Under The Law

“Downtown is a commercial district. If you put the dollars first in the commercial district, then raise those revenues, create some more jobs, it creates more funds to put in the neighborhoods.” These words appear to express a very noble sentiment, They certainly assert a strategic outlook, one that defers immediate neighborhood aid for the eventual promise of neighborhood benefit to come. But does it serve the community’s interest, help the community’s needs? Analysis finds that, distilled, the strategy is simply a rehash of the fundamental tenet of the capitalist religion that “money makes money” (“If you put the dollars first in the commercial district,… it creates more funds”) The words (and strategy) are those of recently re-elected Newark Mayor Jeff Hall (The Advocate, 10-11-19). Reporting for cleveland.com, Andrew J. Tobias headlined: JobsOhio pushing boundaries by looking to be a part-owner of companies it supports (11-21-19). Analysis finds JobsOhio moving to put into action the Newark Mayor’s capitalist formula for success by “owning stakes of private companies”. “It’s an open question whether the new strategy means JobsOhio is interested in taking a venture capital approach — making a larger volume of risky bets on very young companies, hoping to strike it big if one is successful — or focusing on small, promising companies that are financially stable, but looking to expand. Any profit could be plowed back into the organization to be given to other companies.” “State lawmakers and then-Gov. John Kasich, a Republican, created JobsOhio in 2011 as a private non-profit to functionally replace a state agency that had led Ohio’s economic development efforts for decades. It’s exempt from state public-records laws, but the governor appoints its board members and helps hire its leader. DeWine picked new leaders, but opted to keep it basically intact upon taking office in January. Back when JobsOhio was still getting set up, Kasich considered allowing the organization to take shares of the companies it invested in. He even hired Mark Kvamme, a venture capitalist from California, to run it. Kvamme left the organization after less than two years, and now helps run a venture capital fund in Columbus.” “JobsOhio’s funding comes from the profits it gets running the state’s liquor enterprise, which netted $271 million last year.” “Beyond the political issues, there are also possible legal issues under the Ohio Constitution. There’s a story behind that — local governments and the state between the 1820s and the 1850s lost millions bailing out its bad investments in toll roads, canals and particularly, railroad companies. Citizens, alleging corruption, called for a constitutional convention in 1851. The result severely limits what the state can do when it comes to giving money to private businesses. The constitutional section flatly banning state ownership of private companies was so popular it wasn’t even debated, according to a 1985 article in the Toledo Law Review written by David Gold, a longtime staffer for the Ohio Legislative Service Commission. As one delegate at the 1851 convention put it: “And sir, we ask now, that debt-contracting, loan laws, and money squandering may forever be put an end to-that the whole system maybe dug up by the roots, and no single sprout ever permitted to shoot up again.”” “Still, Maurice Thompson, a conservative Ohio legal activist who was part of the failed lawsuit [2011 challenge to JobsOhio], said a legal challenge is still possible, although it would be hard to find someone with the standing needed to file it. “I think this has been a long time coming, given Gov. Kasich’s initial comments,” Thompson said. “I do think it’s unconstitutional.” “It’s already problematic that JobsOhio can spend hundreds of millions of our dollars with very little transparency or accountability,” said Janetta King, president and CEO of Innovation Ohio, a progressive think-tank in Columbus. “If it is now ignoring prohibitions in the state Constitution that were put there for good reasons, we should all be concerned.”” Is the reader concerned? Which brings us round to Newark and the recent election results. The entitled GOP (of which Newark Mayor Jeff Hall is a Central Committee member) recently appointed Spencer Barker to fill the seat left vacant by Mark Fraizer, who by appointment filled Scott Ryan’s legislative position (who left for the Third Frontier). Analysis finds all these resume’s curiously compatible with the law of “money makes money.” Fraizer is with giant Huntington Bank, while Barker markets community and real estate for Newark Development Partners (like JobsOhio, a public/private partnership) and Shai Commercial Real Estate. Analysis can only conclude that mini-me Grow Licking County (patterned from its inception on JobsOhio) is salivating while waiting breathlessly for JobsOhio’s investment strategy to be put into action. Analysis finds one place where the law (and raison d’etre) of “money makes money” is already in practice. The financial market (Wall Street) makes money by following the law. Analysis can’t readily ascribe any community, per se, benefiting from this practice under the law. Can you?

Tags: , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: