Friday, May 29, 2009

Forum’s new strategy:
slash, burn & panic?

By RON BROCHU


The forced exit of Superior Telegram publisher Leslee LeRoux has enhanced speculation that the community newspaper is destined to be absorbed by the Duluth News Tribune (DNT), despite official denials.

LeRoux, a Superior native, had no inkling of her fate when she strolled into the Telegram's downtown office May 21. Ad sales for the twice-weekly broadsheet exceeded budget, allowing the upcoming Friday edition to be larger than usual ­24 pages in addition to a 20-page TV tab. Despite industry trends, advertisers were showing faith in the 118-year-old publication, which until last year was published daily, excluding Sundays.

LeRoux's only peeve was an afternoon meeting with Duluth News Tribune Executive Editor Rob Karwath. He had dropped the appointment into her calendar without explanation and declined to reschedule even though his timing would interrupt the Telegram's layout. In most cases, however, that would only suggest DNT arrogance again had reared its head. News Tribune execs care little about inconveniencing colleagues at affiliated publications, all of which they consider inferior.

Only later did LeRoux discover why Karwath wouldn't modify his plans. He intended to permanently erase her name from the masthead. Karwath told LeRoux that Forum Communications, owner of both the Telegram and DNT, no longer employs publishers ­ a corporate cost-cutting move. He asked LeRoux to pack her belongings and vacate her office without saying goodbye to co-workers ­a policy usually employed by large companies that fear the outgoing employee will stage a scene or sabotage their computers.

"They treated her like an embezzler," said Wisconsin Public Radio reporter Mike Simonson, who has known LeRoux for two decades. "She did not deserve that at all. She should have been given two weeks notice ­to say goodbye to her staff and her readers. She would have been classy about it."

As LeRoux exited the building with her makeshift cardboard luggage, employees stared in disbelief. For the second time in two weeks, a top-level exec was leaving. Just days earlier, Forum had moved advertising director Randy Johnson to the Duluth News Tribune office, where he was given a new assignment managing the automobile advertising sales effort. Telegram employees were yet to digest that decision when their publisher was eliminated.

In a DNT story, Karwath said "We certainly have every intention to keep the Telegram strong in print and online." Some didn't find his comment very convincing, especially those who witnessed the staff drop from about 40 a year ago to less than 20 today. Said one disheartened staffer: "It's just a matter of time before they get rid of each of us."


The ugly side of bliss

On Fox 21 News, Karwath reports for the DNT as the affable news partner, the soft-spoken boyish editor who reads stories generated by underlings who shun TV. But inside the organization, he's become the Hand of Caesar, doling out disciplinary actions and cutting jobs inside and outside of the newsroom.

Earlier this month, he descended upon the Lake County News-Chronicle in Two Harbors to sack long-time editor Forrest Johnson. Simple math would say Johnson's demise left the newspaper with just 3.5 positions. But in reality, the loss was much greater. Like all small-town newspaper editors, Johnson clocked far more than 40 hours each week.

In protest, 65 people gathered outside the News-Chronicle to support Johnson, who had been with the newspaper for nearly 20 years. But he wasn't universally popular. Some in the local business community felt Johnson was too negative about a waterfront housing plan proposed by developer Sam Cave, and they took their concerns all the way to Forum board chair Bill Marcil. The controversy seemed to die down, but once under the corporate microscope, Johnson was unable to escape.

Forum has not revealed the reason for his release, and Johnson has not been available for comment. But Karwath clearly felt the action was insignificant. Unlike the News Tribune's three front page stories about Lew Latto¹s radio plight, Johnson¹s turn of fortune generated no buzz in the Duluth paper, although the Lake County weekly ran a photo of the protest.

Last September, Karwath also was the messenger who axed DNT managing editor Andrea Novel Buck, a 19-year DNT employee. Facing orders to chop about $300,000 from his newsroom budget, Karwath and other DNT execs decided Buck was among editors who were expendable. Most of them were women. Once the managing editor was axed, opinion page editor Robin Washington was promoted to the newly created position of news director ­ a highly unusual title in the print world.

