Batting .200- Minor League, Not Major League Ball

Out of five buildings the city of Middletown acquired, only one will be used for Cincinnati State. That is a .200 batting average for investing. In private equity with their risk/ reward capital investment strategies, they usually are hitting about .650. Hence, the city shows it is still minor league, in its analysis, and decisions associated with money, investing, and economic development strategies. indeed, is there  strategy, if so, what is it?

In 2005, the city enthusiastically endorsed and maneuvered to create what it names MMF, an alleged CIC which was to focus upon a joint initiative between the private sector, in particular with the Atrium and AK Steel, and Cohen Brothers, to jointly form with an analysis and strategic partner and invest in economic development which was to advance the city of Midddletown, in the most simple terms, forward. By forward, the meaning is clear---to assure more taxes are generated and collected, more jobs created, more residents are pulled through a magnetic force to settle in the city, and a general betterment and quality of life for all.

In that period, the joint partnership bought land on the east end for Neyer to development, hired an Economic Director, two I add, one left, one left for greener pastures after an indiscretion of picking up a bar tab with a city council member, and proceeded then to retain an attorney to act as the city ED guru.

In its initial filing with the Ohio Secretary State, MMF had a written vision to focus heavily on the east end, indeed, downtown was never mentioned or a sentence written, on its import to economic prosperity. And, although the city represented in its successes through its relationship with MMF, it filed no annual reports that account for land investments, salary investments, or any costs and returns associated with MMF.

In six years, by all accounts, it appears after going through two full-time Economic Directors and a contracted/ retained lawyer, no significant benefit has been obtained from this formation. Further, no money was collected nor raised by key partners with the city through MMF, including the Atrium and AK Steel, and that the written focus of the organization that was focused entirely upon the east end, has taken a sudden and indeed, peculiar change from east end to downtown. The question is----WHY?

Over the years, Middltown has invested and made many attempts to invigorate and restore the luster downtown, all having been without question in the minds of anyone thinking rationally, a failure. Yet, it continues. One may argue a city that is vibrant is the heartbeat of a community. However, most would argue with 2-3 cars in a household, the ease of interstate transport, a downtown is a relic of the past, vibrant in the days of the horse and buggy, and when roads were two lane, not six to eight, and driving twenty minutes put one within reach of any number of massive retailers, or a click of the computer enter key bought goods and services over ebay or any number of online retailers with delivery within  day, at a better price and greater savings.

The city continues to fail in its economic development efforts. One may argue as to why on many fronts, inclusive of personnel, strategy, effort, and tax policies. One thing is clear: it is not working.

The city speaks of the need to keep the framework of certain historic buildings, while destroying others. AK Steel offered the city its building and statute of its founder. The city's response? No thanks. History is vital to the city and its residents? If that be the case, the cities efforts of playing dodge ball on the vault restoration runs in contradiction to such premise. What has PAC generated? Anyone have accumulated tax return information on its net contribution? One assumes it is inevitable that PAC has been a net negative investment, other than supplanting the Manchester's ballroom so a few hundred residents could mingle once a quarter for a ball or other event.

So what is the motivation for this new found focus upon downtown? Once, the east end was the shing star on the hill; today, it is downtown. Is Cincinnati State the winner, the Phoenix rising from the ashes that is to turn Middletown around? Well, lets evaluate the batting average. One building being used out of five bought by the city and millions spent, is a .200 batting average. In baseball or private equity, that would put you back in the minor leagues riding the bus, and a substitution position playing right field when the starting rotation had most of its players out with sprained ankles. So why spend the money?

By my count, the city of Middletown and its efforts at downtown restoration is Downtown Middletown Version 6.0. You know the litany of failures over the years. Is a few hundred two year community students going to save Middletown? I hardly think so. But then again, it might help Main Street. 

Middletown has the buildings waiting on Cinncinati State's success. The problem is---when you are batting .200, there aren't too many in the stands attending the ball game when the team has a record of losing year after year. What will the batting average be in five years? I wagered .100 on my bet with my Vegas agent, odds 100/1 in my favor. When the Sorg Opera house is added, the battling average drops to .167, enough to yank the minor league player back to knot hole coaching.  Reaching The Show just isn't possible for Middletown, even with its new lineup of council members.

