Spotlight on Koran purchase
Lake Road storefront bought for $150,000
By Jennifer Mitchell
Rocky River
Published July 19, 2006

A July 11 article published in the The Plain Dealer, “Official’s property purchase raises conflict issue: Rocky River mayor considers restrictions,” put the spotlight on a business recently acquired by Kory Koran, the city’s economic development director.

Hidajet Jasarevie paid $400,000 for a Lake Road commercial building in 2004, according to the Cuyahoga County Auditor’s Office records. In 2006, he sold the now-vacant Doruntina’s Deli to Koran and his wife, Angela, for  $150,000. The July 11 story raised the question of whether top officials should invest in the municipalities where they work. For residents, it’s a question of whether Koran used his position to get a major discount.

The 1,750-square-foot Lake Road storefront came with a liquor license for beer and wine, and wine sales on Sundays. The sale also included a walk-in cooler, freestanding coolers, and a kitchen and pizza oven. As far as Koran is concerned, he got a good deal and went about it through the normal channels. Koran said he discovered the property on the city’s Web site under the vacant properties listings. Although that portion of the site is put together by Koran’s office, he said he only called when he saw the price had been reduced to $175,000.

Though he previously worked in Euclid as that city’s development director, Koran is a Rocky River native. He now lives in the house he grew up in and now owns, just down the road from the storefront in question.

“It’s a great location,” he said. “I’ve always loved that piece of property. I’ve been going there since I was a youngster.”

Koran also bought another Rocky River business property when he worked in Euclid, so the purchase isn’t the first of its kind.

He said he doesn’t think there’s any question of a conflict of interest on his part.

“The story is not what I paid for it,” Koran said. “The story is what others paid for it. The previous owner had paid $400,000,  and I think that is where the questions lie.

“I saw a building for sale for $175,000 and I made a good offer that was accepted. It was a huge risk on my part. It’s still vacant.”

In fact, it’s been added to the city’s vacant buildings list, the place he first discovered it.

Mayor Pamela Bobst has asked city Law Director Andrew Bemer to look into the transaction to make sure no ethical or legal issues exist.

Bemer said last Thursday that he hadn’t had much time to look into the issue and that it was a little too soon for him to comment on Koran’s situation, but that improper use of office is a hot topic right now, especially in Rocky River.

“Any type of improper use of office, that issue, whether there is or is not, is subject to much greater scrutiny right now,” Bemer said. “There is certainly a need to double-check everything and make sure there are no legal improprieties.”

The spotlight has been on city officials here since last year when an investigation began into former Mayor William Knoble for hiring his son and brother at the city-operated wastewater treatment plant.

The Cuyahoga County court ruled last month that the hirings were a violation of Ohio ethics law. As part of a plea deal, Knoble resigned from the office of mayor.

In response, City Council adopted its first hiring policy July 10, spelling out exactly what is allowed and what isn’t.

The city has no policy governing private real estate transactions. Instead, it follows what is set out in Ohio ethics law. Whether elected or appointed to office, or an employee, those involved in government cannot personally benefit from inside information gleaned through their position.

Bobst said that because such issues are so clearly addressed by state law, “there would be no need to have a more restrictive policy.”

The mayor also added that if a private and personal property purchase, such as Koran’s, was done properly and based on information available to everyone, such as the listing price, she would not be opposed.

“Do I want every director and employee to know what the ethics law says?” she said. “Yes, absolutely,” but she added that she would never try to restrict or control city employees further than that.

She and Bemer sent a memo Monday reviewing the state ethics policy, along with a new city hiring policy, to employees.

Bobst said more details on Koran’s purchase would be forthcoming following the Law Department’s investigation.