Clearly, however, cuts by the Fargo-based publisher extend beyond the Northland and may even suggest a degree of panic has gripped the organization. In recent months, Forum has eliminated veteran employees at numerous properties, including:

· Mike Burke, who was general manager at the New Richmond News. He had 28 years of experience

· Michael Kuehn, general manager at the Red Wing Republican Eagle, eight years

· Brady Bautch, Internet Publisher of Forum's RiverTown Newspaper Group in southwest Wisconsin, eight years

· Robin Kruse, Pierce County Herald advertising sales rep for 26 years

· Sandy Burdine, Hastings Star Gazette sales clerk for 28 years

· Melissa Kinneman, classified sales rep at the RiverTown Newspaper
Group

· Jo Erickson, advertising assistant and receptionist, Red Wing Republican Eagle

Why would any organization boot so much experience out the door? Some believe it's not Forum's decision at all. Instead, they suspect some shots are being called by the consortium of banks that borrowed Forum enough money to buy the Duluth and Grand Forks newspaper groups at a price said to exceed $100 million.


Times are changing

When Forum purchased the DNT, Telegram, News-Chronicle and Cloquet Pine Journal, Marcil assured employees that his family-owned company has never shuttered an acquired newspaper. That¹s no longer the case. On May 7, Forum closed the Stillwater Courier and one of its rare startup properties, the Lake Elmo Leader. Employees received two days' notice, according to a story published in the competing Stillwater Gazette.

Lake Elmo suffered a slow, painful death. In 2006, the paper closed its Lake
Elmo office and operated from the Courier's Stillwater office. Then in April 2008, Forum cut its only Lake Elmo reporter and stretched its Stillwater Courier staff to cover both communities.

In closing the two newspapers, Forum eliminated Yvonne Klinnert, who was editor of the Stillwater Courier and Lake Elmo Leader; Mark Brower, a Stillwater Courier/Lake Elmo Leader reporter, and Andy Blenkenship, reporter/photographer at the two publications.

Cuts continued last week, when Forum closed its North Dakota capitol bureau and released Scott Wente from the staff of its Minnesota capitol bureau.


Not important?


By eliminating veteran employees, Forum also is losing institutional memory and community relationships that most newspapers strive to develop.

"It's a great loss to the community ­ to the newspaper," Simonson noted.

That loss is particularly difficult for the Telegram, where the newsroom and advertising sales staff have seen several cuts. When LeRoux took over approximately nine months ago, most considered her a breath of fresh air. Ken Browall, her predecessor, spent much of his time analyzing spreadsheets and union contracts. Unlike most publishers, he seldom ventured into the community, and during his tenure, Browall began to spend more time at the DNT than at the Telegram, even though he claimed to dislike the DNT's culture, particularly in the newsroom.

LeRoux, however, was an extrovert who loved Superior and enjoyed community relations.

Her Telegram tenure began in 1983 as a reporter. After a stint reporting in Galveston, Texas, she returned home and became Telegram editor, then was transferred by Murphy McGinnis Media to expand the Duluth Budgeteer, raising distribution to twice-weekly. During that time, she hired Rick Lubbers, who went on to become DNT sports editor, and Kyle Eller, now editor of The Northern Cross, published by the Duluth Catholic Diocese. Eventually, she was given editorial oversight for all Murphy McGinnis properties.

After an ownership change, Forum hired her in a marketing capacity at Living North Magazine. Then she advanced to become Telegram publisher. In addition to her PR role, LeRoux also worked side-by-side with newsroom staffers, coaching writers and assisting with pagination.

"Her loss will not only be felt by the newspaper and the city of Superior, but by the talented, emerging reporters throughout the region," said freelance writer Joan Farnam, a former colleague at the Budgeteer. "By firing her, they've clearly shown that they are not interested in owning a newspaper that communicates well and is a lively 'forum' for the community. Instead, their focus seems to be their profit margin, which is undoubtedly shrinking because of decisions like these."

In his own story about LeRoux, Simonson also used the term "firing." Karwath objected and sought a correction, saying the term unfairly besmirched his former colleague. Pointing to the way LeRoux was ushered out the door, Simonson refused, then asked Karwath why he employed the tactic. The DNT newsroom exec took a corporate stance, refusing to answer.

While Forum's growing list of terminations is reducing corporate costs, it's also flooding the market with a wide array of talented journalists and sales people. At least three Northland organizations currently are discussing plans to launch an internet alternative to the News Tribune, similar to the MinnPost.com venture launched by former Twin Cities mainstream journalists. So far, however, none of the local efforts have gone into publication. And even tenured start-ups like MinnPost are yet to turn a profit.

Ron Brochu formerly was Telegram executive editor.

