Posts Tagged Free Times

Looking Back on a Decade… Some Things Don’t Change Much

December 28, 2009… It seems to be the time for looking back. Sometimes when you look back you are really looking at the present and future. Here was my “Saying Goodbye” swan song in December 2000. It was the final issue of a newsletter I wrote for more than 32 years.

In re-reading it, I found that much of it stands up as we enter a new decade. It will also, I think, remind us of what is happening today. Same institutions. Same motives. Same intentions.

Things don’t change as much as they may seem to change. However, we have come a way and conditions for many have advanced. We just need to do more to bring more along.

Here it is:

SAYING GOODBYE

The great advantage of being able to write Point of View all these years has been the unfettered freedom it has offered me to observe this community using my own judgment. The great press critic A. J. Liebling said, “Freedom of the press belongs to those who own one.”

POV never actually owned a printing press but was able to control what was in the newsletter simply by paying the bill to have it printed. Over the years I’ve had a number of printers I owe thanks to for being willing to print what might have caused problems for them. Only one – a printer located across from a police station – opted out of printing POV for fear of possible retaliation. Ironic, should a location near a police station insure added safety. (Now: It was the police they feared.)

POV hopefully has often revealed what seems to be isn’t always what is.

The freedom to speak frankly gave me the ability to critically examine people, institutions and events by my standard, not simply following media conventional wisdom. It afforded me the opportunity rarely enjoyed by reporters working for traditional news outlets. Other reporters are bound by strictures related to making money, satisfying the powerful and, most important, a worldview that demands protecting the status quo of those who exert power in a city. Major news media outlets are businesses, thus share the community of interest with major businesses and institutions.

Surprisingly, I’ve never actually been able to spell Point of View property in this publication. First the title is, if you look above (which you can’t do here), lower case, though I capitalize. Secondly the “e” in “view” is upside down. Here’s why. When I started the newsletter I needed a format and luckily a graphic artist, John Morrell, (who did those downtown wall murals) provided it. He did it pro bono. However, he wouldn’t agree to do it until he could talk to me and read my point of view. If he was going to do something free he was going to make sure it was worth the effort. He liked the thrust of the first issue given him to read. His conclusion was that the publication was different, thus the upside down “e” to catch the tone, symbolic I hope, of what POV has tried to be – contrary and, as I wrote in an opening letter to potential subscribers, “religiously irreverent when and as often as necessary.”

This freedom almost automatically allows someone willing to examine how power works in a community the ability to look beyond accepted and conventional thinking. You begin to see from perspectives that open new opportunities for judgments. You open for yourself insights that are always there but remain closed down for lack of any incentive to take roads less traveled.

The results often aren’t acceptable to conventional intelligence because they invite impolite conclusions about supposed polite society. “Sometimes it’s important to be impolite,” I. F. Stone once said. This radical approach is crucial because it helps one avoid viewing the world as framed by those with power, as conventional reporting so religiously follows.

One example remembered among many, was the fanciful proposal to build the jetport and a whole lot more, in Lake Erie. The late James C. Davis, managing partner of Squire, Sanders & Dempsey, proposed and pushed the very expensive plan. Though not mentioned in the regular media, the ability to think out of the box made it clear to me why Davis was pushing this plan. The proposal called for huge expenditures via funding by bonds. As usual it came before the public with little public input and much press fanfare. Of course, at the time Squire-Sanders was the only firm here handling bond counsel work and stood to make quite a profit from every dollar spent.

Most of us know in our gut that major undertakings – what’s built in a community, what’s not; what gets financed, what doesn’t; who is taxed, who isn’t – are controlled generally by faceless interests. There may be special committees. They meet first in private and after they have made the decision they seek “public input” to legitimize their results. The members are never examined as to their self-interests or the community of interest that they represent, which are usually highly suspect. They are typically funded at the start by so-called charitable do-good, clean-hand instruments – Cleveland Foundation, Gund Foundation, etc. – then pushed alone by other civic, clean hands fronts like Cleveland Tomorrow or the Downtown Cleveland Partnership.

