George Voinovich was a very
selective conservative. That
made him also a very selective
"moderate" Republican.
My experience with Voinovich tells
me he used his
ethnic background to represent
wealth in the community and in the
nation. He successfully
portrayed himself as personally
frugal and the image
carried him a
long way.
I once told an audience that
Voinovich would never be Governor
because people saw him as a Mayor,
nothing more. I was
obviously very wrong.
Voinovich campaigned often
riding on a bicycle with his
wife, Janet, alongside. It
gave him the image he sought – a
regular person just like you and
me.
His political success showed
that he was a shrewd politician.
He received only the most
praiseworthy assessments by the
news media. It was a key
to his reputation of a humble
servant of the people.
Even along with the announcement
that he will retire, the
Plain Dealer ran another
article headlined... “$1
trillion recovery plan rattles
Voinovich.”
It hit the theme once again of
Voinovich as the careful
guardian of public money.
A custodian who could be
trusted.
It’s very hard to ever find an
uncomplimentary portrayal
of Voinovich in the Plain
Dealer, which after all sets
the pattern of media appraisal
of politicians and thus their
reputation here.
Back as far as 1974, I looked at
Voinovich’s contributors and
found that he was the favorite
of the wealthiest of Cleveland’s
business community. At the
time Voinovich had succeeded
Ralph Perk as Cuyahoga County
Auditor.
Voinovich's biggest contributors
were the elite of the area.
The Smith brothers – Kent,
Kelvin and Vincent of Lubrizol –
were big contributors.
They owned some $115 million in
Lubrizol stock at the time.
Kent and Kelvin gave $1,000
contributions and Vincent $100
to Voinovich.
It was by chance that a young
employee at the Auditor’s office
inadvertently showed me Kelvin
Smith’s 1972 filing of
intangible personal taxes (since
eliminated) of $92,000 with a
tax of some $3,000. It was
clear that Smith had far larger
holdings.
That’s where it is so important
for wealthy people to have a
“friend” in high places.
I noted at that time also that
other contributors to Voinovich
got favorable treatment, not
necessarily at Voinovich’s
direction. The method is
much more opaque. The
politician supported by wealth
doesn’t look for ways to make
the rich pay their share.
Indeed, their view takes an
opposite gander.
For example, the late Maxine
Levin (she of the Levin School
of Urban Affairs at Cleveland
State University), a Voinovich
contributor, had the assessment
of her home cut from $325,000 to
$225,000 then sold the home to
promoter Nick Mileti for
$500,000. Similarly,
contributor James D. Ireland of
Cleveland Cliffs Iron, another
wealthy Clevelander, then
director also of First Union
Realty, owner of the Union
Commerce Building (now
Huntington Bank building)
enjoyed a $230,000 tax reduction
on the building.
Older Cleveland watchers will
recognize other major Voinovich
contributors of the time...
David Ingalls, George Herzog, H.
Stuart Harrison, Raymond
Armington, John Dwyer and John
Sherwin.
These men were the cream of
Cleveland’s former wealth.
I wrote at that time...
“Voinovich is solidly a
captive of corporate
Cleveland. Willingly too.”
Voinovich was the perfect
antidote to Dennis Kucinich for
the business community in 1979.
Voinovich revealed his
politically careful self at
first, avoiding tax abatements
and strongly backing Muny Light
by continuing a historic
anti-trust legal case against
CEI, one pursued by Kucinich.
Kucinich, though damaged and
defeated, had invigorated an
anti-corporate constituency in
Cleveland. Voinovich was
careful not to antagonize that
constituency.
At least for a time.
However, it didn’t last too
long.
By the mid-1980s, Voinovich was
preparing for a renewal of
abatements for downtown offices
and housing and even industrial
sites. And under President
Ronald Reagan, Voinovich became
a favorite recipient of huge
urban action grants
that could be given to favorite
corporate entities.
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 Forest City's
Tower City. 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,
which also got a 100% tax
abatement.
Voinovich hired his old law
firm, Calfee, Halter & Griswold,
to bargain with Dick Jacobs on
tax abatements. The
result... a $110 million
tax abatement for his Public
Square development (now Key
Center). In addition,
there were UDAGs of $10 million
and $7 million for Jacobs.
All sweet 20-year deals,
including a garage beneath Mall
A, on city property.
The Mall
garage got tied up in a
lawsuit. Voinovich hired
his old law firm,
Calfee-Halter at a cost of
$443,000.
Oh, yes, the PD continued to
label Voinovich a conservative
and tight with the public’s
money. No FBI
investigations here.
Voinovich continued this liberal
attitude with the city’s money
by adding the same deal for
another Public Square building
complex – office structure and
hotel – that was never
consummated as the office market
here deflated. However,
Voinovich offered the same
sugary deal of 20-year
multimillion dollar UDAGs, no
interest and tax abatements
worth in the hundred-million
dollar range.
Jacobs brought the architectural
model for the complex to th
e
city in a black
plastic bag and refused pleas
from Council members for some
give-back for the neighborhoods
in exchange for the
multi-million dollar gifts.
He said no. They said yes.
Jacobs walked away with the
garbage bag and a $100 million
deal.
Finally – in likely the most
lucrative gift to Jacobs –
Voinovich (Cleveland City
Council President George Forbes,
of course, was his partner in
all these moves) allowed Jacobs
into the deal for Chagrin
Highlands. Jacobs now is
the managing partner in the real
estate deal on city land in
various East Side suburbs.
The land has been called by one
assessor the richest developable
land between New York City and
Chicago. As Governor,
Voinovich helped make the deal
more lucrative with some $138
million in road improvements on
I-271.
You
might have noticed that Eaton
Corp. recently elected to
escape downtown Cleveland for
those open spaces the city
gave up in the Chagrin Road
office area.
Voinovich, who personally can be
a pleasing person, politically
was just as much a shark as most
politicians... and more deadly
because he was seen as a man of
the people, not a politician.
One day, I walked into the inner
offices of his chief aide and
saw what I shouldn’t see.
He had his secretaries stuffing
envelopes with Voinovich
campaign material for a mailing.
I reported this chicanery.
The result... gates were
put up so that no one could
surprise Voinovich employees
again. Benny Bonanno went
to jail for using
his office –
more actively, I’d say, but
nonetheless as a campaign
center.
No one else followed up on this
because Voinovich’s reputation
was that he was a clean
politician, clean as they come.
Voinovich can retire with his
rep intact. He can also
avoid a defeat, as Ohio changes
from a very conservative state
to one that desperately needs
reform... reform that goes
beyond a fiscal responsibility
that equates with corporate
desires.