This article first appeared in the May 29, 2009 Reader Weekly.

Friday, May 15, 2009

School board aims shovels at pristine green field

By RON BROCHU

The destruction of green space once elicited angry cries in Duluth, but a new plan that will uproot a square mile of undisturbed land is barely raising eyebrows.

Why? The parcel is hidden in a far corner of West End, where residents lack the political clout and financial resources to fight the massive development.

The project, known as Wheeler North, would position a middle school just above the DM&IR corridor on a green field that runs from Chestnut to Wellington Streets. Just a few blocks uphill from the A& Dubbs drive-in restaurant lies a pristine site where backhoes soon could rip up wild strawberry fields and former pastures that helped feed generations of Germans, Poles and Italians who settled the neighborhood a hundred years ago.

Most of those families – such as the Stammens, Gimples, Scheers and Stockmans – are long gone. The neighborhood and its old houses have largely morphed into transient housing for low-income renters who’ve managed to escape the Central Hillside. These aren’t monied socialites who can afford to sue the Duluth School District every time an eagle craps on their porch.

That dubious tale generated headlines when the School Board proposed to stuff East High onto the Ordean site. Unhappy neighbors managed to pull an eagle’s nest out of their pocket with hopes of milking the rare bird.

Those who reside near Wheeler North, however, haven’t been nearly as clever. So far, raping the western hillside has generated neither discussion nor lawsuits. Beyond the crumbling pavement on Chestnut Street, where the school district hopes to demolish several homes to accommodate a newly paved entrance road, the ambitious West End school plan is nearly a secret.

The lack of news coverage is troubling but not unexpected. Few local reporters reside east of Lake Avenue, so they’re seldom familiar with western neighborhoods or their problems. Many are simply incapable of preparing a story that’s not spoon fed at a news conference or public meeting.

For sure, the lack of media scrutiny is helping to squelch discussion about alternative school sites, such as the existing Central High or Lincoln properties. Assisted by this knowledge vacuum, the School Board can spew nonsense about the high cost of rebuilding Central without anyone questioning the high cost of extending utilities and building roads into the Wheeler North site, where the dominant geological feature is solid rock.


Environmentally unsound?

Unearthing wild raspberries, strawberries and lichen-covered boulders is merely one concern about the Wheeler North site. It doesn’t take a passel of clever attorneys to uproot others. Simple observation from hillside outcroppings provide a quick education.

The DM&IR rail corridor, where taconite-filled trains speed from Iron Range mines to the Ore Docks, is located between the proposed school and Wheeler Field.
There’s only one way to quickly walk from the proposed school site to the athletic complex and West Duluth residential area: Dart across a dozen railroad tracks like an overcharged bunny.

But that’s not the only safety issue. The other is air pollution.
Sixty years ago, nearby residents pulled clean linens off their clothes line each time a steam locomotive flew down the tracks, spewing coal soot in every direction. Those days are long gone, but airborne dust particles continue to be a concern, and prevailing winds blow toward the school site.

On numerous occasions, the Minnesota Pollution Control Agency has fined DM&IR for dust emissions created when taconite pellets are moved and stockpiled. Although most of the emissions occur near the Ore Docks, a quick walk along the rail corridor unveils a virtual treasure trove of pellets that have dropped from speeding rail cars. In addition to fueling local slingshots, the pellets create dust as they bounce along the tracks.

Those who reside in the neighborhood also are familiar with blue clouds that billow from brake pads as locomotive engineers slow their trains during the quick descent between Proctor and the working waterfront. The smell of hot brakes, which is evident for blocks, and particulates from the brake pads will heighten the sickly ambiance at the Wheeler North outdoor athletic field, recess field and hiking trail.


How can this be?

Superintendent of Schools Keith Dixon has suggested the Red Plan arose from discussions held at numerous public meetings. Citizens who participated in those sessions, however, say they were poorly attended, often by fewer than two dozen people, and certainly didn’t generate a community-wide consensus. In any event, it’s hard to imagine that a local participant suggested bulldozing an undisturbed green field instead of reusing convenient sites that already are equipped with water, sewer and power lines.

Unfortunately, Dixon and his heavy-handed minions are hell-bent on initiating every aspect of the plan before the fall school board elections, when voters will tell board members what they really think. By then, however, it will be far too late to halt the expensive madness; the environmental damage will be irreversible.
Author Ron Brochu refuses to lighten up and hopes more Duluthians will do the same.
This story was first published in the May 15 Reader Weekly

The Fifth Estate is one too many

By RON BROCHU

If journalism is the Fourth Estate, then legislative lobbyists are the fifth, which is one too many – according to Gov. Tim Pawlenty.

