Exactly thirty years ago, on March 29, 1989, an article published in Fortune Magazine described how Cleveland’s corporate executives took control of the city in an explicit — and in their view, public-spirited — power grab.
After the tumult and populist fervor of the Dennis Kucinich administration (1977-1979), the local business community had had enough. They took it upon themselves to track down and throw their (financial) weight behind a new Mayor — George Voinovich, then the Republican Lt. Governor — and, through him, impose a new “corporate efficiency” on City Hall. These leaders exerted their influence over the city’s political and economic life and successfully implanted the idea that business-friendliness ought to be Cleveland’s dominant policy prerogative. It still is.
The article, titled “How Business Bosses Saved a Sick City,” by Myron Magnet, was later anthologized in Cleveland: A Metropolitan Reader, edited by Dennis Keating, Norman Krumholz and David C. Perry. The contents of the article resonate years later. Residents have watched as cooperation among the city’s business and political leaders has proven extraordinary beneficial, time and again, to the businesses doing the cooperating. Meanwhile, the city itself — I’m referring here to the physical area and the people who live within it — is still bedeviled by the ills that made Cleveland “a microcosm, almost a caricature” of industrial America’s woes during the middle 20th century.
Here’s the key paragraph:
“E. Mandell de Windt, the now retired CEO of Eaton Corp. and unofficial dean of Cleveland businessmen, organized the troops and devised a strategy, setting in motion a benign conspiracy of executives and entrepreneurs that still operates. The impressive feat of organizing that cabal and persuading Cleveland’s most senior businessmen to take charge of the grittiest aspects of civic life was the real key to the town’s turnaround. Cleveland bosses are arguably more public spirited than most, but they had hitherto focused that spirit on their especially successful United Way or their superb art museum or the world-famous Cleveland Orchestra, not on bread-and-butter civic matters. By the start of the Eighties, though, top executives realized they had to get their hands dirty if they wanted to keep viable the Cleveland life they liked so much — the Cleveland of excellent cultural institutions and big-league athletic teams, the Cleveland ringed by enviably comfortable, old-fashioned, family-oriented suburbs, where $300,000 buys you $1 million worth of house by New York City or Boston suburban standards.”
It’s unclear, from the above description, how exactly the turmoil of City Hall under Kucinich affected the viability of old-fashioned, family-oriented suburbs, or how getting one’s hands dirty in “bread-and-butter civic matters” would affect, one way or another, the region’s excellent cultural institutions.
What these leaders really seemed to hate, based on their comments, was that Kucinich had treated business as “the archenemy of the people.” Local CEOs preferred to be viewed by the public, if viewed at all, in the same beneficent glow in which they viewed themselves.
They also wanted enormous public subsidies.
In his description of this new and “almost irresistible” cabal of business leaders, Magnet characterizes the unity and cooperation of elites as if they represented the unity and cooperation of the city at large. This is an unconscious rhetorical device still very much in use, as when people talk about a “Cleveland renaissance” when they’re referring narrowly to downtown economic development, or when people talk about “U.S. interests” when referring to the financial interests of big U.S. businesses.
When describing the value of Voinovich for the business community, Magnet writes: “They got a Mayor with a gift for nurturing all the incipient impulses toward unity and cooperation that the town’s revulsion for Kucinich had engendered.”
“The town,” here, specifically refers to business leaders. It was business leaders, after all, who reviled Kucinich so much that they were compelled to finance Voinovich’s candidacy and organize a cabal.
“In a sense, Kucinich was the best thing that ever happened because he became a unifying element,” said Dick Pogue, longtime managing partner of Jones, Day, Reavis & Pogue.
Later in the piece, Magnet says that in light of this new spirit of cooperation, Cleveland politics had assumed an “oddly unideological character.”
“Most [Clevelanders] agree that you have to create wealth before you can think of redistributing it,” he writes. “Most believe that the long-term way to help the poor is to make the local economy flourish.”
Again, he’s referring to what most leaders believe, not most people.
Despite Magnet’s orgasm for these elites — “Isn’t this at least a little like what the Greeks meant by the civic ideal?” — it should be clear by now that this economic development strategy has not been an effective way to “help the poor.”
Helping the poor, though, is at least conveyed here, accurately, as a second-order concern for the business leaders in question, whose central aim is and always has been “creating wealth [for themselves]” and “making the local economy flourish [via lengthy tax abatements and publicly subsidized real estate development].”
That strategy has had identifiable results: Cleveland is among the nation’s poorest, hungriest and most segregated cities, one where students attempted or considered suicide more than students at every other big city school district in the country in 2017. These are hardly hallmarks of a flourishing economy.
