ST. LOUIS — City development officials, under pressure to fix problems with a troubled North Side grant program, have been reevaluating dozens of awards worth millions of dollars.
City records that track changes in the program show several awards that were listed as viable four months ago are now tagged “non-viable†or “to be determined.â€
And some organizations previously listed as good destinations for the cash are now listed as ineligible for all but the smallest grants.
The St. Louis Development Corp. previously announced the cancellation of $1.7 million in grants to a handful of organizations. But records suggest as much as $2 million more, set to go to more than 40 firms, could be in limbo.
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Deion Broxton, an SLDC spokesperson, said the determinations in the data largely speak for themselves and declined to comment on pending awards.
SLDC officials have long maintained that they are vetting every organization and will get through them all.
The changes mark the latest twists for a high-profile program intended to help reverse decades of disinvestment and neglect on the city’s north side, a top priority for Mayor Tishaura O. Jones. Officials have said the $37 million initiative will help hundreds of businesses and nonprofits restore vibrancy to forgotten corridors and offer opportunities to people left out for decades.
But since SLDC officials announced their picks this summer, they have encountered increasing concern.
Post-Dispatch reporters found one announced winner working out of offices in Shrewsbury. Others listed addresses in empty buildings and vacant lots. Dozens owed the city delinquent real estate taxes despite a stated requirement that they be current.
SLDC officials conceded mistakes in the vetting process, largely blaming a third-party contractor, and promised to double-check each grant before cutting any more checks.
Still, city Comptroller Darlene Green called for an “immediate do-over†of the program. U.S. Sen. Eric Schmitt referred the matter to the Treasury Department. Late last month, SLDC got a letter from the state auditor’s office seeking information on the program as part of a preliminary investigation.
And on Monday, the Post-Dispatch published the results of an investigation into a sample of 84 of the 444 entities in line for money. Even after subtracting those whose grants had been rescinded, reporters found 44 questionable firms still in line for money, including:
- 27 that appeared to not be operating, or were barely operating.
- nine that were operating, but not out of north St. Louis locations.
- at least eight others that can’t deliver on proposed projects because they don’t have enough money.
But the changes in SLDC records call out dozens of more grants now in question.
And they suggest SLDC could soon reduce the overall number of troublesome grants.
The changes are visible in SLDC data released as part of a transparency effort launched after initial reports questioned the program. The data list the name of each announced grant winner as well as other information, including a “Business Viability Status†reflecting whether or not a winner can meet the requirements of the program.
When the data was first released in October, officials had tagged 200 as vetted and viable and 38 as “to be determined,†leaving about 200 blank.
But as of last month, the data listed 274 as “vetted viable†— but more than 30 as “non-viable†and 120 as “to be determined.â€
Ten had been moved from “vetted viable†to “non-viable,†and 15 had been moved to “to be determined.â€
Most of the grants newly tagged as questionable, however, were still slated — at least as of Jan. 16 — to get grants.
When You Require Computer Services, an IT firm headquartered in Shrewsbury, for instance, was in line for $50,000, and Luckett’s Lounge, a bar that burned down a few years ago, was listed for $12,500.
Ten others had been reclassified and made eligible only for $2,500 “capacity-building†grants, the smallest available.
One of those 10 was the St. Louis Mississippi River Museum, which was supposed to get $25,000. It advertises itself as a full museum, with more than a dozen exhibits, on a street just north of the Central West End. But its address leads to a four-family structure where no one answers the door, even during advertised business hours.
Broxton, the SLDC spokesman, said many grants newly classified as TBD were initially vetted by a third party contractor, Grow America, which officials say made mistakes, requiring a second review.
Editor's note: A previous version of this story misspelled the name of SLDC spokesman Deion Broxton.
A key part of pandemic relief funds for St. Louis city involves grants for north St. Louis businesses and non-profits. The ÁñÁ«ÊÓƵ has reviewed records for each of the 444 entities announced as grant winners; here's what the reporters found.