And so it goes. Good night, and good luck.  

http://www.youtube.com/watch?v=TBUS3vQtDCA     



   

Here's some batting tips to raise the batting average above .176.

1) Realize HOPE is not an ACCOMPLISHMENT, unless running Barack Obama's 2008 Presidential campaign.

2) Re-write the entire PLAN. The focus is all on east end in 2005. Why th MMF given $75,000 for a DOWNTOWN project?

3) Recognize a slogan of 'OPEN FOR BUSINESS" DOES NOT attract business. Low taxes, great leadership, educated workforce, and market demand does. Perhaps sign ordinances should be aligned with the OFB strategy?

4) Don't worry about re-branding, and quit waffling from east end to downtown. KNOW your targeted area, ergo- SWOT.

"INTEREST in east end does not translate into SUCCESS.

5) Pull out the GPS- downtown is not considered east end development within the Master Plan.

6) More public support from citizens AND Chamber of Commerce.

7) Actually implement regionalized concepts, just don't speak about them

8) Put a little cash away for streets and infrastructure.

9) Have the private joint partners put some skin (ergo CASH $$$) in the game instead of "yes" and neutral advisory partners. No money in, no benefit out.

Do this, an batting average raises to .200, but an improvement. 

Three strikes and you out. Strike two, two outs, bottom of ninth, and you Middletown, are behind.

MIDDLETOWN MOVING FORWARD, INC
•  The Non Profit ORC 1702 Middletown Moving Forward, Inc.
•  Purpose for which the corporation is formed:
   To advance, encourage and promote the industrial,  economic, commercial and civic development
    of the City of Middletown and the greater area
•  paperwork was signed by City Manager, Bill Becker May 31, 2005.
•  Initial Directors: Allen McCoy, Doug McNeil, Ken Cohen
•  Leslie Landen is listed as Statutory Agent signed May 31, 2005
•  J Kenneth Blackwell signed paperwork June 7, 2005

I received an email from Denise Hamet stating that Les Landen believes that MMF has met the requirements to be a CIC

However the paperwork that I received from Denise Hamet only proves that Middletown Moving Forward Inc is a NFP with the purpose of acting like or pretending to be a CIC. However that does not make them a legal CIC.
Once again I will state that as of this date Middletown Moving Forward Inc. is not registered as a CIC in the Auditors Office State of Ohio .

So at this point I would suggest that you email your city council person and request that Mr Landen explain and show proof that MMF is in fact a legal CIC in the State of Ohio at the next City Council Meeting. He also needs to explain why MMF is not registered with the Auditors Office State of Ohio.

Once again this whole "are they or are they not" boils down to what acclaro calls "a low batting average". It really seems that it's not about "development" but control. Look at the statements made by the mayor and others. They bought the buildings downtown not to develop but to control what is developed. The stated goals and the public statements just don't seem to match up very well, not to mention that east end development stalled once the recession of 2008 hit. What really is unnerving to me is that we seem to be going down the same "half-a**" road that has been traveled before. The laws concerning CIC's seems pretty straightforward; why has the paperwork not been filed and if it has, where is it? Where's the annual financial report that shows where and how the $10k was raised. I stated once before that if MMF could only raise $10k in a 6 year period, they'd have been better off panhandling!!! A dishevelled look, a sign and a tin cup standing at an intersection would have generated more than $10k in 6 years time!!!

I'm not sure the question should be is MMF an effective organization; it should be are they a LEGAL organization and why did our city council give them $75k so they can decide the fate of a 120 year old building? If they can't follow the law, what makes them responsible enough to decide the "cost-effectiveness" of rehabbing a building that none of them have any expertise in. They may be batting below the Mendoza line but they certainly have generated one Major League clusterf***!!!

 I understand it, the city filed under ORC 1702 under Articles of Incorporation, required for any NFP. That filing is recorded and on file at the State Secretary's office. Under ORC 1724, as I understand it to be, there is no record of any annual reports, there is no record of any name in the records that MMF is a CIC with the state auditor's office.

A more important question is, since every community improvement corporation “shall prepare an annual financial report” (ORC 1724.05) and since “The financial report shall be filed with the auditor of state within one hundred twenty days following the last day of the corporation’s fiscal year” (ORC 1724.05), and since “If any community improvement corporation fails to prepare…and to file that report…All of the rights, privileges, and franchises conferred upon that community improvement corporation by those articles of incorporation then shall cease” (ORC 1724.06); and since there is no record of MMF ever having filed an annual financial report, then hasn’t MMF ceased to exist???

And let’s not forget Law Director Landen’s pious speech regarding his obligation to keep council on the “straight and narrow” a few months ago.  No doubt he will be advising council on this matter soon.

A call to the Statehouse in Columbus to ask questions, get clarification and fill them in on the details from this forum perhaps? Worth the time or not?

Bobbie,

No one from council will admit to an error. That would be akin to "I don't know what I'm doing". Can't see anyone on the current council who would make such an admission!!! Someone dropped the ball here so it sounds like a "team" error!!! It seems that they need to be demoted to a lower league but I'm not sure there's a league below this one!!! This would be hilarious if it weren't for the fact that they are doing more damage to a city that simply can't afford any more damages!!!

acclaro,

I just don't see how they can say they never did anything. They have a web site. They've had meetings. They raised money. To make such an admission begs the question, what the hell have you been doing? Why are we giving you $75k if you've done nothing for which you were tasked? Once again, smoke and mirrors and hope that no one calls them on such bulls***!

Gentlemen
If you did not work last year and therefore had no income…don’t you still need to file city, state and federal tax returns stating this fact?
So why has the City not filed the CIC Annual Reports with the State Auditors Office?

House cleaning complete.

Isn't MMF and the city leaders alot like Downton Abbey? For those that don't watch the BBC, Downton Abbey is a remake in some respects of the classic Upstairs/ Downstairs of Victorian aristocracy in the late 1800's early 1900's pre WWI in Great Britain. That is what Donham 1 reminds me of---Downton Abbey, the downstairs aids and servants taking care to keep the upkeep impeccably for the Upstairs aristocrats.

When reading Vivian Moon's quite comprehensive posting of MMF's documentation, many peculiarities came to mind. Under Exhibit A-2, it states MMF shall use its reasonable efforts to develop and maintain the means of raising funds, including capital, for the city to borrow. That is encapsulated within Articles I, II, and III in the documentation.

Is it not peculiar that MMF is to raise money for the city, but the city INSTEAD has $75,000 to give MMF? Role reversal.

And for any property or asset the city provides MMF, that MMF invests, imrpoves, and sells, MMF can recoup its expenses and then the city makes the difference. Isn't that defeating the premise of the concept of a non profit, for which MMF sells property for a capital gain, which the city makes a margin and profit? How does such practice lend itself to a NFP? That reference is under section (i) on Exhibit A-5.

Upstairs/ Downstairs and Downton Abbey. Whatever one wishes to call it, aristocratic society and "upkeep" seems to be maintained by MMF as an entity and the rather startling contradictions contained within the ordinance which was the basis for the Articles contained in Ms. Moon's comprehensive documentation.

Also, is there a list of inventory of targeted assets MMF has on a website as is referenced within the ordinance and did they file with the state AG so they could do legal fund raising?

I remain amazed at these constant EMERGENCY ORDINANCES which are brought forth and passed. This one is documented as well. Why was it an emergency when MMF stated it had just raised $10,000 over 6 years, and some speculate that was a grant. Why was this an emergency if it did nothing to advance the city of Middletown in 6 years. Is there ever a point when council DOESN'T deem a vote a NON EMERGENCY? Apparently not, unless this was and emergency for acquiring property for Neyer, which would be accounted within MMF's annual report.

http://www.youtube.com/watch?v=yoe3CoxcYm0 

   

 

look around yourselves, and to your surroundings

This council and the ones before it abuse the city charter on a regular basis with their "emergency" ordinances. Its only because they don't want to have a first reading and then vote. Takes up too much precious time from all the other important work they have to do!!! (Yeah, right!)

The purpose of MMF was never just economic development; they've done other things that weren't part of their charter. The real point in all of this is that they have not followed the law and they are not a legal entity. When will the State of Ohio take this matter to task? This is really becoming more than just an "oversight" on the part of city administration. This is a clear violation of the law and dereliction of duty by city council if they don't immediately rescind the $75k!!!