Cincinnati Councilman Jeff Pastor's boss and benefactor seeks city help with $500K sewer dispute

Cincinnati City Councilman Jeff Pastor's boss and benefactor sought relief from the city in January for flooding that he says has cost him more than $500,000.

In an email to the city manager's office, businessman Charles Shor said Pastor advised him to reach out for help with the problem.

"I would greatly appreciate the City Manager's help in resolving this pressing issue as quickly as possible," Shor wrote in the Jan. 25 email, which was obtained by The Enquirer.

Shor sent the email to Amira Beer, the assistant of then-City Manager Harry Black, in an apparent reference to his ongoing fight over flood damages, which he estimates cost him more than $500,000.

"In no way shape or form did I get involved on Mr. Shor's behalf," Pastor said. "I would have absolutely recused myself had it come to council, and it would not."

City residents contact council members all the time with problems and grievances, but the relationship between Pastor and Shor is close. Pastor's chief of staff, Steven Megerle, described the relationship as "like family."

Tim Burke, the Hamilton County Democratic Party chairman, said that Pastor put himself "in a very precarious position when he is the employee and in this relationship with Shor and doing anything for him in regards to Shor’s relationship with the city of Cincinnati.”

Pastor, a Republican, was elected to council in November.

Burke, an attorney, noted the email is not from Pastor himself, but said Pastor would have been “well advised to have gotten an opinion from the Ohio Ethics Commission.” He added, “You cannot use your public office to benefit your boss.”

Paul Nick, executive director of the Ohio Ethics Commission, said he always encourages people to "come to us and ask before they act." The commission provides immediate guidance and responds in writing to requests within two weeks.

The law prohibits elected officials from acting on matters in which they have a conflict of interest. The commission can look into matters or it looks at complaints brought to them. That process is not public and he would not say whether this matter would be evaluated. Violations are punishable by up to a $1,000 fine and six months in jail.

Last week, Shor took out two mortgages worth a total of $550,000 on a home in North Avondale for Pastor and his wife, Tara, according to records filed with the Hamilton County Recorder's Office. Megerle said Pastor has an agreement with Shor to pay him for the home in monthly installments.

The first mortgage was for $500,000 and the second was for $50,000, according to the filings, which were recorded on April 26. Real estate records at the Hamilton County Auditor's Office show Pastor and his wife, Tara, bought the home for $500,000 on April 25.

Pastor also works for the Charles L. Shor Foundation for Epilepsy Research, which works to eliminate the effect of stress on people with epilepsy.

Megerle would not disclose how much Pastor is paid for his work at the foundation, other than that it is more than $100,000. Pastor has worked at the foundation since 2016, he said.

Shor could not be reached for comment.

Megerle said Pastor and his wife consider the North Avondale home their dream house but were unable to make the necessary cash offer to purchase it. Shor offered to help by taking out the mortgages and arranging for Pastor to repay him directly. The home had multiple offers.

"The mortgage is serving as a bridge loan until they can get financing," Megerle said. "This is nothing different than family members you get a down payment from. Mr. Shor trusts Jeff to run a multimillion-dollar foundation. These are two people who consider themselves family."

He said Pastor consulted with his personal attorney about whether there were "moral or ethical issues with the transaction."

"Everything is fine because it's an arm's-length transaction," Megerle said. "This is a completely transparent transaction between two people in order for the Pastor family to achieve the American dream."

Asked if the arrangement could create a conflict of interest for Pastor, Megerle said Shor has "absolutely no business with the city." The Metropolitan Sewer District is owned by the county and run by the city.

"Mr. Shor told Jeff about some longstanding sewer issues regarding the Metropolitan Sewer District," Megerle said. But Pastor didn't know Shor had filed a lawsuit over it, he added. "The conversation occurred shortly after Jeffrey took office and he did not think referring Mr. Shor to the city manager would pose any problems in his position as a City Council member. Knowing that Mr. Shor was his employer, council member Pastor would not, could not, get involved with any matters involving the city, and this was an issue with the MSD."

Pastor has never had any conversation with the city administration about the issue because there was ongoing litigation and Shor had private counsel in the matter, Megerle said. "Should anything come before council, which it wouldn't, council member Pastor would have recused himself from any vote."

Shor, who lives in Hyde Park, once owned Duro Bag Manufacturing Co., the largest paper bag producer in the world. He suffered a seizure at age 25, prompting his lifelong interest in the relationship between stress and epilepsy.

Shor also is known for a 1982 incident in which he was kidnapped and held for ransom for two days. He escaped his captors; they were caught and sentenced to prison.

Shor's dispute over flooding at his home goes back at least two years, when he filed a claim in U.S. District Court in Cincinnati against the Metropolitan Sewer District. Shor said a sewer line backup in his backyard on Aug. 29, 2016, flooded his basement, causing more than $200,000 damage.

His claim seeks $505,000 from MSD for the loss of "family artifacts and heirlooms" and also for the diminished value of his home because of the flooding problem.

According to court records, the sewer district initially offered Shor $28,870 to settle the claim. The case still is pending in court. Megerle said there is a revised settlement offer of $45,000 that is expected to be accepted by Shor.

Shor sent his January email to Beer, Black's assistant, about three weeks after Pastor took office as a councilman. In the email, Shor thanked Beer for speaking to him on the phone and said, "Councilman Pastor advised me to give your office a call."

In the email, Shor said his sewer problems have cost him "over a $1 million dollars over the last 12 years."

At some point, Shor's email was forwarded to sewer district officials, including Gerald Checco, who was then the district's director, and MSD's general counsel, Diana Christy.

Christy cautioned Beer about further contact with Shor because of his pending litigation in federal court.

Staff writer Dan Horn contributed.