Posts Tagged Tim Hagan

Dick Jacobs – He Loved Money, But Also Life

June 5, 2009… Death is the great equalizer. Even multi-millionaires have to participate.

It is not optional, as Woody Allen once said, Americans seem to believe.

Dick Jacobs was well-regarded in Cleveland because he helped the Cleveland Indians win a couple of American League pennants and go to the World Series. For that, many believe he was “good for the town,” as they say. He gave it some spirit when it needed it.

He was a tough and smart businessman. When he wanted Italian marble for Jacobs Field’s loges, he got marble despite warnings they would break. They did break.

A very rich man, he once told a City Club crowd that baseball player salaries were “obscene.” He was right, of course. But he neglected to mention the profits of owners. They could be even more obscene.

I called him a Socialist for his comments that day. The proof. What he said.

He called for wealth sharing among teams by income redistribution. He favored a cap on ballplayer incomes. And he, as I would agree, called million-dollar salaries “obscene.” That spelled socialism to me.

I wrote “Jacobs is socialism’s stellar star – the top recipient in the county, thanks to people like Voinovich, White, Hagan, Boyle and Petro.” They gave him breaks wherever they could.

Dick Jacobs once said “I believe in the quantum theory of profits to the nth power.” He lived by that motto.

He became a multi-millionaire by building junk as America went on its consumer binge. He built the strip malls and then regular malls. Hardly the stuff of heroes.

Ironically, this consumer trend helped to destroy American cities.

But they made a lot of money for some people.

The best insight into Jacobs for me came when he had to appear before City Council in December 1989. Jacobs had to answer questions about legislation for some $120 million in tax abatements he desired. It would help subsidize his proposed Ameritrust bank building and a Hyatt hotel. He’s also would get another $20 million in zero interest loans. (The project, never built, left the west side of Public Square a parking lot since.)

Council members were looking for something in return from Jacobs for all these gifts. They wanted something to be able to say, “We got a return of your money, voters.” It would be a fig leaf for cover.

Jacobs was irate.

Here’s the way I described the situation in the Cleveland Edition in 1989:

“Dick Jacobs – looking much like Scrooge – sat red faced, silent and sullen as he refused to budge from his I-can’t-give-anything stance.

“Council, looking for a bone to hide behind, begged for something its members could say, “Hey, we got something, folks, for your $122 million gift to Scrooge.”

Jacobs made it clear that he wasn’t happy he even had to answer questions. (He came with the mockup of the development in a black garbage bag, a sign of his disdain for the city’s legislators.)

I went on:

“A serious George Forbes – who is said to have had his own private dressing down by an angry Jacobs for the messy (1989) primary campaign he ran – tried cautiously at one point to test Jacobs for a $3 million pledge to neighborhood development projects.

“What would you say to that, asked the Council boss of the multi-millionaire developer?

“The answer shot back, sharp and rebuking. It came out in short bursts, ending in a threat.

“’Bye, bye, Pasadena. No way. There’s no deal. It’s not in the deal. It’s as simple as that. The figures are here for everyone to see.’

Jacobs was angry.

“And then the warning. A threat to walk away.

“’The patient is breathing heavily. Don’t kill it,’ said Jacobs.

If it were a bluff, no one called him on it.

A deal eventually was made by a few Council members at a private luncheon. Jacobs promised he’d lend some money to neighborhood groups. Penny ante stuff.

I remember as Jacobs left the hearing room with his black garbage bag the television cameras were outside the door waiting for Jacobs to make a comment or two. They expected him to stop and talk. Foolish people.

Jacobs rushed right by. He wasn’t talking to anyone else. I tried to get in front of him to delay him, but found myself being butted against the corridor wall by his son, Jeff. He said, “Leave my father alone. He’s an old man.” I didn’t see it that way. He was 64; I was 56.

Jacobs never did answer a question. He hurried away with his entourage.

