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Laubach feels Middletown is....

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spiderjohn View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: Aug 16 2010 at 7:26am
Mr.Laubaugh--I have emailed every Councilmember about this issue(response from 2) and have spoken to you often(not about this issue). I really don't have much to add beyond what I have posted here under the appropriate topics. I really don't want to bother you at home off of the clock, however you know how to reach me, and if you really want to discuss this issue, please call me.
 
This is a bad idea and a very poor deal for the taxpayer.
Make Pendleton up their stake in this project considerably. If they won't do that, then they don't want to be here that badly.
 
As I mentioned, please don't view the citizens and valuable restored public property as less than worthless. This giveaway can't be changed later. The conditions are unbelievably unfavorable to the citizens, and need to be changed by tomorrow. We know that this won't happen, so there is no other sensible choice than to kill this legislation as an emergency(as you know, it is no emergency) and re-make this whole agreement. Obvious to almost everyone to be the sensible solution. Outside of "citizen comments", there will be no public input on this issue, just as there was none allowed at the first reading two weeks ago. Why? This issue deserves long and hard debate.
 
Your current stance is contrary to everything that you campaigned about(you are being a politician now). From abuse of emergency legislation, to waste of taxpayer money and un-necessary giveaways. Not to mention a very ?able type of business and business arrangement.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Aug 16 2010 at 6:45am
Mike- all valid points to be answered by Council and the city leaders. Will any of them respond.....no. Will any of them take you or anyone else on this forum seriously.....no. Do they care what we think (or anyone outside the loop for that matter).....no. Are we wasting our time trying to communicate with them.... yes. They are determined to do it their way to appease the small faction of "influential" people in this town. Been that way for a long time. I was hoping things would be different with our new candidates on board. Started out ok, with Josh and A.J. and Ms. Scott-Jones asking questions and challenging the status quo, but now........perhaps the resistance has gone away. How about it councilmembers- are you still in the hunt or have you been silenced?

Josh, you appear to frequent this forum enough to keep up with the general theme here on this matter. I'm wondering what difference it makes whether we send you an E-Mail or communicate with you on this forum. Why do you find it necessary to insist that we E-Mail you? What is the difference?

We are all somewhat confused as to YOUR decision (not necessarily what your constituency wants) to vote to approve this deal. Do the majority of the people in the 3rd Ward want this to go through or is this what you want without getting a pulse from the people? Do you really believe that using taxpayer money to fund a private venture, knowing the previous history of deals like this, is a good thing for the city? What will be your response if this doesn't pan out like you and the rest of council are expecting? How will you explain your decision to the people if Verdin fails to honor his committment or the artists don't show up in numbers and the building is, once again, empty, with all the monies spent to set it up for him? Aren't you taking a big chance with the taxpayer's money? We know your viewpoint on the matter but am interested to hear how you arrived at your conclusion. If you three vote for this and this goes down in flames, be prepared for the verbal onslaught to follow. You know as well as I, it will not be delicately worded, should this fail.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Mike_Presta Quote  Post ReplyReply Direct Link To This Post Posted: Aug 16 2010 at 4:56am
Dear regular Forum readers:
Having been properly chastised by Mr. Laubach, instead of my usual commentary upon "the workbook", I am posting an exact copy of the email that I sent to the official email address of each and every City Council member, as listed on the City website (larrym@cityofmiddletown.org, asjones@cityofmiddletown.org, tomallen@cityofmiddletown.org, asmith@cityofmiddletown.org, joshual@cityofmiddletown.org, danp@cityofmiddletown.org, billb@cityofmiddletown.org) :
 
Lady and Gentlemen of Council:

As most of you are aware, when I have the time, I go through the workbook prior to each city council meeting and post my thoughts about various items on the MiddletownUSA.com Forum for anyone who is interested to read before the council meeting.  As most of you are further aware,
I always post under my own name (Mike_Presta) to avoid the criticism that "internet crazies will say anything posting under the anonymity of an alias".  

