
University of Cincinnati President Santa Ono is getting a 10-year contract.
The disease-carrying Walnut Twig Beetle has been discovered in southwest Ohio. The beetle is known for carrying Thousand Cankers Disease, which threatens the health of walnut trees. So far, no trees have been determined to be infected.
Ohio Gov. Kasich, Ky. Gov. Steve Beshear and U.S. Secretary of Transportation Ray LaHood will meet today to discuss funding for the Brent Spence Bridge project. If the bridge project starts in 2014, northern Kentucky and Cincinnati could save $18 billion in fuel and congestion costs, according to the Build Our New Bridge Now Coalition.
Following the defeat of Issue 2, the Ohio Senate is taking on redistricting reform, but opponents in the House say there isn’t enough time to tackle the issue. The current redistricting system is widely abused by politicians on both sides of the aisle in a process called “gerrymandering,” which involves politicians redrawing district lines in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, heavily diluting the impact of Cincinnati’s Democratic-leaning urban vote.
Ohio employers are more aware of wellness than employers in other states, a new survey found. Wellness programs are one way employers can bring down health-care expenditures as cost shifting feels the pinch of diminishing returns.
However, Ohio ranked No. 35 in a nationwide health survey.
Ohio district didn't win federal Race to the Top education funds in the latest competition.
Internet cafe legislation is dead for the year. Ohio Senate President Tom Niehaus announced the legislation, which essentially puts Internet cafes and sweepstakes parlors out of business. State officials, including Attorney General Mike DeWine, have been pushing for regulations or a ban on the businesses because they see them as a breeding ground for criminal activity.
The final 2011-2012 school report cards will not be available until 2013. The report cards were originally delayed due to an investigation into fraudulent attendance reports.
Michigan may have approved its anti-union right-to-work law, but Ohio is not eager to follow. State Democrats are already preparing for a possible battle over the issue, but even Republican Gov. John Kasich says he’s not currently interested in a right-to-work law.
The Ohio Environmental Protection Agency is loosening hazardous waste reporting requirements for companies. If the rules go into effect, regulated facilities will report on hazardous waste once every two years instead of once a year. The rule changes will get a public hearing on Dec. 19 in Columbus.
In a question-and-answer session Monday, U.S. Supreme Court Justice Antonin Scalia asked, “If we cannot have moral feelings against homosexuality, can we have it against murder? Can we have it against other things?” (Hint: The answer to both questions is yes.) The Supreme Court recently agreed to tackle the same-sex marriage issue. CityBeat wrote about same-sex marriage in Ohio here.
A YouTube video that went viral over the weekend may have broken the rosy illusions the average American has about wealth and income inequality.
Using data from Mother Jones,
Dan Ariely, ThinkProgress and CNN, the video compares the average American’s ideal distribution of wealth, what the average American says wealth inequality looks like and how wealth is distributed in reality — ultimately showing that the average American says the nation is much more equal than it really is.
The video suggests investment income as one of the drivers of inequality. The top 1 percent wealthiest Americans hold 50 percent of the nation’s stocks, bonds and mutual funds, while the bottom 50 percent of Americans only hold 0.5 percent of such investments, according to the video.
“The average worker needs to work more than a month to earn what the CEO makes in one hour,” the narrator says.
In the past, the United States was a lot closer to equality. As the video points out, the top 1 percent only took home 9 percent of the nation’s income in 1976. Today, that number is up to 24 percent.
Ohio isn’t immune to the trend. A previous report from the left-leaning Center on Budget and Policy Priorities found Ohio’s income gap — the income difference between the rich and poor — is wide and growing, and low-income and middle-income Ohioans have actually seen their incomes drop since the 1990s.
The video doesn’t make any suggestions on how to fix the problem — it simply shows massive inequality exists — but there are plenty of ideas out there. A paper from the Congressional Research Service suggested the tax system may be playing a role in driving up income and wealth inequality: “However, the top tax rate reductions appear to be correlated with the increasing concentration of income at the top of the income distribution. … The statistical analysis in this report suggests that tax policy could be related to how the economic pie is sliced — lower top tax rates may be associated with greater income disparities.”
