Posts tagged ‘Lorain County Photographers Blog’
“Game of Loans” Clear as Mud- CDBG funds Lorain
The Lorain Development Corp – an ongoing ripple effect – standing alone – questions and accounting tools all as clear as mud to me and I have been writing about this for yonks! 
There is a plethora of information starting with a series of articles on Lorain Community Development in 2008 ( 10 years ago ) by Mark Teleha
https://locophotogblog.wordpress.com/category/community-development/ and his interviews with Sandy Prudoff and Doug Rangel
“the opportunity to meet Doug Rangel. Doug is the Executive Director of the Lorain Development Corporation. Flashing back briefly, this is what Sandy Prudoff explained to me during the interview:
The other division, which is not really a city department, is our contract with the Lorain Development Corporation. The reason why we have a contract with them, we don’t have city staff doing that, is that he (Doug Rangel) has a ward of accountants, bankers, attorneys and business people. They, for no fee, and volunteer time, meet with Doug, and any small business request for financing, all the way up to $1.3 million on the Duane Building, all the way up to a $6 million undertaking of the Industrial Park, he and his Board, but primarily him, will structure the financing, monitor the financing. The Industrial Park had $2+ million for the loan, a loan from the State. A $2+ million loan from the Federal Government, a $2 million grant from the State, and a $2 million grant from the EDA (Economic Development Association)……
D. Romancak 2008
Doug doesn’t work for us, he works under contract with us. His agency is independent. He takes care of all the financing and business loans. So, first perception that we’re these rogue agents just doing whatever we want is definitely misplaced in a statutory city where we are the City of Lorain; we’re not separate and apart, we’re not different. We find it, sometimes amusing, as people say ‘There goes Community Development again, doing whatever it is that they do.” So said Don Romancak,
Note the above link make interesting reading as to how the system was supposed to work https://thatwoman.wordpress.com/2009/03/22/community-development-city-of-lorain/
FAST FORWARD to 2015 https://thatwoman.wordpress.com/2015/04/15/money-for-old-rope-a-taxpayers-question/
and then 2016
http://www.chroniclet.com/news/2016/04/26/City-cuts-ties-with-Lorain-Development-Corp.html
Robert Ellis, a local attorney and president of the LDC board, said the corporation, a nonprofit, has two options — it can find another foundation that is willing to loan money to businesses in Lorain, or it can dissolve.
AND then the FBI enters the picture: http://www.chroniclet.com/news/2016/07/08/FBI-probes-loan-program-by-Lorain-Development-Corp-ran-for-city.html
and THEN!!! August 30th 2017
http://www.chroniclet.com/Local-News/2017/08/30/Lorain-acts-on-defaulted-loans-before-HUD-comes-calling.html Glenn also noted the FBI investigation regarding the program, which began last summer, is still going on 
and now the situation as it stands today February 28th 2018
as the ripple effect of decisions made by Lorain and the spending of money and write offs is still causing ripples
http://www.cityoflorain.org/announcements?view=1683 February 26, 2018 Public Hearing – CDBG PY2017 Substantial Amendment
http://www.chroniclet.com/Local-News/2018/02/27/Lorain-wants-to-change-block-grant-spending.html 
Ritenauer {Mayor} said one of the biggest hurdles to lowering that ratio, though, is the revolving loan program, which was frozen several years ago due to over $600,000 in loans being written off and thousands of others were delinquent. “The problem is HUD counts that credit against us so that’s inflating our ratio,” he said. “It’s just north of a million dollars and when we get payments that makes it go up. Well, we can’t spend it to make it go back down because they’ve frozen it. We’d be in good shape if they would unfreeze that money and we could put it where it needs to be.”
Also the Morning Journal : ” Lorain puts local projects on hold to repay federal money http://www.morningjournal.com/general-news/20180226/lorain-puts-local-projects-on-hold-to-repay-federal-money
Lorain’s problem comes in part because the city and HUD have frozen Lorain’s revolving loan program to help businesses. That was due to questions about loans raised by Glenn’s predecessor, Leon Mason, who led the Department of Building, Housing and Planning. That frozen account inflates Lorain’s ratio of CDBG money allocated to money spent, the mayor said.
