0303tw_grovecity by The Columbus Dispatch/Dispatch Magazines

March 3, 2011

Theft link to tax debt not confirmed By MICHAEL J. MAURER ThisWeek Contributor Grove City police have not yet determined if “theft issues” exist in connection with a large debt that the city failed to pay to the Internal Revenue Service for federal income withholding taxes. City officials last month said the city has made a payment of $752,179 to the IRS to settle that debt. The IRS said payments had been missed since at least 2007.

Franklin County Municipal Court last month issued eight investigative subpoenas at the request of the city police. Police spokesman Capt. Steve Robinette said, “What we can say is that there are theft issues separate from the tax issue. We are still investigating whether there are theft issues related to the tax issues.” The city has hired an independent consulting company, GBQ Consulting LLC,

at a cost of up to $20,000, to investigate the causes of the tax errors. “That is the whole purpose of the auditors,” Robinette said, “going through and looking at transactions and how all of these things occurred over the last eight or 10 years.” The eight investigative subpoenas have focused on three employees, including the city building inspector, a payroll specialist and a service technician. Robinette said the service technician

has since been cleared of wrongdoing. Police Chief Joe Wise earlier told city council that investigative subpoenas do not imply wrongdoing, stating, “The fact we asked for some information on individuals is not (an indication) they have done anything wrong.” Robinette said, “There were certain fact patterns that we saw when we began this investigation, and some of those fact

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The fact we asked for some information on individuals is not (an indication) they have done anything wrong.

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JOE WISE — Police chief

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City probe into IRS case could cost $105,000

USEFUL BARRELS

By LISA AURAND ThisWeek Community Newspapers The investigation into Grove City’s federal income withholding taxes discrepancies could cost the city $105,000 in legal fees and take another four to five months to complete. A Feb. 2 letter from Schottenstein, Zox & Dunn, the city’s legal firm, estimates that legal fees for the case will amount to anywhere from $90,000 to $105,000, dependent upon how many hours are worked. Paralegal hours are billed at rates between $115-$160, and attorney fees range from $135-$475 per hour. Hours billed by Grove City law director Stephen Smith Jr. are included under his contract with the city. A portion of the fees will be paid from the 2010 budget, and some might be covered by the city’s commercial crime insurance policy. “If it is determined that any of the legal issues set forth ... resulted from criminal conduct that would be covered under the aforementioned insurance policy, SZD will vigorously pursue recovery of any and all legal fees paid by the city,” the letter said. “Finally, we will explore every available avenue to recover not only our fees, but also the fees of the consultants working on this matter.” City police Capt. Steve Robinette said the audi-

By Paul Vernon/ThisWeek

Jonathan Meier, left, with Rain Brothers LLC, conducts a rain barrel workshop sponsored by the Grove City Parks and Recreation Department at the Evans Center Saturday, Feb 26. The city has said a rain barrel can save most homeowners about 1,300 gallons of water during the summer.

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Senate Bill 5 might not Mixed-use development cited affect SWCS negotiations as goal if Beulah Park leaves city By TOM SHEEHAN ThisWeek Community Newspapers

Controversy over proposed Ohio Senate Bill 5 has garnered attention statewide, including that of South-Western City Schools’ officials. The proposed legislation would drastically reduce collective bargaining for public employees. South-Western currently is locked in negotiations with two unions representing teachers and classified employees. Both groups of employees have been working without contracts since June 30. South-Western superintendent Bill Wise said before the school board’s Feb. 28 meeting, “We’re watching Senate Bill 5 very closely. We’re still bargaining in good faith.” Even if Senate Bill 5 is approved, Wise said it wouldn’t necessarily have any immediate effect on the SWCD talks. The proposal likely would face legal challenges or perhaps a statewide referendum vote. Of more concern are the sluggish ne-

gotiations with the South-Western Education Association and the Ohio Association of Public School Employees. Talks with both unions are being handled by federal mediators. District negotiators have not met with SWEA since Dec. 20 or with OAPSE since Feb. 7, Wise said. Mediators set negotiation sessions. “I would say it’s not unusual for mediators to not call parties together if they don’t see it as productive to the process,” the superintendent said. He previously said some issues have been discussed but he has not said if progress has been made. Wise said on Feb. 28 that he did not know when any further talks would be set. As they have since October, dozens of teachers, many wearing blue SWEA Tshirts in support of their union, attended the Feb. 28 meeting. The meeting was a board work session without a public participation segment. Neither SWEA presiSee SENATE BILL, page A3

By LISA AURAND ThisWeek Community Newspapers

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The advantage of this to the state is that, rather than cannibalizing your own business at both the casino and the racetrack, you’d be bringing facilities to those that don’t currently have any, which would allow a lot more tax revenue to the state.

Grove City mayor Richard “Ike” Stage on Feb. 22 told city council members that a bid to move Beulah Park away from the city will go before the Ohio State Racing Commission. Stage said that if Beulah Park moves, he’d like to see a mixed-use development in its place. “Beulah Park and thoroughbred racing has been part of Grove City since 1926, so it’s disappointing to lose that potential event,” Stage said. “I would hope that there’d be a mixed use site, but that was contingent upon them being able to get the slot machines.” If the racetrack moves, track owner Penn National might help the city plan the future of the 200-acre tract,

said Bob Tenenbaum, Penn National spokesman. “Penn National has indicated that they would work with Grove City officials to provide the best use of that property,” Tenenbaum said. Beulah Park employees would be offered jobs at the new Dayton track or at the Columbus casino, he said. Penn National will ask the commission for permission to move the

86-year-old Grove City racetrack if video lottery terminals are approved, the company said. Tenenbaum said Feb. 24 that the company wouldn’t want Beulah Park to compete with the new casino it’s building in the Columbus area. “Penn National would have basically two casinos within a few miles See BEULAH PARK, page A3