This is important reading regarding our Port Authority. To reduce the size of the post, I have eliminated addresses.  I have tried to reproduce Ed's "bolds" etc. but when you move things around, these sorts of emphases tend to disappear.  Anyhow, we should be glad that Ed is keeping a watchful eye on the Port for us, because they need "supervision".  As Tim Ferris says, we can't go about our own business because we have to babysit our government(didn't you say something like this, Tim?) The new Ohio government ought to reapply sunshine laws to all of Ohio's Port Authorities. If what they are doing is good for us, then  what is the problem with our knowing the details?

       January 25, 2007

To:  Honorable Board of Cuyahoga County Commissioners  
From:  Ed Hauser

Dear Honorable Board of Cuyahoga County Commissioners:

I respectfully request the county commissioners to appoint a person with Great Lakes maritime shipping credentials to the Cleveland-Cuyahoga County Port Authority Board of Directors.  There are not any board members with Great Lakes maritime shipping credentials.  Cuyahoga County and the city of Cleveland created the Port Authority primarily for maritime shipping and there needs to be representation on the board.

I respectfully request the county commissioners reestablish negotiations with the city of Cleveland to balance the number of Port Authority board member appointments.  The county residents pay a much larger portion of Port Authority taxes than city residents.  All of the Port Authority owned properties used for maritime purposes were purchased with county tax dollars.

I respectfully request the county commissioners to adopt a resolution requesting Ohio legislators to amend the Ohio Revised Code requiring board members of Ohio's port authorities to file Disclosure Statements with the Ohio Ethic Commission.  Ohio's port authorities are included under Ohio Ethics Law.  However, it's absurd that appointed board members of Ohio's port authorities do not have to file financial disclosure statements with the Ohio Ethics Commission.  Port Authority boards have the power to use eminent domain and issue bonds for millions of dollars for private and public projects.

I respectfully request the county commissioners to have the Port Authority reinstate provisions for preparing future development plans and conducting public hearings to gather comments for those plans.
In September 2003, the Port Authority adopted the provisions for preparing future plans and holding public hearings that were repealed from the Ohio Revised Code.  In January 2005, the Port Authority deleted those provisions from its Rules & Regulations.  In March 2007, the Port Authority plans to release its $900,000 Port Relocation Study without the provision to conduct a public hearing to gather comments for a study the taxpayers paid for.  The Port Authority's behavior regarding this matter is unacceptable.

I respectfully request the county commissioners not to reappoint Chairman John Carney when his term expires.  A recent Plain Dealer article (1/21/07) raised significant questions about Chairman Carney's potential conflicts of interest.  After inspecting the Port Authority's public records, I believe there may be potential conflicts of interest between Chairman Carney and developers.  I am providing my findings in a timeline below:

01/12/06- "Moving port is key to plans" (Westside Sun News, Ken Prendergast)·
        Carney begins to introduce Stark to the Port Board by recommending him to develop eastside Port property.
        Carney says the port authority, which finances new development projects, can play a direct role in making Stark's plans a reality.  Carney, Stark's partner in the $20 million Crocker Park "lifestyle center" in Westlake, has introduced Stark to the rest of the port authority board as well as to other downtown developers.
         Carney acknowledges his partnership with Stark puts limitations on what he can do officially as port board chairman.  When Starks was looking for a port authority to help finance the construction of parking decks at Crocker Park, he turned to the Toledo-Lucas County Port Authority to avoid conflict of interest.
         "Because he's a partner with me, I wouldn't be able to be involved with any dealings with him," he said.  "What I'm doing at this point is to put my do-gooder hat on in making introductions…"
          "We will work with Bob Stark and the city to accomplish this sooner rather than later," Carney pledged.

04/20/06- Port Relocation Study - Request for Qualifications (RFQ):
·         Carney recommended Stark three months before the Port Authority released a RFQ for the future development study.
·         Carney is a partner in the ownership of the Water Street Apartments located in the area stated below.
            "…Define potential use of existing Port Authority east side property and determine if more vigorous re-use of the property could be created by encouraging increased density between the existing Warehouse District  and Port Authority property by the physical connection (between West 3rd and West 9th streets) of the two areas and provide a conceptual plan and cost estimate…"

05/24/06- "Developer Pitches Warehouse Plan" (Plain Dealer, Christopher Montgomery)
·         Carney travels to Las Vegas on Port Authority business for a developer's convention from May 21-23, 2006.
           Asher said he thinks it has helped that he and Carney have attended many of the meetings… "I think it brings a lot of confidence and cohesiveness to the plan," Asher said.  "Retailers can look at us and know that we wouldn't be spending our time on this unless we thought it was worthwhile."  Carney said he is there to assure retailers that the Port Authority board has considered Stark's plan and is "working with him to achieve it."

07/06/06- Carney turns in expense report for the Las Vegas Trip
·         Carney turns in a hotel reservation form for a room booked by James Stark, no receipt of payment only a hand typed bill totaling $1,126.19 for a three night stay at "THEhotel at Mandalay Bay."

