Friday, May 31, 2002

Team forming to woo Convergys


Builders of The Banks want help from top officials

By Dan Klepal, dklepal@enquirer.com
The Cincinnati Enquirer

        The agency trying to redevelop Cincinnati's riverfront is asking for the direct, personal involvement of top city and county leaders in making Convergys Corp. part of the $800 million development known as The Banks.

        One sticking point could be finding enough parking spaces near Paul Brown Stadium to satisfy the Bengals' lease with Hamilton County — with one proposed solution costing as much as $46 million.

        Jack Rouse and Steven Love, chairman and vice chairman of the Port of Greater Cincinnati Development Authority, have requested the help of Cincinnati Mayor Charlie Luken and Hamilton County Commission President Tom Neyer.

        “We believe it is time for your direct involvement,” Mr. Rouse wrote. “We believe the citizens of this community expect that you and your most senior staff representatives are at the table for a deal of this magnitude and importance.”

        In addition to Mr. Luken and Mr. Neyer, the “Convergys retention team” would be made up of County Administrator Dave Krings, City Manager Valerie Lemmie and four members of the Port Authority — Tom Humes, Nick Vehr, Lou George and Tim Sharp.

        The role of the team will be to “develop through negotiation with representatives of Convergys Corp. a detailed development agreement for consideration” by the commission and council.

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        Mr. Luken said he's all for the idea.

        “I believe this is the highest priority for us,” Mr. Luken said. “But, frankly, I'm interested in keeping Convergys downtown. If they want to be part of The Banks, then I want them there. If they want to be on Third and Sycamore, I want them at Third and Sycamore.”

        Mr. Neyer said it is “critical” for politicians to demonstrate commitment.

        “The issues are confusing enough, so let's at least be clear that we want to get this done,” he said.

        Cincinnati-based Convergys is a billing and customer-care provider with more than 45,000 employees worldwide, including 1,900 in the Tristate. It reported net earnings of $139 million on 2001 revenues of $2.3 billion

        The company is looking to consolidate most, if not all, of the employees into one location and possibly add 1,000 jobs in the next decade, according to Mr. Rouse's letter.

        Mr. Rouse said landing the first company for the new riverfront neighborhood could make the rest of the development easier.

        “The port has always believed that the market would determine the pace and the manner in which The Banks would be developed,” Mr. Rouse wrote to Mr. Luken and Mr. Neyer. “The location of Convergys at The Banks could stimulate the development of the entire central riverfront.

        “It appears as though the market is suggesting that it is time to move forward. What remains to be seen is whether or not we are listening and whether or not we have the collective will to respond.”

        Two of the many issues to overcome concern the Cincinnati Bengals and the lease the team signed with Hamilton County in 1996. The lease dictates that 4,100 parking spots be available near Paul Brown Stadium on game days.

        The lease also gives the Bengals the right to reject any development that exceeds 40 feet above the stadium's plaza elevation.

        After months of discussions, the Bengals have declined to waive any of those rights, according to county staff.

        Developing the four blocks for The Banks will leave the county about 1,800 parking spaces short of the requirement, unless the Bengals agree to count spaces east of the Roebling Suspension Bridge.

        Likewise, the buildings being proposed for Convergys would be too tall under terms of the Bengals' lease.

        The Bengals have asked if the county would buy the Hilltop concrete property and additional tracts west of the stadium for interim parking, according to a summary prepared by county staff.

        In a status report to commissioners, county staff estimates the cost of buying the land and turning it into parking spaces at between $35 million and $46 million.

        Bengals' director of development Troy Blackburn said his organization is in fact-finding mode.

        “Through our discussions, we have worked to understand the complex requirements and timing of construction necessary for the Convergys project,” Mr. Blackburn said in a written statement. “Our position has been to simply ask questions and to gather information.”

        Commissioner Todd Portune says that just proves the county made a bad deal when it negotiated the Bengals' lease.

        “For as generous as this community has been to the Bengals, I would hope that rather than talking about new financial issues, they'd be talking about what they can do to help,” Mr. Portune said.

       



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