I was not aware until a couple of hours ago that no comments would be considered by some council members unless an email message or telephone message was left at City Hall,  Hence this email.

My thoughts on one of the most important items to be decided this week, the proposed Pendleton Art Center give-away, are voluninous.  I will try to conolidate them from the nearly two weeks of posts, and send an additional email.  If I fail to get that accomplished, please be assured of my strongest opposition.

One must wonder about all of the boards and commissions and committees and blue ribbon panels and the like that our fair city likes to appoint to study things to death and to “plan” and re-plan. Then we just seem to ignore, or just do the opposite. Or do we just pick and chose and just “use” the findings to bolster whatever our so-called “movers and shakers” want to do in the first place???

Cases in point:

From the minutes of the July 15 “Master Plan Steering Committee“ (included in the workbook for the 8/17/2010 council meeting, page 92 of 182):

“A concern was expressed that companies locate to a community for the economic incentives and then later relocate to another community for additional incentives. It was noted that businesses who make more substantial investments in real property and fixed assets are less likely to relocate.”

Yet, here is a council, once again repeating the mistakes of past councils and ignoring the concerns expressed by the Master Plan Steering Committee (a committee that they, themselves, appointed) and giving a building, plus $250,000 in taxpayer-paid custom renovations, plus a $200,000 interest-free, forgivable loan to a business that cannot possibly make a return-on-investment (ROI) for over 20 years, IF the business decides to stick around that long!!!

On page 93 of the workbook, the MSPC minutes state:

“A key economic development strategy is to support the sustainability and expansion of the existing workforce. 80% of job growth is from existing businesses.”

Yet, again repeating the mistakes of past councils, this council is apparently prepared to squander not only $450,000 and a perfectly good, sound office, commercial or retail building, but also the unknown liabilities included in the mysterious, secretive, hidden Exhibits B and C (see page 130 of 182 in the workbook) on a new business run by an unknown outsider, with very little possibility of any ROI…and they are guaranteeing him a virtual monopoly to boot!!!

Also on page 93 of the workbook, the MPSC minutes state:

“The City has a strategy to recruit new businesses from targeted industries.”

IF this is true, then the ONLY “new businesses” they have ever targeted in years for the former downtown Middletown are the arts, antiques, up-scale bistro-type eateries with limited appeal to the immediate demographics. This “strategy” has been a proven failure over and over and over in promoting any sort of economic growth in this area. Yet the city has purposely and actively “discouraged” all other types of businesses from coming anywhere near what strangely seems to be treated as some sort of “sacred ground”.

On page the Master Plan Steering Committee again tries to tout “The

Middletown Promise” which, if you all will forgive my bluntness, has been proven thus far to be more of a “Middletown Moving Forward” lie. For how many years have we heard this “promise”? For how many students has this “promise” been kept? Certainly this is one aspect where cold, hard facts and figures could back up “The Promise” and shut up this critic, so what do the facts and figures say???

ANYONE???

Near the bottom of page 93 of 182 of the workbook, the minutes of the MPSC state:

“It was noted that the EPA restrictions on the expansion of the combined sewer system is blocking the development of areas in the northeast corner of the City.”

So, while the “Master Plan Steering Committee” fiddles around AGAIN with regurgitated versions of the repeatedly failed Main Street plans, and broken Middletown promises, and useless slogans, they finally mention one bit of sad TRUTH: The combined sewer system is one of our problems, and hampers our economic viability!!! BUT, do they even hint of facing that problem??? NO!!! Once again, City Hall fiddles while Middletown burns!!! “Olde Tyme Middle Towne” can make do with a combined sewer system, so they keep their heads stuck in the sand with nary a mention of seeking a solution for the problem. The new “Bright Future Middletown”??? Well, we can print that on our letterheads, while we throw our money (and our future) down the Olde Tyme sewers!!!

Next, if one looks at the “Finance Subcommittee Meeting Minutes” on page 97 of 182 of the workbook, one will see the short entry:

“Ideas on the Public Safety levy were discussed, how to approach, when to get started and who to include in the levy.”

Who would have guessed it???

