BY GREGORY A. HALL
The Cincinnati Enquirer
COVINGTON -- The efforts of Corporex Cos. and Bill Butler, one of Northern Kentucky's most successful developers, to win public contracts in Kenton County were examined for six hours by a grand jury Wednesday.
The controversy that has been building for months became the focus of the Kenton County grand jury and was the talk of the courthouse. A similar buzz is expected today as deliberations resume, with the county's former top official -- who lost his job because of the bidding process -- scheduled to testify.
Witnesses who testified Wednesday corroborated that the grand jury is looking into whether Corporex or its chairman, Mr. Butler, or other company employees violated laws in winning the $36 million courthouse and parking garage projects.
"I can confirm that they're investigating Bill Butler and Corporex," said Carlo Wessels, an attorney for one of the losing bidders, who testified.
Questions asked made that clear, Mr. Wessels said, even though no one directly said it. "It was obvious," he said.
The closed doors keeping the public from hearing the grand jury proceedings on the sixth floor of the Kenton County Building didn't stop the topic from being discussed on all floors and in the elevators. Most witnesses showed up early and were told to come back later. The gathering may have been the largest collection of the key players in the bidding process since the courthouse and parking garage proposals were unveiled April 2, 1996.
Little else done
County officials trekked back and forth from their own offices on the second floor to the grand jury room Wednesday, acknowledging that little else was getting done.
Mr. Butler and Corporex are accused in a separate civil lawsuit of manipulating the bidding process to win the contracts. Corporex has denied any wrongdoing and has vowed to protect its reputation. Corporex attorneys William T. Robinson III and Joseph Trauth could not be reached for comment.
The grand jury hearing, requested by the Kentucky attorney general's office, heard from Mr. Wessels, a representative of the other losing bidder, Kenton County Attorney Garry Edmondson and County Commissioner Nyoka Johnston.
Testimony will resume this morning, said Hydee Hawkins, an assistant attorney general and prosecutor of the case.
County Commissioner Bernie Moorman was told to appear at 8:45 a.m. today.
The grand jury also is to hear today from Clyde Middleton, the county's former top official, who pleaded guilty this week for his role in the bidding process.
Mr. Middleton admitted he knew it was wrong to show competitors' bids to Mr. Butler in a meeting on the same day the bids were opened by the Kenton Fiscal Court.
Mr. Middleton's plea agreement states Mr. Butler used confidential information "to his advantage to assist him in being awarded the project."
Mr. Middleton will appear at 1 p.m. His testimony is expected to last two hours, said his attorney, Phil Taliaferro.
"He will testify fully, completely and truthfully about his dealings with Bill Butler," Mr. Taliaferro said.
Corporex maintains that the bids were public records available to anyone, and that the only errors made in the process were made by county officials.
Kenton County, in the civil lawsuit over the bidding, maintains only basic details, such as price and general drawings, were available. The rest was to be confidential until a contractor was chosen.
Initial witnesses provided the grand jury with an overview of what happened in the case.
Mr. Edmondson, the first to testify, said he talked about how the fiscal court operates and some facts of the case.
Mr. Wessels was the lawyer who filed the initial protest on behalf of his family's Wessels Construction and Development Co. alleging that Corporex had advantages in the bidding that competitors didn't.
That protest led to an $850,000 settlement from the county for Wessels and the other bidder, Carroll Properties, and Mr. Middleton's resignation.
Mr. Wessels said he was asked about an analysis of developers' proposals in which Mr. Butler touted the Corporex proposal.
Carroll President Mark Simendinger said his firm is considered one of the victims in the process. During his appearance, Mr. Simendinger said he talked about his role in the bidding process for Carroll.
Others subpoenaed and told to return were: Commissioner Steve Arlinghaus, Deputy Judge-executive George Neack, Treasurer Ivan Frye, Administrator Ralph Bailey, county architect Rob Thrun and former Corporex spokesman Joe Wind.
In the civil lawsuit, the county is suing Corporex and Mr. Butler, to recoup the $850,000 settlement paid to Wessels and Carroll. The county also seeks more than $700,000 in other damages and an unspecified amount as punishment.
