Saturday, August 21, 1999
Stadium conspiracy alleged
Builders say fronts pump minority rate
BY DAN HORN
The Cincinnati Enquirer
A dispute over stadium construction contracts spilled into federal court Friday when two businessmen accused Hamilton County officials of defrauding minority contractors.
In a lawsuit filed in U.S. District Court, the two men claim county officials broke a promise to award at least 15 percent of the contracts for the new Reds and Bengals stadiums to minority-owned firms.
According to the suit, the county broke federal organized-crime laws by conspiring to set up front companies that funneled contracts to larger, white-owned construction companies.
Minority goals
The scheme allowed the county to mislead the public about how many businesses owned by women or African-Americans received stadium contracts, the lawsuit claims.
“The defendants conspired to defeat the minority participation goals and conspired to conceal the true participation rate,” the lawsuit states.
County Administrator David Krings declined to comment Friday, but a spokeswoman for the stadium project disputed some of the lawsuit's allegations.
The spokeswoman, Brooke Hill, said county officials never promised that 15 percent of all contracts would go to minority-owned firms.
“It was a goal,” she said. “We wish the numbers were higher, but they aren't. We still feel good with what we've been able to do.”
She said minority companies now account for about 11 percent of stadium contracts, and the construction work force is about 18 percent minority.
Ms. Hill said she and county officials would not discuss other details of the lawsuit because they had not reviewed it.
The suit, prepared by attorney Kenneth Lawson, was filed on behalf of Cincinnati businessmen Frederick Hargrove and William Cargile. Mr. Hargrove owns an engineering firm and Mr. Cargile owns a construction company.
Both say they were damaged by the county's conduct and are seeking damages.
Promises recalled
The lawsuit claims county officials first promised 15 percent minority participation when they were seeking support from African-American community leaders for the stadium ballot issue.
It states that the county received support from leaders of the NAACP and other groups in exchange for the promise of minority involvement in the project.
“Relying on these promises, community representatives of the above-named groups did lobby for the passage of the sales tax,” the suit states.
But instead of awarding contracts to minorities, the lawsuit claims, county officials gave them to companies that used minority firms as “fronts.”
In one case, the suit states, Mr. Hargrove's firm was identified as a contractor for a $180,000 design job when it actually received only about $45,000 for participating in the job.
The $404 million Bengals stadium complex is to open next year.
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