Massive Cri­­­minal Enterprise - CDCs are inherently corrupt -pass through Fed monies to Developers

Somewhere­­­­­ along the way, many of us at REALNEO, became aware of a real estate scheme that was hatched many years ago-using OPM-other people's money. For anyone, who might tune into REALNEO and write-off or marginalize the content here, please take a minute to review my personal history, which has led me to the conclusion that there is a massive criminal enterprise at work here.

 

My own experience starts in 1992 when I returned to Cleveland after graduate studies in landscape architecture.  I chose to live in Tremont because I could afford the rent at the time and it was close to the Metroparks where I worked part-time in planning.  I also waited tables to earn the bulk of my income. I became aware of the local community development corporation through my neighbor, who worked as a community organizer, where he had volunteered me for a garden project.  My neighbor would later be canned by that CDC – Tremont West.  And, I would start working there as a contract employee – to help organize their databases and apply for grants (backstory – CDCs did not exist until the Community Reinvestment Act of 1977-which began the process of allowing federal dollars-OPM- to flow into CLE).  Much of Tremont was already cleared for redevelopment by arson [1]- and the City of Cleveland assembled these plots along W. 7th especially - through the City of Cleveland Land Bank (engineered by Frangos) - Progressive Urban Real Estate with Keith Brown and Mike McBride began promotion of a project that was to connect Tremont with the National Park - the Tremont Ridge Project - for new housing designed by City Architecture.

 

Tremont West, at that point, was slated to be absorbed by a larger entity planned to consolidate – Tremont, Clark Metro, Archwood Denison (Brooklyn Centre) to be called Southwest Development Corporation.  Gus Frangos was the councilman and then he appointed his aide’s husband, Gary Paulenske (Gary Paulenske was also later hired by Gus Frangos to serve on Board of Revision). At TWDC, I was hired by Emily Lipovan.  I worked there and was impressed with Emily’s ability to fundraise for the organization.  She also foiled the attempt to strip down Tremont West with consolidation - instead, the CDC mushroomed, as development heated up in the neighborhood. [2]

 

At the time, the CDC depended on funding from Frangos, then Paulenske and Nelson Cintron. Nelson became vilified because he pulled some of his TWDC funding.  I didn’t understand all of the dynamics then, but realized later that the council person drives the CDC in their wards.  I was aware at the time that there was an influence from Gus Frangos –and Jim Rokakis with their proposal for a Greektown in Cleveland in the vicinity of Annunciation Church.  At the time, there was still a small Greek presence in the neighborhood with remnant immigrant residents near the church, a coffee shop and a Greek restaurant where Parallax is now.  Also, Jim Alex ran the much despised asphalt plant in the Flats and residents protested the fumes. 

 

1993-While at TWDC, I quit my Metroparks job and decided to take on some hours working part-time as a sub at Cleveland Public Library.  I later applied to an opening at a non-profit called the Cuyahoga Remedial Action Plan – housed at the Northeast Ohio Areawide Coordinating Agency.

 

1995/1996- Tremont began to get “hot’ in the real estate market – mostly w/restaurants that appealed to folks who did not live in the neighborhood.  Edison’s was one of the first to take off as a destination for 20-30 year old crowd, later Bohemia helped with the revitalization, but also brought drug scene to the neighborhood.  Miracle’s was around in 80s when I worked at Metro and still in the neighborhood when I came back in 1992, Dempsey’s and the various ethnic hangouts still catered to families who worked in the flats and for LTV.­­­­  My landlord Dave Perkowski and his brother  built up a sizeable real estate inventory of rental properties.  [3] Several other investors in the neighborhood made out w/rentals to the growing demand for housing for 20-30 year olds.  It continues to this day – with appeal of Lincoln Park, especially.

 

1997-After my stint at TWDC as an employee – I was asked by Emily Lipovan to serve on the board and I ran and was elected.  This became an unbearable situation, as Emily did not like me asking too many questions on the operation of the organization.  I was especially disturbed when TWDC began to negotiate transfer of a property on Tremont Ave. to a property owner who was delinquent in taxes on properties throughout the city.  The more I asked for records and accountability – the more I became ostracized and it culminated in an attack session at one board meeting.  I resigned.  But, I was very much aware then that some dirty deals were occurring – and that I was lucky to get away from the machinations on that board.

 

So – I gave up working with neighborhood groups until I bought a house in the Brooklyn Centre neighborhood in 1999.  By then, I had quit the non-profit job in lieu of a more stable and rewarding library career.  I managed to avoid politics until 2006 when my old nemesis Emily Lipovan became installed in my neighborhood as the council person, appointed by Merle Gordon, who had been appointed by Jim Rokakis.  Emily was so schooled in the “game” that I did not want her as my rep – in hind sight – I may have been better off if she was made our council rep, but then I thought Brian Cummins was a more “honest” person.  Nelson Cintron’s aide Rick Nagin also  got into the race – and this caused a change up in the council dynamics – as Nelson hired Rick’s wife and then lost his seat in the election to Joe Santiago – an openly gay council rep who was close friends with Emily Lipovan and Rosemary Vinci. [4]

 

