The following editorial appeared in the May 2004 issue of Toledo Business Journal.
Permission to reproduce this editorial can be obtained by contacting the Editorial Department of Toledo Business Journal at (419) 865-0972.

 

 

 

Blade misrepresents consultant study

 

Analysis finds that multiple and separate development organizations reduce effectiveness

 

Information in a series of Toledo Blade articles and an editorial in late June misrepresented the findings of an economic development study conducted by the consulting firm Hammer, Siler, George Associates of Silver Spring, Maryland. The Toledo Blade also misrepresented the actions being taken toward the study’s implementation even though dozens of public officials, private sector leaders, and Toledo Blade personnel had firsthand knowledge to the contrary. These misrepresentations were used in another round of attacks by the newspaper on the Toledo-Lucas County Port Authority and the Regional Growth Partnership.

The Toledo Blade also did not report on one of the dominant issues repeatedly raised by many of the over 150 area leaders interviewed during the Hammer, Siler, George consulting study. This issue involves the damage being done to economic development and job creation in the region by the newspaper and its editor-in-chief, John Robinson Block.

Toledo Business Journal personnel met with Vernon George, president and CEO of Hammer, Siler, George who authored this economic development study. The study was initiated and funded by the Toledo-Lucas County Port Authority, Regional Growth Partnership, City of Toledo, and Lucas County. Prior to the study, these organizations recognized that development efforts in Lucas County were too fragmented. They came together to jointly fund this consulting project in order to improve the efficiency and effectiveness of economic development activities in Lucas County.

As was expected, the primary finding of the consultant’s analysis is that there are too many separate organizations in Lucas County that have responsibility for economic development. As was also expected, the study found that with no single agency in charge there is not a clear and agreed upon role for each organization. The result is inefficiency and reduced performance.

The Toledo Blade attempted to use this consulting study and its implementation to attack the Toledo-Lucas County Port Authority and the Regional Growth Partnership. In an article published in late June, the Toledo Blade stated: “…the agencies charged with bringing new jobs to the area aren’t doing their jobs, a new study says.”

Contradicting the Toledo Blade’s statement, the study determined that the most significant problem is that the system and structure for providing economic development services in Lucas County was too fragmented. With no single agency in charge, there are gaps in services. This is particularly true for support to small businesses, neighborhood development, and entrepreneurial development, according to the study.

Contrary to the Toledo Blade’s article, the consulting study did not find that the Port Authority and Regional Growth Partnership “aren’t doing their jobs.” Instead, the study’s key finding was that the approach taken in the past by political leaders of having multiple economic development agencies in the City of Toledo and around Lucas County under different political and management leadership and with differing objectives needs to be joined together and operated by one lead agency.

Economic development professionals have long been aware of this situation. In the past, political leaders in the City of Toledo and Lucas County have not been able to join together in the area of economic development.

In another misrepresentation, the Toledo Blade stated in its June 30th editorial: “The port authority needs to embrace the Hammer, Siler, George study – soon …

“Also Mayor Ford and the Lucas County Commissioners must appoint better board members who will insist on the reversal of a port authority culture that for too long has tolerated a complacent staff.”

The Toledo Blade attempted to create the impression that the Port Authority has not embraced the work done during the Hammer, Siler, George study. It also attempted to create the impression that the Port’s board of directors and staff have taken a complacent approach.

Prior to the Toledo Blade editorial, personnel at the newspaper were aware that the Port Authority and the agency’s chairman, Tom Palmer, were actively meeting with community leaders to implement the key findings of this study. Palmer has given significant amounts of his time in an effort to join together multiple economic development organizations in Lucas County under one umbrella structure.

Hundreds of community leaders and Toledo Blade personnel have attended presentations by Palmer and the Port Authority prior to the Toledo Blade’s editorial and since. These individuals are witnesses to the newspaper’s misrepresentation that attempted to leave the impression that the Port Authority has not embraced this study.

In another misrepresentation in its June 30th editorial, the Toledo Blade stated: “The (consulting) study … notes that the levy is disproportionately helping outlying areas in the region, cities and counties that have gladly accepted the RGP’s help but have contributed virtually nothing for it.”

A review of the written consulting report reveals the Toledo Blade editorial attempted to manipulate this issue. The consulting report does not provide any analysis of this issue. The study does not provide an analysis of the amount of time or budget spent by the RGP inside of Lucas County or outside of the county. It does not provide an analysis of the RGP’s budget that comes from outside of Toledo and Lucas County taxpayer funding and the intentions that this money be used for all of northwest Ohio. It does not provide an analysis of the benefits occurring in Toledo and Lucas County or benefits received around the region.

Even though the consulting study did not analyze this issue and only confirmed a perception held by interviewees concerning this subject, the Toledo Blade attempted to manipulate the report’s conclusions to create the impression that this was a key finding of the consulting project.

However, prior to publishing its editorial in late June, the Toledo Blade had data and information that contradicted the newspaper’s position on this issue.

Specifically, the Regional Growth Partnership is receiving only 49 percent of its 2004 budget from the taxpayer supported Port Authority levy. The other 51 percent of its 2004 funding is coming from private sector sources and from the State of Ohio. The State of Ohio is providing funding to the RGP in 2004 and beyond to support high technology start up businesses throughout northwest Ohio.

RGP’s funding from the State of Ohio and its funding from the private sector are intended to support economic development anywhere in the eleven county area of northwest Ohio. This funding is not intended for only Toledo and Lucas County.

An examination of the work effort of the staff of the RGP reveals that between January and May 2004, 76 percent of the effort by the agency’s staff was spent on activities for Toledo and Lucas County. An internal tracking system of staff time put in place by the RGP was used to prepare this analysis. Management of the RGP estimates that this percentage has been in this range for many years.

Even though taxpayers in Toledo and Lucas County are providing only 49 percent of the agency’s budget, the RGP is spending 76 percent of its efforts on matters specifically concentrated inside the City of Toledo and Lucas County.

We have learned from sources that the Toledo Blade had access to this information and data. The Toledo Blade ignored this information in its June 30th editorial and instead stated: “Since the RGP’s inception a decade ago, the problem has always been the fact that the agency serves 11 northwest Ohio counties but collects the money to pay for those services from just one: Lucas.”

It is easy to understand that additional funds for regional development efforts from outside of Lucas County and inside the county will be very beneficial and should be encouraged. There is still significant progress needed in the area of regional collaboration.

As is clear, the June 30th editorial did not reveal the data and information that documents the actual RGP funding sources outside of the Port Authority levy, the intent that these non-levy funds be used throughout northwest Ohio, and the actual allocation of RGP staff time – which are all in contradiction to the Toledo Blade’s position.

It is also clear that this issue has been successful at diverting attention and resources from the real issues that impact job creation. Further, efforts to limit the RGP’s activities to Lucas County threaten valuable progress made over the past ten years that has public and private sector leaders around the region working closer together on economic development issues.

There is a great deal of concern as the November Port Authority levy issue approaches that such actions as these misrepresentations and manipulations by the Toledo Blade, along with the newspaper’s long history of a personal vendetta against the Port Authority (see Personal Vendetta Exposed at www.toledobiz.com), will continue to mislead voters who do not have access to unbiased information.

A Port Authority levy campaign effort is expected in the fall. A significant amount of additional community resources will need to be raised and additional volunteer time mobilized for this campaign in order to get accurate information to area voters. These scarce resources will be diverted from other important development activities and other priority community efforts in order to protect job creation in the area.

 

(For permission to reprint this editorial in other newspapers, newsletters, or direct mailings, or to use in radio and TV broadcasts, please contact the Toledo Business Journal at (419) 865-0972.)