SPicy thanks a loyal reader that also serves on the City of Saint Paul Neighborhood STAR
Board for forwarding a July 23, 2007 memo and a from Mr. Vic Rosenthal of Jewish Community Action to the Saint Paul STAR board.

The memo asks the STAR Board to support the application to fund $507,000 (plus about $165,000 in other HRA Loans) for the Griffin Street Townhomes.  SPicy told readers about this boondoggle awhile ago when the HRA supported a development agreement with a STAR subsidy totaling about $168,000 per unit of a 4 unit row-town style building.

It seems that in the spirit of “social justice” Jewish Community Action urges the
STAR-board to fund this project with almost  $675,000.  Using SPicy’s rudimentary math skills,
SPicy manages to add up a total subsidy, through the Saint Paul HRA and Neighborhood
STAR to around $170,000 per unit!!

Jewish Community Action cites this opportunity as one “demonstrate its commitment to equal
basis…” by “…providing more opportunities for local developers or developers of color.” SPicy thinks
this is a shame.  Has Jewish Community Action really positioned their organization to support 1 developer with over $675 Thousand of subsidy for 4 homes? Would not $100,000 into 6 homes: or $50,000 into 15 homes would go much farther to provide additional opportunities for low-income housing?  What have they chosen to advocate for instead, $675,000 in subsidy for four units, providing a grand total of NO affordable units.

SPicy thinks that local and minority owned contractors are much better business people than this. Maybe the project just does not work. Jewish Community Action is trying to position this issue as one that the city needs to help a disadvantaged contractor needs help to make this project work.  Sorry guys, this is not help, it’s a giveaway, and in the long term will harm the reputation of all local and disadvantaged
developers.  SPicy usually tries to display a sense of humor in posts, however the long term effects of this type of waste is anything but funny.

SPicy’s challenge to Mr. Rosenthal, point to one non-local or non-minority developer that has received a $170,000 per residential unit subsidy from the City of Saint Paul, and SPicy’s on board. Just what is Jewish Community Action trying to balance?  If you can’t respond, the Griffin project deserves to be stopped in its place before
even more money is lost, it needs to be stopped on the lack of financial merit alone. 

And finally a little message to our "leaders" that were present at a recent STAR Board meeting, how about a little more tact before berating a staff member for being honest.  You never know who is watching.  That was uncalled for, You know who you are, and should apologize publicly for your behavior, both to the staff and STAR Board that were forced to witness your childish tactics.