by German Lopez
Posted In: News
at 02:14 PM | Permalink
City administration estimates deal will net nearly $2.6 million in tax revenues over 20 years
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
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.
by German Lopez
Bill restricts minor parties, parking contracts released, Pure Romance to get tax credits
A bill enacting new regulations on minor political party participation in state elections yesterday passed through the Republican-controlled Ohio Senate
despite objections from the Libertarian Party and other critics that
the bill will shut out minor parties in future elections. The bill now
needs approval from the Republican-controlled Ohio House and Republican Gov. John Kasich, who would
likely benefit from the bill because it would help stave off tea party
challengers in the gubernatorial election. The proposal was sponsored by
State Sen. Bill Seitz, a Republican from Cincinnati.
The Greater Cincinnati Port Authority yesterday released drafts for contracts
with operators who will manage Cincinnati’s parking meters, lots and
garages under the city’s parking plan, which leases the parking assets
to the Port Authority for at least 30 years. Xerox will be paid about
$4.5 million in its first year operating Cincinnati’s parking meters,
and it will be separately paid $4.7 million over 10 years to upgrade
meters to, among other features, allow customers to pay through a
smartphone. Xerox’s contract will last 10 years, but it can be renewed
for up to 30 years. The city administration says the parking plan will
raise millions in upfront money then annual installments that will help
finance development projects and balance the budget, but critics say the
plan gives up too much control of Cincinnati’s parking assets.
City Council’s Budget and Finance Committee yesterday 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. Pure Romance is
a $100 million-plus company that originally planned to move from
Loveland to Cincinnati with support from the state and city, but Gov.
John Kasich’s administration ultimately rejected state tax credits for
the company. Kasich’s administration says Pure Romance didn’t fit into
an industry traditionally supported by the state, but critics argue the
state government is just too “prudish” to support a company that includes sex
toys in its product lineup.
The Coalition Opposed to Additional Spending and Taxes (COAST),
Cincinnati’s vitriolic tea party group, yesterday appeared to endorse John
Cranley, who’s running for mayor against Vice Mayor Roxanne Qualls.Ohio conservatives are defending their proposal to weaken the state’s renewable energy and efficiency mandates,
which environmentalists and businesses credit with spurring a boom of clean
energy production in the state and billions in savings on Ohioans’
electricity bills. State Sen. Seitz compared the mandates to “central
planning” measures taken in “Soviet Russia.” A study from Ohio State
University and Ohio Advanced Energy Economy found Ohioans will spend
$3.65 billion more on electricity bills over the next 12 years if the
mandates are repealed. CityBeat covered the attempts to repeal the mandates in further detail here and the national conservative groups behind the calls to repeal here.
Ohioans renewing their driver’s licenses or state ID cards will no longer be asked
whether they want to remain on the list of willing organ donors. The
move is supposed to increase the amount of participants in the state’s
organ donation registry by giving people less chances to opt out.
An Ohio Senate bill would ban red-light cameras.
Supporters of the traffic cameras say they deter reckless driving, but
opponents argue the cameras make it too easy to collect fines for the
most minor infractions.
Ohio Attorney General Mike DeWine awarded $17 million in grants to crime victims services around Ohio, including more than $49,000 to the Salvation Army in Hamilton County.
President Barack Obama is likely to appoint Janet Yellen to lead the Federal Reserve, which would make her the first woman to lead the nation’s central bank.
Lost in their smartphones and tablets, San Francisco train passengers didn’t notice a gunman until he pulled the trigger.
Scientists are bad at identifying important science, a new study found.
0 Comments · Wednesday, September 25, 2013
Pure Romance on Sept. 24 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
by German Lopez
Seelbach helps gunshot victim, Pure Romance to stay in Ohio, Council denies car allowances
Councilman Chris Seelbach last night helped a gunshot victim
before the man was taken to the hospital. Seelbach
posted on Facebook that he was watching The Voice with his partner,
Craig Schultz, when they heard gun shots. They went to their
window and saw a man walking across Melindy Alley. When Seelbach asked
what happened, the man replied, “I was shot.” Seelbach then ran down and
held his hand on the wound for 10 to 15 minutes before emergency
services showed up. “We have a lot of work to do Cincinnati,” Seelbach
wrote on Facebook. Police told The Cincinnati Enquirer the victim seemed to be chosen at random.Pure Romance yesterday announced it will remain in Ohio
and move to downtown Cincinnati despite a decision from Gov. John
Kasich’s administration 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. The reason for Pure Romance’s decision: The city,
which was pushing for Pure Romance despite the state’s refusal, upped its tax break offer
from $353,204 over six years to $698,884 over 10
years. Kasich previously justified his administration’s refusal with
claims that Pure Romance just didn’t fall into an industry that Ohio
normally supports, such as logistics and energy. But Democrats argue the
tax credits were only denied because of a prudish, conservative
perspective toward Pure Romance’s product lineup.