These names have changed over the years but an examination of 32 plus years of POV shows that the motivations and activities don’t much change but are rarely, if ever, examined by any local media in anything but reverential terms. We are supposed to accept their decisions as neutrally made.

The Downtown Partnership would be typical of organizations spotlighted in POV through the years. A relatively newly created entity to do the bidding of our oligarchs, the Downtown Partnership works, as it tells the IRS for charitable designation, to “engage in the coordination and facilitation of planning, design and implementation of economic and community development for the public benefit and social welfare.

What is does isn’t necessarily all bad but it is a private entity doing public work about which the public knows little, if anything. A main purpose is to lobby public funds to subsidize private interests along Euclid Avenue and downtown. It helped push the $320 million redo of the Euclid Avenue Corridor project via transit funds. Taxpayers even generously contribute to the Partnership’s work to help it lobby their public spending for these private interests: RTA, $20,000; County Port Authority, $20,000; County Commissioners, $20,000; City of Cleveland, $20,000, in the most recent available accounting (1998)

Can we expect our one-newspaper town newspaper to critically examine such institutions that play powerful roles in how public resources are expended? Not likely. The Plain Dealer has been giving $10,000 annually to the Downtown Partnership.

Similarly, Cleveland Tomorrow (now called Greater Cleveland Partnership) – which has played a crucial and successful role in pushing major subsidized projects downtown – reported donations of $68,700 from The Plain Dealer in its latest IRS report and $186,000 from the Newhouse (PD owners) Foundation. Doesn’t this contaminate its coverage not only of Cleveland Tomorrow but also of all the projects – Gateway, Browns Stadium, and a host of subsidies – pursued by Cleveland Tomorrow? Don’t contributions of these amounts by a newspaper and its tributary foundations place the newspaper – and eventually its reporters and editors – in a position of conflict of interest?

How can you trust the coverage of a newspaper that puts itself in such a position? Particularly in a one-newspaper town. Liebling also wrote, “A city with one newspaper – is like a man with one eye, and often the eye is glass.” I’d have to go a bit farther and say the one eye sees only one point of view.

You have to watch in particular those institutions that society generally deems ‘good,’ because often that’s the facade behind which those institutions do what the powerful need to have done. After all they are funded by wealthy interests so how can anyone believe that they will not serve those interests?

This in part was the service that Point of View provided, poking at such institutions and their ties to wealth interests in town. It was a job that unfortunately you could never expect the conventional media to perform.

Reporting at the Plain Dealer on urban renewal, welfare and social issues during the mid-1960s gave me an advantage to view a power structure under severe pressure. It provided me with insights that I could later use to weigh how powerful institutions work behind the scenes.

In the 1960s, the times and their emergencies forced the usually unknown (accept in receiving accolades) oligarchs to reveal themselves making decisions to restore stability (which they didn’t do until the 1980s). Stability for ruling oligarchs means the smooth ability to make decisions with little public scrutiny.

Even under conventional news coverage, I had always been aware that those reporters who gained knowledge by covering some of these issues usually ended up being promoted, going to new jobs, etc., taking with them the institutional memory that might help them and the public sees how events are interlinked. Further, reporters seem to know the acceptable bounds of criticism of elites and remain well within them to save causing frictions. POV allowed the luxury of forgetting such limits.

Being independent gave POV the ability to remain narrow in its coverage and relentless (to the point of being criticize as boringly repetitious) in intensity and repeated coverage of certain issues. With columns in the Cleveland Edition (thanks to Bill Gunlocke) and the Free Times (thanks to the late Richard Siegel and successors) over the last 15 years, there’s a record for our times that differs sharply from that of conventional media.

In reviewing some material trying to write this final issue, I was struck by a quote from me in James Aronson’s 1972 book, “Deadline for the Media.” I said, “I even feel at a bit of a loss when I become real to a reader by meeting him or her. There’s a feeling I get from people that they think POV appears somehow mysteriously since it appears to have no financial backing and no organization backing or producing it.” (He also reminded me that the rumor in the early days was that Cyrus Eaton was financing the newsletter. Not hardly. It was even being prepared for production on a borrowed electric typewriter in 1972.)

