The North Side “Grant” Program is a Racket
The St. Louis Post-Dispatch is attempting to get more information on the St. Louis Development Corporation’s (SLDC) North St. Louis Small Business & Non-Profit Grant Program. The City of St. Louis is refusing to share information on the application process after questions have been raised about the overall grant process. My colleague, Patrick Tuohey, addressed those issues here.
I am confident that the media will get that information, and I am as interested as anyone to learn more. But let’s be honest here–what we already know about the program makes it clear that this “grant” program smells like a racket. Let’s look at what this program is giving away as part of this $32 million “grant” program.
A former state representative is getting $1.5 million to expand her consulting company to create more affordable housing and grow the economy by two—that’s right, two—new jobs.
A former mayor is getting two grants for a total of $125,000 to expand and improve the bar he owns in the city.
Sweetie Pie’s restaurant is getting $1.5 million to expand operations, despite some recent problems with management and operations at the restaurant.
Non-profits are included too, and perhaps that is more understandable, but one non-profit that was only created after the program was announced last year is in line for over $700,000. Surprisingly, the director of that non-profit is connected to a politically influential family. I know, you’re shocked . . .
The list goes on. When the program was announced, officials claimed it was a way to invest in North St. Louis. But it isn’t investing in infrastructure or things that can benefit the public. The program simply seems to be a way to give away tax dollars to North Side businesses. That’s it. There is no way this should be legal.
You don’t have to take my word for it. Consider the comments of one business owner who, admittedly, did not receive funding:
“The whole process has just been problematic from day one,” said Tameka Stigers, who applied unsuccessfully for a grant to expand her hair salon, Locs of Glory, on Delmar Boulevard and has been rallying other disgruntled business owners to lobby SLDC for reconsideration. “It’s a genuine money grab from the city to give the money to their friends.” [emphasis added]
I couldn’t have said it better myself. We will have more to come on this issue, I assure you.
