The news is sometimes in the details that the Dayton Daily News leaves out. If you read their story, it sounds like the city and county have “won” some new business- from Georgia (the evil people who “stole” NCR from us) for the paltry investment of $125K.
Read and Rejoice!
In September 2009, commissioners initially approved a recommendation for a $125,000 grant to the company, a producer of molded plastic parts. The Montgomery County ED/GE (Economic Development/Government Equity) advisory committee recommended the grant.
The ED/GE process has two parts: First, the county considers the recommendations of the ED/GE advisory committee and then the county enters into a contract with local jurisdictions — in this case, the city of Dayton — as part of the allocation. The expansion will be in Dayton.
Composite Technologies plans to move and expand its mixing and molding division from Georgia to 943 Woodley Road, Dayton, according to its ED/GE application.
Greg Hunter did his dilligent digging and finds out that this is just another of Raj Soin’s businesses. That’s right, the man who owns Mike Turner, now gets another $125K of your money. This is the guy who owns a mansion and doesn’t want to pay his taxes:
The Ohio Supreme Court has affirmed Greene County’s 2003 appraisal of Raj and Indu Soin’s Beavercreek home at $3.7 million.
The Soins appealed to the court, claiming the home at 2489 Kemp Road was worth less than half as much — $1.4 million.
The Soins have battled county officials over property taxes since building the 25,879 square-foot, 16-room home, completed in 2002. The home has six bedrooms, 91/2 bathrooms and a swimming pool and sits on 126 acres — 37 of which were purchased in 2004 for $662,500, according to county records.
The Soins also are appealing the $5.3 million value the county set for 2005 in Greene County Common Pleas Court, claiming the home is worth $2.75 million. Wright State University’s School of Business is named for Raj Soin, founder of Dayton-based MTC Technologies.
If you want to look at who owns the Woodley Road property: Court Reporter on transaction
Read about the City bragging about their involvement: Dayton Department of Development PDF PR
See who owns Sansara Properties LLC: State of Ohio articles of Incorporation listing Raj Soin’s son, Vishal Soin as the agent: http://www2.sos.state.oh.us/reports/rwservlet?imgc&Din=200906202950
It’s pretty obvious that $125K makes no difference at all in the scale of this deal- so how do they come up with this number? It’s the exact same amount that they gave to BGHstudios several years back (word on the street is that there aren’t many people working there right now).
However, as your trash bill goes up, your police officers get overworked, and firefighters get cut- somehow we have the ability to give $125K to a very rich man. It’s criminal.
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{ 13 comments… read them below or add one }
They finally took down the Qbase sign in Beavercreek.
Let’s think of this another way….
Think: blackmail. Think: ultimatums.
Think: if you dont’ pay up, I will move out.
The City can’t afford NOT to bend over.
Until the law changes at the State and Federal level, this is how the game will be played.
Cold, hard math. This is a classic logic scenario.
Jobs creates income tax.
Soin has jobs. City wants income.
Soin threatens to take away jobs.
City wants to keep jobs.
Keeping jobs will cost the city money.
Therefore, City will pay money to keep the jobs.
That is the dark side of development.
The good side is the small business that actually needs the money.
I’m not saying it’s right – that’s just how it is today.
Like the song about love and marriage, we can’t have one without the other.
David, do you or Greg have any kind of list compiled of how much exactly has been given out to all the different companies within the City through these type of “development grants” and such? I’ve recently been saving all the “BizBite” newsletters from the City that detail the amounts, but I’m curious about how much follow up is given after the fact. Such as BGH… And the phantom restaurant in the Chin’s space that never seems to show up… stuff like that.
I’m not necessarily 110% against the City giving out money in the name of economic development (like you seem to be…), but I certainly expect nothing short of exactly what that business promised if they take the money. I think it’s time to direct the media to these hundreds of thousands of dollars that are given out with no follow up. If the City gives money, the company damn well better deliver. And that is obviously not always the case. Not even close.
Just wondered if you had any more specific info compiled… ?
