Iowans for Tax Relief seeks probe on Frew hire for Cedar Rapids project

Iowans for Tax Relief has written to the Iowa Ethics and Campaign Disclosure Board, asking for a review of John Frew's decision to quit as Gov. Chet Culver's chief of staff so FREW's private firm could immediately accept a $3.8 million contract to oversee the $67 million Cedar Rapids Event Center project.

In a Thursday statement, Ed Failor Jr. president of the tax-relief group, said Frew's move from the governor's staff to a lucrative city contract is one of those “deals” that “do not pass the smell test.”

“The Iowans who foot the bill for government do not like even the appearance of cronyism,” Failor said. “Actions like this cause Iowans to not trust their government.”

Failor called on Charles Smithson, executive director of the state board, to “stand up for taxpayers who need answers.”

Iowa has in place a “revolving-door” ethics statute, which Smithson last week said did not apply to Frew's acceptance of the city's contract.

Funding for the  Event Center project consists of $35 million from the U.S. Department of Commerce, $15 million in state I-JOBS funds and $17 million in local Cedar Rapids funds.

The state component of the project funds, which goes to upgrade the existing U.S. Cellular Center next to the site of the new Event Center convention facility, was approved in late August 2009 just before Frew left his private firm to join Culver's staff.

Last week, before the City Council agreed on a 7-2 vote to award Frew the city contract, Frew acknowledged that he had helped the governor secure about $8 million in I-JOBS funds in the just-completed legislative session for use to renovate two city buildings that were flood-damaged, the Veterans Memorial Building and the former federal courthouse.

But none of those recent funds went to the Event Center project, the construction of which Frew and his firm, Frew Nations Group, will oversee.

Mayor Ron Corbett, who said Frew was an “Iowa boy” with experience in event-center projects, pointed out that Frew had nothing to do with the city's application related to the Event Center project.

Smithson last week pointed to a past state ethics board ruling, which concluded that being part of a project's application process for state funds was the determining factor in whether or not a state employee or official could leave state employment to work on or for the project.