As published in Toledo Business Journal - September 1, 2009

Toledo Business Journal Editorial

Konop and Block: A path to decline

Voters can reject strong publisher governance

The upcoming Toledo mayoral election will determine if John Robinson Block, The Blade publisher and editor-in-chief, retains his dominant impact on direction and control of affairs in the city. Block needs an individual in the mayor’s office who will obey his direction. Lucas County Commissioner Ben Konop is a politician and mayoral candidate that offers the newspaper and Block a chance to increase their power and control.

Toledo has experienced significant job loss, and the City’s finances are in crisis. There are important new job creation opportunities for the City, but a number of problems have contributed to past development failures and the City’s financial woes.

At the heart of Toledo’s problems lies the issue of leadership. During the past 15 plus years, two individuals have had a dominant influence on the direction of the City. Toledo Mayor Carty Finkbeiner and Block have set an important part of the agenda and direction for Toledo during this period.

Block and Finkbeiner were instrumental in engineering Toledo’s change from a city manager form of governance to a strong mayor form of government. Block was not able to easily control a city manager, as this was not an elected position. A city manager did not need Block and The Blade to get reelected.

A strong mayor form of government gave Block a chance to find a politician that needed the daily paper to get elected and thus a political position that he has more of a chance to control. It is important to Block that an individual he is more easily able to control gets elected to the strong mayor position in the City of Toledo.

Many community leaders refer to the “strong publisher form of governance” when discussing how many critical decisions are made in the city. It is understood by these community leaders that permission is needed from Block before major initiatives are undertaken. Failure to obtain Block’s permission or to follow his direction can result in a relentless and damaging series of attacks from the daily newspaper.

The decade-long vendetta against the Toledo-Lucas County Port Authority is one example of the damage Block and The Blade inflicted on an agency whose board of directors did not obey his direction. Toledo Business Journal has documented Block and The Blade’s actions against the Port Authority and members of its board of directors and management in a series, Personal Vendetta Exposed, that can be found at www.toledobiz.com.

The current series of attacks by The Blade on the YMCA is another example of the consequences that an organization can experience after failing to do what Block has directed. The YMCA’s failure to build a health club in close proximity to The Blade’s offices in downtown Toledo has been followed by an ongoing series of attacks from the newspaper.

Political and business leaders have regularly traveled to Pittsburgh to meet with Block in attempts to obtain his permission for major initiatives. These meetings conducted by Block are an important part of Toledo’s strong publisher form of governance.

It is this background that sets the stage for the next mayoral election for the City of Toledo.

Why have Block and The Blade given candidate Ben Konop a disproportionate amount of exposure in the newspaper? Why has the daily paper persistently worked to build name recognition for Konop?

And what would be the impact on Toledo if Block were able to have voters put Konop in office to take direction from the publisher?

Konop’s impact

Konop has caused significant damage to the Lucas County Improvement Corporation (LCIC) and economic development efforts in the county. He worked hard to remove the executive director of the LCIC for not following his orders. He then tried to end the existence of this local economic development organization when its board similarly refused to follow his demands.

Former LCIC executive director, Shawn Ferguson, refused Konop’s demands to release to the public confidential information that had been provided to the agency by client businesses. Konop did not understand that businesses will not deal with an economic development organization that does not protect their confidentiality. This is Economic Development 101. Ferguson and other board members believed strongly that following Konop’s direction would destroy the agency and harm economic development efforts in Lucas County.

Konop also wanted LCIC staff to spend their time auditing businesses that had received incentives in the past in order to document the number of jobs that they had created. He wanted LCIC staff to complete these audits at the same time that they conduct an annual sales call to talk to these companies about doing expansion projects or other initiatives that would create additional jobs.

Ferguson knew that a system was already in place to monitor a company’s performance on job creation. He also believed that the small staff at the LCIC should focus on new job creation and that any additional auditing function was better conducted by other agencies, if necessary. He also knew that company executives would not schedule a meeting with LCIC personnel to discuss expansion and growth issues at the same time that an audit of their business was being conducted. This is Business 101. Ferguson believed strongly that Konop’s direction would harm the LCIC and its reinvigorated efforts to create jobs under his leadership. He again declined to follow Konop’s direction.

