Kevin Acklin's Remarks on Mayor Ravenstahl's Corporate Favoritism

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RAVENSTAHL CORPORATE FAVORITISM REMARKS
Kevin Acklin | October 22, 2009

Hello. Thank you for being here this morning.

In the past few days, our campaign uncovered some very disturbing information about influence and access — about corruption — in the Mayor’s office. John Verbanac, a Cranberry-based developer and lobbyist, has enjoyed unfettered access to Mr. Ravenstahl’s administration, writing his speeches and press releases, planning his press strategy, directing his top staffers to a retreat and then leading them in the drafting of a strategic plan, recommending the retention of underperforming but politically connected URA staffers, and, perhaps most disturbingly, directing the Mayor to purge professional staff members and then hire new, "loyal" staff members.

Now let me be clear: these are not mere accusations. These are facts, supported by evidence in the documents we’ve obtained and distributed, and by multiple news reports that corroborate them. We know the Mayor did these things.

His speeches and his press releases contained Mr. Verbanac's language. His comments to the press followed Mr. Verbanac's strategies. Mr. Verbanac's call for a strategy retreat was heeded, and only he and 3 other Ravenstahl loyalists made the trip.  That underperforming but politically connected staffer is still at the URA, upon Mr. Verbanac's suggestion. And we all know those purges occurred, and those new staff members were hired, almost immediately after Mr. Verbanac made his views known.

This is not, as the Mayor claimed yesterday and again this morning on KDKA Radio, just a case of “bouncing ideas off” John Verbanac. This is John Verbanac throwing directions at the Mayor and his staff, and then seeing them carried out.

This is not Luke asking for advice from his father. Or getting counsel from any other confidante. John Verbanac is a lobbyist and corporate developer who is IN THE ROOM when important decisions are being made. When you look at the decisions this administration has made in the last three years — closing down city planning, firing Ron Graziano and almost totally gutting BBI, moving all of the city’s economic development policy into the URA — there’s a clear move toward crafting policies that are favorable to corporate developers. And John Verbanac is driving that move.

The Mayor said last Friday, and again yesterday, that John Verbanac has no formal role in his administration. Does this sound like a man who has no formal role in his administration? It sounds to me like someone who’s RUNNING his administration.

People on Brookline Boulevard have been waiting two decades for redevelopment. Pittsburghers on the North Side have been screaming at the top of their lungs for a meeting with the Mayor. People in Beechview have been waiting for years for action and development in their business district. People all across the city have been waiting for months for leadership on our library issues. None of these people get their questions answered. But John Verbanac makes one call, or sends one email, and he gets instant access to, and influence over, everything that’s happening in the Mayor’s office. This administration is focused on personal and corporate favoritism, and it’s hurting our neighborhoods as a result.

But, as we made clear yesterday, there is another, equally disturbing component to the Mayor’s relationship with John Verbanac. And that is how John Verbanac has used his access and influence to get the Mayor's support on key development policies where he and his business partners have a financial interest.The two very clear examples we’ve uncovered so far are the casino license and the property at the LTV Coke Works in Hazelwood.

John Verbanac became a very powerful voice in the Mayor's administration shortly after Mr. Ravenstahl took office. He exercised incredible authority over several very important aspects of the Mayor's office. He also successfully lobbied the Mayor's office to support policy positions that COULD have been financially beneficial to him.The fact that these positions didn't actually pan out speaks more to the mayor's competence than to his motivations.

So let's look at them again...

1) The Casino Deal

In yesterday’s debate, Mr. Ravenstahl claimed that the casino license had been awarded before he became Mayor. That’s not true. Mr. Ravenstahl became Mayor in early September of 2006. The casino license was granted in late December of 2006.

Mr. Ravenstahl also claimed that he always supported the Isle of Capri bid. That is not true. As a City Councilman, Mr. Ravenstahl supported the Isle of Capri. After he became Mayor, he urged the Penguins — even going so far as to write them a formal letter with this request — to support a Plan B, in which they would receive payments from another casino licensee. The front runner at that time was Harrah’s/Forest City. Mr. Ravenstahl’s change in position lead some observers to declare that the “fix was in” for the company to which Mr. Verbanac was attached.

2) The LTV Site

The issue here is whether John Verbanac used his access to stop state funds from being transferred to a competing developer.

There is an e-mail in our packet, Attachment A, in which Verbanac very clearly uses his special access to the Ravenstahl Administration to lobby against giving this RCAP grant money to a competing developer. The money was never transferred, and as Forest City fell out of favor with Almono LP, that grant money was eventually sent back to the state because it wasn't used.

So, let's be very clear here: the evidence shows that Verbanac lobbied, and successfully won, a favorable decision on this RCAP grant relating to the LTV Coke Works site.

Now. We know that Forest City didn’t get the Casino license, and we know that the grant money went back to the state.

But we also know that neither of those decisions were made by the city. And it’s clear from these emails that John Verbanac expected — indeed, demanded — help from the city, and that the city provided it for him. In other words, Verbanac used his influence to get the Ravenstahl Administration to help him get the contracts, and the Ravenstahl Administration then used its influence to try to help him get the contracts. The fact that he and his business partners didn’t get them means the Mayor is either incompetent or ineffective. It doesn’t mean he’s not corrupt.

Because the corruption of this access and influence isn’t defined by the result; it’s defined by the attempt. It’s defined not by success, but by intent.

The Mayor and his administration supported positions that would have been financially beneficial for Mr. Verbanac and his partners — THAT is the point and that is the problem.

So today, I’m calling on the Mayor for FULL DISCLOSURE.

We know for certain, and we have received even more confirmation again this morning, that there is an ongoing federal investigation into the awarding of city contracts. We know for certain that current and former high-ranking administration officials, and other elected officials in the city, have been questioned by the FBI about these matters. Because of this investigation, and because of the dark cloud now hanging over both his administration and our city — Mr. Mayor, you owe it to the people of the city of Pittsburgh to come clean NOW.

That’s why I’m also calling for a full investigation into all URA and City contracts — to see exactly what kind of influence John Verbanac, and other corporate interests like him, have in this administration.

This isn’t easy. It’s not something I’ve enjoyed doing. It’s something I HAD to do.

Not for me, or for my campaign, but for this city. For all of us.

For justice.

When I received these documents, I couldn’t just look the other way and pretend I hadn’t. I couldn’t just stand by and let this go on without telling you, all of you, right now, what’s happening in our city. What’s happening TO our city. What’s happening to all of us.

I felt it was my duty, and my responsibility.

And I know that if the people elect me as the next mayor of Pittsburgh, I’ll return this great city where it belongs: into the hands of all of its people.

Thank you. I’d be happy to take your questions.