Jacobs got huge financial aid from the city, including tens of millions of dollars in tax abatements, no-interest loans and a deal – kept secret until a lawsuit – that gave him an inside at the Chagrin Highlands development, rich undeveloped land.

Most of this public generosity came from Mayor George Voinovich and Council President George Forbes at the city, but also from County Commissioners Tim Hagan, Mary Boyle and Jim Petro via Gateway.

Jacobs bought the Cleveland Indians in 1986 for some $40-45 million, sold it for some $320 million in 2000. He got the most out of the new stadium, mostly publicly funded. He saw the downside and got out.

He apparently lived life fully from what reports I’ve heard.

However, he hasn’t been a very charitable man. Hopefully, he will prove a better citizen with the disposition of his wealth.

Over the years, I have looked at tax returns of Cleveland Indians Charities but never saw his name as a contributor.

I saw Albert Belle contribute $58,000 one year; Travis Fryman, $50,000; and remember similar contributions from Ellis Burks and C. C. Sabathia, and smaller amounts contributed by many players.

Jacobs, however, revealed his need to be remembered well by the plaque he required when he sold his East 9th & Euclid property to Cuyahoga County. Another bad deal for the public.

In the sales agreement a statement on a metal plaque was required to be placed on whatever building might be constructed on the site. The exact wording was stated in the agreement. It was to say:

“In recognition of over 50 years of endeavor and achievement, the Board of Cuyahoga County Commissioners, on behalf of its citizens, gratefully acknowledges the significant contributions of Richard E. Jacobs.

“Mr. Jacobs has consistently and selflessly devoted his insight, skills, and resources to the development, redevelopment, and preservation of Downtown Cleveland and Cuyahoga County. This complex, which includes the historic Rotunda, symbolizes the legacy that Mr. Jacobs has established through his leadership in development and owning many of this County’s major commercial, retail, and recreational facilities.”

There will be no plaque outlining what Richard E. Jacobs TOOK from Cleveland and Cuyahoga County.

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Brent Larkin Bows Out as Plain Dealer Editorial Boss

June 1, 2009… Brent Larkin is receiving some deserved attention as he leaves one of the most powerful positions in our city – the Plain Dealer editorial page director.

We can’t allow him to leave the stage so easily.

Larkin – likable and knowledgeable – has been boss of the editorial page since the early 1990s. He had wanted to be the PD’s sports editor at the time he was given this crucial and powerful job.

Here’s how someone who worked with him at the time described him:

“I think there is little question that Brent had the institutional memory of the PD and editorial board. Plus, Brent remained a reporter even as editorial director. He broke more stories than anyone in the news room. Brent works the phone like no one I know. They joked about him having two phones in his ear.”

He was a political junkie.

I have to say that I liked Larkin personally. I thought him to be an honest and hard-working reporter with the Cleveland Press.

The Press had a different culture than the Plain Dealer. It was more a people’s paper. More free swinging than the staid, self-important Pee Dee.

Larkin started, as he said in his farewell in Sunday’s paper, as the Press city hall reporter during the frenzied Kucinich administration in the late 1970s. The Press treated Kucinich more fairly (well, even handedly, let’s say) than did the Plain Dealer.

Despite his likability, I have had problems with Larkin over the years.

He played politics himself. He sometimes used his position to help friends.

Here from a piece in my newsletter, Point of View, in October, 1995:

“Larkin has used his position to help friends before. He bashed the United Auto Workers on the union’s attempt to have a workmen’s compensation law tested in the courts. Some believe Larkin’s tirade was really an attack for the UAW’s opposition on a Blue Cross matter. Blue Cross is represented by Climaco, Climaco, Seminatore, Leftkowitz and Garofoli, which gets some $6 million a year in fees from Blue Cross.

“Larkin has a close friendship at the Climaco firm that makes some wonder how close. At another time, Larkin wrote a strong and strategically timed editorial supporting the Blue Cross of Cleveland’s take-over of the Cincinnati Blue Cross without the usual editorial staff discussion of the matter.”