10 years of documents papers and pointing up the issue on this blog with Money for Old Rope three years ago.. and that pesky $600,000.00 I couldn’t figure out and apparently I wasn’t far off the mark. was I ( even if I can’t understand government accounting 101) 😉
In the middle of all this moneying…. and accounting is a loan of $250.000.01 to South Shore CDC
“As Mr. Mason stated, the issues with the revolving Loan fund came to him from the State Auditor
“I got an email from the state auditor who wanted to know why the city of Lorain had over $600,000 in loan write-offs,” department director Leon Mason said. “My response was that I didn’t know what he was talking about, and when he sent me the information, I was able to pinpoint some of the loans, but I did find some that were troubling, to say the least.” Mason said one that stood out to him was a $250,000.01 loan to the South Shore Community Development Corporation.
UPDATED- Minutes of the committee meeting April 11th 2016 where the report was given to Lorain City Council members
Oh well – 2018 and we are still trying to find our way clear of this one. BUT I am troubled – I am like the majority of tax payers, I can’t even figure out my own taxes let alone understand “accounting tools” of government .
I looked through spread sheets – I looked through “loans” and to whom they were made- BUT I looked at them as a citizen with a fair to middling IQ. 
I looked at was down as a “loan” to the City of Lorain (Building Housing and Planning)
NOTE: Yes! I know I have issues with the way “that” department is and has been run https://thatwoman.wordpress.com/2016/08/09/municipal-manipulation-lorain-e-again/ and the archaic means at their disposal when it comes to checking Point of Sale and the “paperwork”-
Little did I know I was in for a plethora of emails and answers and more confusion. I looked at a sheet of what were termed “loans” and one in particular caught my eye- no interest and under the category “closed not paid”- since the 501C3 mentioned was still an ongoing organization HOW COULD THAT BE? Well what was to be a simple question turned out to be a confusing answer 
You see this “Loan” wasn’t a loan – No! No! I have it all wrong apparently BHP needs an accounting tool to track payments for RENT etc.
The said organization paid out IN LEASE/RENT $ 19,050 from April 2013- March 2017 BUT in the accounting for BHP this was down on the books as a LOAN
Why?? according to the City of Lorain : their (BHP) system is a LOAN system. The way they keep track of any building lease/rent is to enter it in this system as it tracks the “due “ payments and categorizes them if they are late/past due etc.
Art Work Scott Bakalar
So confusing as it is – when is a loan not a loan when it is an accounting tool with BHP. Note: Excuse me just would make life easier it seems if it was classified under something say : Incoming rents from city owned properties I think there might be software somewhere to handle that………. Just my 2 cents ( or is it?) 😉
Now let us get back to South Shore Development Corp and that $250,000.01 loan that was written off by the Board of Lorain Development Corporation on February 3rd 2014
The Board was supposedly independent of City Administration and Council etc. BUT there were in place safety measures – from Mark’s 2008 interview :
“All of these loans are subject to review and approval by the loan board of Lorain Development Corporation as well as Board of Control, if they fall within the guidelines and would additionally require City Council approval if the loan request goes outside of guidelines. Doug Rangel “
In the case of the loan to South Shore Development Corp there were issues with conflict of interest. 
http://www.chroniclet.com/news/2016/07/08/FBI-probes-loan-program-by-Lorain-Development-Corp-ran-for-city.html
One of the loans that HUD officials flagged is a $250,000 loan made to South Shore Development Corp. in 2011 to help keep the struggling St. Joseph Community Center afloat. That loan was never repaid and eventually written off by Lorain Development Corp. State auditors have said that more than $600,000 worth of loans distributed by Lorain Development Corp. were written off over the years, but Mason said that his research indicates that figure might be slightly lower because of how some of the loans were structured.
The HUD review said that the money lent to South Shore was troubling because at the time of the loan, Robert Gilchrist was serving as both the city’s service director and president of the South Shore board. HUD called Gilchrist’s dual role “an apparent Conflict of Interest.”
Mr Gilchrist – he of the diversionary program – voting illegally , pleading guilty to drug charges
and alleged domestic abuse which cost him his job at as President of the Lorain County Community Action Agency was also in his Service Director position on the BOARD of CONTROL for the City of Lorain.
You know that BOC that is one of the checks and balances the taxpayers have. But hey we are OK because this Lorain Development Corporation is a separate entity – although contracted by the then Community Development Dept. ( see 2008 interview) and the money to fund it came from where ? Too many of the same names and relationships for my liking .