Next we come to page 149 of 162 of the workbook and another tax-guzzling boondoggle, the “Main Street Program”!!!

This dodge now wants to turn itself into a “charity”!!! In a way, this is actually appropriate, because they don’t want to support themselves, yet they want everything done “their way!!” They don’t care whose property it is, or what any of the mere taxpayers think, just hand over the money, then stay away, please! As mentioned above, we have been trying, and failing, at this repeatedly for years, and tens of millions of “Olde Tyme dollars” have gone down the Olde Tyme sewers” all to no avail, but that doesn’t matter to these fanatics. They now are looking to the “Community Building Institute” (a code word for Miami University, a taxpayer supported institution) for one-third of their funds, and the Middletown taxpayers for one third of their funds. And for the “other third??? Well, they will be looking to “other financial support”??? Much of this will be taxpayer funds channeled through various agencies to look like it is NOT taxpayer funds.

Also, as usual with these groups, the main “movers and shakers” can be found in and around City Hall positions, but they deny conflicts of interest. So, this regurgitated “Main Street Program” is nothing more than another proven failure and a certain waste of taxpayer money with virtually no chance of ROI on “bagholders’ (taxpayers’) money, but also another sure delay of any possible start of real progress or renewal for the area that was once downtown Middletown.

Some city council (why not THIS city council???) MUST begin to realize that the former downtown area can NEVER begin a rebirth until we stop wasting all of our time and money on the same old failed programs over and over and over again!!! This will require a purge of City Hall of all of the obstructionists currently in residence (and their spouses or significant others).

And that brings us to page 152 of the workbook, and the absolutely Draconian, unnecessary, heavy-handed, unconstitutional “Historic Commission for the City of Middletown.”

Council members, this gang has the power to charge anyone in town with a second degree misdemeanor, fined up to seven hundred fifty dollars ($750.00) or imprisonment for not more than ninety days, or both. A separate offense shall be deemed committed each day during or on which a violation or noncompliance occurs or continues. This means that if you stand up to these screwballs for ONE WEEK, you could be on the hook for OVER $5,000.00 and over ONE YEAR in PRISON!!! And ALL of their rulings are COMPLETELY SUBJECTIVE!!!

They can prevent you from modifying or upgrading your property. They can force you to, or prevent you from, selling your property based on their sole judgment, depending upon intended uses, even if such uses are completely legal!!!

They are counting on bullying you with this section of ordinances, counting upon the fact that for you to defend your inviolable private property rights under Article 1 of the Ohio Constitution, will be so expensive that you will have no choice but to accede to THEIR wishes, or more than likely, sell out cheaply to one of their “friends”. It is unconscionable that our city officials even consider this piece of legislation!!! They should disband this group immediately!!!

“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012
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Rhodes View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rhodes Quote  Post ReplyReply Direct Link To This Post Posted: Aug 16 2010 at 3:16am
Is it just me or does each post by Josh Laubach get more and more disgusting? Who the hell does he think he is? He will never get another vote from me.

And quit lying Josh, we know you don't just stroll along this board once in a while. Get real. Nobody needs to contact you directly in order for you to know the will of the people. You're just using a BS excuse because you don't have the balls to say NO to Judy & Sam!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote angelababy Quote  Post ReplyReply Direct Link To This Post Posted: Aug 15 2010 at 9:55pm
here we are, less than two weeks from implementing this deal and with much work already having been done, and with all of the boosters singing praises and seeming so certain what a great deal this is for our city,  would never have supported the incumbant Marconi.  must say, that with this decision, I am now regretting my support for you.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Jlaubach Quote  Post ReplyReply Direct Link To This Post Posted: Aug 15 2010 at 8:31pm

Doorag, I am not standing behind anyone other than my name which is clearly posted here. I spoke my mind to let my fellow citizens know where I stand. I would ask that you refrain from questioning my commitment to something so great as liberty based on one localized issue.  If you or others are committed to the cause of freedom, please run for a seat next year.  You and everyone else on this site is free to do as I did and run for a position so as to have the chance to give to something greater than one’s self. 

 Mr. Presta, I have read WEALTH OF NATIONS and do not feel the need to re-read it. You have put out a great deal of writing on this matter. However, neither you nor anyone else on this board has taken the time to contact me with concerns about this issue.  If you have genuine concerns, please contact via my city email or call the city building and I will get back with you. Folks can write all day long from the comfort of their homes about what they would do. I am not in that position. I must take all the facts and make the decision that I believe is best based on the conditions in front of me.  Anyone reading this post is encouraged to contact me or another council member if you want to speak about this or future matters. As stated before, I do not read this board every day. If you have a concern or idea, please use one of the many channels to contact me.

Thanks,

Josh Laubach

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dooraghero Quote  Post ReplyReply Direct Link To This Post Posted: Aug 14 2010 at 3:32pm
It seems as if the City Council has been beset by the madness initiated at the federal level.  By throwing other people's money at a problem and subsidizing projects they expect a renaissance in downtown Middletown?   The trouble with subsidies and utilizing money derived from an increasingly small tax base is that it will eventually run out.  Very few, if any, subsidized projects at any level of government become profitable.  The madness of this downtown "arts project" is that it flies in the face of critical priorities during these tough economic times.  Obviously, safety and security are job number one for any government.   Then again, Middletown City government seems to have bought into the fallacy that government must be involved in as many things as possible since the hapless peasants are unable to function without the direction, indeed, control of the authorities.   Facilitated by an influx of federal and state grants and loans, the Middletown City Council seems to be charting a course of debt rather than solvency for our fair city.   Council members would be wise to heed the words of Thomas Jefferson:
 
A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity.
 
It is indeed a great disappointment that the two newest members of Council, Mr. Smith and Mr. Laubauch have been assimilated into the mad spending club that has ruled Middletown City Hall for years.  Initially, these young Council members looked as if they would indeed vote with their consciences and resist pressure from the city elites.  Sadly, it seems as if they have been broken and domesticated like wild ponies. 
 
It is especially disappointing to see that Mr. Laubauch, who presented himself as a fiscal conservative, a liberty-minded individual, and a patriot concerned with future generations has chosen to put his blinders on and follow in behind his masters, responding to every tug on the reins with the expected responses.  The bright lights that were the candles of positive change on City Council have been snuffed; nothing left save whisps of potential fading like smoke into the bland ephemera of Council Chambers.
Would you be willing to trade all the days from this day to that for one chance,just one chance to come back here and tell our enemies that they may take our lives but they'll never take our FREEDOM
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TudorBrown Quote  Post ReplyReply Direct Link To This Post Posted: Aug 14 2010 at 3:21pm
Originally posted by Jlaubach Jlaubach wrote:

MUSA,

I made last night’s comments for a reason. Given the situation, I feel it’s the best option to support this project do to the success of other Pendelton projects in other areas similiar to our downtown. We desperately need a presence of business and activity downtown. I believe without positive activity the downtown will further decline and attract more criminal activity. This situation is not desirable for Middletown and it cannot be left as is if there is any desire to stabilize and revive our city. I meant what I said and it’s my displeasure to hear the grief it may have caused some. As I stated last night, I have been conflicted about the project simply for the fact that it involves the spending of public money. However, I am no more pleased to have a piece of property sitting on the city's hands which sits vacant (which was purchased before my time). The Over-the-Rhine project is very impressive. In addition, the owner has also purchased historic property in vicinity of the center (A 19th century church to name one) and turned them into very successful ventures in previously abandoned areas. Indications are the same will be done here.

