ST. PETERSBURG, Fla. (WFLA) – The St. Petersburg Housing Authority is aglow over the new deal its lawyers just worked out to re-acquire the Jordan Park Housing Development. Private developers have owned and operated that 237-unit public housing project since 2001.
“I want to thank you publicly for negotiating that,” Housing Authority CEO Tony Love told real estate attorney Alexandra “Sandy” MacLennan at the Housing Authority meeting Thursday. “We are moving to accept the property back without having to pay the Richmond Group (developers) anything.”
It sure didn’t start out that way, and that still doesn’t tell the whole story of what taxpayers are paying for in that multi-million dollar real estate transaction to reassume control of the sprawling housing project in the heart of Midtown.
Developers didn’t drop their demand for a $400,000 cash payment until a You Paid For It investigation detailed that deal and St. Pete City Council Member Steve Kornell started asking for an audit.
That cash demand was in addition to the Housing Authority and City of St. Petersburg forgiving $18 million in taxpayer loans and grants. The Authority is also planning to pour as much as $7 million taxpayer dollars into fixing up Jordan Park. Tenants have made numerous complaints about rundown appliances, rat infestations, water leaks and mold in the 15-year-old public housing project.
Developers have been collecting rent and rent subsidies for years and were supposed to own and operate the project until 2050 under the original agreement worked out with the Authority, City and HUD.
MacLennan insisted Thursday she has no idea why the $400,000 payment demand by developers suddenly fell off the bargaining table last week, even after Love credited her for making that happen.
The revised terms follow critical news reports and pressure at the city hall from Kornell. Whatever the reason it appeared to touch a nerve for MacLennan Thursday shortly after Love praised her for working out the deal.
“Do you think I know everything,” MacLennan told 8 On Your Side. “I think you ought to ask Richmond.”
We’ve tried to contact the Richmond Group and its development partner Landex Corportion repeatedly over the past several weeks without any response. The two company executives the Housing Authority told us to call, Brian Meyers at the Richmond Group and Peter Siegel at Landex Corporation, will not return calls regarding the Jordan Park sale.
Meanwhile Love insists he has no idea why the Jordan Park deal suddenly changed last week, only that it got better for taxpayers. “Whatever motivated them to do the right thing I think that should be a question Richmond should address,” Love said.
“Whatever motivated them to do the right thing I think that should be a question Richmond should address,” Love said.
Dr. Basha Jordan’s grandfather donated the acreage back in the 1930’s that became the original Jordan Park.
Thursday, Jordan was sworn in as the Housing Authority Board’s newest appointee and says he’s glad the Authority is about to resume ownership and control of Jordan Park.
“It sounds to me like there’s a fair exchange here. Instead of the $400,000 that would have been paid is going back into Jordan Park so it sounds like a good deal especially for the residents.”
Developers said the would forego the payment if the Authority spent the money fixing up Jordan Park as part of its anticipated $7 million taxpayer-funded facelift.
The real estate closing was supposed to take place Friday but has not been put off at least until November so that Authority attorneys can resolve St. Petersburg Council member Steve Kornell’s financial concerns and code violation questions raised by Council Member Karl Nurse.
Kornell doesn’t want the city to forgive its $3.1 million loan to developers until he’s comfortable the deal is a good one for taxpayers. The St. Petersburg City Housing Committee will discuss a possible audit and other loose ends involving the city oversight of Jordan Park code violations at its next meeting October 27.
More in our You Paid For It report tonight at 6 on News Channel 8.