These grim outcomes are in spite of the Gateway development project, which Mayor Michael White called, in 1990, the “opening of a new battle against poverty,” and which Clevelanders will be paying off until 2023, even as the city ranked dead last in child poverty in 2017. These outcomes are in spite of the Quicken Loans Arena deal, which Mayor Frank Jackson repeatedly referred to in 2017 as an “investment in neighborhoods,” though it was purely a handout to team owner Dan Gilbert, and which public sources will be paying off until 2034. These outcomes are in spite of the 2018 Republican tax bill, which was supposed to put money in the pockets of middle-class Americans but, like Cleveland’s development framework, is actually just an instrument for the upward distribution of wealth.
Magnet’s piece goes on to describe the formation of Cleveland Tomorrow — “a formal conspiracy of CEOs to provide leadership” — and how it cultivated public-private partnerships to solve private problems (by having the public pay for them).
“Cleveland Tomorrow mobilized the resources of local colleges and universities,” for example, “helping CSU set up a research center that solves quality improvement and industrial engineering problems for area companies. A program at Tri-C provides customized training for companies.”
Local companies, in other words, get to save a fortune by transferring the cost of employee training and quality improvement to publicly funded institutions. This is another form of public subsidy.
Late in the piece, vaunted local titan-philanthropists like Albert Ratner and Dick Jacobs remark upon the degree to which the civic culture and economic climate had improved through the 80s. Magnet can hardly contain himself.
“The new downtown is springing up as rapidly, extensively and glitteringly as if by Prospero’s magical conjuration,” he writes, referencing Jacobs’ Galleria project, Ratner’s Terminal Tower renovation, and a “wave of recreational development” in the Flats.
This is the sort of economic climate, one that permits and rewards huge construction projects, that the benign conspiracy of business leaders were most keen to champion. And they did so for obvious reasons. The big law and accounting firms, to say nothing of the developers themselves, have continually made handsome profits on them, which profits they can be counted upon to return to the political campaigns of local candidates most ardently committed to upholding the business-friendly economic development model, one that most folks abstractly disparage as the “status quo.”
Speaking of which:
“You need big symbols of physical progress,” the director of the local McKinsey office told Magnet when discussing downtown development. “They are momentum-building and pride-building. You can’t move the city without physical splashes.”
Cleveland leaders have proven for forty years now that these physical splashes do indeed move the city. They move it backwards.
This article appears in Mar 27 – Apr 2, 2019.
We need to have another takeover now!!! Its time to get Taxin Jackson out of office along with thief in chief Budish!!!
Until both of these crooks are sent right to jail, nothing will likely change around here except for even more higher and higher taxes!!!
Yea corporate takeover of Cleveland worked so well.. We went 600,000 people living in the city to less than 400,00.
George Voinovich was a gifted and shrewd politician and to make it appear he won just because he had corporate backing is way too simplistic. He was also elected Governor and U.S. Senator statewide. He had great ethnic appeal, his politics were not divisive, and he forged relationships with Democrats and Republicans. He was the force behind private-public partnerships and against the odds landed the Rock and Roll Hall of Fame.
Gateway was passed by the voters of Cuyahoga County (lost in the city of Cleveland) and the political muscle behind it was Mike White, who was not a sports fan. David Axelrod, the political genius behind Bill Clinton, ran that campaign.
This downtown vs the neighborhoods is tiresome tripe. The real truth is Cleveland got hit by a double whammy of Trade policies and a deep recession. The poverty in Cleveland is due to the changing global economics and the demise of the big industries. Cleveland business leaders can hardly be blamed for that.
I’ve heard this refrain for 30 years and did not buy it then and still do not buy it. Look at the other industrial cities in the Midwest and tell me that their woes are also due to greedy Cleveland business leaders. I think not.
Sam – It is admirable that you are doing a deep dive into Cleveland history, albeit through warped lens of Roldo’s memories. I don’t agree entirely with what Mary Anne Sharkey has posted, but credit to her for publishing under her real name, though her consultant firm is Mita Marketing, which is why it doesn’t get much scrutiny as Cleveland City Council funds her in every budget. I think former PD writer Joe Eszterhas is still alive …maybe you should interview him for the street politics behind business control of City of Cleveland and the takeover of an “independent” media. Kucinich’s history w/Ameritrust/Sinito. Esterhas’ biography includes his experience w/Voinovich. I remember Voinovich burst into tears on the steps of the Columbus Statehouse and I saw him burst into tears when HUD CDBG program went into play at the City of Cleveland. He was not a bad person. I think he was compassionate and tried to be true to his city, state and country. Our problem continues to be that our region has become bloated w/federal agency monies that only exacerbate poverty, because it generates so many NGOs and a grotesque crony political system that recycles the same tired, useless and criminal political representation. Here’s a tip I wish you would follow up on – Garfoli, son of a former CLE Council person has delinquent properties on W. 25 – over 100K Ginmark aka White Gold -WRLC territory through former treasurer Jim Rokakis. Tell me why our current County Treasurer and County Council do not demand that O’Malley, the county prosecutor, foreclose these properties? Rokakis and McGinty seemed to think that Lloyd Glover, was worth pursuing for $11K for his properties adjacent to the proposed CHN Heroin Hotel in Land Bank Chair Brancatelli’s Ward 12. Ask why, Sam. Recovery of tax revenue applied to services actually would help raise up the City of Cleveland and East Cleveland, where most of these tax delinquencies are occurring.