In December, The Washington Post posted 10 empirically supported ideas, which included funding preschool education, making unions easier to join and promoting trade in highly skilled professions.
In his 2013 State of the Union, President Barack Obama suggested raising the federal minimum wage to help combat poverty and income inequality — a policy that economist Lawrence Mishel of the Economic Policy Institute recently advocated.
Here is the full video:
The U.S. Bureau of Labor Statistics today released a disappointing job report. Unemployment fell to 8.1 percent in August, and 96,000 jobs were added nationwide. But economists were expecting about 150,000 jobs, and the unemployment rate fell largely due to people giving up on the job hunt, which means they are no longer counted in the labor pool.
One of the reasons for disappointment is the drop in public jobs. People are quick to look at the private sector when these kind of numbers come up, but the public sector employs people, too. And the public sector lost 10,000 jobs at state and local levels, according to today’s jobs report.
That follows the trend of the past few years. The public sector has been doing poorly since the Great Recession started, according to this chart from the Center on Budget and Policy Priorities:
The chart shows state and local payrolls since the beginning of the recession. It proves quite clearly that governments have been making cuts to public jobs.
Ohio has not avoided government job cuts. The Ohio Department of Job and Family Services reported July’s unemployment rate at 7.2 percent, which was unchanged from June’s unemployment rate. The biggest loss in jobs for the month came from government, which lost 5,300 jobs statewide. In comparison to July 2011, July 2012 had 4,400 fewer government jobs.
Instinctively, it makes some sense. As the recession kicks in and families and businesses are forced to budget for lower expectations, it might seem natural to expect the government to do the same.
However, many economists argue it should be the opposite. They say the government should be used to balance out the private sector. In other words, when the private sector is performing poorly — recession — the government should step in to make up for the drop. When the private sector is performing well — boom — the government can relax and run budget surpluses.
Paul Krugman, a Nobel-winning economist, has advocated for this approach time and time again. In his New York Times column and blog, Krugman has pushed for more stimulus efforts from the federal government, and he called for a much larger stimulus package than the $787 billion package President Barack Obama signed into law in 2009.
The data seems to support economists calling for more action. Last month, the Brookings Institute conducted a study that found June’s national unemployment rate would be at 7.1 percent if governments hadn’t made cuts.
What this means is if governments truly want to fix the economic crisis, they might want to kick the debt can down the road. But considering many cities and states have constitutional amendments requiring balanced budgets, that might be hard to pull off.
For the first time since inauguration, Ohio Gov. John Kasich has a positive approval rating, but a plurality of registered voters say Kasich doesn’t deserve a second term. The Quinnipac University poll attributed the increase in Kasich’s approval rating to “high levels of satisfaction among Ohio voters with life in the Buckeye State.” About 42 percent of respondents approved of Kasich, while 35 percent disapproved. About 42 percent said Kasich doesn’t deserve a second term, while 36 percent said he does. The poll surveyed 1,165 registered voters with a margin of error of 2.9 percent.
Last night, Cincinnati held its final public hearing on City Manager Milton Dohoney’s proposed budget. About 40 people spoke during the meeting, with many voicing concern about Media Bridges funding, which CityBeat recently covered here. The budget has also come under scrutiny due to its privatization of parking services, but Dohoney says the choice is privatization or 344 layoffs.
Cincinnati plans to bolster its green building incentives. City officials are trying to amend the city’s Leadership in Energy and Environmental Design (LEED) standards to encourage higher levels of investment in green projects. Since LEED standards were first approved in 2009, they have been criticized for only offering strong incentives for lower levels of certification. The amendment seeks to make the higher levels of certification more appealing.
University Hospital is being renamed to the University of Cincinnati Medical Center.
An “anti-immigrant bill” proposed by Cincinnati’s Ohio Sen. Bill Seitz is not being received well by Innovation Ohio. S.B. 323 seeks to limit workers’ compensation to illegal immigrants, but the Ohio policy research group is not sure that’s a legitimate problem. The organization is also worried the bill will impose a regulatory burden on the Ohio Bureau of Workers’ Compensation and Ohio’s workers without providing extra funds and training to carry out the regulations.