Larkin, in an interview on the PD website Cleveland.com, said, in answer to a question about his political leaning, that he’s “this much” left of center. He used his fingers to show almost no room between them.

However, shortly after he took his position in 1993, Larkin dumped the PD’s editorial writer on national politics, Chris Colford, a liberal editorialist.

Here’s what I wrote:

“He told Colford, a prize winner, that he would be shifted to write about environment, energy, science and the arts. But that was just step one.

“Larkin, who lacks skill in dealing with people, then offered a shocked Colford a buyout in an attempt designed to usher him out the door rather than just shift his duties.”

The “buyout” got revised to an “exit bonus” after Colford went to the Newspaper Guild for advice.

I went on: “Colford, a rather gentle, thoughtful writer who loves his job, apparently has no place in a Larkin editorial staff. One veteran reporter called the move an ‘ideological’ one to get rid of a liberal voice.”

A retirement party at the PD gave hints of Larkin’s powerful position.

A number of politicians made appearances including George Forbes, Lou Stokes, both former Republican chairman Roger Synenberg and his wife, Joan Synenberg, who owes her election to Larkin’s editorials against her opponent. Even Forest City’s Sam Miller was there, I was told. Others, as Commissioner Tim Hagan, appeared in a video done for Larkin, according to a PD reporter.

Larkin played a protector role for many political and private figures.

The PD can be critical of how badly events go in Cleveland. Most criticism is aimed at politicians, who really dance to the tunes of the corporate leaders, who receive little, if any, censure.

Of course, the newspaper itself never enters the realm of self-criticism. Editorially, it keeps itself off limits. Even though it plays a key part of community decision-making – usually leading the way – for the dominate forces in the city and area.

Larkin’s most embarrassing revelation was the exposure of a trip he took on Dick Jacobs’ private airplane to Major League Baseball’s All-Star game in 1999. The plane was loaded with the city’s political and business leaders.

Here is how I described it:

“Well, we finally got them all in one boat, er, airplane.

“Playful Dick Jacobs. Was that the multi-millionaire with a large handkerchief over his face, blowing his nose? No, that’s the wealthy developer and owner of the Cleveland Indians… with a white cloth playing a Ku Klux Klansman…

“And who’s that see-no-evil, hear-no-evil and especially tell-no-evil Jacobs’ buddy? Why it’s Brent ‘Look Away’ Larkin, director of editorials for the Pee Dee. What better place for someone who has blinded himself to the inadequacies of political and business leaders in town. The user-friendly Larkin is quoted saying of Jacobs’ antics, ‘As far as I know, everybody got a kick out of it.’

“Now you have to remember that these are very sophisticated people. People whose community of interest calls for some flexibility by us of their righteousness.”

“This would only qualify as racism if someone with only a little money, little education and little power had made such a tasteless faux pas. For one it would be a crime; for the other it’s just a joke.”

It put Larkin in a conflicting position with top political and business leaders on a free trip to an all-star game. He should have been fired. But Editor Doug Clifton told me when I asked about punishment, “None given, none contemplated.”

The trip was revealed in an anonymous letter to a Plain Dealer columnist. My guess is that it was leaked by Mayor Michael White. Getting revenge on so many enemies must have been delicious for the mayor.

Larkin wrote when Gateway passed and made Jacobs even more of a multi-millionaire than he had been, “Now, do it right.”

He continued: “Negotiate fair leases with the Indians and the Cavaliers… Turning those promises into performance is the best way to make monkeys out of Gateway’s visceral opponents.”

However, the Larkin editorial page went easy as could be on Gateway as it sank deeper and deeper into debt and into the pockets of county taxpayers. No harsh criticism for his buddy Hagan or the rest of them.

That’s the way with big players. No criticism. No blame.

We suffer the consequences of this No Blame policy. We see the results all around us.

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