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.
Almost a full decade after Cincinnati voters passed a charter amendment that changed the way police chiefs are selected, it's being used for the first time.
City Manager Milton Dohoney Jr. announced this morning that he's selected a candidate from outside the current police ranks to head the Cincinnati Police Department. James E. Craig, who currently is the chief in Portland, Maine, will take the top spot here beginning in about a month, a city spokeswoman said.
Following a long battle with cancer, former Cincinnati City Councilman and Vice Mayor David Crowley passed away early this morning.
Crowley, 73, had struggled with the illness since leaving City Council in 2009 due to term limits. After a grueling round of chemotherapy that took a toll on his body, Crowley appeared to have beaten the disease but it recently returned. He is survived by his wife, Sherri, four children and six grandchildren.
Cincinnati’s streetcar project lost big on Tuesday as voters ushered in ex-Councilman John Cranley over Vice Mayor Roxanne Qualls in the mayoral race and three non-incumbents who oppose the project to City Council, according to unofficial election results from the Hamilton County Board of Elections.
With all precincts reporting, Cranley handily defeated Qualls 58-42 percent. Cranley ran largely on his opposition to the $133 million streetcar, while Qualls promised to expand the project.
Voters also elected three non-incumbents to City Council: Democrat David Mann, Charterite Kevin Flynn and Republican Amy Murray. The three non-incumbents oppose the streetcar project, which means re-elected Democrat P.G. Sittenfeld, Republican Charlie Winburn and Independent Chris Smitherman are now part of a 6-3 majority on council that opposes the project.Democrats Chris Seelbach, Yvette Simpson and Wendell Young — all supporters of the streetcar project — also won re-election. Incumbent Democrats Laure Quinlivan and Pam Thomas lost.
It’s unclear if the newly elected council and mayor will stop current construction on the streetcar once they take power in December, given concerns about contractual obligations and sunk costs that could make canceling the project costly in terms of dollars and Cincinnati’s business reputation.
But Cranley and the six anti-streetcar elects on City Council vested much of their campaigns on their opposition to the project, which they claim is too costly and the wrong priority for Cincinnati.
Supporters argue the project will produce a three-to-one return on investment — an estimate derived from a 2007 study from consulting firm HDR and a follow-up assessment to the HDR study from the University of Cincinnati.
City Council’s new make-up will be five Democrats, two Republicans, one Charterite and one Independent. That’s a shift from the current make-up of seven Democrats, one Republican and one Independent.
The new council slate will be the first to take up four-year terms following a city charter amendment voters approved in 2012.
Sittenfeld also landed a huge win and easily topped the City Council race with 10,000 more votes than Winburn, who, at 27,000 votes, got the second most ballots cast in his favor out of the nine council victors. Sittenfeld netted nearly 5,000 more votes than Cranley did in the mayoral race, although Cranley ran in a head-to-head race with Qualls while Sittenfeld was one of nine candidates voters could pick out of a pool of 21.
Citywide voter turnout ended up at roughly 28 percent.
Other election results:
Cincinnati voters rejected Issue 4, which would have privatized Cincinnati’s pension system for city employees, in a 78-22 percent vote.
In the Cincinnati Public Schools board election, Melanie Bates, Ericka Copeland-Dansby, Elisa Hoffman and Daniel Minera won the four seats up for grabs.
Hamilton County voters overwhelmingly approved property tax levies for the Cincinnati Zoo and Public Library of Cincinnati and Hamilton County in 80-20 percent votes.
This story was updated with the final reported results.
Hundreds of streetcar supporters packed the Mercantile Library last night outlining the several different ways they plan to campaign to save the project — including various forms of litigation The Enquirer typically enjoys playing up as potentially costly to taxpayers — a story similar in concept to the anti-streetcar protests The Enquirer gave attention to leading up to the election.