I am sorry to hear the loss of support from some of you. I live my life to try and do what I feel is the best and most principled thing. You can’t be all things to all people all the time. Sometimes no matter what you do half of the folks are going to love it and half are going to hate it. However, that is beside the point. I have to do what I think is best given the situation and circumstances given to me. If it were up to me, many things in government would be very different. I believe in the economic and governing principles laid out by Thomas Jefferson, Adam Smith and John Locke.  But I can only control so much with one vote on Middletown City Council. I must accept the constraints and conditions of previous council decisions, state and federal law and other matters that create the world we live in 2010. I would hope that folks on this site are intellectually honest enough to see that I am a puppet for no one, not on this site, not in the city building and not in the “heavy hitter” class. I cannot nor have I ever proclaimed to do things to make everybody happy. Again, if my words caused a loss of support, I am disheartened by that. However, I must act on what I feel is best for Middletown.

Sincerely,

Josh Laubach



Many of us are still behind you one hundred percent Mr. Laubach! 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TudorBrown Quote  Post ReplyReply Direct Link To This Post Posted: Aug 14 2010 at 3:19pm
Originally posted by Mike_Presta Mike_Presta wrote:

But, according to Law Director Landen (a member of the local illuminati)


That's got to be Middletown USA quote of the year!

LOL
LOL
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 409 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 10:34pm
Vet....Just happened to spot that from the top of the parking garage when I was taking pix of the Sorg demo & others before the garage demo began. I had no clue before this that the John Ross Store had been in this location. I was going to bring it up a few months ago and forgot about the pix. These posts just happened to jog my feeble mind!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 8:33pm
Thanks SW Ohio for the info. Just goes to show, you learn something new everyday no matter how long you've been around. Nice job on the research and the picture 409.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Mike_Presta Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 8:21pm
I sure don't remember that, and I remember Noah saying that it looked like rain!!!
 
Maybe John Rossi was the original owner and it was called the John RossI building??? LOL LOL LOL
“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 7:15pm

wow 409--that settles it.

good info as usual, SWOhio
fortunately I am not old enough to remenber that. What about you, SWO?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Mike_Presta Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 5:58pm

Thank you to SWOhio for proving my point, and to Spider for re-stating my case so eloquently!!!

First, let me agree that I have nothing against the Moormans. I’m sure that they are fine folks.

The point is, a past council made a $300,000 interest-free, forgivable loan of the taxpayers’ money and gave them a building with the anticipation that their “artsy” business would spur economic growth downtown. It has not done so!!!

Now, five years later, another council is on the verge of doing a very similar thing, again with taxpayers’ money, on even worse terms for the taxpayer, for the same reasons, with even less chance for a favorable outcome for the taxpayers, and no one is willing to look back at this deal!

Beau Verre has been a success, but it has been successful for no one but the Moormans. And that is fine as long as they live up to all of the terms of the agreement and are good corporate citizens, but it has NOT spurred economic development in the area. In that regard, the experiment using the taxpayers’ funds has been proven to be ill-conceived!!! Which part of this picture is so difficult to understand??? Why should we expect a different result if we try the same experiment over again (with even worse terms for the taxpayers)???

Would Robinette or Kohler or Gilleland or Landen or any member of city council, using their own money, make a $200,000 loan to Verdin having only the Ross building as collateral??? NO!! So how, in good conscience, can they make a 100 times worse loan using the people’s money???

And all of those mentioned have taken an oath that they are violating in either recommending or allowing this to proceed!!!
“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 409 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 5:47pm
Spider.....I remember it as you & vette do.........however
Here is a shot of BeauVerre from another angle.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 4:28pm
Beau Verre is a quality business, owned by hard-working local business people. They would be successful wherever they were located. Even though the city(taxpayer money) bent over backwards to make them the centerpiece in a downtown gamble. A risky offer for both, but almost too good to refuse. Beau Verre  has created a true showplace, and success story.
 
Did this pan out as hoped?
Yes and no.
"Arts" in general, has not caught on in the area, despite many efforts and grant $$ from many sources being thrown their way. Should we try it again, much more heavily taxpayer-subsidized? In the current financial/economic/demographic circumtances, it really doesn't make sense.
 
The area is overwhelmingly low income, and not even as diverse as Over The Rhine(which had considerable private entertainment ventures springing up). Family Services, Hope House, govt.assistance centers, food pantries, missions and self-help centers dominate the area.
 
