Ohio Attorney General Dave Yost is at odds with state business groups over state liquor sale profits funneled to a private, nonprofit organization for economic development.
Twelve years ago, JobsOhio paid $1.4 billion for a 25-year state liquor franchise to push all of the state’s liquor profits to the private company designed to drive economic growth and job creation.
The company now wants a 15-year extension to its original deal without a company investment, and Yost thinks that’s not a good deal for taxpayers.
Yost sent letters to both JobsOhio and the Office of Budget and Management, questioning the proposed extension and asking the Controlling Board to hold off on considering the extension at its planned Wednesday meeting.
“I have grave concerns that this is not a good deal for Ohioans,” Yost said in the letter to JobsOhio. “Fifteen years is a long time, and the people of Ohio deserve proper consideration and a full explanation.”
Yost questioned why JobsOhio would not be required to make a similar payment for the extension as it did for the initial agreement.
“It appears to me JobsOhio is required to pay nothing for a 15-year extension of this limited, one-time franchise,” Yost said. “How is it in the best interest of the people of Ohio to extend such a valuable franchise under these circumstances?”
In an opinion offering to media outlets across the state, Ohio Chamber of Commerce President and CEO Steve Stivers and Ohio Business Roundtable President and CEO Pat Tiberi called JobsOhio’s economic development efforts revolutionary compared to the traditional government-led approach.
The two said requiring another payment would limit the company’s economic development abilities.
“A new one-time payment would not serve the same purpose and, more importantly, would severely limit JobsOhio’s ability to execute the projects that have driven Ohio’s recent economic success,” the op-ed said. “Extending this profitable agreement means these annual payments will continue, along with the benefits from JobsOhio’s programs to attract vital industries and supply chains, expand small businesses, augment Ohio’s skilled workforce, and stimulate new development and economic growth in communities across our state.”