Ohio is improving in its battle against human trafficking. The state earned a “C” and it was labeled “most improved” in a new report from the Polaris Project. But one state legislator wants to go further by placing tougher standards on “johns” participating in the sex trade. CityBeat previously wrote about the human trafficking problem in Ohio here.
The Ohio Tax Credit Authority approved enough credits to help create about 500 jobs in Greater Cincinnati.
Michigan may have recently passed its anti-union “right-to-work” law, but Gov. Kasich does not share a similar interest.
Kasich will announce his changes to the Ohio Turnpike Thursday and Friday. The governor says his proposed changes will unlock “greater wealth,” but critics are worried Kasich is about to sell off a major public asset.
Ohio Secretary of State Jon Husted is still defending his decisions during the lead-up the election. Husted has now become infamous nationwide due to his pre-election record, which CityBeat wrote about here.Even Jesus would be jealous. Science can now turn human urine into brain cells.
Cincinnati City Council took the first step Tuesday in repealing the city's ban on owning Pit Bull terriers. Council's Livable Communities Committee voted 5-1 to support repeal, saying it was unfair to single out a specific breed for harsher treatment. Experts have said Pit Bulls aren't inherently vicious, and that their treatment and training by their owners is responsible for any bad behavior. Councilman Cecil Thomas opposed the repeal, stating he was concerned about “enforcement issues.” The full City Council could make a final decision as soon as this afternoon. CityBeat examined the ban in-depth here.
Police Chief James Craig met Tuesday morning with 19 ministers and community leaders in an Avondale church. Craig wants to create a partnership with clergy to combat youth violence and shootings. It was the second such session that Craig has held this month. Since police presence was increased in Avondale April 2, no more shootings have occurred in the neighborhood.
A Cincinnati police officer was hospitalized after being hurt for the second time on the job. Officer Jerry Enneking has survived four car crashes while on-duty. The 23-year police veteran was rear-ended in a five-car crash Tuesday. Seeing another driver trapped, Enneking ignored his own injuries and helped rescue the person.
Tim Tebow, the prayerful quarterback for the New York Jets, will be in town today for two events at Cincinnati Christian University in Price Hill. The first already is sold out, but there are $500 tickets still available for a banquet. Both events will focus on how Tebow balances his life in the NFL with his faith.
The School for Creative and Performing Arts (SCPA) in Over-the-Rhine is being awarded a $45,000 grant from the National Endowment for the Arts. The SCPA competed with more than 300 other groups for the cash, which will be used to support the school's Master's Artist Series and Artists in Residence programs for the next school year.
In news elsewhere, an ex-drilling engineer for BP Oil has been arrested on charges of intentionally destroying text messages sought by federal authorities as evidence in the wake of the April 2010 Deepwater Horizon oil spill disaster. The charges of obstruction of justice filed against Kurt Mix, in the Eastern District of Louisiana, are the first criminal charges connected to the oil spill. If found guilty, Mix could face up to 20 years in prison and up to $250,000 in fines for each count.
As expected, Willard Mitt Romney swept the five Republican presidential primaries held Tuesday. The former Massachusetts governor got 67.4 percent of the vote in Connecticut, 56.5 percent in Delaware, 62.4 percent in New York, 58 percent in Pennsylvania, and 63.2 percent in Rhode Island. Most of the other GOP contenders have conceded the nomination race to Romney.
During the presidency of George W. Bush, the United States had the worst job creation record in decades, suffered the worst recession since the Great Depression and borrowed billions of dollars from China to support two wars. If you've been wondering how Romney or other Republican politicians running for office would do anything differently, wonder no more. Alexandra Franceschi, a spokeswoman for the Republican National Committee, said in an interview last week that the GOP's economic platform will be the same as that under Bush, just “updated.” There, voters: You have been warned.
A Brooklyn district attorney is resisting a public records request to divulge the names of 85 Orthodox Jews arrested on sex charges there during the past three years. Brooklyn District Attorney Charles Hynes says the "tight-knit" nature of the Orthodox community makes it impossible to disclose the identities of abuse suspects without also identifying their victims. A Jewish newspaper might file a legal challenge to the decision.
