BY GREGORY A. HALL
The Cincinnati Enquirer
FORT MITCHELL -- A deal is being negotiated through which former Kenton County Judge-executive Clyde Middleton could pay a fine and plead guilty to a misdemeanor for his role in a courthouse bidding controversy. An offer is being discussed in which Mr. Middleton could plead guilty to a misdemeanor, said County Commissioner Steve Arlinghaus. Other sources, who asked to remain anonymous, agreed with Mr. Arlinghaus' assessment.
Mr. Middleton resigned from office earlier this year because of his involvement in the 1996 bidding process for a courthouse and parking garage won by Corporex Cos.
Mr. Arlinghaus said Mr. Middleton faced the possibility of being charged with felonies. A felony conviction would cause him to lose the public pension he earned as a state legislator and county judge-executive.
"He would preserve a lot of things," Mr. Arlinghaus said of a plea. "He would probably preserve his pension. He would probably preserve his integrity, preserve his legacy. I think for his situation, it's probably the best opportunity for him to move on."
Mr. Middleton and his attorney declined comment.
"I'm not in the position to discuss Mr. Middleton's status at this time," said the attorney, Phil Taliaferro.
Talks between lawyers for the county's former top official and the the Kentucky attorney general's office have been ongoing. Initially, those talks involved immunity for Mr. Middleton, but no longer do, Mr. Arlinghaus said.
At the center of the controversy is a meeting between Corporex Chairman Bill Butler and Mr. Middleton at the then-judge-executive's Fort Mitchell home.
During that meeting the same day the bids were presented to the fiscal court, Mr. Butler was able to review his competitors' proposals, take them with him, copy them and return them to Mr. Middleton.
Corporex and Mr. Butler said there was nothing improper about the meeting. Corporex and Mr. Butler said the bids were public records available to anyone.
Butler's role
In his Feb. 11 resignation speech, Mr. Middleton said, "I inadvertently and unintentionally did not comply with the Kenton County procurement code."
A grand jury requested by the Kentucky attorney general's office is to meet Wednesday to examine whether laws were broken in the bidding. Subpoenas issued to county commissioners and administrators have said that Mr. Middleton is the subject of the investigation. County Attorney Garry Edmondson has said he expects the grand jury to also look at Mr. Butler's role in the bidding process.
Corporex attorney Joseph Trauth said no one from the company has been subpoenaed, and he's not worried that Mr. Butler will become the subject of a grand jury probe.
"Again, it's the county procurement code," Mr. Trauth said. "The county had to follow it."
Corporex cites a letter sent to bidders before the bid presentations were made to the fiscal court that said all documents submitted would be public records.
"All we can do is follow what the county's instructions are, and that's what we did," Mr. Trauth said.
He declined to say whether anyone from or representing the company has spoken with the attorney general's office.
"I can't comment on that because it wasn't me who talked to the attorney general's office," he said.
Mr. Arlinghaus said he was told of the plea negotiations by Mr. Edmondson at the time of the fiscal court's recent discussions of a settlement with Corporex in the civil lawsuit over the bidding.
Mr. Edmondson refused to comment on any negotiations.
"I am not involved in the criminal matters," he said. "I have not been involved in the criminal matters, and I will not be involved in the criminal matters."
The county is suing Corporex and Mr. Butler to recoup an $850,000 settlement paid to the two losing bidders -- Wessels Construction and Development Corp. and Carroll Properties -- over the 1996 competition for construction contracts.
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 for failing to follow its own rules. In particular, company attorneys say Deputy Judge-executive George Neack targeted the company. Mr. Neack has denied the allegations.
Arlinghaus chided
A settlement of $425,000 from Corporex to the county was offered, but the sides couldn't agree on language in the settlement. Some commissioners wouldn't approve a settlement that would conflict with what they would tell the grand jury.
Mr. Edmondson said that except for testifying to the grand jury, Mr. Arlinghaus should not be commenting on the criminal case.
Doing so could cost the county money in a civil settlement, Mr. Edmondson said.
"It is not in the best interests of the county or the taxpayers for him to be discussing these issues publicly," Mr. Edmondson said.
He said Mr. Arlinghaus' comments during the settlement negotiations with Carroll and Wessels prevented the county from bargaining down the settlement amount.
Mr. Arlinghaus has said he wants the county to be reimbursed fully between Mr. Middleton and Mr. Butler, but now thinks that may not be possible.
Full reimbursement
The fine being negotiated for Mr. Middleton and the willingness of the other members of the fiscal court to accept $425,000 from Corporex could make full reimbursement impossible, he said.
"If it's impossible for us to get that, then obviously you take what you can get and run," Mr. Arlinghaus said.