I believe the genesis of POV grew from my experience in my hometown Bridgeport, Connecticut. By taking the 1960 Census and traveling to the worse places cited by poverty and poor housing, I was able to see the conditions allowed to exist and to some extent the causes, particularly poor education, poor health and racism.

Though the times today differ dramatically with the 1960s when POV was started, the conditions do not. Our society’s view of what can be done about such conditions has changed to a frightening degree. We are in a period when the conditions that once brought protest and a desire to correct human problems leave too many of us, sadly, incapable of even seeking solutions.

During these binge economic times, America’s leadership became more malevolent toward those with needs. At a prosperous time when you shouldn’t have to be concerned about reactionary policies a whiff of neo-nazi attitudes should warn us that it can happen here. The overwhelming African American (Who knows oppression here better”) vote against George W. Bush, and thus Republicans, represents America’s canary call to beware the reactionary direction we are heading.

Though you won’t be seeing these pages anymore, I hope to continue to follow a while longer my adopted motto of unknown origin, “I shall continue to be impossible as long as those who are now possible remain possible.”

-30-

I ended by citing a note sent to me by a Plain Dealer editor as I was leaving the newspaper for the first time in 1966. It said:

“Good job on the sad case of the waitress who has too much money taken out of her paycheck.

“Incidentally, I’m sorry to learn that you are leaving us. Your work in the last year has indicated that your future was pretty bright.” It was signed by P. (Phillip) W. Porter, PD Executive Editor.

The above written in December 2000. It was the 5th issue of the 33rd year of Point of View. POV started in May 1968 as an every other week newsletter.

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Who Owns the Q Arena, Who Takes the Profits?

May 28, 2009…  Don’t know if you noticed but in articles about the Chinese investors taking a minority share in the Cleveland Cavaliers it is always mentioned that the stake is in the team AND THE ARENA.

As a matter of fact, Dan Gilbert, owner of Quicken Loans and the Cavs, doesn’t own Quicken Loans Arena. Therefore it would be rather difficult for him to sell a share or the Chinese investors to buy a share.

It’s not his to give; not theirs to take.

The New York Times wrote recently that…

“The deal that may give a group of Chinese investors a minority stake in the Cleveland Cavaliers and its arena signals the first significant investment in a major American sports franchise by investors from China.”

The Q, as it is known, is owned by the Gateway Economic Development Corp., a non-profit organization set up to operate both the arena and Progressive Field.

Most of the cost of both sports facilities has been borne by the taxpayers of Cleveland and Cuyahoga County.

So, I for one resent that Gilbert can sell a portion of the Q arena to anyone.

But the fact that sticks in my craw and should anyone else’s is that Gilbert and the foreign investors sort of do OWN the place that we paid for and operate.

That’s because in the sweetheart lease the owners of the team have full use of the arena even when the Cavs are not playing. So every other event and its profits go to the owners, not the taxpayers.

So since the Q draws some two million customers at some 200 events, a lot of money that should go to the owners – us – goes to the sports franchise owner.

For more information than you probably ever wanted to know about the Q, go here: http://basketball.ballparks.com/NBA/ClevelandCavaliers/index.htm

The Times quotes Mark Rosentraub, a member of the Gateway board and former Dean of the CSU School of Urban Affairs (he’s now headed to the University of Michigan), saying…

“This is another example of Dan Gilbert trying to appeal to LeBron (James) and building the case for why he should re-sign.” He added, “And as the Cleveland economy suffers, like many other cities are right now, the Chinese investors give the team a hedge because they have deep pockets to take losses. If you are selling fewer luxury suites, the investors can help take the blow.”

The financing of the arena always has been a problem. Even now, the teams pay all ordinary expenses of Gateway’s operations. However, in the deal worked out, the team owners have taken over the income from the naming rights. Of course, the Cavs use Gilbert’s business as the arena’s name.

The naming rights, which started at less than a half-million dollars price per year, increased to nearly $1 million annually. So the naming rights income was substantial. But lost to Gateway.