Despite numerous cuts to government spending in the name of austerity — or perhaps because of it, if you listen to some economists — the United Kingdom has now officially sunk into a double-dip recession, its first since the 1970s. Economic indicators reveal the U.K. economy has performed even more weakly since the current financial crisis began than in the Great Depression.
A new report from left-leaning Policy Matters Ohio shows the impact of state budget cuts on individual counties. Statewide, more than $1 billion in tax reimbursements and the Local Government Fund was cut between the 2010-2011 budget, which was passed by Democratic Gov. Ted Strickland, and the 2012-2013 budget, which was passed by Republican Gov. John Kasich. Additionally, Ohio’s estate tax — a tax that affected only 8 percent of Ohioans, largely those at top income levels — was eliminated, killing off a crucial source of funding. Hamilton County, its jurisdiction, schools, services and levies lost $222.1 million. Health and human services lost $23.2 million. Children’s services lost $4.6 million, and the county children’s agency services “was sent into financial crisis.” In total, more than 5,000 local government jobs were lost in the area.
The Center for Closing the Health Gap is launching a campaign to raise awareness about food deserts in Cincinnati. Food deserts are areas, particularly neighborhoods, where full-service grocery stores aren’t readily available to residents. The campaign hopes to raise awareness and funding to combat the food deserts in the Cincinnati area. With a funding target of $15 million, the organization plans to help build smaller stores with close ties to the local communities.
A new study from Cincinnati Children’s Hospital resurfaced Greater Cincinnati’s nuclear weapons legacy. Between the 1950s and 1980s, residents of nearby farm communities were unaware they were being exposed to radioactive materials in the air, water and soil from a Cold War era nuclear weapons plant, located 18 miles northwest of Cincinnati. Apparently, the exposure has led to higher rates of systemic lupus in the area.
Greater Cincinnati’s economic recovery could be slowed or boosted by policy, but it will outpace the nation’s economic recovery, according to local economists. Still, the economists caution that there is a lot of uncertainty due to oil prices, the fiscal cliff — a series of tax hikes and budget cuts scheduled to be made at the start of 2013 if U.S. Congress doesn’t act — and the fiscal crisis in Europe.
Cincinnati’s small businesses are more upbeat about the economy. Eleven percent of local family firms expect the economy to improve, but whether that translates to business expansions remains to be seen.
CityLink Center is scheduled to open today. The initial plans for the facility sought to help the homeless with health services, overnight shelter, food, temporary housing and child care. At one point, the center’s opening was threatened due to legal challenges regarding zoning.
Hostess, maker of Twinkies, says it will close down three bakeries, including one in Cincinnati, due to a national strike. According to reports, union workers walked off the job after a new contract cut their wages and benefits. Hostess insists the factory shutdowns will not affect customers.
Top Cincinnati mortgage lenders saw double-digit increases between Sept. 1, 2011 and Aug. 30, 2012. The rise is yet another positive sign for the housing market, which collapsed during the latest financial crisis and recession.
The state agency in charge of higher education released a report highlighting 20 recommendations to improve degree completion in Ohio. Some of the recommendations from the Board of Regents: Adopt more uniform statewide rules regarding college completion and career readiness, push stronger collaboration and alignment in education from preschool through senior year in college, establish a new system of high school assessment to improve readiness for college, and improve flexibility. The board will attempt to turn the report into reality in cooperation with university and state officials.
Too much school choice may be a bad thing. A new study found Ohio’s varied education system, which offers vouchers for private schools and charter schools as alternatives to a traditional public school, may have passed “a point where choice actually becomes detrimental to overall academic performance.”
The Ohio Farm Bureau (OFB) issued an action alert on Saturday telling members to oppose privatizing the Ohio Turnpike. The Ohio state government, led by Kasich, is currently studying possible plans to privatize the turnpike. In a video, an OFB member argues the current turnpike management is fine.
There are still some undecided seats in the Ohio legislature from the Nov. 6 election.
Once again, a reminder not to drive on a sidewalk to avoid a school bus.
Former George W. Bush adviser Karen Hughes says she will “cut out” the tongue of Republican men making “Neanderthal comments” about rape.
A new way to fight bacteria: coat it with a thin layer of mucus.
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.