ST. LOUIS, Missouri — One of the most influential members of the Board of Aldermen abruptly resigned from a top post at the city's nonprofit development arm on Monday, raising new complaints about internal dysfunction, a lack of transparency and oversight, and potential for conflicts of interest in how the city doles out tens of millions of dollars in public funds.
Alderwoman Cara Spencer, who is challenging Mayor Tishaura Jones in the upcoming spring election, sent her resignation letter to the mayor, Board of Aldermen President Megan Green, and her colleagues at city hall and the St. Louis Development Corporation board.
"Aldermanic President Green appointed me to Chair the Budget and Public Employees Committee of the Board of Aldermen, which includes serving as an ex officio member of the SLDC Board of Directors," Spencer wrote. "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."
Several business owners in North St. Louis have recently rallied behind Spencer's campaign after lodging vocal complaints with the current administration's rollout of the North St. Louis Small Business and Non-Profit Grant Program. Some of them were denied access to the Mayor's Business Luncheon after purchasing tickets to attend earlier this month.
After news reports revealed politically connected families were listed among the winners of SLDC grant funds, U.S. Senator Eric Schmitt (R-Missouri) called on the U.S. Treasury to launch an investigation, and Comptroller Darlene Green (D-St. Louis) urged SLDC to undertake a "complete do-over" of the $37 million grant program.
SLDC Chair Neal Richardson has pledged a pause in distributing the funds while third party consultants and SLDC staff conduct site visits to further vet the applicants to make sure they qualify under the rules.
"It is clear to me that the Board of Directors cannot provide proper oversight of the SDLC under the current board," Spencer wrote in her resignation letter.
The public breakup foreshadows a negative campaign full of intense scrutiny over the incumbent mayor's pledge to revive depressed neighborhoods in North City.
“This most recent political stunt follows a history of absence, abstention, and abdication from the Alderwoman from the 8th Ward,” Jones shot back. “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.”
The mayor's father, former Comptroller Virvus Jones, has criticized Spencer for voting present on a proposal to expand homeless shelters in the city.
Spencer took issue with Jones' appointment of Richardson to both roles as the President and CEO and Chairman of the Board, though previous mayors have made similar appointments.
"The appointment of the same person in both key roles significantly hinders effective oversight and creates the possibility of conflicts of interest," Spencer argued. "In the combined roles of Chair and President & CEO, Mr. Richardson controls both the agenda for board meetings and, more importantly, the flow of information to board members. Furthermore, this dual role prevents concerns from being properly addressed by the Board of Directors."
A spokesman for Jones' office said the decision to put Richardson in both roles is consistent with how things have always been done.
"This is not a new or unique practice under Mayor Jones," spokesman Conner Kerrigan said.
Spencer also took issue with the City Counselor representing the nonprofit corporation.
"Both the City and SLDC are represented by the City Counselor, appointed by the Mayor to represent the City and its officials and agencies," she wrote. "This presents inherent conflicts of interest, particularly in contracts and negotiations between SLDC and other organizations and is especially problematic when the actions of SLDC as they pertain to the best of the City are in question."
"These are barriers to transparency and achieving the purposes for which SLDC was formed," Spencer said. "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."
Her departure leaves a vacancy on the Board at SLDC, and raises questions about how the Board of Aldermen wishes for its views to be represented on the panel.
The current Board of Aldermen's rules, which are agreed upon internally, give the power to appoint committee chair titles. In selecting Spencer as chair of the city's Budget and Public Employees Committee, her colleagues gave her the nod to fill in the seat at SLDC.
"It is unprecedented for a Board appointee to abdicate their responsibility," Board of Aldermen President Megan Green said. "Our Board rules leave the decisions regarding chairmanships up to the Leadership Committee. I will be touching base with them on a path forward as the Board of Aldermen deserves to have full representation on the SLDC Board."