About $35 million in taxpayer money was paid by local units of government between 2003 and 2007 to pros who wander the capitol promoting parochial needs – everything from publicly financed civic projects to aid for cities, counties, colleges and school districts..

Facing budget deficits, Pawlenty believes, local government could save a lot of money by firing their lobbyists, Minnesota Public Radio reported April 20. He even has support from some Democrats.

"We just think it's an expense that doesn't have to be there," DFL State Rep. Michael Paymar of St. Paul told MPR. Paymar, a former Duluth city councilor, also would prohibit state agencies and departments from spending tax money to lobby the legislature.

His opinion differs sharply from DFL Rep. Thomas Huntley, who once served with Paymar on the Duluth city council. Huntley told KBJR-TV “When we're down here, we don't talk to senators, we don't have time, yet we have to coordinate our actions and it's basically the lobbyists that run back and fourth and keep us informed by what the other body's doing."

Did Huntley really intend to suggest taxpayers should pay lobbyists to function as couriers between the House and Senate? Hopefully not, for it would be difficult to find more expensive labor to shuttle notes among lawmakers.

But that’s a minor issue, and so is the taxpayer cost to hire lobbyists. At issue is the role of state legislators. Don’t taxpayers elect them to lobby local interests? Aren’t they paid rather well to seek aid for cities, counties and schools – to get funding for aquariums, theaters and other non-profits that live up to that description? The real question is why taxpayers must pay twice to get the same service.

Like a three-eyed toad, the political system has been poisoned, morphing into a troubling monster that would rattle our founding fathers. That’s not to say lobbyists are corrupt. After all, Duluth city lobbyist Kevin Walli is a Denfeld grad who carried the pigskin alongside good ‘ole West Duluth boys like Mark Bibeau and Ernie Conito. But he’s among the expensive professionals who essentially have added another layer of costs and complications to democracy.



Where does it end?

Throughout the winter, education lobbyists pleaded their case in a related by slightly different venue. Education Minnesota, which represents 70,000 educators, purchased television ads suggesting viewers should tell their legislators that their top priority should be to fund public schools.

The union-funded ads didn’t cost taxpayers a nickel – or did they?
Giving top priority to public schools, of course, would push some other entity down the funding ladder. One example might be cities, or law enforcement, which is funded by cities. Facing competition from the massive educators’ union, cities feel the need to hire their own lobbyists. After all, voters aren’t happy when crime rises, which tends to happen when police funding is reduced.

On another level, county board commissioners also have a stake in the game. For if state aid is reduced, who will pick up the tab for ever-growing social service costs? So counties also need their own lobbyist.

The University of Minnesota is a sprawling animal that affects every corner of Minnesota. It can’t afford to watch while scarce state money is allocated to other entities. So it sends chancellors and others to St. Paul to represent its interests.
And so on. Without some legislative restraint, the system will feed on itself and spread like wildfire.


High development costs

Don’t expect Pawlenty to address a parallel situation that also wastes taxpayer dollars. It’s unlikely a Republican would condemn the massive amount of public money that’s spent to lure companies from one community to another, one state to another, even one country to another.

The original intent of publicly funded business incentives was to create jobs in America’s worst poverty pockets. But over the years, every community has painted itself as developmentally impaired, in an economic sense. As a result, public economic development has become an industry, and it’s a sinkhole for tax money. Every time a city hands out tax breaks, tax credits, TIF financing and the like, taxpayers pick up the tab.

Today, every city and every state plays the game – even though private investors at times haven’t even sought assistance. It happened last year in Superior. To create a new TIF district, the first occupant was given TIF assistance it didn’t need and hadn’t requested.

Economic development agencies, however, have become the darling of mayors, governors and legislators. Every time politicians use tax breaks to lure private development or redevelopment, they use the occasion to pose before cameras with private executives and union officials – and later with contractors and trade union reps – claiming credit for creating jobs. Yet reporters seldom provide critical analysis of the tax incentives, even though the devil is in the details.
Essentially, they allow politicians to paint themselves as heros and perpetuate incumbancy – all on your dime.
This story first appeared in the May 1 Reader Weekly.