Jeremy Fugleberg, and Jason Williams

Cincinnati

Mayor John Cranley has been using an under-the-radar PAC as a tool to help shape local Democratic party control heading into next year's mayoral election.

The PAC also paid thousands of dollars to Cranley's chief of staff for consulting fees, reimbursed the mayor for travel expenses to a Hillary Clinton campaign event in New York City, and funneled campaign money to numerous state and local races.

Knowledge of the Cincinnatus PAC came to light late last week, after its name was on thousands of fliers sent out promoting candidates for the upcoming city precinct elections. Cranley and fellow establishment Democrats are fighting a pitched battle against urban progressives for the future of the local party – and precinct elections are critical skirmishes.

"There's nothing secret about this," Cranley told The Enquirer. "Look, I believe in the Democratic party and I'm trying to build a stronger party."

'He is scared'

The PAC, formed a year ago this month, is fueled by thousands of dollars in donations from several big Democratic donors, including some out-of-town businessmen and local philanthropists Otto Budig and Dick Rosenthal. Cranley-appointed "fun czar" Frank Wood Jr. and Shree Kulkarni, a controversial Cranley appointee to the city's Historic Conservation Board, contributed lesser amounts.

The so-called "leadership PAC" is a legal way to take in and spend political donations, and it's common in Washington politics. But it's less common on the local level, and anti-Cranley urban progressives think the mayor is secretly trying to manipulate who controls the local Democratic party.

“I think this approach is a failed attempt at trying to work things behind the scenes to somehow shape who makes the decisions on party chair and endorsements," said Ryan Messer, an Avondale resident and founder of Believe in Cincinnati. "This is a desperate attempt to try to hang onto control, knowing that it will be extremely difficult for him to get these Democratic endorsements. He is scared."

Typically only members of Congress and even some big-city mayors, including former New York City Mayor Michael Bloomberg, have leadership PACs, said David Niven, a University of Cincinnati political science professor. Politicians create these PACs to gain favor with other politicians in exchange for future election support.

They're not typically created out of desperation, Niven added.

"This is a tool that tends to be geared toward aspirations for your next office," he said. "They're not typically a survival tool." If he's re-elected in 2017, Cranley could be a contender for any number of statewide offices in 2018.

The Cincinnatus PAC took in about $63,240 last year, according to filings with the Federal Election Commission. As of the end of 2015, about 40 percent of the PAC's money went to Democratic candidates, including Clinton's presidential campaign and mayoral races in Columbus and Bowling Green.

Cranley's campaign could have donated to allies directly. But by setting up a leadership PAC, Cranley can essentially go to the funding well twice, asking a donor for a maximum donation for both the PAC and his campaign, Niven said.

Big donors fuel PAC

A stack of $5,000 donations built the financial foundation of the PAC. Besides Budig and Rosenthal's support, The PAC took in $5,000 each from a number of other donors, including Greg Power, owner of Carew Tower; Dennis Tinkler of Kokosing Construction and Stephen Hightower, CEO of Hightowers Petroleum. Philanthropists David and Diane Rosenberg each contributed $5,000. Cranley appointed Diane Rosenberg to the city Parks Board in 2015.

Alex Heckler of LSN Partners in Miami Beach, Florida, contributed $5,000, while Marcelo Llorente, also of LSN Partners, gave $2,000. Heckler is a frequent contributor to the Democratic Party and candidates across the U.S. Llorente is not. He is a former Republican member of the Florida House.

The PAC paid $8,500 in June to Jay Kincaid, Cranley’s chief of staff, for consulting fees – by far the largest single expense. It's not uncommon for City Hall staffers to work on the campaigns of their bosses on the side.

Cincinnatus also reimbursed Cranley $2,683 for travel to a Hillary Clinton fundraiser in New York City.

The remainder of the money largely paid for events, legal fees and what are listed as “stakeholder meetings” in Cincinnati, Dayton and Columbus. The PAC paid $3,436 in event expenses to the Bengals in December and $2,524 to the Reds in May.

The PAC was created by Sean Callan, an attorney at Downtown-based Manley Burke. Hamilton County Democratic Party Chair Tim Burke is a partner at the firm, and the PAC's address is Manley Burke's Court Street address. The PAC paid $4,500 to Manley Burke for legal expenses.

Why the flier matters

The flier that brought the Cincinnatus PAC to light promoted Cranley's choices for precinct elections and featured a large glossy image of President Barack Obama superimposed on the Cincinnati skyline. The message: "In order to protect the legacy of President Obama, we need to elect strong Democrats."

The PAC fliers addressed a particularly sensitive topic for local Democrats. Precinct executives sit on the city's Democratic committee, which decides mayoral and City Council election endorsements and helps determine who chairs the Hamilton County Democratic Party.

Democrats have battled for local party control in recent years. The genesis of the battle is Cincinnati's controversial streetcar project, which was the main issue in the 2013 mayoral race. Then, Cranley campaigned on killing the project; Roxanne Qualls ran on developing an expansive streetcar system.

The streetcar, which survived Cranley's attempts to stop it, is again expected to be a top issue in the 2017 mayoral race. Democrats are battling over the right to endorse Cranley or the candidate who wants to expand the rail line from Downtown and Over-the-Rhine to Uptown near UC and region's top hospitals. Pro-streetcar Democrat Yvette Simpson is considering running for mayor.

"There are some people who believe the sole definition of being a Democrat is whether they want to spend more money on the streetcar extension," Cranley said. "I don't believe that. I believe that building an office of inclusion and fighting childhood poverty are essential values of the Democratic party."

Cranley, his supporters and critics alike all agree the precinct battles go beyond the streetcar. To his critics, the PAC is the latest addition to a list of things they're upset at the mayor over.

"These aren't politicians running for precinct executive," said Over-the-Rhine resident Derek Bauman, who has recruited candidates for the races. "They're neighborhood folks running grassroots races because they are concerned about the tenets of the Democratic party. This is another example of Cranley and his big-money cohorts dictating the agenda and trying to crush the neighborhoods and the consensus of the people. It's harmful to the party."