Financial giant and Lytle Park bully Western & Southern has accused city officials and other Anna Louise Inn advocates of repeatedly deceiving the Department of Housing and Urban Development in order to obtain federal funds for the long-awaited, $13 million renovations to the Inn.

Those renovations are the same ones that have been blocked over and over by a series of legal entanglements initiated by Western & Southern, which tried to purchase the Inn back in 2009 for $1.8 million, refusing to buffer the Inn's $3 million price tag. In 2011, the Hamilton County Auditor valued the plot at $4 million. 

Now, the corporate giant, which owns a number of other plots of land in Lytle Park, wants to buy the Inn and convert it into an upscale hotel. 

Western & Southern’s lawyer, Glenn Whitaker, sent a letter obtained by CityBeat dated March 19 to City Solicitor John Curp accusing city officials of knowingly violating the federal Fair Housing Act by allowing the owner of the Inn, Cincinnati Union Bethel (CUB), to pursue federal funding for renovations while providing services to exclusively women in need, which the letter alleges would “discriminate on the basis of gender” and “expose the City to liability under both the federal False Claims Act and the FHA.” 

“We share this with you because — no matter where one stands on whether ALI’s renovations comply with Cincinnati Zoning Code — it is in the public interest for the City to avoid a lawsuit that could lead to a significant payout in today’s budget environment,” reads the letter.  

Of course, that lawsuit is one that would be entirely fabricated and launched by Western & Southern, on top of years worth of zoning violation allegations that, so far, have failed to gather much merit.Some women-only shelters are deemed permissible due to safety issues, but in the letter, Whitaker alleges that the renovation plans expose ALI to discrimination liability by, in theory, making the safety issue moot by providing clear, separated spaces for men and women. The renovation plans include converting what are now dormitory-style units with shared bathrooms into private residences with private bathrooms and kitchens, according to the letter. Curp, who received the letter, says the city’s relationship with HUD is one that hinges on constant communication, and though Western & Southern's allegations were unexpected, they'll be taken seriously. “We work with them closely, we have a great relationship with HUD. They were the first organization we contacted when we got this letter, ... so they understood the nature of the allegations and because they’re one of our development partners. We have lots of development partners in the city, frankly, including Western & Southern. ... We're disappointed that the city has been pulled into what is otherwise a third-party dispute."  

The letter also accuses a number of community members, including 3CDC, Vice Mayor Roxanne Qualls, the Model Group, the Greater Cincinnati Homeless Coalition and the YMCA of conspiring to move low-income residents from the Metropole to the Anna Louise Inn in order to ease litigation with the Homeless Coalition and make way for the new, upscale 21c Museum Hotel. John Barrett, Western & Southern’s CEO, is also on the board of 3CDC, which adds an extra element of mystery to the lodged accusations; at best, it seems extreme they'd be willing to accuse ally 3CDC of wrongdoing or conspiracy for the sake of a discrimination lawsuit against a nonprofit social services agency whose stated goal for more than 100 years has been to provide a haven for women in need. Ideally, explains Curp, HUD will respond equipped with some sort of past precedent that would absolve the city and the Inn of alleged discrimination and make the lawsuit irrelevant. "I think a lawsuit would be very much premature. ... Like I said, our first step is to talk to HUD and to make sure that between the both of us, we don’t see any discrimination or compliance issues. If there’s any chance of that ... after our review and a review by HUD, we will fix it to bring it into compliance," he says.  "As I sit here today, I can't imagine this situation hasn't been dealt with in the past. I'd be shocked if HUD hasn't dealt with this in another community and come up with a set of guidelines for us to follow."

The Anna Louise Inn and Western & Southern will meet again in court in April to begin the next chapter of the ongoing zoning dispute between the longtime neighbors.  In a Feb. 8 ruling, the Ohio First District Court of Appeals agreed with a lower court that Cincinnati Union Bethel, which owns the Inn, filed an incomplete permit application. The ruling asks CUB to resubmit the funding requests to the city of Cincinnati — except this time CUB will have to include details about previously omitted parts of the Anna Louise Inn and the Off the Streets program.  But Tim Burke, attorney for CUB, says CUB already carried out the court’s requirements. After Judge Norbert Nadel ruled May 4 that the Inn didn’t properly fill out its original application, CUB started a second chain of applications to obtain a conditional use permit to meet Nadel’s zoning specifications. The new applications have been approved by Cincinnati’s Historic Conservation Board and the Cincinnati Zoning Board of Appeals, but Western & Southern is appealing those rulings as well. Last week’s appeals court ruling sent the case back down to the lower court on a legal technicality. With the ruling, all the Anna Louise Inn cases, including the separate chain of zoning appeals, are essentially consolidated to Nadel.  The dispute began in 2010, when Western & Southern sued the Anna Louise Inn over zoning issues to block $13 million in city- and state-distributed federal loans to renovate the building. Western & Southern declined an opportunity to purchase the building in 2009, but now seems interested in turning it into a luxury hotel.  The Anna Louise Inn is a 103-year-old building that provides shelter to low-income women. Its Off the Streets program helps women involved in prostitution turn their lives around.For more information about this ongoing dispute, visit CityBeat's collection of coverage here.

