Cincinnati City Council votes to keep rail board, rejects accusation of malfeasance

Cincinnati City Council on Wednesday found the five members of the board that oversees Cincinnati's railroad did not act inappropriately in their dealings with Norfolk Southern as the company sought to buy the city-owned rail line.

Here's what happened: The board had just about finalized its secret plan to sell the utility to Norfolk Southern when city attorneys mentioned a problem: part of the deal was illegal.

As part of the $1.6 billion railroad sale, Norfolk Southern agreed to cut the railway board a check up front for $5 million once the board agreed to put it before voters. The money would have paid for costs associated with executing the plan – including half the cost of an the estimated $1 million for a political campaign to sell it to voters.

The problem: A 2002 charter amendment bans taxpayers’ money from being used for political purposes.

Documents obtained by The Enquirer – some that the city at first redacted – revealed the board may have resolved the issue by agreeing to accept $500,000 less for taxpayers. 

Tom Brinkman, a former lawmaker and Mount Lookout resident, alleged malfeasance. He argued the board was simply giving the money back to Norfolk Southern as a backdoor way of city taxpayers paying for the campaign.

Brinkman filed a complaint to council asking members to determine if the board acted in bad faith.

To get an answer, the city hired outside counsel for an opinion and outside counsel on behalf of the rail board, both which found there was no malfeasance, according to opinions seen by The Enquirer.

Council held a hearing, presided over by Mayor Aftab Pureval during Wednesday's council meeting. Both sides were given time to make arguments and council members given time to ask questions.

During the hearing, Attorney Scott Kane, who represented the railroad board told council members: "This is bizarro world. Negotiations are not the same as money being given back." He argued there was never a "binding" promise the fee would be $5 million. It was always meant to cover expenses related to the sale.

Vice Mayor Jan-Michele Lemon Kearney said she was pleased with the board, whose members are appointed by the mayor. She noted the the first offer for the railroad was $724 million, but the board negotiated the price up to $1.6 billion.

After the hearing Brinkman told The Enquirer, “Corruption continues at City Hall. Once again, city council turns a blind eye to corruption in its midst. Council has failed to stand up for and to protect the taxpayers.”