ST. LOUIS – Alderwoman Cara Spencer (Ward 8) officially announced her resignation Monday from her position on the board of the St. Louis Development Corporation.
Spencer’s letter to the board secretary points to her concerns about oversight of SLDC, noting that “recent events, however, have destroyed my confidence in SLDC as well as community trust that this organization is properly managed or is serving the best interests of the city.”
The letter continues to state two reasons behind the unfeasibility to have any oversight, which include Mayor Tishaura Jones’ ability to appoint one person to president, CEO, and chair of the board, along with the city counselor acting as the board’s legal representation.
Spencer noted that both of these reasons create room for conflict of interest and the withholding of certain information from the board.
“These are barriers to transparency and achieving the purposes for which SLDC was formed. Notwithstanding my resignation, I sincerely hope that the mayor reviews the city’s arrangements with SLDC to ensure transparency, proper oversight, and meaningful advancement of the purposes for which SLDC was formed,” Spencer said in the letter.
SLDC is supposed to be non-governmental, she said.
“The recent events, we’ve seen them unfold,” Spencer said. “The questions are just compounding with regard to that grant program.”
Her resignation comes at a time when St. Louis Development Corporation has come under fire for its use of money from the American Rescue Plan, known as ARPA funds. They list more than 400 north St. Louis businesses and nonprofits that are awarded with over $33 million in these funds. However, that list includes apparent empty buildings with unpaid property taxes, while long-time reputable businesses, like Gateway Roofing, have been denied grants.
At Gateway Roofing, the issue is making a commitment to those who’ve made a commitment to St. Louis.
“We were just hoping that the city would recognize what we’ve done here for 37 years and say, ‘Hey, congratulations, bravo, and here’s something to help you even go on for the next generation,’” Gateway Roofing’s owner, 74-year-old Ray Davison, said. “One of the reasons we started the business is because we wanted to be able to make a difference and have a minority owned business that could represent our city, our community.”
Several city leaders, including Spencer, have publicized their criticism regarding the funds.
“The faith in the program, at least on my end, is completely gone,” Spencer told FOX 2 last week. “We’re two and a half years in. These funds were set-aside specifically to help businesses get through the pandemic. And here we are; the program is still knee-deep in problems and knee-deep in lack of oversight.”
Beyond SLDC and serving as an alderwoman, Spencer is running for mayor in the City of St. Louis next year.
Spencer’s opponent, Mayor Jones, issued the following statement after the announcement:
“This most recent political stunt follows a history of absence, abstention, and abdication from the alderwoman of the eighth ward. SLDC leadership will continue to do the hard work of creating equitable growth in St. Louis, even without her there to arrive late to meetings and vote ‘present’ on important issues.”
St. Louis Comptroller Darlene Green is calling on SLDC to restart the grant program from square one. Missouri’s Auditor Office is also looking into it.
The SLDC is conducting an internal review with less than $2.5 million actually awarded so far.