The latest appeals court ruling did not give the Anna Louise Inn much peace of mind in its ongoing feud with Western & Southern. On Friday, the Ohio First District Court of Appeals affirmed most of a lower court’s ruling against the Anna Louise Inn, but it sent the case back down to the lower court on a legal technicality. The ruling means the case could restart, potentially setting Cincinnati Union Bethel, which owns the inn, and Western & Southern on another path of court hearings and appeals that will take up taxpayer money and the courts’ time — all because Western & Southern is bitter it didn’t purchase the Anna Louise Inn when given the opportunity. By agreeing with the lower court that Cincinnati Union Bethel filed an incomplete application, the appeals court is now asking the owners of the Anna Louise Inn to resubmit their funding requests to the city of Cincinnati — except this time Cincinnati Union Bethel will have to include details about previously omitted parts of the Anna Louise Inn and the Off the Streets program. But Tim Burke, Cincinnati Union Bethel’s attorney, is hopeful the process will not have to restart. He says Cincinnati Union Bethel already carried out the appeals court’s requirements. After Hamilton County Judge Norbert Nadel handed down his May 4 ruling against the Anna Louise Inn, Cincinnati Union Bethel started a second chain of zoning and permit applications to obtain a conditional use permit that met Nadel’s specifications. So far, the applications have been approved by Cincinnati’s Historic Conservation Board and the Cincinnati Zoning Board of Appeals, but Western & Southern is appealing those rulings as well. Burke and Cincinnati Union Bethel hope to meet with Nadel Monday to make their case. If they’re successful, they’ll stave off another series of court hearings and appeals. Burke says the case has been a uniquely negative experience — previously calling it one of the most frustrating of his career. He says Western & Southern’s actions are pure obstructionism: “They benefit from delays, and that’s all they’re trying to do.”Cincinnati Union Bethel wants to use city funds to help finance $13 million in renovations for the Anna Louise Inn, which are necessary to keep the building open and functional. The Anna Louise Inn is a 103-year-old building that provides shelter to low-income women. Its Off the Streets program helps women involved in prostitution turn their lives around. Western & Southern previously supported the Anna Louise Inn and the Off the Streets program with direct donations, but the friendly relations abruptly ended when Cincinnati Union Bethel refused to sell the building to Western & Southern, instead opting to renovate the Inn. At that point, Western & Southern began a series of legal challenges meant to obstruct Cincinnati Union Bethel’s renovation plans. The zoning debate centers around whether the Anna Louise Inn qualifies as a “special assistance shelter” or “transitional housing.” The Anna Louise Inn originally claimed to be transitional housing, but Nadel ruled the building is a special assistance shelter. After that ruling, Cincinnati Union Bethel obtained a conditional use permit for the new classification, but Western & Southern is now disputing the approval of that permit. For more information about this ongoing dispute, visit CityBeat's collection of coverage here.

The Anna Louise Inn today won another case in front of the Cincinnati Zoning Board of Appeals. The ruling upheld a Historic Conservation Board decision that gave Cincinnati Union Bethel, which owns the inn, a conditional use permit that will allow the social service agency to carry on with a planned $13 million renovation. Western & Southern in a statement given to reporters following the decision vowed to appeal the ruling. At the hearing, Western & Southern attorney Francis Barrett, who is the brother of Western & Southern CEO John Barrett, continued his argument that the Anna Louise Inn is a “high-crime area.” The accusation is meant to disqualify the Inn for the conditional use permit, which requires that the building’s use will not be detrimental to public health and safety or negatively affect property values in the neighborhood. During an Aug. 27 hearing, the Historic Conservation Board found no direct evidence connecting residents of the Anna Louise Inn to criminal activity in the neighborhood. Barrett also emphasized Western & Southern’s stance that continuing on the current path set by the Historic Conservation Board is a waste of taxpayer money because the Inn is receiving public funds. Barrett labeled the funds “excessive expenditures.” However, that argument has little bearing on whether the Inn deserves a conditional use permit, because it’s not relevant to zoning laws and rules. Tim Burke, Cincinnati Union Bethel’s attorney, began his defense of the Anna Louise Inn by calling the ongoing case one of the most “frustrating” of his career. He suggested Western & Southern is just continuing its attempts to delay the Inn’s renovations as much as possible. Regarding the charge that the Anna Louise Inn has adverse effects on public health and safety, Burke told the Zoning Board of Appeals that the only adverse effect is on Western & Southern because “they want the property and can’t get it.” He claimed there is no proof that the Anna Louise Inn perpetuates crime in the area, and testimony and evidence presented in the case has proven as much. The case is only one of many in the ongoing conflict between Cincinnati Union Bethel and Western & Southern, which CityBeat previously covered in-depth (“Surrounded by Skyscrapers,” issue of Aug. 15). Cincinnati Union Bethel wants to renovate the Anna Louise Inn in part with $10 million in tax credit financing from the Ohio Housing Finance Agency and a $2.6 million loan funded by U.S. Department of Housing and Urban Development that was awarded by the city. Western & Southern says it wants to use the Lytle Park area, where the Inn is located, for private economic development. The series of cases began when Judge Norbert Nadel ruled on May 27 that the Anna Louise Inn classifies as a “special assistance shelter,” which requires a different kind of zoning permit than the previous classification of “transitional housing.” That ruling was appealed by Cincinnati Union Bethel to the Ohio First District Court of Appeals, which held hearings on Oct. 30 and is expected to give a ruling soon.