Nearly a year ago, Mayor Cara Spencer asked retired St. Louis Development Corp. (SLDC) Director Otis Williams to return as interim leader during a period of significant upheaval.
I’m going to spend more time with family, travel and do what I call the ‘honey-dos’ … garden and go to a few sporting events.
At the time, the city faced a potential lawsuit from developer Paul McKee over its move to seize his land through eminent domain. During her campaign, Spencer, backed by developers, criticized SLDC’s operations under her predecessor, Tishaura Jones. Spencer targeted Jones’ Northside “economic justice” plan, which relied on federal American Rescue Plan Act funds.
Tasked with restructuring or eliminating Jones-era initiatives, Williams oversaw changes to the Northside business grant program and economic mobility projects like Neighborhood Transformation and Monarch on MLK.
After 10 months, Williams is stepping aside for new SLDC Director and CEO Stephen Westbrooks. In a one-on-one interview with The St. Louis American a week before he left the agency, Williams discussed his challenges and accomplishments.
St. Louis American: What have you accomplished during your time as interim director?
Williams: I think we’ve continued to operate and, right now, we’re trying to secure more deals and projects for the city. One of the key things, I’m hopeful, is that I’ve had an impact on changing the overall climate of how investors, developers and financiers see the city. We’re not there yet, but we’re having fruitful discussions about some of their objections and concerns and we’re trying to address those issues.
American: How would you describe that “climate” under former Mayor Jones?
Williams: I can’t, because I wasn’t there, but what was reported was an uncertainty about what the deal was going to be throughout the process. You could possibly start with something and end up with another deal at the end … and I think there was a discussion — perceived or real — that we really needed to be more welcoming to development and not look at developers as deep-pocketed. They need to pay their fair share, but they also need to get a return on their investment.
American: Last year, SLDC initiated eminent domain on Paul McKee’s properties. How is that process going?
Williams: The eminent domain process has begun, and we actually have a court date coming up in April, so we’ll start that soon.
American: McKee’s attorneys say SLDC does not have standing to do that. Is that correct?
Williams: Yes, they don’t feel we have the standing to do it … If we’re fortunate to win the case or get permission to proceed, it will all come down to the value of the land, which will be determined by a panel chosen by the court.
American: You’ve said McKee’s valuation of the land was unrealistic. Why?
Williams: We were trying to basically just negotiate. Both sides went through an appraisal process and we both provided that data. When we looked at their numbers, we were so far apart, there was no way … even if we compromised and met in the middle, it would be way higher than we thought the value would be. So, at this point, we just need to go to court and allow that system to determine it.
American: What’s your view of former Mayor Jones’ decision to use ARPA funds to invest in North St. Louis?
Williams: It always comes down to resources and money. So, anytime you can provide the resources and financial assistance, it works. I applaud the idea. Using it to foster redevelopment, or to seed it, was a good idea.
American: When we last spoke, you said the economic justice part of that plan would still go forward. Has it?
Williams: It has and we continue to move ahead with it.
American: The Black business grant program was suspended earlier this year. How many grants were awarded, and how much funding remains?
Williams: We have fully allocated the entire thing. The candidates that had been identified previously were still candidates. We just vetted all of them and made sure we didn’t have any conflicts of interest along the way.
American: Has the city received approval to redirect ARPA funds to things like tornado relief and the water system?
Williams: To be fair, what caused us to spend money in certain places was because the aldermen did ordinances that the mayor approved. So, we had to abide by that legislation. So, in addition to following the federal guidelines, that’s what we’re doing.
American: Was there a formal reallocation process?
Williams: I think the ARPA guidelines provide latitude to spend those dollars, so as long as you abide by those guidelines and also make sure you are in accordance with those ordinances as they were devised and approved … I think the attorneys are looking at that to make sure we spend the money accordingly. I can’t tell you we are 100% certain … But I would defer to the city attorney as to whether we are complying or not.
American: Has the Monarch at MLK workforce development project been completed? If not, how will the city recoup its investment?
Williams: We’ve looked at ways we can tackle that project with the funds we have. The original vision was a $30 to $40 million-dollar project, and we didn’t have money for that kind of vision. So, we have different usages for what’s going to go there, but we’re still focusing on it.
American: So it has not been completed?
Williams: No, but we’re working with a couple of users and moving forward. It’s just not going to be that grand piece that was originally envisioned. We’re going to do what we can with the money available. Also, after the tornado, we immediately began using it as a distribution point … now we’re trying to get a more permanent solution.
American: What’s next for you?
Williams: I’m going to spend more time with family, travel and do what I call the ‘honey-dos’ … garden and go to a few sporting events.
Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.