I often get accused of being obsessed by Gateway. I’m not obsessed but I think a study of this era in sports tells a societal story. Now that we are building Billion Dollar stadiums even the cost of Gateway’s three sports facilities seems small. However, along with Baltimore’s stadium, Cleveland’s early venture into sport facilities construction pushed others into “having” to have a new stadium or arena.

However, now instead of hundreds of millions of dollars they cost more than a billion.

The Q, formerly Gund Arena (named after George and Gordon Gund, still minority owners of the Cavs) came in over-budget. There was a great fight over the cost overruns.

What follows is a piece I wrote in August 1995, for the Free Times. I believe it tells a lot more about how we operate as a community – how wealth combines with philanthropy, with honored civic organizations and with the news media to manipulate the public. See how elites talk about using the PD and its boss to advance their private interests.

The piece was entitled, “Gunds Sandbag Politicians”…

“Two startlingly blunt memos by Cleveland Cavaliers owner Gordon Gund and his chief counsel Richard Watson reveal strategies to place the blame for the $22 million overrun at Gund Arena on politicians and to shift the cost to the public.

“The leaked memos reveal cynical strategizing by the Gunds to manipulate public opinion in an effort to avoid making any significant payment.

“We all know that there is a major tug-of-war going on behind the scenes over the $28 million Gateway owes contractors. Who will pay for it? Who is responsible? Gateway or the Gund brothers – Gordon & George? (Some mistake this $28 million as the overrun. It is merely what Gateway can’t pay; the Gateway overrun actually amounts to more than $100 million! The final cost estimate was supposed to be $344 million while the actual cost is some $462 million, not counting interest.)

“The Cavs memos, brought to surface by Carl Monday and researcher Mark DeMarino of Channel 8, have been anonymously circulated. The Gunds’ memos suggest withholding information and shifting blame for the overrun costs to county and state officials.

“That’s gratitude for you. Mayor Mike White, County Commissioners Tim Hagan and Mary Boyle delivered riches beyond the ordinary person’s imagination to the Gunds. Now Gordon wants them sandbagged.

“What are instructive about the two memos are comments about the use of supposedly philanthropic organizations in the defense of the Gunds’ private business.

“Gordon Gund evidently wants assistance from the Gund Foundation. A nonprofit which often uses its fund to seed projects that then cost hundreds of millions of public dollars; Cleveland Tomorrow (now Greater Cleveland Partnership), a powerful corporate group that pushes politicians to siphon off tax dollars to special interests; and from Alex “The Snake” Machaskee and The Cleveland Plain Dealer editorial board.

“The mention of Machaskee (Gund spelled it Machaski, which should be a blow to The Snake’s ego) is extremely important. As Plain Dealer publisher and a member of Cleveland Tomorrow, Machaskee controls the most important outlet of information here, while sitting on the leading corporate-civic board.

“The Pee Dee has had several reporters working on Gateway finances for at least two months, but the paper has possibly been withholding vital information. This information, during this period of tense negotiations about responsibility for the $22 million owed on Gund Arena, could play a crucial role in how the $22 million problem is solved and who pays: the Gunds, who are blamed for making demands for more luxury than originally planned at the arena, or Gateway (which means the public). News delayed, in this case, is news denied.

“For instance, the Pee Dee knows about a secret luxury apartment built within Gateway for the Gund brothers at a cost of hundreds of thousands ($600,000 eventually revealed). Further, the Pee Dee has not examined the $2.3 million upscale restaurant, Sammy’s, built for the Gunds, or the $1,443,800 spent for furnishings for the 50 offices (30,000 square feet fully furnished, which at $38 a square foot would be worth some $34 million in rent over the length of the Cavs’ lease.) Further, none of this is on the tax rolls since it has been abated. The Gunds were also given three free loges (worth some $320,000 a year) and 1,700 free parking spaces for thirty years and a $10 million fee to compensate (them) for parking revenue at the Coliseum (where the Cavs played before Gateway).

