BY GREGORY A. HALL
The Cincinnati Enquirer
Clyde Middleton
Bill Butler
|
COVINGTON -- Kentucky's attorney general has asked a grand jury to examine whether laws were broken in the awarding of contracts for a new Kenton County courthouse and parking garage.
Several top county officials told The Cincinnati Enquirer on Friday that they received subpoenas to testify before the Kenton grand jury on Oct. 28.
Former Judge-executive Clyde Middleton appears to be the target of that investigation. Subpoenas were titled "In re: investigation of Clyde Middleton."
Mr. Middleton was the county's top official at the time proposals from developers were unveiled for a courthouse, parking garage and other projects. On the night of April 2, 1996, he allowed Corporex Cos. Chairman Bill Butler, the eventual winning bidder, to come to his home and review competitors' proposals.
Mr. Middleton resigned as judge-executive after the county settled a civil lawsuit by paying $850,000 to the two losing bidders. In his Feb. 11 resignation speech, Mr. Middleton said, "I inadvertently and unintentionally did not comply with the Kenton County procurement code."
Mr. Middleton has received a subpoena, said his attorney, Phil Taliaferro. He declined to comment further.
The resignation ended a remarkable public career for Mr. Middleton, the 70-year-old former state senator who was the dean of the Republican Party in Northern Kentucky.
County Commissioner Steve Arlinghaus, who was one of the first to call for a state investigation, called the grand jury hearings "a terrible end to a fine career" for Mr. Middleton.
The Enquirer first reported in March that investigators from Attorney General Ben Chandler's office were looking into the bidding of the $36 million projects and had been interviewing county officials. Empaneling a grand jury means the criminal investigation has moved to a significant next step, and indictments could be issued. A civil lawsuit by the county against Corporex is pending as well.
A spokeswoman for the attorney general's office did not return a call on Friday.
County Attorney Garry Edmondson said he expects the grand jury also will look at the role of Mr. Butler and other Corporex officials in the bidding.
"Just because (the subpoena) only mentions his name (Mr. Middleton's) doesn't mean the grand jury can't also consider evidence against other individuals," he said.
Mr. Edmondson said he has not been subpoenaed but was told by an attorney general's investigator that he will be.
Corporex attorney Joseph Trauth said Friday that no one from the company has been subpoenaed. He also disputed what Mr. Edmondson said about Mr. Butler, and said the county better worry about whether its officials followed the law.
Mr. Trauth said he thinks the grand jury will look at whether county officials violated laws in violating the procurement code. "It's their administrative code," he said. "They're the ones who have to properly follow it."
Corporex and Mr. Butler say there was nothing improper about his meeting the April night the bids were opened at the home of Mr. Middleton, where the developer was able to see competitors' bids and later copy them. They said the bids were public records available to anyone.
County officials contend that by having competitors' proposals, Mr. Butler was able to have an unfair advantage in revising his offering. Officials with the two other bidders say they received their competitors' bids a month later, and even then, the financial details were excluded.
The fiscal court voted unanimously on May 23, 1996, to award the courthouse and parking garage to Corporex.
Three officials confirmed Friday that they have received subpoenas: Kenton County Administrator Ralph Bailey, Treasurer Ivan Frye and project manager Rob Thrun.
The county's three commissioners, who with Mr. Middleton composed the fiscal court that chose Corporex, all said they have not been subpoenaed.
Deputy Judge-executive George Neack said he is being subpoenaed but was out of the office when the document was delivered Thursday. However, he said he read Mr. Bailey's and Mr. Frye's subpoenas, and both indicated Mr. Middleton is being investigated.
Mr. Neack and other county officials said they understand 12 people are being subpoenaed.
Mr. Thrun said he isn't surprised by the subpoena because the investigation has lasted months.
"It's the logical next step in the whole thing," he said. ". . . It resolves it in one way or another."
Mr. Frye said the subpoena names Mr. Middleton as the subject of the investigation.
Mr. Arlinghaus said he expects to be called to testify and has met with the attorney general's investigators previously.
"I know that was the main facet of this whole investigation, did he (Mr. Middleton) gain anything financially?" Mr. Arlinghaus said.
He said he does not know whether Mr. Middleton did.
The controversy has become an issue in the Nov. 3 county elections, which will come a week after the grand jury testimony. Mr. Arlinghaus and Commissioner Bernie Moorman both face opposition.
Mr. Arlinghaus said Mr. Middleton acted alone in the matter. Mr. Neack said he thinks the grand jury will look at more than Mr. Middleton.
"They're going to go in whatever direction the trail leads," he said.
Mr. Butler and Corporex attorneys accuse Mr. Neack of favoring one of the losing bidders and trying to keep Corporex from winning the construction contracts.
Mr. Neack denies the allegations and said he isn't worried about testifying.
"There's nothing to be scared about," Mr. Neack said. "I haven't done anything wrong. I'm not going to be a target. If I had done something wrong, then I'd be bothered by it."
In the separate civil case, the county is suing Corporex and Mr. Butler to recoup the $850,000 settlement paid to the two losing bidders -- Wessels Construction and Development Corp. and Carroll Properties.
The county also seeks more than $700,000 in other damages and an unspecified amount as punishment.
