Tuesday, November 14, 2006

3CDC’s Wholly Owned Subsidiary:  Fountain Square, LLC

Posted by The Dean of Cincinnati

3CDC is a non-profit charitable organization organized as a 501(c)(3).  According to their 2005 IRS 990s (available to view with a free account at GuideStar), 3CDC owns 100% interests in a subsidiary known as Fountain Square, LLC (page 19 of the 990 form).  The 990 lists the end-of-year assets for 2005 in regard to Fountain Square, LLC at close to 1.5 million dollars.  A quick check at the Secretary of State sites shows none other than Stephen Leeper as the signing agent for the company’s articles of incorporation.  What’s going on here?

Fountain Square, LLC is also registered as a 501(c)(3).  On the surface, it seems strange that 3CDC—a charitable non-profit—would wholly own a subsidiary that is also a charitable non-profit.  The Fountain Square, LLC articles of incorporation specify there is only one member to the corporation, and that is 3CDC.  The way the thing is written, 3CDC can, at any time, decide to dissolve this FSQ, LLC, and all of its assets will become the property of 3CDC.

Looks like a way to move lots of money and other assets around.

Also, 3CDC is related to yet another non-profit called OTR Holdings, Inc.  Naturally, Stephen Leeper is listed as the president of that company, too.

OTR Holdings, Inc is a 501(c)(2), the purpose of which is to purchase real estate while giving the profits to 3CDC.

While all of these corporations are non-profits—meaning the corporation itself cannot profit—certainly the individuals working for them can earn “reasonable” income (though the definition of “reasonable” may be widely open to interpretation).  We’ve already seen the name Stephen Leeper come up three times.  I wonder how many other individuals get to work for all these companies?  How many people get paid “reasonable” incomes due to their simultaneous work for three interrelated non-profits?  And what, exactly, are these “reasonable” incomes?

In any event, a search of the Hamilton County Auditor’s site reveals over 100 properties owned by OTR Holdings, Inc.

Whatever the case, it has become increasingly clear that we have not been told the whole story on 3CDC. 

We’ll be looking into this matter further.

Socializer!

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Sam says:
14 Nov 2006  at  09:45 pm | #

Keep shining a light on these guys, Dean. If Steve Leeper does for Cincinnati what he did for Pittsburgh, we’re in big trouble.

says:
15 Nov 2006  at  06:47 am | #

No one is investigating these people.  They ruined the Square, and now they are pushing their agenda onto Music Hall. 

Who ever heard of getting public input BEFORE unveiling plans, at the same meeting? 

These guys are losing control…

anon says:
15 Nov 2006  at  08:35 am | #

To think that these guys are losing control is a mistake. 3CDC heavily influenced the 2005 City elections with large campaign contributions to candidates they direct. Couple this with the paper of record being their PR department and all we get is misdirection and falsity. If these elite members of Cincinnati have nothing to hide they should answer the questions raised by the public. We get too much smoke and mirrors con game and not enough truth. Call Phil, these folks need character training.

Freedom Fighter says:
15 Nov 2006  at  12:06 pm | #

<b>I wonder how many of these properties are blighted and eye sores ?

Somehow, I think the city has not enforsed code and the community is at risk.

Why does a non-profit, payroll padding organization, for the benefit of the local fishwrap gain a pass on city, county housing code ?

Kick people out of their property. Have the city cease it. Assign it to the non-profit. Allow the property to remain in the same condition, but, don’t enforse the code on the current owners ?

Big plans to sell property to pay the salary of the movers and shakers of the county, city ?

Pathetic !

Good article Dean !

Much better than the fruitless character assasinations of Wulsin !

You are “mean jean’s” favorite volunteer !

<b>

NAFTA says:
15 Nov 2006  at  12:49 pm | #

Freedom Fries, you are the Democrats favorite mindless volunteer. Your candidate has some ethics issues, but we are glad she’s demanding a full count. Most Dems would just turn their backs on the people that worked for them and voted for them, like Kerry and Gore.

You should really change your name because you aren’t fighting for anybodies freedom. You’re a just a partisan Democrat that is happy to live in a corporate party prison, that’s all. Dr. King, Malcolm X and Ghandi were freedom fighters, you’re just a zealous Democrat. You haven’t earned the name, stop flattering yourself.

Renee Hill Hudis says:
15 Nov 2006  at  04:35 pm | #

3CDC has had a working group of interested non-profits and citizens meeting monthly, for over a year to discuss the issues around Washington Park.  In addition, they admitted at their latest public meeting that they have control of 190 parcels in OTR, so your research is redundant and incomplete. 

They are now holding “rap sessions” to get further input. The next meeting is tomorrow at Memorial Hall. Hundreds of OTR residents have been attending.  As a longtime resident of OTR, I have noticed alot less crime just in the past few months when they have closed down 3 corner liquor stores and boarded up the worst buildings.  Crime statistics appear to bear out my personal impressions. 

Employees of non-profits have a long history of making money.  This is nothing new.  I think 3CDC should be judged on their speed to act, and the end product.  So far, I agree Fountain Square is quite a dud, but in OTR, they have done more positive in a year than anyone else over decades, and they’ve just started.  My impression when talking with any of these bigwigs is that their heart is in the right place, but that they have a corporate attitude that does not value transparency and does have a top-down management style.  However, they want results and they want them fast.  And the citizens down here definitely appreciate that. 