Also, at this time, I became incensed to learn that the local arts organization Art House, headed up by Merle Gordon’s friend Sheryl Hoffman – had determined that they would demolish the historic Wirth House.  Community development corporation dollars were used to purchase this property in 1999. [5] I used the forum I had started at REALNEO to complain about the dirty dealings involving federal monies.  I was grateful that Norm Roulet had started the site REALNEO – it seemed like a forward idea at the time and I continue to think his efforts were stymied in Northeast Ohio, because Norm Roulet did try to usher in government accountability. I initiated Section 106 process and through efforts of several people, we were able to keep the organization from demolishing the property using the public monies allocated through Old Brooklyn Development Corporation (while Cummins was CDC Directory and Gordon was Council Rep).   The election between Emily Lipovan and Brian Cummins – was an upset w/Brian winning.  Emily was appointed to Council clerk position and she later filed a harassment complaint against Martin Sweeney.  Sheryl Hoffman and her husband Abe Bruckman (shuffled between CDCs - OBDC board, Clark-Metro, Ohio City) were able to sell their house to HUD for an inflated amount - during the housing crisis - while other properties languished and were flipped to LLCs. [6]

 

As Brian took office – I was at first impressed by his commitment and mainly impressed by the energy of his assistant and her husband.  The Hamms – Johanna and Darren – did many good things including helping seniors paint their homes and organizing the CSA drive and sale of fresh farm items.  The first term was hopeful – even as the housing bubble burst and foreclosures became evident.

 

Demolitions started occurring and this is where I became suspicious of the history of this practice given the chain of council persons in my ward – from Rokakis, Gordon to Lipovan- and then Brian Cummins.  Johanna Hamm started to become very strange when I would question her on the mystery demos occurring in my neighborhood starting with a house on Riverside Av [7]e.  She and her husband also championed the development of NRP housing on Denison [8]– this even after she knew of the failed history of proposals and environmental concerns on that site under Rokakis and under Merle Gordon. This has now mushroomed to the condemnation of our neighborhood public park - WC Reed Field. [9]

 

The most significant demo to occur during this time – 2008 – was the demolition of Frank Giglio’s house in Tremont. [10]  I knew Frank Giglio peripherally through my time in Tremont and I knew he was different – but I did not feel it was right for government to strip him of his home. I sensed an injustice and this is what aligned me with Lily Miller and Angel In Ward 14 – aka Dianna Hill, who also began to write up her experiences in my ward.  The demolition of shoddy Aberdeen Homes begun under Rokakis-Gordon also raised a major ­­flag on the operations of Building and Housing Development [11]and forgiveness of liens for demolitons.  Shady building inspectors were also being exposed at this time, includingd Richard Huberty, who  condemned Frank Giglio's property. [12]

 

Brian Cummins had to run again in 2010 -this time with a redistricted ward that pitted him against  Joe Santiago .  In the primary – Joe Santiago [13] was eliminated and Brian barely squeezed a victory pitted against Rick Nagin.  This evidently pushed Brian over to the dark side as he did not really bother anymore to conceal some level of collaboration with Jim Rokakis – appearing with his aide when the then treasurer appeared at the City Club. [14]  I did not know it at the time – but Dianna and Lily both had experience in my neighborhood with politics under Nelson Cintron and Rick Nagin. We all started following the information being published in the Plain Dealer regarding the Dimora-Russo investigation, the Board of Revision, and formation of the Land Bank.  Many comments published at this time - revealed a pattern of civil rights issues with tax lien sales- I archived comments - about the practice in East Cleveland. The PD deleted these comments, but I later confirmed that former Mayor Eric Brewer posted this information. [14]

 

Dianna had extensive real estate knowledge and Lily had extensive legal experience and an understanding  of the Housing Court system. We all began to suspect more than the corruption revealed by the Russo and Dimora investigation.  Valuations at Board of Revision were starting to become suspicious and there was some investigation by the Plain Dealer, but that abruptly stopped as FBI closed in on Dimora and Russo.  Sale of property tax liens, including sale of Frank Giglio’s property led Lily Miller to investigate exclusive sale of tax liens by Cuyahoga County to Plymouth Park Tax Services.

These liens and whole practice had been initiated by then treasurer Jim Rokakis and then deputy-treasurer Gus Frangos, who also headed up the Board of Revision.  Why this never raised a red flag in the PD investigation seemed very odd to say the least. Especially, as many “developers” under Rokakis/Frangos were left alone to accumulate massive tax lien debts – later revealed by the FitzGerald administration as the “Dirty Dozen” of tax scofflaws.  Recently, the sale of tax liens has been scrutinized by the Washington Post – offering some validity to my suspicions as the story relied heavily on the research provided by REALNEO’s Lily Miller [15].

Creation of the Land Bank has only allowed this massive criminal enterprise to continue – the acquisition and dealing of properties with past liens “wited” out – just as the evaluations were manipulated under Frangos while he served as deputy treasurer.  HUD monies are a factor as many of the properties acquired through tax lien sales have been rented out to Section 8.  The obvious beneficiaries of this massive criminal enterprise include Forest City and Safeguard properties.  So that is where I am in this story.  I continue to believe that collusion has played a part in the set up of this massive real estate scheme.