Wednesday, November 01, 2006

Cincinnati Empowerment Corporation Sets To Spend $130 Million

From banker to rainmaker
New Empowerment Corp. exec ready to make things happen



Joyce Powdrill will trade banking for community building when she leaves Key Corp. on Oct. 30 to take the newly created position of vice president of economic development for the Cincinnati Empowerment Corp.

Her first task is no small one. Powdrill plans to roll out a $130 million bond fund to make capital investments in Cincinnati's poorest neighborhoods.


I know nothing of Joyce Powdrill. She sounds like a great person. And I like the thought of $130 million being invested in the urban core. The problem is that I do know something about the Cincinnati Empowerment Corporation.

The last fiscal audit showed that well over 60% of the funding went to administrative expenses. The Cincinnati Empowerment Corporation has spent millions with few tangible results. Giving them $130 million in bond money seems to be a recipe for disaster.

Is anyone here familiar with how these bonds work? Specifically, is somebody on the hook to pick up the tab if the projects fail to produce the revenue to satisfy the obligations of the Bonds? Is the City responsible, the County or the Feds? Is this taxpayer money, or will people lend money to the Cincinnati Empowerment Corporation because they feel it is a good investment. The Enquirer released a report that stated that 80% of their loan portfolio was non performing and behind payments?

Who is going to lend these people their own money? This is a disaster waiting to happen, and when it does I suspect Joe Taxpayer will be picking up the tab.

10 Comments:

Anonymous Anonymous said...

That is alarming. If at first you don't succeed, try try again! I guess the reason why the EZ has failed was really underfunding. Now they will have $130 million to spend. Too bad Howard Beatty still isn't on the board, he could have used the money. How do these people get in charge of so much money?

10:32 AM  
Anonymous Anonymous said...

Dear Mr. Dallory,
All excellent questions.
I suggest you attend the Nov 6th (5:30 Berry Center) CEC Board meeting and use your 2 minutes to ask these questions.
Lots of luck getting a response.Back in July, Cleveland promised answers to a host of questions by September.....no answers yet.
Other questions:
-Did Board approve this VP hire?
-With a brand new "no elected official" policy, why is Elected State Rep. Seitz the EZ mouthpiece?
-The Board voted for OPEN E-loan committee meetings. Is Cleveland trying to reverse this board ruling?

I was encouraged to see the new blood on the Board insist on transparancy and open meetings last month. The CEC corruption is not like a layer of fat that you can slice off. The corruption is marbled in. To remove it you need to grind it like hamburger and FRY IT OUT!
There will be much pain and much blood on the floor before the corruption is ground up and fried out.
Time will tell if the honest few have the will to prevail.

11:37 AM  
Anonymous Anonymous said...

I can't imagine them attracting private capital with their track record. My guess is that Step Smith will get some fat fees for these bonds, and that millions will be wasted with taxpayers footing the bill.

11:44 AM  
Anonymous Anonymous said...

Dale's the ONLY State rep Democrat candidate NOT endorsed by CityBeat.
That speaks volumes.
Even uber-liberal and Democratic CityBeat can't support criminal Dale.

2:36 PM  
Anonymous Anonymous said...

Pasted from today's Whistleblower:

Our Courthouse Gadfly says Belligerient Black Blogger Nate “Rhymes with Hate” Livingston failed to tell us the latest about his pal, Dale Mallory. In Court Case A9706429, Dale stiffed Cadlerock Joint Ventures on a loan agreement. The case was revived a few months' ago and Dale failed to respond. The bloodhounds were called out and Dale's next day in Court is 11/22. The interest meter is running on over $37,000.

Also, it's a matter of time before the Hamilton County Treasurer and our Disingenuous DemocRAT County Auditor start asking for their fair share of the campaign money. Dale owes $707.75 in back taxes on a vacant lot at 2022 Baymiller Street.

And, his campaign contribution list is a who's who in shady dealings here in the City – Felonious Fund-raiser Dickie Weiland, Roger Ach, $tan Che$ley, Revrum Demon Lynchmob, Walter Reinhaus and George "Junebug" Beatty's mother-in-law, Clara Fenderson.

However, Dale has been somewhat honest. He's repaid loans that bro Joe and Mammy Fannie fronted to him.

3:31 PM  
Anonymous Carstairs said...

It's my understanding that the $130 million in bond issuance is to be backed by the Port Authority (Port of Gr. Cinti. Development Authority). The money is to roll out on a project by project approval.

Now, here's the kicker. The bonds will be paid off by monies generated from the funded project.

Oh gawd, & we know just how successful the EZ Corp. is in recouping loan money. How this happened, is beyond me, given their miserable track record.

Should the winning projects default on the money, the taxpayers will have to cough it up.

Basically, this seems along the lines of municipal tax-free bonds. I believe the Port Authority is an eligible entity for such ventures. People buy & invest in municipal tax-free bonds. They are a relatively good bargain to enhance a savings/investment portfolio. The dividends aren't bad. Moreover, it's tax-free income on your 1040.

That's where these entities like the Port Authority get their income generation for projects. People buy into bonds, the Port gets money, the savers/investors get a nice divvy back for their investment & generally, everyone's happy.

But, should these projects go belly up, the Port Authority is on the hook to satisfy the savers/investors. And they won't hesitate to put Everyday Taxpayer on the hook to make good on the venture, especially if bond insurance doesn't cover the entire loss.

Gosh, this is a major mess. I'd like to see the Port Authority's slick, glossy Prospectus that touts this latest & greatest scheme. Investors beware!!!

5:21 PM  
Anonymous Carstairs said...

Here's a glimpse of how questionable enterprises such as the EZ can weasel mucho dinero out of the Port Authority.

http://www.cincinnatiport.org/pa_pg3.html

This gives a brief outline of where the money comes from to fund these ventures.

But, in the end, if there's any defaults, the Taxpayer is on the hook.

"There will be much pain and much blood on the floor before the corruption is ground up and fried out."

Believe me, I wouldn't go that far to ruin my health & shed blood over the EZ & their corrupt habits. Once my blood pressure reaches a certain notch, I'd be sending Uncle Al reams of paper & calling his office direct.

It's a fair & accurate assumption that all those lushly paid staff people are in it for the nice bucks & I don't think any of them have the expertise & know how to run such a big, complex venture, especially with mega-bucks flooding in to help the needy & the greedy.

I hope the Board can solidly unite, set agreed goals, attempt to get the full lay of the land & then start rolling heads & dead freight out the door during 5PM rush hour traffic on MLK Drive. The cars whoosh over that stretch 90 mph, so, the rolling heads & the freight will be good & dead.

Once the Board decides they've had enough of the sticky fingers & lack of accountability, the rest of the work will be, yeah, you guessed it, EZ. Just remember, being a Section 501, the Board does the steering & makes the final decisions. Not Cleveland, not Alice, not Oralinda & not that big steer Smitty.

8:50 PM  
Anonymous Anonymous said...

unfortunately, the big steer is one of the board.

9:48 PM  
Anonymous Anonymous said...

Speaking of money, has anybody seen this?

http://www.courtclerk.org/case_summary.asp?sec=history&casenumber=A%200601611

11:19 AM  
Anonymous Carstairs said...

Anon 11:19, Case A0601611 National City v. law poodle, that was the boat loan.

No kidding. He's got a certificate of judgment slapped on him for a solid 6 figures on this dumped loan. No boat. No motor. The IRS G-men took that.

No money. No pot to go in. No window to throw it out. No competent office help. C'est la vie.

11:49 PM  

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