DaytonDailyNews.com

DAYTON — Lori Turner's marketing company has been in business for 15 years and has had 250 individual clients. For ethical reasons, she has occasionally turned down clients who have dealings with her husband, U.S. Rep. Mike Turner.

"I'll say, 'Sorry, I can't help you,' but I'll refer them to someone else," she said.

But Lori Turner didn't have any qualms when the Dayton Development Coalition chose the Turner Effect as the lead contractor on a $1.5 million branding campaign for the region that resulted in the slogan, "Get Midwest." The coalition of local business, government and educational leaders sets development priorities and lobbies members of Congress, including Mike Turner, for federal funds to carry them out.

The Turners said Friday the coalition contract, which has paid the Turner Effect more than $300,000 so far with more to come, isn't a conflict of interest. Mike Turner isn't a member of the coalition and the coalition receives no federal earmarks for its operations. No federal money is involved in the branding campaign.

"My wife is a talented, independent businesswoman with more than two decades of experience in the marketing and communications field," said Turner, R-Centerville and former Dayton mayor. He said her company's ethics policy "surpasses any ethics policy currently applicable to the spouse of a member of Congress."

Congressional watchdog groups in Washington and Turner's Democratic challengers in this fall's election, however, don't see the business relationship between the coalition and Lori Turner as so benign. They say it can be seen as a means for a lobbyist to put big money into the Turner household in a bid for political favors, or as a way for political supporters to give the Turners a cash infusion during an election year.

Most of the coalition's trustees have contributed to Mike Turner's political campaigns, and $750,000 of the $1.5 million for the branding campaign came from a foundation controlled by coalition trustee and Turner contributor Clayton Mathile. According to Federal Election Commission records, the current coalition board members have donated a total of at least $76,200 to Mike Turner's campaigns since 2002. Mathile alone has given Turner's campaigns more than $10,000.

"You see those close connections and it's very obvious what this organization's trying to do," said Craig Holman of the nonprofit Public Citizen's Congress Watch. "This is an organization that's trying to funnel money to Mike Turner and they're doing it through his spouse's business."

Citizens for Responsibility and Ethics in Washington last June cited Mike Turner as one of 64 members of Congress who paid family members through campaign or political action committees. Rep. Turner paid the Turner Effect $54,065 for graphic design across three election cycles.

The Turner Effect's Web site lists the Mathile Family Foundation among its clients, along with such local institutions as the University of Dayton law school, Miami-Jacobs Career College and Kettering Medical Center. Turner's firm lists as references several clients who have been Mike Turner contributors.

"The Turner Effect has been nothing but a slush fund and a workaround for Mike Turner ever since he was elected mayor," said David Esrati, who is running in the Democratic primary for the right to challenge Turner in the November election. "It's awfully odd (the coalition) chose the Turner Effect, but if you see Turner's donors and the coalition board members, there's a lot of overlap."

Another Democrat in the race, Jane Mitakides, said: "I think it's very interesting that they knew this could be a conflict, talked about it and awarded it anyway. It does seem problematic that they would recognize the implications and move ahead anyway on a no-bid contract."

Coalition President J.P. Nauseef said members of the organization discussed the appearance of a conflict, but decided in mid-2006 to hire the Turner Effect on the advice of Evan Scott, who was then coordinating the campaign.

"I can tell you it's not a tit-for-tat kind of thing" to curry favor with the congressman, Nauseef said. "We depended on Evan and (felt) that team would yield the best result for the region."

"We're all happy with the outcome (of the branding campaign) — that's for sure."

Scott said he recommended Turner Effect because it was the only local company with sufficient staff and experience to do the job. I felt to put it up for open bid in a sense would be a disingenuous process."

The Turner firm did win a competitive bid to manage the next phase of the project, which calls for marketing the brand locally and nationally.

Numerous local leaders contacted last week by the Dayton Daily News — including several Democratic politicians — said the Turner Effect is a reputable, qualified company and gave high marks to the ethics of the coalition leadership.

Robert Curry, a Dayton attorney and coalition trustee who supported Mike Turner's opponent in the 2006 election, said the coalition has no incentive to curry Turner's favor because its interests and Turner's are the same: to advocate for the Dayton area.

"I don't have any reservations at all about the integrity of the people who are making those decisions," said Curry, who was not involved in hiring the Turner Effect. "I absolutely trust their judgment."

Montgomery County Commissioner Dan Foley, a Democrat, said, "The coalition can hire whom they deem appropriate, and I have no problem with that. Our biggest focus needs to be getting behind the (branding) message. I'm supportive of it and I'm going to be part of making it work."