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State
asked to review purchase
By Jennifer Mitchell
Rocky River
Published August 2, 2006
Despite a recent investigation by city Law Director
Andrew Bemer clearing Kory Koran, the city’s economic development
director, of any wrongdoing in a recent property purchase, Bemer
said Friday the case will be sent to the Ohio Ethics Commission
for additional review.
Koran paid $150,000
in May for the 1,750-square-foot vacant Doruntina’s Deli on Lake
Road. In 2004, the man who sold it to him, Hidajet Jasarevie, paid
$400,000.
Though public
record, the purchase came under public scrutiny following a July
11 Plain Dealer article, “Official’s property purchase raises conflict
issue: Rocky River mayor considers restrictions.”
Rather than
considering restrictions, Mayor Pamela Bobst said that state law
already covered such issues. She asked Bemer to investigate whether
Koran had violated that law and used his office to gain inside information
for the purchase.
Ohio ethics
law forbids employees and elected and appointed officials to personally
benefit by inside information gleaned through their position.
Bemer’s investigation
shows that the property was listed at $175,000 in Dec. 2005. Koran
didn’t purchase it until May.
Prior to Koran’s
property bid of $150,000, real estate agent Brian Kirk, with Remax
Pro of Westlake, said another party was going to pay the same amount
for the property, but was unable to secure funding and the deal
was dissolved.
According to
Kirk, former deli owner Jasarevie was selling at a discount in order
to liquidate his holdings and return to Bosnia, and has since done
that.
Bemer said the
sale price reached by the seller and Koran was done at arms’ length
and at a fair and reasonable price.
However, Bemer
said he learned Thursday from The Plain Dealer that Rocky River
resident Frank Mills had allegedly expressed an interest in the
property to Koran last fall, with the idea of possibly turning it
into a wine bar or an ice cream parlor. Bemer said he was told that
Koran informed Mills that there may be some zoning issues. West
Life could not reach Mills for comment.
Bemer said Friday
that the deli property is zoned residential. For at least 50 years,
it has operated under a “nonconforming use.”
In such cases,
Bemer said that the original nonconforming use must be maintained
on an “ongoing basis” or the property could legally revert to its
zoning status.
Bemer said that
as he understands it, Mills took Koran’s mention of zoning issues
as “discouraging the purchase.”
The law director also said
that apparently there was a communication gap, because while Mills
got in touch with the newspaper, he never contacted the city with
his concerns.
Mills alleged interest,
combined with a need by city officials to maintain public trust,
prompted the decision late Thursday to turn the case over to the
state Ethics Commission.
City Council President Brian
Hagan said Friday that Bemer was independently elected by voters,
not appointed to his position, so his investigation can be considered
independent. But having the state review the purchase allows city
voters an outside opinion even further removed from the situation,
he added.
Bemer said that even with
the new information, he doubts that the Ethics Commission will find
any wrongdoing, as Mills’ never pursued a purchase and Koran’s bid
for the property came several months later.
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