I don’t see the problem with 3CDC controlling corporate subsidiaries.  Of coursse they do.  What is the problem here?

says:
15 Nov 2006  at  05:14 pm | #

3CDC destroyed Fountain Square, and no one liked their plans from the beginning.  Hundreds showed up to their first meeting to air complaints.  Were they heard? 

BTW, who gets feedback BEFORE unveiling plans?

This organization is backwards.

anon says:
15 Nov 2006  at  08:44 pm | #

Renee wrote “Employees of non-profits have a long history of making money.  This is nothing new.  I think 3CDC should be judged on their speed to act, and the end product.  So far, I agree Fountain Square is quite a dud, but in OTR, they have done more positive in a year than anyone else over decades, and they’ve just started.  My impression when talking with any of these bigwigs is that their heart is in the right place, but that they have a corporate attitude that does not value transparency and does have a top-down management style.  However, they want results and they want them fast.  And the citizens down here definitely appreciate that. 

I don’t see the problem with 3CDC controlling corporate subsidiaries.  Of course they do.  What is the problem here? ”

You hit the nail on the head darlin’ and here is the problem in a nutshell. If they are spending tax dollars on our behalf of the public it is the obligation of the public to insist those funds are being spent as intended and the “deal” should not be hidden from the public. The taxpayers of Cincinnati contributed $4 million to Fountain Square and 40 years of garage revenue. Fifth/Thrid is the big winner. A new atrium and a huge loan to boot. For that they have hidden the fountain and designed a space reflective of the city. Dysfunctional.

Now the new game is Gateway II and the City is giving a grant of $2.6 Million. All of these properties are in a TIF district so the increased property value will not be contributing to the tax pool, from which pay for services, until 2032. Check the county auditor database. In a democracy we must “trust but verify”

Does the end justify the means? They are taking public funds to create market rate condos. They are acting like for a for profit entity with the lack of consideration for citizens that have no place to live. They have a plan and patient money and no risk and they own city council and the mayor. How can they lose with a hand like that? I don’t know, but, I do know they will. The public is beginning to pay more attention and the recent election was a vote against corruption.
We were were told that it was a vote against the war. Either way it was a vote against corruption. Hidden back room deals do not belong in the public business. The government derives its power from the governed. They have a fiduciary responsibility and to date have shirked it completely.

Freedom Fighter says:
15 Nov 2006  at  11:34 pm | #

You haven’t earned the name, stop flattering yourself.

I don’t have to flatter myself. Individuals flatter me with their obsessive concentration on my comment posts !

The story isn’t about me. It is about the citizens at the beacon who have spent their time, energy and money to enlighten self-absorbed, finney fanny kissers, such as NAFTA.

You are obviously not in the know (perhaps too green), else, you would be thankful for the freedom fighters efforts benefiting all Americans.

Although, I don’t always agree with the green beaconites, I do respect their freedom fighting, investigating reports.

They were wRong on their witch hunt though !

On that note, I’m in the majority position !

By the way, I’m independent !

I just can’t vote for someone naive and green and haven’t found a wRong wingnut worth voting for !

Anon says:
16 Dec 2006  at  07:19 pm | #

3CDC has wholly owned subsidiaries to keep their projects separate. Fountain Square is one project and Over the Rhine is another. Would you rather have them co-mingle the fountain square garage revenues with their efforts in OTR? No… I don’t think so. Instead of a way to move lots of money and other assets around, it is a way to be accountable. Not so strange if you think about it.

says:
16 Dec 2006  at  08:03 pm | #

Your point is taken.

Now consider this quotation:

“The garage is now privately owned and like any other private business, that information is not public.”

source

It is that kind of secrecy which gives us pause when we uncover the Russian nesting dolls at play with all these private corporations.

4CDC says:
16 Dec 2006  at  09:11 pm | #

We would rather they not have any public funds what so ever!

We would like 3CDC and the politicians they own like Chris Bortz, John Cranley, Jeff Berding, Chris Monzel, Laketa Cole, Leslie Ghiz, Leslie Ghiz, Cecil Thomas, and David Crowley to be honest about the real costs of the fountain square garage.

It isn’t a windfall for the city, it’s a windfall for a private corporation called 3CDC.

Anon, you’re a corporate owned whore!!!

4CDC says:
16 Dec 2006  at  09:19 pm | #

"I have noticed alot less crime just in the past few months when they have closed down 3 corner liquor stores and boarded up the worst buildings.  Crime statistics appear to bear out my personal impressions.”

Renee, you’ve probably noticed the huge increase in police patrols from CPD and the county. It’s amazing how having police patrol more often means less crime and it’s amazing how they magically appear when 3CDC takes over the neighborhod.

3CDC got feedback on fountain square and it was that they didn’t like it. Even their friends at the Bussiness Courier said it fell with a thud. That’s why they took it to the politicians that they own on council and hag them ram it through in record time with lies and half truths.

I was at their crap session and it was clear that people didn’t trust them and that they were limiting the publics ability to speak out.