“Almost untold at all is the $6 million deficit at Jacobs Field, where Gateway built a $7.2 million office building and a $5.2 million, 900-seat restaurant,  gave three loges and hundreds of parking spaces free to Dick Jacobs who hasn’t lifted  a finger to help erase the debt owed contractors there. The Pee Dee again has failed to put any of this in context for the public.

“If this information were published by the major newspaper in town, it would be a public relations nightmare for the Gunds and Jacobs – two of the most wealthy families in Cleveland and would play a role in the negotiations with Gateway.

“The first memo from Watson, attorney for the Gund brothers and co-managing partner of Speith, Bell, McCurdy & Newell, to Gordon Gund and others suggests a deal where the Gunds would shell out, at the most, $2,138,000 in discounted money toward the $22 million owed. Gateway would have to borrow $20 million more under this plan.

“The Gunds originally tried to have sales tax money tapped for payment of the debt. The Watson memo to Gund mistakenly identified sales tax again as a means of generating income when Watson means admissions tax as a way of paying off the debt. The admission tax is split under a complex agreement, but what’s clear is that public finances would bail out the deficit, leaving the Gunds’ wealth relatively untouched.

“Gordon Gund’s memo reveals consultation and the exchange of advice with David Bergholz, director of the Gund foundation and whose wife writes a column for The Plain Dealer.

“This raises a serious question about the use of a tax exempt organization bearing the Gund name for the profit-making enterprises of the Gunds. The Internal Revenue Service needs to examine the connection between the Foundation and private interests of the Gunds.

“In Gund’s memo, Bergholz is quote extensively analyzing a position paper on the deficit done for Gund and a letter from Watson to Tony Garofoli of Climaco, Climaco, Seminatore, Leftkowitz & Garofoli, who helped negotiate the original arena and stadium leases for Gateway. The position paper, Bergholz tells Gund, is ‘very defensive in its tone and does not deal with why the overruns actually occurred and who is responsible for them, if we are not.’ Bergholz describes the Watson letter as ‘very good in most respects, highly analytical and clear.’ But Bergholz, according to Gund, says Watson ‘begs the question’ on where responsibility lies for the overrun and he says that ‘discussion of the sound system – the way it is presented – is meat for the media.’

“The comments suggest that Gunds’ advisors were having trouble pinning the blame on others and are concerned about the cost of the sound system for the arena.

“Bergholz ‘strongly recommends we do nothing in the way of furthering public or even private discussions of our position until these negotiations (with Garofoli and Gateway) have come to a conclusion one way or the other. He believes that, of course, the best outcome would be for us to reach a mutually satisfactory solution with Tony et al, and jointly present that publicly with finality.’

“However, if the negotiations aren’t successful, Bergholz has another plan. Bergholz suggest Gund reach out to Cleveland Tomorrow, the most powerful corporate agency made up of the chief operating officers of the top fifty Cleveland corporations.

“Quoting from the Gund memo, the suggestion is ‘to do nothing publicly and to reach certain of the leadership of Cleveland through an audio presentation to Cleveland Tomorrow. This could be arranged by asking  Joe Roman (Cleveland Tomorrow director) to put us on an upcoming Cleveland Tomorrow meeting, where Alex Machaski (sic) would be present in a membership capacity, along with other members… In addition David (Bergholz) also suggests there might be a time to have a meeting with the editorial board of the Plain Dealer.’

“As a second recommendation, Bergholz suggest ‘to attack those who are responsible – Gateway, the county, the city. He believes that if we are to do this, we must be sure we can succeed with it. He cautions that this involves substantial risk,’ says the Gund memo.

“Gund goes on: ‘David readily acknowledges that the county and city (very definitely including the mayor) are scapegoating us….’ Gund, whose families worth more than $2 billion, laments that ‘they do not know this is a business, not the George Gund Foundation, and (they) read of my family’s wealth in Forbes magazine and believe we are the logical people to pin this problem on and to have solve it.’

“The logical reason to pin the over-run on the Gunds is clear: they were in a position to demand anything they wanted from Gateway, which was facing a $10 million damage payment proscribed in the lease for not finishing the arena on time. The Gunds used their very significant leverage to get what they wanted. Now it’s time for them to pay up and stop whining.”

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