City Council yesterday unanimously rejected
restoring car allowances, paid work days and office budgets for the
city government’s top earners, including the mayor, city manager and
council members. Councilman Seelbach said he hopes the refusal
sends “a signal to the administration that this Council is not
interested in making the wealthy more wealthy or giving more executive
perks to people who already make hundred-plus thousands of dollars.” The
restorations were part of $6.7 million in budget restorations proposed
by City Manager Milton Dohoney. The city administration previously
argued the car allowances were necessary to maintain promises to hired city directors and keep the city competitive in terms of recruitment, but
council members called the restorations out of touch.
The Cincinnati area’s jobless rate dropped from 6.9 percent in August 2012 to 6.7 percent in August this year as the economy added 11,500 jobs, more than the 3,000 required to keep up with annual population growth.
The former chief financial officer for local bus service Metro is receiving a $50,000 settlement
from the agency after accusing her ex-employer of retaliating against her
for raising concerns about issues including unethical behavior and
theft. Metro says it’s not admitting to breaking the law and settled to
Ohio House Democrats say state Republicans denied access to an empty hearing room
for an announcement of legislation that would undo recently passed
anti-abortion restrictions. But a spokesperson for the House Republican
caucus said the speaker of the House did try to accommodate the
announcement and called accusations of malicious intent “absurd.” The
accusations come just one week after the state’s public broadcasting group pulled cameras from an internal meeting
about abortion, supposedly because the hearing violated the rules. The legislation announced by Democrats yesterday undoes
regulations and funding changes passed in the state budget
that restrict abortion and defund family planning clinics, but the
Democratic bill has little chance of passing the Republican-controlled
Ohioans will be able to pick from an average of 46 plans
when new health insurance marketplaces launch on Oct. 1 under
Obamacare, and the competition will push prices down, according to a new
report. CityBeat covered Obamacare’s marketplaces and efforts to promote and obstruct them in further detail here.
Ohio lawmakers intend to pursue another ban on Internet cafes
that would be insusceptible to referendum, even as petitioners gather signatures to get the original ban on the November 2014
ballot. State officials argue the ban is necessary because Internet
cafes, which offer slot-machine-style games on computer terminals, are
hubs of illegal gambling activity. But Internet cafe owners say what
they offer isn’t gambling because customers always get something of
value — phone or Internet time — in exchange for their money.
Ohio tea party groups can’t find candidates to challenge Republican incumbents.
The U.S. Senate unanimously confirmed the first openly gay U.S. appeals court judge.
The Cincinnati area is among the top 20 places for surgeons, according to consumer finance website ValuePenguin.
A graphic that’s gone viral calls Ohio the “nerdiest state.”
Insects apparently have personalities, and some love to explore.
by German Lopez
Posted In: News
at 01:56 PM | Permalink
Company moving to downtown Cincinnati despite state's refusal to grant tax credits
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.
by German Lopez
Streetcar on track, initiative to redevelop homes, Pure Romance touted in tax credit debate
The streetcar project is on track for its Sept. 15, 2016 opening date, according to a monthly progress report
released by the city yesterday. Through Aug. 31, the city spent $22.1
million on the project, including nearly $2 million in federal funding.
In total, the project is estimated to cost $133 million, and about $45
million will come from the federal government. CityBeat covered the project and political misrepresentations surrounding it in further detail here.
Vice Mayor Roxanne Qualls, the Greater Cincinnati Port Authority and community partners yesterday unveiled the “Come Home Cincinnati” initiative,
which promises to make vacant properties available to new occupants in
an effort to increase homeownership and redevelop neighborhoods hit
hardest by vacancy and abandonment. The initiative will work through the
Hamilton County Land Bank, private lenders and community development
corporations to connect potential homeowners with a pool of loan
guarantees, which would pay for the home loans if a borrower defaulted.
Qualls’ office says the plan will likely require tapping into the city’s
Focus 52 fund, which finances neighborhood projects. If City Council
passes the motion supporting the initiative, the city administration
will have 60 days to come up with a budgeted plan, which Council will also have to
approve.A Democratic state legislator used Pure Romance’s troubles to criticize Ohio’s process for granting tax credits. State Rep. Chris Redfern, who sits on the legislature’s Controlling Board, repeatedly brought up Pure Romance when discussing tax credits for three companies supported by Gov. John Kasich’s administration. Redfern ultimately didn’t vote against the tax credits, but he only backed down after getting state officials to say the three companies were meeting all of the state’s priorities. Pure Romance originally planned to move its headquarters and 60 jobs from Loveland to downtown Cincinnati and create 60 jobs in the process. But since the company was denied state tax credits, it’s openly discussed moving to Kentucky to take up a better tax offer. The Kasich administration says it denied the tax credits because Pure Romance isn’t part of a targeted industry, but Democrats argue the administration is killing jobs in Ohio just because of prudish feelings toward Pure Romance’s product lineup, which includes sex toys.
