Group demands state audit of St. Louis, worried about pandemic cash

ST. LOUIS — A local citizens' group, concerned about wasteful spending at City Hall, filed paperwork this week to trigger a state audit.

Organizer Andrew Polacek said he and many of the thousands who signed a petition to the state auditor are worried that the city is misusing $500 million in federal pandemic aid, especially in the wake of reports on grants being awarded to businesses with ties to city leaders and addresses that lead to empty buildings .

"There is a desire for transparency," said Polacek, a south city resident, "and a feeling we aren't getting it."

He said there are also concerns about the water department, which raised rates on customers by more than 40% last year after a decade without an increase.

If the petition is successful, it would mark the second time in just seven years that residents have spurred the state to audit the city's books. The first audit, which began in 2018, is only now wrapping up, with a review of the Circuit Attorney's Office. The new effort could keep the city under the microscope for several more years to come.

It would also mark the latest public reaction to concerns about a high-profile, $37 million grant program for north St. Louis businesses and nonprofits. The program is supposed to revive battered main streets and poor neighborhoods in the long-suffering area.

But in recent months, Post-Dispatch reporting has raised questions about the way the city plans to dole out the money. Some of the organizations in line for money don't have offices in north city. Others listed headquarters in empty buildings.

And three awards, worth nearly $1.3 million, are intended for entities with ties to the family of Alderwoman Shameem Clark Hubbard .

The reports have prompted condemnations from U.S. Sen. Eric Schmitt and St. Louis Comptroller Darlene Green, the latter of whom called for an immediate "do-over" of the program last month.

And Polacek said they upset a number of north city residents who signed his petition.

"This money needs to be used properly," he said.

Mayor Tishaura O. Jones and other top officials have defended the grant program as well-intended and said that problems will be fixed.

The St. Louis Development Corporation, tasked with administering the grant program, has tried to alleviate concerns by saying it is still reviewing most applications, and that it hasn't yet paid out most of the money.

And on Thursday, Jones spokesperson Conner Kerrigan said the administration would welcome an audit.

"In the meantime, residents are encouraged to explore both arpa.stlouis-mo.gov and the North St. Louis Small Business & Non-Profit Grant Program website , which both contain transparency portals to ensure oversight into the use of these funds," Kerrigan said in a statement.

Polacek said his group gathered over 7,100 signatures on its petition before filing it with the state Tuesday, a few hundred more than the 6,600 required to trigger an audit.

After a 10-day waiting period when people can file to rescind their signatures, the city Election Board will review and verify that the signatures are from genuine registered voters in the city.

If the petition is deemed valid, the auditor's office will put the city on its list for future audits, to be handled when staff are available.

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St. Louis City Hall reporter