Early in 2009, South Shore announced its intention to close the St. Joe’s center because its income was outstripped by operating expenses, notably high utility costs. Lorain City Council in 2010 approved money to operate St. Joe’s while Krasienko’s administration looked for ways to keep it open. Lorain Service Director Robert Gilchrist was a key in brokering the deals needed to keep the center open and yesterday he made the city’s presentation to the Clean Ohio Council in Columbus.
Such plans in 2011- ……….
You can find the Board of Control minutes here – through various administrations http://www.cityoflorain.org/mayor/documents You can also access the Journal Entry on the discussion with the County Commissioners et al APRIL 2012 with charts and discussions in depth here JOURNAL ENTRY Commissioners Meeting St. Joes
| 2012 (no leasing) | 2013 (15k ft) | 2014 (15k ft) | 2015 (15k ft) | |
| Revenue | 913 | 1,063 | 1,213 | 1,363 |
| Expenses | 1,046 | 1,077 | 1,109 | 1,142 |
| Net Income | (132) | (14) | 104 | 221 |
| Capital/Other | 212 | 200 | 200 | 200 |
| Grants/Loans | 0 | 0 | 0 | 0 |
| Other Receipts | 2 | 2 | 2 | 2 |
| Profit/Loss | (342) | (212) | (94) | 23 |
Loans;
- $1,350,000 Loan on Property from the State
- Guaranteed $675,000 each to the City and County
- Payback of the State Loan does not begin until profitable OR when SSCDC property is sold.
- As a part of the development agreement a $250,000 Loan was provided to South Shore Community Development Corporation to cover operating shortfall.
- Beginning on April 1, 2012 the first monthly payment of $1,488 is due.
- The Loan is unsecured.
Grants:
- HUD EDI Grant – $166,500. Grant funds were used to fund the LCCC expansion/extension and Little Lighthouse tenant improvement work.
- HHS – $253,000. Grant funds were used to fund mechanical deferred maintenance to the then occupied areas and common systems.
- Energy Efficiency and Conservation Block Grant – $480,000
- City application for funds allowed for both a grant component and loan component for use at St. Joe’s totaling $480,000.
- In 2011, when EECBG project scopes for St. Joe’s were being developed, use of funds for maintenance of existing systems was disallowed.
- The Dep. Of Energy also determined that the combination of both a grant and loan could not be used at St. Joe’s; thus the funding became capped at approximately $200,000.
- City and SSCDC now developing a revised scope to utilize the available EECBG funds for non-maintenance energy efficiency projects.
CORF
- $1,600,000 Grant Awarded to the City of Lorain for SSCDC project.
- Mercy match over 3 years- $120k per year for 3 years = $360k
- Demolition includes Building D, Reidy Scanlon Bldg., Thrift Shop.
- The City of Lorain is currently advertising for a certified professional.
- Demolition anticipated to begin summer of 2012
and the rest of the story????????????????????????????? Who knows but I agree with Mayor Ritenauer .. to me this is all as clear as mud………… and just to help with information :
CPD_Funding_Grantee_Matrix_LORA-OH_OH_20180201
Copy of Public Service Streets and 108 spreadsheet(2)
Economic Development Final http://destinyhosted.com/loraidocs/2016/CCREG/20160404_68/628_Economic%20Development%20Review%20FINAL%20PDF.pdf
LDC Conflict of Interest Policy http://destinyhosted.com/loraidocs/2016/CCREG/20160404_68/628_Lorain%20Development%20Corp%20Conflict%20of%20Interest%20Policy.pdf
LDC Subrecipient Agreement http://destinyhosted.com/loraidocs/2016/CCREG/20160404_68/628_LDC%20Subrecipient%20Agreement%20PDF.pdf
Portfolio Quality Report http://destinyhosted.com/loraidocs/2016/CCREG/20160404_68/628_Portfolio%20Quality%20Report.pdf
EDA Title IX Plan http://destinyhosted.com/loraidocs/2016/CCREG/20160404_68/628_EDA%20Title%20IX%20Revolving%20Loan%20Fund%20Plan.pdf
Lilacs of Lorain and now Roses- Part 6
Photo Lorain 365 Blog
Part One https://thatwoman.wordpress.com/2013/11/21/why-lorain-the-lilac-city-the-paper-trail/
Part Two https://thatwoman.wordpress.com/2013/11/22/why-lorain-the-lilac-city-the-paper-trail-2/
Part Three https://thatwoman.wordpress.com/2013/11/24/why-lorain-the-lilac-city-the-paper-trail-3/
