How the developers in Dayton make money from insider info

The big business news of the day in small news Dayton is that a local exec is stepping down as president:

Michael Greitzer will step aside as Dayton market president in Miller-Valentine Group as of Jan. 1, company officials said.

Greitzer will retain his ownership stake in the construction and development firm and remain a partner in it, but no longer will involve himself in day-to-day operations,

via Greitzer leaving Miller-Valentine; will keep a stake in firm.

Miller Valentine is one of the primary movers and shakers in inner circle of the  “economic development” engine (as it is) in the region. You’ll see a lot of their tilt up buildings along major highways- across from Wright State on I-675, along I-75.

However, they also have worked as “partners” with smaller municipalities like the City of Franklin:

Presentation to Council : Mr. Jim Schaeper, Fred Gossman and Mr. Jack Willard of CDS Associates, Mr. Joe Kennedy and Tylor Rhoads of Miller Valentine presented to the City thank you gifts to the City to show their appreciation. Miller Valentine Company and CDS Associates partnered with the City during the construction of the Administration Building Improvements, Fire Department, Police Department and Public Works facilities. Presented were renderings of all buildings. Vice Mayor Centers thanked all for the show of their appreciation.

City of Franklin, Ohio – May 3, 2004 Council Minutes.

So when the President of Miller Valentine sets up a dummy LLC: Gimme Shelter Investments, in his own name, on Sep 2, 2004, then purchases a piece of real estate for $425K on Jun 10, 2005, sells it for $965,000 to Walgreen Company on Dec 12, 2005 and then dissolves his LLC on 17 Nov 2006, you can see how the rest of his firm, a real estate development company- might be a little ticked about his sweet little side deal- based on information possibly gained while in a corporate partnership with the city.

Citizen, Angela Snowden asked about this in the April 16th 2007 meeting:

Angela Snowden, 8183 West Lawn Drive, stated she was at the last meeting in regards to the Franklin Heights issue. She complained about the Second Street improvements, the island, can’t get into Ameristop. She stated she had several questions and that she hadn’t received the letter as discussed at the 3/29/07 meeting. Also, Council indicated you weren’t interested in acquiring property, not in the real estate business. After researching Council minutes, see where Council has gone into executive session to discuss negotiations & acquisition of property. Ms. Fisher explained those executive sessions were discussions of right-of-way acquisition for the Second Street project and Deardoff Rd. Ms. Snowden then questioned plans for the area – Council stated there are no long range plans for the area. She added she has been attending Planning Commission meetings, researched those minutes and found Mr. Hall’s name in the minutes. Mayor Hall responded that he is a member of Planning Commission. She then questioned the city’s plans as the Comprehensive Plan (one of the maps) shows an access road on township property. Mayor Hall stated only the front lots are in the City. Ms. Fisher stated the access shows behind the city lots – is not for the township lots. She then questioned if the city does business with or in a partnership with Miller Valentine or Michael Grietzer. Mayor Hall stated that they did the building renovations – about 4 years ago. Mr. Lipps added they were the project director for the building project. Ms. Snowden stated that they bought the corner lot at East Lawn, as a shelter investor, then after buying it, went defunct.

Unfortunately, most of these deals are hard to track down, because most people doing them- are smart enough to hire a lawyer to do the incorporation and keep their name off the LLC papers. Apparently, $540K in 6 months isn’t a big enough haul to be able to afford a lawyer to cover your tracks. Was he the only partner on this deal might be the next logical question- and if we knew the answer to it, we might know why he’s stepping down at MVG.

That’s how economic development rolls around here.

If you enjoyed this post, make sure you subscribe to my RSS feed! If you wish to support this blog, please head over and use our services at The Next Wave Printing for all your printing needs. We have 4 Color Business cards starting at just $13.50.

10 Responses

  1. Will Brooks December 2, 2009 / 12:02 pm
    Oh come now, he stepped down …. uuhhh … because he wanted to?…..Just Kidding.
    Once again, good work David.
  2. Greg Hunter December 2, 2009 / 12:09 pm
    Nice pick up and the lack of transparency concerning the land transactions and who benefits is the REAL public records issue.  I do not care about the details of one’s divorce, but how money is laundered during development projects.  YES!
  3. Civil Servants are People, Too December 2, 2009 / 6:54 pm
    Very interesting… the other question is if there was any value-added work during the 6 month ownership.     Surveying and environmental assessment can be costly (but not THAT costly).
     
    Although the title should really say “How developers in Franklin make money…”
     
     
     
  4. David Esrati December 2, 2009 / 8:43 pm

    @CSAPT isn’t MVG in Montgomery County? And, I’m sure that there wasn’t any value added in 6 months- even demolition and site prep isn’t that much.

  5. D. Greene December 3, 2009 / 10:21 am
    Environmental assessment should never be that expensive, but what IS expensive is the remediation and cleanup process if that assessment should turn up something serious. Even more expensive than those two things combined: environmental lawsuits over building contamination or what have you, be it real or imagined. Either way the lawsuit is going to cost you a lot.
  6. David Esrati December 3, 2009 / 11:14 am

    I did a little investigation, Greitzer did nothing to the site in the 6 months of ownership.

  7. Greg Hunter December 3, 2009 / 4:05 pm
    IMHO most environmental remediation is a waste of time, money and resources.  Protect the water supply and hazardous vapors from peoples homes and most of the rest takes care of itself.
     
     

Leave a Reply

Your email address will not be published. Required fields are marked *