09/08/06- Port Authority Board Meeting Minutes
·         Hauser Public Comments- "He closed by saying he believes that John Carney has a conflict of interest between his role as board chairman and his relationship with developer Bob Stark."
·         "Director Wager commented that he believes that Chairman Carney has shown an excess of caution regarding his role on the Port Authority board and his professional associations, and has recused himself in discussions with multiple developers.  Director Wager stated that he believes that any suggestion to the contrary is false."
·         No public record of any Port Authority board members meeting with any developers for eastside properties. 

09/15/06- Memo from Carney to President Failor
·         "Per our conversation, The Mandalay Bay hotel receipt attached to my expense report dated July 6th, contains James Starks' name because the Stark organization handled the reservations on my behalf.  Please be advised that the sole occupants of the room were myself and my wife.  These charges were paid by me and are reimbursable in full to me."

09/19/06- Carney is reimbursed for his Las Vegas trip expenses without showing proof of payment for the hotel

10/24/06- Carney finally writes a check to Crocker Park LLC to reimburse Stark Enterprises for the hotel room
·         "The borrower, Crocker Park Delaware LLC, is a joint venture between prominent Cleveland developer Robert L. Stark and members of the Carney Family." (Quoted from a Prudential Financial- News Release 12/20/05)

Please take the time to read Cool Cleveland's  contributor Roldo Bartimole
here:

http://www.coolcleveland.com/index.php?n=Main.RoldoLinkJacksonsBoilerplate 

Mr. Bartimole's perspective captures my sentiment in this blog posting – the public corruption isn’t all “illegal”, but our past “leadership’s” deals are clearly detrimental to the public and will continue to drag the area under for years to come.

Under the false guise of public benefit, private individuals are destroying the civic fabric by taking scarce public capital and lining their private pockets.  The wealthy socialize the costs of their projects by taking or "borrowing" from the individual taxpayer, while the poverty stricken taxpayer in NEO is forced to  competitively survive in the "free enterprise" system. 

Roldo Bartimole itemizes the millions and millions of dollars that have been sucked out of Cleveland by the area's well heeled developers and land owners and phony sports franchises.  No wonder Cleveland is on its shaky knees headed to the ground while it is being plundered.      Mr. Bartimole's  list of PUBLIC OFFICIAL’S SELF DEALING, MIS-MANAGEMENT, AND CORRUPTION should enrage the taxpayer, but after 40 years of spiraling downward, the public doesn't seem to be aware they are being robbed.  Besides Mr. Mulready, who publishes Cool Cleveland.com, who else will raise their voice and ire?

On John Carney's conflict of interest (See On John Carney's conflict of interest on the Port Authority here) After following how the Port Authority operates for over eight years, I find that this tax supported public agency needs to open up to public scrutiny and let the "sunshine" in. This appointed board- filled with developers, lawyers and business people (maritime interests not represented) - has and uses the power of eminent domain, and has issued revenue bonds totaling $1.4 billion for private and public projects. Ohio's port authorities fall under Ohio's ethics law, but board members don't need to file financial disclosure statements- absurd!    I believe that the Plain Dealer articles raised significant questions of conflict along with my findings that were submitted to the county commissioners, to warrant an investigation by the Ohio Ethics Commission. It's the OEC's duty to determine if there are any violations. I requested the county commissioners NOT to reappoint John Carney until these issues are resolved.
from Cool Cleveland reader Ed Hauser
 http://realneo.us/Ed-Hausers-Public-Records-Request ejhauserATameritech.net 

The port and purity             The Cleveland-Cuyahoga County Port Authority was created almost 40 years ago to manage maritime operations at the region's major port. It has since morphed into an economic development financing body with a hand in community projects totaling $1.4 billion.             In fact, port-issued revenue bonds now also finance projects in Geauga, Lake, Medina, Summit and Jackson counties. A nine-member board paid for with public money approved those ambitious plans.             Some critics have complained that port projects get tangled with the interests of board members, including developer and board Chairman John Carney, who is awaiting reappointment.             It doesn't appear Carney knowingly did anything wrong, but the board should adopt some clear rules that deal with situations in which board members have even an indirect stake in port-financed projects. Members should not vote in those instances.             Also needed is an extra layer of transparency - full disclosure of any such interests. That would only improve the board's credibility and help the public sniff out damaging conflicts. 

John Carney's conflict of interest on Port Authority He wants to be reappointed chairman of the board of the powerful Cleveland-Cuyahoga County Port Authority, which answers to no one and can float its own bonds, raise millions in public money, and give that money to whomever it pleases. They can also institute eminent domain proceedings, as they've done to assist developer Scott Wolstein's East Bank Flats project. Since Carney holds significant DT property impacted by the Port's decisions, and he co-developed Crocker Park with developer Bob Stark, whose Warehouse District plans would impact Carney's land and Port operations themselves, many feel he should have recused himself because of conflict of interest. Read. And why aren't the Port's board members required to disclose their financial interests? Read. And why just this week does the PD publish an accompanying story that Carney announced in April 2006 he would no longer vote on Flats issues. Read.   The County Commissioners will vote on whether to reappoint Carney this month, and even they are conflicted: Carney is Commissioner Tim Hagan's former brother-in-law. You may want to send your thoughts to the commissioners: Peter Lawson Jones: CNPLJ [at] cuyahogacounty [dot] us, Tim Hagan: cntfh [at] cuyahogacounty [dot] us, and Jimmy Dimora: CNJCD [at] cuyahogacounty [dot] us.

Disrupt IT