Since our city admin is 100% responsible for the Section 8 over-population and the strong Section 8 concentration in that and immediately surrounding areas, they are seriously contradicting themselves by trying to now quickly shift the area(by force) to the upscale arts district again. This is exactly where our Council is supposed to step in and say "Wait a minute--What are we really doing here? Why are we spending huge tax $$ to repair building to be turned over to non-local businesses, with no productive ontingencies or performance requirements? Are our citizens as a whole getting their money's worth?"
 
Obviously Beau Verre is approaching crunch time, allegedly due to start making loan repayments and tax obligations. Another non-competing art center(much more heavily taxpayer subsidized) would be good for them. Can't fault them for strongly supporting this expensive but risky proposal.
 
Still--hard to imagine a mass shopping exodus or business development spurt in that area. "Starving artists" will hardly be manning the facility every day. They simply don't work that way. They might be attracted to the hookers,drugs and seedy bars though. No one is going to fight the brutal I-75 mess to come to that area to do what they could do within their home space. They MIGHT show up one day a month to hawk their wares b4 bugging out back home. Still--who will travel there to BUY essentially what is offered in more convenient and attractive areas?
 
I know that I am sounding maybe too negative, however there are WAY too many parts of this puzzle that really don't fit well. And our Council is expected to emergency this in next Tuesday. Maybe time to "Just Say No" for now, until everything can be discussed and a much more favorable option can be created for local taxpayers. What is the rush? If Pendleton really wants to be here, they should understand and be willing to seriously increase their stake in the project. If not--I'm sure that someone better will be found.
 
And I am with Vet--I always remember GC Murphy Co. being on one corner, and Ross's on the other.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rhodes Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 2:46pm
They weren't working to retain BVR. BVR wasn't leaving Middletown. It was an experiment at the tax payer's expense to see if business could be generated in the "new downtown". So far, it hasn't worked. It takes more than a glass shop to get a downtown rolling.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote swohio75 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 2:02pm

Bill – BVR was not a new business.  It was an existing, successful Middletown business.  The city was working to retain this business. 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote swohio75 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 1:56pm

Wasn't this loan to Beau Verre predicated on creating a certain number of jobs in a given period of time. Could be wrong here, don't remember.

BVR needs to repay the loan after 5 years.  The principal of the loan can be reduced by $10,000 for every employee added to their payroll.    BVR had anticipated creating 30 new jobs.  Not sure where they stand.

The loan was provided to help an existing business expand their operations as a result of an acquisition.  BVR could have easily relocated to downtown Lebanon or another community.

Where did the city loan money to Beau Verre come from? City tax payers perhaps? And if it came from city taxpayers, doesn't the city have an obligation to lessen the risk of investment on behalf of said taxpayer? And who gave the city permission to dispense with the 15 year loan with no payments for 5 years thing you mentioned? Just curious.

The money used came from a grant from the federal government in the 1970s-- Urban Development Action Grant

City Council at the time approved this transaction. 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bill Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 1:52pm
swohio75, I don't want to pick on BV or have anything against them.  But the point most of us are making is that the city should not be in the business of giving out large sums of money for new businesses, regardless of how much $$ the owner is putting in themselves.  What makes PAC worse than BV is that it sounds like the owner is putting in a minimal amount of their own money, if any, which is unlike the BV story you just mentioned.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 1:49pm
Before the mall was even thought of, the G.C.Murphy store was where Beau Verre is now and was the main bus stop downtown. The John Ross store was located on the opposite corner. This was during the 50's/60's.

If this situation you are talking about was before the 50's, then it was probably so.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote swohio75 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 1:46pm

The John Ross store was located in the Beau Verre location many years before it moved to northeast corner of Central and Broad:

 
When they moved, Murphy's expanded their operations in the old John Ross building:
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 1:37pm
Just for clarity, swohio, you mentioned that the city owned A building in the mall that people will recall as the John Ross Store and later G.C. Murphy. To clarify, these two stores were totally different buildings- Murphys, where Beau Verre is now and John Ross on the opposite corner of Central and Broad. John Ross was never the G.C Murphy store nor in reverse order.

