John Barrett is a disgusting human being

This is what corporate America is all about:

Western & Southern executives, whose headquarters sit across a park from the Anna Louise, offered to buy the Anna Louise for $1.8 million several years ago, less than half its value. The Anna Louise declined and won $12.6 million in federal and state tax credits to renovate the home, where some rooms are smaller than 100 square feet and all the women have to share bathrooms and one kitchen.

Days before the renovation was to begin, Western & Southern sued over a zoning issue and a judge ordered an immediate construction halt until the legal fight was resolved. The Anna Louise and its supporters didn’t back down, vowing to fight Western & Southern with everything they had — until last week when they inked a deal with the company to sell the home for $4 million.

This sounds bad, but it’s even worse:

Letters acquired by CityBeat show  Western & Southern playing hardball with Cincinnati Union Bethel  from 2005-09 when CUB was considering selling the building because it  needed expensive renovations. The final Western & Southern offer was made in 2009 for $1.8 million, just $50,000 more than its first offer  back in 2007. The property in 2011 was valued at $4 million by the  Hamilton County auditor.

In a letter dated Dec. 1, 2008, Eagle  Realty President Mario San Marco offered $1.8 million for the Anna  Louise Inn. Eagle Realty is the real estate arm of Western &  Southern. Cincinnati Union Bethel President & CEO Stephen MacConnell responded two months later with a counter offer involving the $1.8  million plus a combination of other contributions that would total $3  million in value. MacConnell suggested Western & Southern include  things like endowment contributions, office space and moving expenses.

But Western & Southern didn’t take  the offer. Six months later, San Marco wrote MacConnell a letter saying  Eagle Realty couldn’t raise its offer higher than $1.8 million because  of “challenges and complexities of development in our (Central Business  District).” 

It was about one year later, July of  2010, when Cincinnati Union Bethel won state-distributed federal funding to renovate the building. And it was around this time that Western & Southern realized it had blown its chance to acquire a property it wanted much more than San Marco let on.

The property was clearly worth the $3  million MacConnell was trying to get, because Western & Southern  soon offered that much or the higher of two independent appraisals for  it.

But the Anna Louise Inn was no longer on the market thanks to $10  million in tax-credit financing from the Ohio Housing Finance Agency. It later secured a $2.6 million loan funded by the U.S. Department of  Housing and Urban Development that was awarded by the city. These pieces of federal funding are set aside for historical renovations and  affordable housing.

According to  Cincinnati Union Bethel’s records, Western & Southern from 2007-09  donated $1,000 four different times to the Anna Louise Inn’s Off the  Streets program, which helps women involved in prostitution turn their  lives around. Back in 2005 Western & Southern donated $5,000 to  Cincinnati Union Bethel to celebrate the organization’s 175th  anniversary. By 2010 Western & Southern had apparently run out of  giant checks to pose with.

But that’s not to say the corporation was without interest in the Anna Louise Inn’s programs — it just thought  they were really bad now. One month after CUB got the $10 million loan,  Anita Collins Purnell, Eagle Realty assistant vice president and  director of multi-family management, wrote a letter to neighbors in the  Lytle Park district on Eagle Realty letterhead describing Cincinnati  Union Bethel’s renovation plan. 

City Council approved Cincinnati Union  Bethel’s development agreement, but that didn’t mean the Anna Louise Inn was home free. Western & Southern filed a lawsuit on May 27, 2011,  five days before the Inn’s scheduled renovation, claiming the building  was improperly zoned. The lawsuit, against the Anna Louise Inn and city  of Cincinnati, froze both the state- and city-distributed federal loans  and put the renovation on hold indefinitely. 

So Western and Southern made a lowball offer because they thought the charity had no other option (making a profit of desperate people is the American way). When the charity suddenly had another option,  Western and Southern went into overdrive: using their influence to change things, filing a series of lawsuits to delay the project knowing that the charity wouldn’t be able to afford long delays, and maligning the women who stayed at the Inn. And they won, as big money usually does. John Barrett doesn’t think anyone cares:

W&S is now dusting off plans to transform southeast Downtown after riding out what it knew would be a PR challenge. The Anna Louise Inn currently offers living space for about 75 low-income women; W&S earned $280.6 million in 2011 on $2.9 billion of revenue and was viewed by critics as something of a bully.

“This will all work out,” Barrett said in an exclusive Enquirer interview. “Nobody will remember the consternation, and they’ll all say, ‘Wow.’ ”

What’s sad, is that he’s probably right. If you, like me, feel different you will stop doing business with any of Western and Southern’s companies–listed here and here.

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 154 other followers

%d bloggers like this: