HAMILTON COUNTY

In Hamilton County, GOP party leaders accused of playing favorites

Chris Sikich
chris.sikich@indystar.com
A voter is shown casting his ballot on Election Day in 2014. Some Hamilton County Republican Party members are concerned that the party's leadership are acting like "kingmakers" behind the scenes by favoring some primary candidates over others.

Some fiscally conservative Republicans in Hamilton County have a message for county party officials — back off.

They say top party leaders are acting as behind-the-scenes "kingmakers," directing money and expertise to favored Republicans who are strong proponents of growth in primary races against other party members.

In a virtually one-party Hamilton County, where a Republican primary victory all but ensures a win in the general election, such support can be vital.

Many other GOP officials in one-party-dominated counties say they stay out of primary races to avoid the appearance of bias. "If they want to succeed in winning the nomination, they are the ones as candidates that need to get out and talk to voters," said Johnson County GOP chairwoman Sandi Huddleston.

Former Hamilton County GOP Chairman Pete Emigh

But Hamilton County Republican Party Chairman Pete Emigh and Executive Director Andrew Greider have helped form private political action committees to steer money to specific primary candidates, inviting harsh criticism from others within the party.

That PAC money is often collected from the same people, businesses and organizations that contribute directly to the party and it usually goes to Republicans who support tax incentives to attract growth and development.

Greider also manages certain primary campaigns, directly opposing other Republicans, a practice opposed by those GOP candidates not favored by party officials.

Andrew Greider

Even more troubling to those outside the party's inner circle is the fact that Emigh personally profits from doing business with the three major cities in the county, whose mayors he supports with that same PAC money.

As an independent broker for OneAmerica, the largest provider of 457 public retirement plans in the state, Emigh manages employee retirement accounts in Carmel, Noblesville and Westfield valued at nearly $70 million — all cities whose mayors he has backed financially through a PAC.

Neither the practice of backing candidates in the primary, nor Emigh's financial interests, are illegal. And Emigh and Greider say they take steps to ensure they are ethical. But some Republican party members still wonder whether Emigh and Greider are using undue influence to sway elections and whether they face potential conflicts of interest.

The two say they are acting as private citizens, not as party officials using party resources, when backing candidates with the two PACs, or when Greider manages campaigns.

Furthermore, Emigh says he does not profit from his political activity. His deals with the three cities were the result of hard work and public bidding, he said, some of it before he was county chairman, though still a party official.

When the two do become involved in certain races, they say it's to ensure the party is putting the best leaders forward to shape the future development of Hamilton County. Emigh says all political parties recruit and retain good officials.

All of this has raised questions from some Republican party members in Hamilton County: How can Emigh and Greider profess to work for the entire party while backing one Republican over another? How is it possible to support one candidate in a head-to-head race without opposing the other?

"We spend time, if anything, on bringing people in and broadening the base," Emigh said. "That's where I spend almost all of my time."

Fundraising in Westfield

Emigh, 46, grew up in Richmond and got his start in politics in the 1980s, volunteering for former U.S. senator and vice president Dan Quayle.

He moved to Hamilton County 17 years ago and rose through Republican Party ranks from county treasurer, to vice chairman, to chairman.

As chairman, he's charged with fundraising for party operations, building the party's membership, coordinating events and providing candidates with information and resources. The party also supports candidates during the general election.

But in 2009, Emigh privately formed the Shamrock Political Action Committee, named after the Westfield High School mascot. Emigh said he and other concerned citizens wanted to ensure strong leaders emerged to take the reins as the town transitioned into a city, "to help ensure Westfield would grow in a responsible manner."

He supported Mayor Andy Cook's vision for the city. As mayor, Cook has championed public-private investments, including using tax-increment financing to fund the $49 million Grand Park sports campus and to potentially fund a roughly $25 million park plaza planned for downtown Westfield.

With contributions from many of the same people, businesses and organizations who contribute money to the party, the PAC has raised hundreds of thousands of dollars.

Cook by far was the largest benefactor, directly collecting $44,500 from the Shamrock Political Action Committee between 2011 and 2012.

The fundraising played a significant role in the 2011 Republican primary. Cook defeated businessman Russell Cameron by the narrowest margin of any major race in the county — 62 votes.

Cameron, who wanted to rein in Cook's use of taxpayer dollars to subsidize development, said he knocked on a lot of doors, but couldn't match Cook dollar for dollar. Cameron raised a little more than $5,000, including $1,800 from his wife's business. Cook collected $18,000 from the Shamrock PAC alone — 37 percent of his total haul in the months before the primary.

Looking back, Cameron thinks he might have fared better as an independent candidate in the general election.

"Early on, when I decided to run for office," Cameron recalls, "I thought I could get a fair shake as a Republican. But they have a pretty tight party here in Hamilton County. Maybe I was a bit too controversial in not being one of their guys they could count on."

Emigh notes Cameron never approached him for support. Neither has Jeff Harpe, Cook's opponent this primary. Harpe believes the GOP county "machine" is too connected to developers, and he believes he can win with grass-roots efforts that connect directly with voters.

Cook believes party leaders should be involved in the primary.

"I would like to see the party cultivate the best person for the job," Cook said. "In other (two-party) counties, that's usually what happens, but in Hamilton County, it's very, very difficult."

