BY GREGORY A. HALL
The Cincinnati Enquirer
COVINGTON -- An independent accounting firm's analysis requested by Corporex Cos. shows the company had the lowest bid in the Kenton County Courthouse controversy.
"We have maintained that Corporex had the lowest bid from the outset," company Chairman Bill Butler said Monday. "We now have confirmation of the magnitude of the differences by an independent source respected for adherence to the highest standards of its profession."
The analysis by Grant Thornton LLP of Cincinnati shows Corporex's proposal for the courthouse and parking garage being built by the county was $1.38 million below its nearest competitor.
"Based on our study of the information provided to us, the Corporex bid was the least costly to Kenton County," the Sept. 9 Grant Thornton report states.
Kenton County Attorney Garry Edmondson said the analysis is flawed because it includes costs for items, procedures or methods that weren't used by the county.
"It's just a continuation of Corporex's putting out information that is wrong or misleading and serves no legitimate purpose," he said.
The bids are the subject of a 1996 lawsuit by the county against Corporex Cos. and Mr. Butler, to recoup an $850,000 settlement paid to the two losing bidders -- Wessels Construction and Development Corp. and Carroll Properties.
The county accuses Mr. Butler of manipulating the process to win the roughly $36 million projects.
Corporex and Mr. Butler deny any wrongdoing and place blame on the county, saying it failed to follow its own rules. In particular, company attorneys have previously detailed why they think Deputy Judge-executive George Neack targeted them. Mr. Neack has denied the allegations.
Corporex and Mr. Butler said there was nothing improper about his meeting the night the bids were opened at the home of then-Judge-executive Clyde Middleton, when the developer was able to see competitors' bids and later copy them. They said the bids were public records available to anyone.
Mr. Middleton resigned at the time of the settlement, stating he had to accept responsibility.
The accountant's review examined the three bids and the county's request for proposals that were provided by Corporex. It shows Corporex had the most expensive garage at $13.5 million, but had the lowest bid of $28.7 million for the two projects.
Mr. Edmondson said several factors included in the analysis were irrelevant. The analysis added various amounts to the two losing bids for "carrying costs," or financing, of the projects. On the jail, it added amounts to make the jail meet federal standards.
The county's request for proposals says the county "prefers turnkey proposals," which provide private financing. But Mr. Edmondson said it doesn't require the financing, and using that method wasn't under serious consideration.
Ultimately, the county elected to finance the projects on its own.
He also pointed to the inclusion of costs for meeting federal jail standards.
"With that stuff tacked in there, they arrived at some erroneous conclusions," Mr. Edmondson said.
Mr. Butler defended the analysis, saying it took into account what the county actually asked for in its request, including federal jail standards and private financing.
The county's analysis agreed that Corporex was the lowest bidder on the courthouse and the highest bidder on the garage. However, because of differing amounts, the county's analysis placed Corporex as the second-lowest bidder on the two projects.
"But that was OK," Mr. Edmondson said. "The price was not the motivating, important consideration."
Since the county had to build a garage for the new convention center, having a workable garage was the top priority, Mr. Edmondson said.
"We have maintained that Corporex had the lowest bid from the outset.' -- Bill Butler, company chairman
