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Coalition hired firm co-owned by trustee

Branding campaign cost taxpayers $940,000, according to the state.

Staff Writer

Saturday, March 01, 2008

The Dayton Development Coalition, which gave a no-bid contract to the wife of a congressman it lobbies, also hired a marketing firm part-owned by one of the coalition's longtime trustees to create its "Get Midwest" regional marketing campaign.

The coalition has paid or committed more than $160,000 so far to Real Art Design Group of Dayton, co-owned by attorney and coalition Trustee Beverly Shillito, for coming up with the slogan "Get Midwest, We Think of Everything, Dayton Region" and the logo art, a stylized cartoon thought balloon. Most of the work was done under an unbid contract.

The branding campaign will cost Ohio taxpayers $940,000 from 2006 through this year, according to the state development department. A local match of $660,000 was required, most of which came from a foundation controlled by billionaire Clayton Mathile.

Shillito said she had been a trustee for several years but was taking a break from board service in 2006 when Real Art was hired. She returned in spring 2007.

Shillito, who put her ownership interest at less than 10 percent, said she had no role in the firm's hiring and doesn't know how much Real Art has been paid. "I think you should ask the coalition about what they think about the propriety of this (hiring)," she said.

In a prepared statement, the coalition said there is no conflict, and "should decisions come to the executive committee involving Real Art while (Shillito) is a member, we expect that she would recuse herself."

Catherine Turcer, director of the Money in Politics project for Ohio Citizen Action, said, "Taxpayers deserve better than this. We're talking about two really specific conflicts of interest. It's not rocket science."

Mathile and Shillito are major political contributors to U.S. Rep. Mike Turner, whose wife, Lori's, marketing firm, the Turner Effect, will be paid about $400,000 for work on the branding project. Lori Turner withdrew her firm from the branding campaign last month after articles in the Dayton Daily News pointed to a possible conflict of interest.

Real Art President Chris Wire said the Turner Effect's withdrawal put his company's future with the project in doubt. He denied any conflict exists, and said connections are inevitable in communities of Dayton's size.

"She (Shillito) has owned a small part of our company for about 15 years," Wire said. "She doesn't really have any day-to-day interest in the company. She's just a resource of mine."

Contact this reporter at (937) 225-2264 or tbeyerlein@DaytonDailyNews.com.

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