Fundraising in Fishers

As Fishers transitioned from a town to a city, county party leaders took a more active role in that community, too.

Greider and county GOP treasurer Pete Peterson helped form the Royal Tiger PAC in 2013, named after the mascots of the city's two high schools.

By May 20, 2014, the Royal Tiger PAC contributed cash and in-kind services of $9,261 to Fishers councilman David George, $6,559 to Fishers councilman Eric Moeller, $9,209 to Hamilton County Council candidate Andrew Dollard, $2,106 to Fishers Councilman John Weingardt and $1,000 to Peterson, also a Fishers councilman.

"We wanted a way to help good candidates not have to worry about all of the funding that needs to happen to win an election," Peterson said.

Dollard was the only candidate backed by the PAC to lose. But the PAC's support for Dollard troubled both his opponent, Fred Glynn, and longtime County Councilman Rick McKinney, who each shared concerns about county spending.

"My position is the chairman should be neutral in the primary," said McKinney, "and not try to be a kingmaker."

Fishers Mayor Scott Fadness, who, like the majority of the Fishers council, has championed the use of tax-increment financing to redevelop the city's downtown core, declined to use the PAC money before the primary. But he hired Greider as his paid campaign manager.

Walt Kelly and Renee Cox finished second and third in the mayoral race. Neither can say whether Greider's party influence positioned Fadness to win the primary. But each said they would have stayed out of such conflicts.

Cox said she "would prefer that during a primary in particular, when there are several people lined up on the party's ballot, that the party choose not to get involved in that.

"It should be left up to the people to have their voice."

Greider sees a future in managing political campaigns. He's also worked with Carmel Mayor Jim Brainard in the primary.

Greider made $12,000 through the Shamrock PAC for campaign work and other expenses in 2011 and 2012, and he earned $671 for expenses through the Royal Tiger PAC in 2013.

At the same time, Greider was working as a paid official of the party, but he says he has kept his two roles separate.

Greider says he never conducts private business while in the Hamilton County Republican office, doesn't provide additional county resources — whether money or lists of potential voters — to candidates he supports and leaves the room if other party officials discuss a race in which he's involved.

However, others say Emigh and Greider's actions at least give the impression party leaders are endorsing candidates against fellow Republicans.

Carmel mayoral candidate Rick Sharp, a longtime critic of the redevelopment policies of his GOP primary opponent, Carmel Mayor Jim Brainard, suggests Greider take a leave of absence from his job with the party during the primary.

"To serve as the executive director of the party and a campaign manager, I just don't think that's appropriate," Sharp said.

Financial concerns

Emigh works as a certified financial planner with Financial Partners Group. He offers a 457 plan — similar to a 401(k) — to Carmel, Noblesville and Westfield, through OneAmerica.

Emigh inked Westfield and Noblesville to deals while he was a party official, but before he rose to chairman. But he was chairman when he won a public bid for Carmel's plan in 2012.

In addition to providing funding for Cook's campaigns in Westfield, the Shamrock PAC has contributed $1,400 to Noblesville Mayor John Ditslear at a golf outing in 2014 and a small amount, $250, to Brainard in 2010.

The three mayors say Emigh's position with the party, or campaign contributions, had no influence on their governments' decisions to sign contracts with his plan.

They cite a 35 percent to 50 percent cost savings and say Emigh's offer was the best plan available.

"I think it's about the performance of the plan," Brainard said. "There would be a cry for change from our employees if the plan was not performing."

Emigh says the public bidding process required by the governments ensured that the deals were on the up and up.

"I'm very proud of the process we went through," Emigh said, "which I will add is much more involved than anything we do in the private sector."

The benefits plan passed by a narrow 4-3 vote in Carmel. Eric Seidensticker voted against it, believing there was a better option.

Seidensticker said he believes Emigh had greater access to city officials, including Brainard, than the competitors. Both Brainard and Emigh deny that allegation.

Seidensticker says he also was acutely aware he was voting against a plan offered by the county chairman and wondered if he would face retaliation.

"If you vote against the party chair for something that effects him financially," Seidensticker said, "do you think you are going to run in an election without opposition?"

Seidensticker has an opponent in the May primary, but Emigh says he's staying out of that race.

What happens now?

Some candidates who are preparing to run in races this year wonder whether they will be facing their own party in the primary.

The Shamrock PAC still is active. Greider and Peterson say the Royal Tiger PAC has been shuttered.

Sharp anticipates Emigh and other party officials will support Brainard in the primary, through help with Brainard's own fundraising, or a PAC.

"I don't think the party should be openly involved in campaigns," Sharp said.

Emigh says he has no plans to get involved in any races in Carmel.

Brainard, like Hamilton County's three other sitting mayors, thinks Emigh is acting appropriately as party chairman.

"The parties have an interest in making sure the primary nominees can win in the fall," Brainard said. "In this day of low-cost email and Internet communication, a small group can influence the primary and the parties need to make sure the voters are getting accurate information.

"If a fringe candidate is nominated, the party can lose in the fall."

Unless, of course, there is no viable opposition.

Call Star reporter Chris Sikich at (317) 444-6036. Follow him on Twitter: @ ChrisSikich.