Cincinnati will be honored by the U.S. Environmental
Protection Agency (EPA) later today for connecting residents to
renewable energy sources, according to a press release from the city.
Some environmental groups have already praised Cincinnati for championing
solar energy in particular, as CityBeat covered here.
At a City Council forum last night, residents demanded walkable, livable neighborhoods that include grocery stores.Internet cafes need more than 71,000 signatures to get on the November 2014 ballot.
The cafes are attempting to overturn a state law that effectively
forces them out of business. State officials argue the law is necessary because Internet cafes, which offer slot-machine-style games on
computer terminals, are hubs of illegal gambling activity. But Internet
cafes say what they offer isn’t gambling because customers always get
something of value — phone or Internet time — in exchange for their
The Affordable Care Act’s (“Obamacare”) marketplaces will go live in one week, regardless of whether the federal government shuts down. The marketplaces will allow users to enroll in insurance plans with tax subsidies from the federal government. CityBeat covered the marketplaces and efforts to promote and obstruct them in further detail here.
A Democratic state legislator is pushing new requirements that would force lobbyists to disclose their annual salaries.
I-75 lanes are temporarily closing for improvements.
Step one to stopping malicious hackers: Learn their ways.
2 Comments · Wednesday, September 18, 2013
In the past few weeks, it’s come out that
Gov. John Kasich’s supposedly jobs-obsessed administration is letting
120 jobs leave Ohio for neighboring Kentucky instead of supporting the
jobs through tax credits.
by German Lopez
Mayoral candidates debate, legislators back Pure Romance, board could expand Medicaid
Vice Mayor Roxanne Qualls and ex-Councilman John Cranley focused most of their disagreement on the streetcar and parking lease
at yesterday’s first post-primary mayoral debate. No matter the
subject, Cranley repeatedly referenced his opposition to the streetcar
project and his belief that it’s siphoning city funds from more
important projects and forcing the city to raise property taxes to pay
for debt. Qualls argued the streetcar project will produce economic
growth and grow the city’s tax base, which the city could then leverage
for more development projects; that claim has been backed by studies
from consulting firm HDR and the University of Cincinnati, which put the
streetcar’s return on investment at three-to-one. On the parking lease,
Qualls claimed money raised through the lease could be used to leverage
economic development projects, while Cranley said the lease would hurt an
entire generation by shifting control of Cincinnati’s parking assets
from the city to the unelected Port Authority and private companies.
State Rep. Denise Driehaus and Councilman P.G. Sittenfeld, both of Cincinnati, called on the state government
to reverse its decision to not give local company Pure Romance tax
credits. Pure Romance, a $100 million-plus company whose product lineup
includes sex toys, was planning on moving from Loveland to downtown
Cincinnati with local and state support, but because the state declined
the tax breaks, the company is now considering moving to Covington, Ky.
Gov. John Kasich’s administration has said Pure Romance doesn’t fit into
the traditional industries the state invests in, but Democratic
legislators argue Kasich’s social conservatism is getting in the way of
keeping jobs in Ohio.
Ohio House Speaker William Batchelder says he has “literally no thoughts”
about the possibility of the state expanding Medicaid without the
legislature and through the state Controlling Board — a possibility that
Kasich hinted at earlier in the week. Kasich has been pleading with the
Ohio General Assembly to take up the federally funded Medicaid
expansion, but Republican legislators have so far refused. If the Controlling
Board does expand Medicaid, Batchelder said the state legislature will
likely pass some protections in case the federal government reneges on
its funding proposal. Under Obamacare, states are asked to expand
Medicaid to 138 percent of the federal poverty level; if they accept,
the federal government will pay for the entire expansion through 2016
then phase its payments down to an indefinite 90 percent.Documents uncovered by USA Today further show the IRS, particularly through its offices in Cincinnati, targeted tea party groups by looking at “anti-Obama rhetoric,” inflammatory language and “emotional” statements made by nonprofits seeking tax-exempt status.
Cincinnati’s newest police chief will be sworn in on Sept. 30. The city manager on Friday officially picked Jeffrey Blackwell, deputy chief of the Columbus Division of Police.
The Cincinnati area’s economy grew by 2.7 percent in 2012, slightly higher than the country’s 2.5-percent growth in the same year.
In perhaps another sign of growing local momentum, venture capitalists appear to be investing more in Cincinnati’s entrepreneurs.
Following two high-profile suicides at Ohio’s prisons, an expert on inmate suicides will inspect the state’s facilities and protocols.
Saks Fifth Avenue might move to Kenwood Collection.
Cincinnati-based Procter & Gamble and TriHealth are
among the top 100 companies for working mothers, according to the
magazine Working Mother.
A very rare genetic mutation makes subjects immune to pain.
by German Lopez
County blocks sewer projects, sex toy company welcomed in Kentucky, Kasich fights for coal
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
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.