Konop used The Blade to conduct a series of attacks on Ferguson and the LCIC. The relentless media attacks were harmful to the LCIC. Konop was successful in forcing Ferguson to resign and in restricting funding to the LCIC to work on new job creation. He was determined to destroy the agency. Konop did succeed in getting talented LCIC staff members to leave the organization and also in getting talented private sector board members to end their participation with the agency.

Fortunately, a number of community leaders, led by former University of Toledo president Dan Johnson, were instrumental in saving this organization. This was done in spite of Konop’s efforts to destroy the LCIC. A private sector-led board was put in place, which was an important issue raised by the Lucas County Commissioner. Three years later, the LCIC is still in the position of working to replace the leadership skills lost when Ferguson was forced to resign.

Konop has succeeded in setting back the economic development efforts of the LCIC and Lucas County by what appears will be at least four or more years. Lucas County’s unemployment rate is higher because of Konop’s actions, and he bears direct responsibility for a portion of its residents being without jobs.

Konop’s election to the position of Mayor of Toledo would continue his damage to the local economy. He has put forward a number of proposals that would result in significant additional job loss in the City of Toledo if he is elected.

Konop has proposed putting a ballot initiative before Toledo voters to require businesses in the city with 25 or more employees to provide six paid sick days. These paid days would be given to all employees working 32 or more hours a week.

Does the Lucas County Commissioner not care that businesses avoid moving to a location or remaining in a community where the costs of doing business are higher than other alternatives? There are no lack of communities outside of Toledo and Ohio that will welcome departing companies and their jobs. Konop’s proposal was designed to win votes. It will be viewed favorably by many working Toledoans who do not understand its consequences. Konop does not appear to be concerned about the long-term impact of this proposal for increasing future job loss.

Konop has also proposed that any company with 25 or more employees receiving incentives for creating new jobs be required to pay all employees a living wage. Does Konop not care that many companies avoid doing such development projects in communities where the costs of doing business are higher? They avoid placing investment and new jobs in a location where such regulation and control by the local government reduces their ability to be competitive in the marketplace. Konop’s proposal was designed to win votes. It will be attractive to some voters who do not understand the consequences involving the loss of new investment for the community. Konop does not appear to be concerned about the long-term impact of his proposal that will motivate businesses to not locate in the city of Toledo.

Many of Konop’s current and past proposals and initiatives appear to be designed to win votes. His actions appear to be aimed more at furthering his own personal political career. It is likely that the office of Toledo Mayor would only be another stepping stone in his political career. Konop has had an interest in returning to Washington, DC as a member of Congress.

Konop signed a pledge to remain in his current position as a Lucas County Commissioner for the full four-year term. He promised voters that this would not be a stepping stone for his next political office. He held a press conference and charged that his opponent, George Sarantou, would simply use the Lucas County Commissioner’s office as a stepping stone for Sarantou’s political career. Sarantou described Konop’s press conference and pledge as “a cheap political trick.”

It is ironic that Konop has now breached his pledge made to voters in Toledo and Lucas County.

Konop’s promises and pledges and regular political posturing appear to be designed to win votes, and his ambitions for higher political office seem to leave him with little concern about the long-term consequences of his actions on the community.

The Blade’s role

Block and The Blade have provided Konop with significant coverage during his brief political career in Toledo. The newspaper worked closely with Konop in his efforts to destroy the LCIC. The dominant coverage that The Blade has given to Konop has gone beyond any standards of fair and objective journalism.

Konop owes most of his candidacy to Block and The Blade. He will be indebted to and dependent on Block for his future political career. Konop is the candidate that owes the most to the newspaper. He is the politician that will most easily allow Block to continue his direction and control.

Can Toledo afford a continuation of this strong publisher form of governance?

Will Toledo voters again be influenced by the daily newspaper to put another candidate in office who takes direction from the publisher and who appears to be more concerned about his own personal political career than the true interests of the community?