Wasn't this loan to Beau Verre predicated on creating a certain number of jobs in a given period of time. Could be wrong here, don't remember.

Where did the city loan money to Beau Verre come from? City tax payers perhaps? And if it came from city taxpayers, doesn't the city have an obligation to lessen the risk of investment on behalf of said taxpayer? And who gave the city permission to dispense with the 15 year loan with no payments for 5 years thing you mentioned? Seems awfully loose with the people's money, don't you think?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote swohio75 Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 10:20am
Originally posted by Mike_Presta Mike_Presta wrote:

[QUOTE=Kelly]
For that matter, can anyone explain why BeauVerre was "a great thing" for Middletown??? Or why they were worth the hundreds of thousands of tapayers' dollars that were "invested"??  Can anyone tell us what we got in return for our money??

The seems to be a little confusion on the whole Beau Verre Riordan deal and the nature of their business.

Beau Verre Riordan is not someone’s hobby.  Nor is it some sort of downtown experiment by the city.  It’s a business.  A business that chose to be in the downtown area.  While it may have started as a hobby for Jay and Linda Moorman, it’s now their livelihood.  And while it may offer opportunities for others to further their stained glass hobby or interest, BVR has paying customers who purchase a product.   In order to produce this product, BVR must HIRE and PAY skilled professionals an income.  Income that is taxable by the city of Middletown.

Here’s some history on the BVR

BV was located on the east-side of Middletown for many years in the KittyHawk area.  It was started and continues to be owned by Middletonians.

BV purchased Riordan Studios out of Cincinnati.  Riordan was the oldest operating stained glass studio in the United States.  With this purchase, BVR outgrew their existing location and needed to expand operations.

Like any business, BVR considered expansion options, including a new building on the east end of Middletown.

But Jay and Linda had a vision for a renovated building in Middletown’s downtown that could lead to the eventual spark in redevelopment.  And they worked with the city on a deal that would allow them to do so.

The city of Middletown owned a building in the former mall area at Central and Broad that many people will recall as the John Ross Store and later G.C. Murphy’s.  I don’t’ know at what point the city acquired the property or how much they paid for it.  It could have been part of the mall’s original construction.

During the planning process for the downtown mall’s removal, there was debate on whether or not to demolish this building due to the fact the storefront’s replacement cost was more than the building’s value, and the city didn’t have to acquire the property.  The decision was made, I believe, not to demolish because the corner was deemed crucial to downtown Middletown’s redevelopment.  A hurdle to the property’s redevelopment was the amount of asbestos.

BVR’s worked out a deal with the city consisted of the following:

-          BVR purchased the building for $1

-          BVR agreed to spend $30,000 on trim around the top of the building that needs substantial repair work. Anything above that was to be paid for by the city in a $30,000 grant.

-          The city of Middletown provided BVR with an 15-year interest-free loan with no payments for the first five years

-          The amount of the loan was $300,000 with $10,000 job credits off the principal of that loan for every job that adds at least $20,000 to the company's payroll.

-          BVR had hoped, as part of this expansion, to create 30 new jobs 

This was not some sort of free-be handout.  BVR will celebrate 5 years at their downtown location this fall/winter, so repayment of the loan should begin shortly, the amount depending on the number of jobs created.  Even if the loan is forgiven based on JOB CREATION, I can tell you the Jay and Linda’s personal investment in the building far exceeds the original loan amount—and may be up to twice the amount of the loan.

 Here’s an old article from The Enquirer that discusses the deal:

 http://www.enquirer.com/editions/2003/10/23/loc_middowntown23.html

You can be sure had Jay and Linda decided to expand BVR on the east-end, they surely would have sought tax incentives for that location as well.  I wonder if there would be as much criticism if this is the route they had chosen. 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Aug 12 2010 at 6:27am
Hey Mike! I thought the pit bull around here was Joe Dieters, the Hamilton County Prosecutor.???? WLW always refers to him as that when Cunningham (who I hate, by the way) has him on.
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