More news from the Plain Dealer on which major county construction projects were targets in the FBI raids this week.
Stay Tuned To Cuyahoga Rough Writers Blog For Complete Coverage
Ameritust Tower
(Plain Dealer) - Last fall, Cuyahoga County commissioners scuttled plans to build a new headquarters on the site of the old Ameritrust Bank complex, saying they didn't have the money to finish the $200 million-plus project.
The county bought the asbestos-riddled Ameritrust complex in 2005 from the Richard E. Jacobs Group with plans for a new county complex.
The first and arguably most important hire was the project construction manager.
In April 2006, Commissioners Jimmy Dimora, Peter Lawson Jones and Tim Hagan unanimously ranked a team led by the R.P. Carbone Co. as their top choice after less than 50 seconds of public deliberation. Earlier, they discussed the issue in private, in violation of Ohio's public-meetings law. Commissioners approved a $10 million construction management contract in October 2006.
But the county had problems with Carbone, many of them centered on the firm's small-business partner, the McTech Corp.
The county paid the Carbone-led team more than $1.2 million for the costs of personnel before abandoning the project.
Last summer, the commissioners awarded another major contract to Precision Environmental Co. of Independence despite the fact that Precision's bid was $915,000 more than the lowest bidder.
Dimora and Hagan said at the time they voted to award the $7.4 million contract to Precision based on advice from their experts, who weren't convinced that rival bidder Missouri-based Midwest Asbestos Abatement Corp. had sufficient experience.
Jones cast the dissenting vote and said he had the impression that Midwest was capable of doing the work.
Because the commissioners halted the headquarters project, the work of the Carbone team and architecture firm Robert P. Madison International was suspended. Precision continues to work on asbestos removal in the tower. And Stephen J. Sebesta & Associates Inc., an environmental consultant, and The Sanchez Group, a project consultant, remain on the job.
See Full Plain Dealer Article
***
Vetern's Administration
(Plain Dealer)- At stake was a $130 million construction project in Cleveland and 102 acres of prime development land near Interstate 77 in Brecksville, both part of a plan by the U.S. Department of Veterans Affairs to consolidate its two area campuses.
Veterans Development LLC won the job. But sometime in the nearly three years that have passed, the merger of the VA's Wade Park and Brecksville complexes drew the attention of FBI and IRS agents investigating possible corruption in Cuyahoga County government.
Agents who searched Commissioner Jimmy Dimora's county office on Monday were looking for any documents related to the project. Other agents raided the Bedford Heights office of Doan Pyramid Electric, whose president, Michael Forlani, also runs Veterans Development.
The interest in the VA deal is unusual because it is a federal project with little or no county involvement...
Investigators are looking into whether Dimora, the Democratic Party chairman, and county Auditor Frank Russo, his top lieutenant in the party, steered construction contracts to businesses that provided free improvements to their homes. Doan, under the name Northeast Ohio Electric, did electrical work at Russo's Mayfield home.
The Cleveland Cuyahoga County Port Authority, with three of its nine board members appointed by the county commissioners and the other six by the city, did agree last fall to finance Wade Park construction in Cleveland by selling up to $132 million in taxable bonds. The bond sale has not happened yet...
He said Forlani has spent millions of his own money on the project, razing buildings near the Wade Park campus and preparing for construction of a parking garage, office building and a 122-bed facility for homeless veterans.
Charek, who also works for federal contractor LDV Inc., said he met Forlani through Doan's work on another VA deal in 1999. He said Forlani is known for being able to negotiate the politics of Cleveland City Hall in order to get things done.
"I've done an awful lot of work with him and I've got to tell you, if there's one guy in town that I can count on . . . if he tells me 'I can make this happen' or 'I can do this,' I can take that to the bank," Charek said.
An attorney for Doan Pyramid, through a spokesman, said company officials had no idea why investigators are interested...
In all, four developers submitted proposals to the VA after the agency announced it wanted to merge the two campuses using an arrangement federal officials call an enhanced-use lease. Essentially, the VA agreed to give Veterans Development and Brecksville a long-term lease on the Brecksville property to allow for its redevelopment.
In return, Veterans Development agreed to build the three facilities at Wade Park.
See Full Plain Dealer Article
***
Juvenile Justice Center
(Plain Dealer) - After more than 20 years of haggling over a site and a $135 million dollar leap in the price tag, the skeleton of a new Juvenile Justice Complex finally is rising at East 93rd Street and Quincy Avenue.
But it doesn't look like the controversy about the complex is over.
The $160 million project is prominently mentioned in search warrants that give a glimpse into what federal agents were looking for during a raid Monday of the offices of Cuyahoga County Commissioner Jimmy Dimora and county Auditor Frank Russo.
Agents took letters and memos about the complex from three of the public offices they searched.
The center, which has been discussed since the 1980s, is to house a new county detention center and courthouse.
Commissioners bought the land in 2000, paying $2.7 million to Forest City Enterprises for about 13 acres...
The day agents raided county offices, the homes of public officials, and construction businesses, work by several dozen companies continued on the project.
One of those offices federal agents raided was in a Berea building shared by Phoenix Cement Inc. and Blaze Construction. Ferris and Loriann Kleem and John Mayer Sr. are owners of both companies.
Phoenix has a $4.6 million contract for concrete work at the complex.
Blaze Construction has handled more than $20 million in road contracts across the county since 1998 and co-owner Ferris Kleem has given nearly $20,000 to Dimora and the Democratic Party since 2003.
Attorney David Cuppage, who represents both companies, said Phoenix Cement won the contract through the public bidding process and that the company's bid was about $500,000 lower than its competitors.
See Full Plain Dealer Article
***