Thank you for the posting Mary Anne. When I began my career with the CFD in 1983, Engine 1 serving downtown was assigned a Ford Sutphen with a manual transmission and rear fenders rusted-through, they literally “flapped in the breeze.” It would not get into 1st gear reliably, we used 2nd gear, a slow release of the clutch and the down-slope of the station driveway apron to get it on our way to fires, etc. It took years for the city to recover from the loss of credit arising from the default caused by the game of chicken that Kucinich lost with the bond-holders. Implemented, his populist polices only deprived the poor of services, and destroy effective leadership of the meager resources still available to serve identity-based politics (see the Grdina sisters).
The author ignores one significant reality. The voting citizens of Cleveland control every component of Clevelands strategic plan. The willingly supported the 2017 Quickens Loan plan and every other project that needed public support. The citizens also failed to protect their school system by willingly given oversight to the Mayor. Had the citizens been more attentive the corporate elite would have had to negotiate for their interest to survive.
Ive got to respond to Mary Ann. I loved George V, but George did enable a police officer (Feckner) to sell drugs in the city of Cleveland. He also allowed the culture of Cleveland cops killing unarmed Blacks to develop. We havent been able to stem that tide which expanded under White, Campbell and Jackson. I agree with Sharkey that the downtown vs neighborhood rhetoric is garbage. But she ignores the destruction of the Cleveland school district under the last 4 Mayors.
The idea of corporate control over Cleveland politics and its institutions is not new or recent. The 1950’s brought us the takeover of the city’s hospital after the corporate folk wanted a more regional approach to our “free” health care model. 1957, specifically, when Anthony Celebreeze was mayor. Keep in mind this is the home of John D. Rockefeller when he was the world’s first billionaire. Think about the Van Sweringen brothers displacing over 10,000 residents along the Cuyahoga River downtown to build Tower City.
What you’ve shared is a “continuation” of corporate control that had nothing to do with George Voinovich and his corporate exploiters. Your conclusions, however, are correct. The taxpayers are getting screwed.
Arthur Feckner, to Starvin Marvin, was not a cop but a drug dealer Howard Rudolph allowed to sell over $600,000 in crack to raise money for an out-of-state drug buy in Florida so cops could have “bragging rights” at a police convention. Leonard Brooks was Feckner’s partner. Rudolph was Voinovich’s chief of police. Feckner and Brooks sold to residents near and around Woodhill Estates at CMHA.
I wrote about it for my publications. I served as CMHA’s communications chief after this crap went down. The cop killings started long before Voinovich. It was actually worse before Voinovich.
This is an article about political malaise and ongoing incompetence. Although your article mentioned 3 politicians specifically glossed over the basic facts that these three and many others are simply pawns of the corporate executives that are literally taking advantage of the citizens at large by taking tax give incentives which have negatively impacted the ongoing increasing poverty stricken citizens affecting the so called improving “D” rated public school system, the crumbling neighborhoods, coupled with the piss poor city services.
In short, until the citizens begin to vote intellectually versus emotionally and elect individuals that have their concerns at heart.
@Mayberry — in order for citizens to vote for and elect individuals who have their concerns at heart, such individuals have to actually run for office. I haven’t seen that happening in Cleveland.
Thirty years ago?
Really, at least one hundred and forty-two years ago, if you follow Dan Kerr’s book, Derelict Paradise, Homelessness and Urban Development in Cleveland, Ohio.
That’s where Dan Kerr begins, after the Railroad Strike of 1877 struck fear in the bodies of corporate powers throughout the Midwest, Pittsburgh, St. Louis, and …. Cleveland.
Kerr’s book un-packs the gross details of corporate ‘beneficence,’ the scientific charity movement (to distinguish the deserving and undeserving poor), and on and on.
In the 1930s, as a result of the depression, Cleveland tried to make itself into a tourist town (and had both a Hobo Convention and the Republican convention)
What I value in this article is Allard holding Cleveland corporate powers to its stated goals of ‘saving Cleveland’ and their failure to do that…….
UNLESS you believe … the tripe/truth … HOW MUCH WORSE it would have been WITHOUT US.
They will always have that mantra, slogan, answer….
There is always hope, a lot, but it’s not with those in power. THEY serve the wrong master.
In the neighborhoods, some/all people look out for one another, build something, serve one another in small and large ways. It’s how the world has always worked.
Even those who don’t seem to need us today, will need us when they fall/fail.
Under the radar, real community happens, until we are forced to move somewhere else because our land/home is coveted for the next development that ‘will save’ Cleveland, or the neighborhood, … but for someone else, not us.
Thanks for telling the painful truths.
Thank you for your thoughtful and informed comment Mike Fiala.