@CSAPT- Yep- the law needs to be changed at the Federal level. It was one of the main planks of my platform when I ran for Congress. Jane Mitakides didn’t have any platform- but, was the “opponent” to Turner. Such is life. Yep- there is a dilemma- but no one is willing to take a stand.
@Brad- I’ve tried to keep track of them here- but, know I’ve missed a lot. No, we don’t have a list. Yes, we should start compiling one. It amounts to millions in grants- and untold amounts of thrown away potential tax revenue. It tilts the playing field- making it harder for the open market to work.
Do I feel vindicated when a company like Qbase goes down- no. Do I want them to succeed yes- but- do I think government investment helps- hell no.
We’ll keep digging on this stuff- eventually, we’ll get enough evidence that the people will say enough’s enough. Till then, bend over.
David, Would you be supportive this idea. Instead of giving ED/GE grants directly to businesses, the money could go to create or enhance incubators and business resource centers that would be durable and could help everyone.
@Steve. I’m in Savannah GA right now. Looking around- I see well maintained parks, a system of maps to help guide people around the city, well maintained streets and sidewalks. Lots of small businesses in small mixed used walkable neighborhoods- and guess what- they didn’t tear down all the old to do “urban renewal.”
Nope- the way you get businesses to invest and thrive is to make a good place to live- which is what tax dollars are for. There should be absolutely ZERO tax dollars tilting the landscape.
David:
I wonder how well they do at making sure the taxes for the projects were actually paid by people who will benefit from the work.
Sweet deal for Beavercreek, if you live there, everyone else’s taxes pay for your stuff.
Yes I have heard that MTC/BAE was known as the “Indian Mafia” at WPAFB.
I wonder about this job creator as MOST of the jobs “created” by soin and his companies were really “tax dollar jobs” ie jobs that used to be done by the civilian work force but were outsourced to private corporations. It would be interesting to watch what work CTC will actually get.
I would also contend that for all the years working with some of the “best and the brightest” at WPAFB - Rajesh K. Soin an IIT grad has been nothing more than a “body shop” manager, who came along at the right time to take advantage of outsourcing as well as minority status. It seems to me that all that talk of innovation coming out of WPAFB and the contracts that his company has held, there has been a total lack of “revolutionary” companies or Patents emanating from this supposed leader in high technology. After all CTC makes………pallets. Nice. Innovative. Astounding really with all those years being exposed to the best and the brightest.
It is nice that our Federal Government out sourced jobs to a minority organization that may have resulted in American Jobs going overseas. How is that working out for us? Not so well as Teddy S. is begging for them back. Nice Job America!
Greg:
Exactly, this is the same fallacy that the Qbase-defenders fall in to. The money to pay for those bodies is already in the Federal budget (which is a multi-year process). That money will be spent, because if not, that means there is a civil servant who is not making his obligations and expenditures numbers and he won’t be competitive for that next promotion. There is no entrepreneurial magic here, there’s just little piglets feeding at Uncle Sugar’s trough. None of the piglets are beautiful and unique snowflakes, any is as good (or bad) as another.
Hmm I wonder. I have always had a problem with the Minority Set Aside program as Naturalized Citizens may not spend all those Tax Dollars in America. How about a hospital in India named after his Father. His story seems to indicate the Life of Riley for India, not Slumdog Millionaire
A regular Abraham Lincoln
IIRC – The story was Raj was broke and his suitcase was stolen sure doesn’t jibe with where he started and where he ended up. There is some classic Freudian lines in this background.
Ha except a Minority Set Aside Program that WPAFB fully funded, hmm I do not remember any Indian Race Riots in Dayton. Do You?
Wow You really cannot make up the irony. Here is an article about the ribbon cutting by an NRI.
Wonder how those guys would vote on Health Care in America?
Savannah does economic development, too:
http://www.seda.org/savannah/64/tax-incentives.html
They also have a thriving tourism industry and access to the sea, instead of a declining industrial base and a stagnant population growth rate.
Great city either way!
It takes awhile but I finally figured out where the Georgia Jobs came from, not that I think that there will be any jobs as Raj did not seem to have the magic touch with plastics recycling in Georgia.