Part Four https://thatwoman.wordpress.com/2013/11/26/why-lorain-the-lilac-city-the-paper-trail-4/
Part Five https://thatwoman.wordpress.com/2013/11/29/why-lorain-the-lilac-city-the-paper-trail-5/
(Click on jpgs to enlarge)
We go back to the time of the 1924 Tornado according to information and photos courtesy of Dennis Lamont
The 1924 aerial shows the same area as it looked in Sept after the tornado. The photos were made by a local photographer “Somogy” flying out of Lorain Airport
Whilst the above photo does not have a date a similar photo tracked down by Dan Brady had a handwritten notation “prior to 1924” written on the back
It looks like the Rose Garden and “Rotary” Wheel was wiped out
.(ED NOTE: this is up in the air literally- anyone have any information of the shape etc of gardens at Lakeview prior to 1924- the photo from BRHS with the handwritten prior to 1924 may not be correct)
***** After much discussion and enhancing of photos it is the consensus of opinion, Dan, Dennis, Bryan and myself the photo with the hand written “prior to 1924” has the incorrect information .. it is possibly mid 1930’s It was not the original bathhouse pictured from the Metro Parks website
I have enhanced and cropped the aerial shot from Sept 1924 after the Tornado that is dated correctly- we cannot see any of the “rose garden wheel” in the photo and I believe some of the hardscape should have remained since it was very intricate.
The rose garden owes its being to the Lilacs it seems 🙂
And now we are back to the Lilacs- The first Lilac Festival May 21st, 1931 the Garden Club announced the plans for Lakeview with the “plan” :
The following is the newspaper account for that plan
courtesy of Dan Brady:
Reading the article one realizes the “fountain ” was part of the plan and further reading of articles found it was dedicated to the Veterans of World War One – after World War Two it was dedicated to “All Veterans”
Mark Teleha of Lorain County Photographers Blog ( whose daughter, friends now appear in the Metro Parks Lakeview commercial for the park- There Is a Park for That
http://www.locophotogblog.com/?p=1874
has award-winning photos of THE Fountain today and yesterday http://www.locophotogblog.com/?cat=31 .
Lakeview Fountain Mark Teleha
Mark’s blog has the full history of how and when the fountain was built and it can be found here:
http://www.locophotogblog.com/?p=347
On July 15th, 1935, monies were allotted from the War Chest Fund for the construction of a lighted fountain at Lakeview Park. Work began by the Works Progress Administration (WPA) on September 16th of that same year, at a cost of $12, 450. The following February, on the 14th, found the War Chest Committee denying funding for the fountain. Superintendent of Parks George Crehore obtained permission to purchase scrap stone from the Quarries in Amherst.
May31 1932The celebrations and dedications continued at Lakeview:
On MAY 31ST 1932 MAYOR CONLEY DEDICATED THE ‘LAKEVIEW MEMORIAL ROSE GARDEN – TO ALL OF LORAIN’S MILITARY ORDERS
We are here that our soldier dead should be honored and it is to this end and in honor of the living that I now preset , in behalf of the city this memorial garden to you “
The Lilacs eventually gave way to the Rose Festival and Queen-
As we saw in Part 5 the Lilacs made somewhat of a comeback in 1939 – but time , wars and history moved on, things , people places and visions became blurred and Lorain lost her title of the City of Lilacs – but there are remnants left and
Program back and front
Chris Ritchey
In August of 2007 Settlers’ Watch was dedicated
http://www.locophotogblog.com/?p=390
and the garden holds some special Lilacs
Photo Lisa Miller
one of which was planted by Bryan Goldthorpe – the Manager of Lorain County Metro Parks Lakeview Park ( caretaker extraordinaire of the very fountain and gardens ( and Lilacs???) the great-grandson of Mayor Paul Goldthorpe of the Lilac City who along with Bryan’s grandfather met the Lilac Train……….
The End of the Lilacs?????? – up to you – Lorain 🙂 You can see the Trains and Trees display and the Charleston Village “Lilac” Tree here
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