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January 14, 2009
Voinovich Was Free and Easy With Public Money
The Cleveland Leader
by Roldo Bartimole
Forest City Enterprises' affinity for the public purse figures in a story on Ohio Senator and former Cleveland Mayor George Voinovich, who announced recently that he would not seek re-election in 2010.
Halle’s was one of the first, a $7-million UDAG (Urban Development Action Grant) for Forest City Enterprises. It was sold by Voinovich’s executives as a deal that would earn the city profits. None ever came, unless your name was Voinovich.
One Voinovich brother got the contract as leasing agent; another a deal at Tower City [NLG: Tower City is a large Forest City development in downtown Cleveland]. As an example of how profitable it could be, Victor Voinovich got $84,000 in commissions as the leasing agent for one Halle’s occupant - Climaco, Climaco, Seminatore & Leftkowitz, as it was known then. (If anyone wants a rundown - rich in detail - it’s available in Point of View, Vol. 19, # 16.)
Forest City got into the UDAG business full-time and came away with millions of dollars in free money. Voinovich fashioned most UDAGs at no interest with principal payable at the end of the loan, usually 20 years out. A sweeter, more profitable deal could not be made by any business. UDAGs were given to a number of Tower City projects, including the Ritz-Carleton [sic], which also got 100 percent tax abatement.
Posted by eric at January 14, 2009 9:43 AM