The Enquirer’s cursory wrap-up of the event was removed from the cincinnati.com homepage this morning, and it's currently not even listed on the site's News page even though it was published more recently than several stories that are. Left behind on the homepage is a real joke of analysis: the fact that the $1.5 million monthly construction cost divided by 30 days in a month amounts to $50,000 per day, assuming workers put in the same amount of time every day in a month and the city gets billed that way, which it doesn’t.
The $1.5 million figure has been known for weeks, but $50,000 per day sounds dramatic enough that concerned taxpayers everywhere can repeat it to other ill-informed people at the water cooler. If these math whizzes wanted to really piss people off they would have broken it all the way down to $34.70 per minute, 24 hours a day. Man, fuck that streetcar!
At least the story’s third paragraph offered a piece of recent news: Halting construction will still cost the city $500,000 per month because it will be on the hook for workers who can’t be transferred and costs of rental equipment that will just sit there. (For Enquirer-esque context: It will still cost $16,667 per day or $11.57 a minute to temporarily halt the project.)
Also, the note in the headline (“Streetcar, which Cranley plans to cancel, still costing $50K a day”) reminding everyone that Cranley plans to cancel the project that is currently costing money seems unnecessary considering THE ONLY THING ANYONE HAS HEARD ABOUT SINCE THE ELECTION IS THAT CRANLEY PLANS TO STOP THE STREETCAR. It does nicely nudge readers toward the interactive forum they can click on and publicly lament how people who don’t pay taxes have too much control over our city.
(Additional professional advice: Consider changing the subhed from, “It'll be costly to stop, and costly to go on, but work continues until Cranley and new council officially stop it” to something that doesn’t sound like you have no idea what the fuck is going on.)
For context, the following are the streetcar stories currently presented on the website homepages of local media that have more talent/integrity than The Enquirer:
Cincinnati Business Courier: Feds: If you kill the streetcar, we want our money back
CONSERVATIVE MEDIA BONUS: 700WLW even has a relevant piece of streetcar news, although you have to scroll past a video of Russian kids wrestling a bear and an article suggesting that Obamacare is the president’s Katrina (whatever that means): Feds: Use money for streetcar or pay it back.
This morning, social conservatives around the world dug themselves into Armageddon-resistant bunkers, preparing for what they knew was coming. Today, marijuana and same-sex marriage were being legalized in Washington state.
But the bunkers may have been a waste of time and money, considering the end of the world didn’t occur. In fact, it seems like a lot of people are happy with the legal changes, which voters approved on Nov. 6.
From the perspective of this CityBeat writer, same-sex marriage would be great. It’s something I wrote about extensively before (“The Evolution of Equality,” Nov. 28 issue). As a refresher, not only does same-sex marriage bring a host of benefits to same-sex couples, but it also produces economic benefits for everyone. A recent study from Bill LaFayette, founder of Regionomics LLC, found that legalizing gay marriage would grow Ohio’s gross domestic product, which measures economic worth, by $100-$126 million within three years.
Marijuana has similar benefits. Not only does it give people the freedom to put a relatively harmless plant into their bodies, but it also provides a big boon to state budgets. For Washington, it’s estimated the marijuana tax will bring in as much as $500 million a year.
Legalization also creates jobs and economic growth as businesses pop up to sell the product and customers buy the plant to toke up. Washington State’s Office of Financial Management estimates the marijuana market will be worth about $1 billion in the state. Considering the state is about 2 percent of the U.S. population, that could be extrapolated to indicate a potential $50 billion nationwide market.
Still, public use of marijuana and driving while intoxicated remain illegal. In a press conference Wednesday, Seattle City Attorney Pete Holmes said, “If you're smoking in plain public view, you're subject to a ticket. … Initiative 502 uses the alcohol model. If drinking in public is disallowed, so is smoking marijuana in public.”
The Seattle Police Department (SPD) seems a bit friendlier. In an email today, SPD told officers to only give verbal warnings until further notice. The warnings should essentially tell people to take their marijuana inside, or, as SPD spokesperson Jonah Spangenthal-Lee put it on the SPD Blotter, “The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a ‘Lord of the Rings’ marathon in the privacy of your own home, if you want to.”
The Washington law also faces possible federal resistance.
Even though the state legalized pot, the drug is still illegal under
federal law. That means the feds can still shut down marijuana
businesses and arrest buyers, just like they have with legal medical marijuana
dispensaries in the past.
In fact, maybe the limitations are what’s keeping the
apocalypse at bay. Maybe social conservatives will get to make use of
those bunkers if the rest of the country catches on to Washington’s
**UPDATE AT BOTTOM**
It's 72 hours and counting.
That's how long it has been since CityBeate-mailed Mike Wilson, a Republican candidate and Cincinnati Tea Party leader, to learn why he skipped a planned appearance at a candidates' forum Wednesday night in Forest Park. So far, we've received no reply.
“In democracy, the role of government is to represent all of us and show us how we work together,” said Sister Simone Campbell, a Catholic nun and executive director of Catholic lobbying group NETWORK.
“So that when some politicians want to tell us that there is no role for government, that government is only there to let individuals take care of their individualistic selves, I want to say, ‘that’s not democracy. That’s not our Constitution, and that’s not our faith.'”
The “Nuns on the Bus” tour started Wednesday in Cincinnati and will travel through Dayton, Lima, Columbus, Toledo, Fremont, Cleveland, Youngstown, Akron, Athens and Marietta before ending back in Cincinnati on Oct. 15.
The trip features Catholic nuns from across Ohio who will be urging Ohio voters to examine what the Bible says about caring for the poor. Dominican Sister of Hope Monica McGloin said voters should choose the candidate who would best embody those teachings.
McGloin said the tour would not support any political party or candidate.
“We certainly don’t want to be partisan, because that’s not what we’re about,” she said. “The fact is, neither candidate is talking about the poor.”
While the bus tour kickoff was nonpartisan – speakers avoided mentioning either candidate by name – a number of attendees had their jackets or cars adorned with buttons or bumper stickers supporting president Barack Obama.
McGloin said she had a list of things she’d like to see from the next president: access to health care for all Americans, more jobs, a focus on education and programs that help people meet their basic needs, like housing.
This isn’t the first bus tour for Campbell, who planned on heading to work in Washington, D.C. after the first Cincinnati stop. She organized the original nine-state “Nuns on the Bus” tour over the summer. The earlier tour was in protest over the budget proposed by Republican vice presidential candidate Paul Ryan, himself a Catholic. Ryan’s budget would gut many social programs relied on by the poor.
The Cincinnati Enquirer and its parent company Gannett went through another string of layoffs today, including the reported closing of the newspaper’s Kentucky office.
[CityBeat followed up on this story on Aug. 2 here.]
Jim Romenesko reported on his journalism industry blog that there were layoffs at The Kentucky Enquirer, the Kentucky edition of the local newspaper. One commenter on Gannett Blog echoed the report, saying the Kentucky offices had been closed down and moved to Cincinnati.
Gannett Blog reports 11 layoffs at Cincinnati branches, including the Community Press and Community Recorder. That coincides with more than 150 layoffs at newspapers around the country, according to the blog.
Because of Gannett’s secrecy with staffing issues, it’s difficult to confirm any specific report. No names have been provided yet.
CityBeat was tipped off about the layoffs earlier in the day by a source close to The Enquirer.
A spokesperson wasn’t available for questions about the layoffs, but Jeremy Gaines, vice president of communications at Gannett, told Romenesko, “Some USCP (U.S. Community Publishing) sites are making cuts to align their business plans with local market conditions.”
Gannett CEO Gracia Martore proudly claimed on July 22, “We are accelerating our transformation into the ‘New Gannett’ every day.”
Environmental Justice is about keeping already polluted neighborhoods from having to accept more polluting neighbors – usually industry, not a family of 12 or more. The myth that jobs will be lost and businesses will choose other locations (taking their precious tax dollars with them) is one of several objections used to support placing polluting companies in “overburdened” areas.