Henderson: N. Tulsa grocery loan is racist

[cannon_fodder]

"I am a councilor and I do have a right and a privilege to speak here today and I'm going to take that right and I guess I'm gonna make it clear. This streaks of racism."

Henderson is accusing the actions of several councilors to be racist.

"Why would you tell us that 'No, we want you to take that profit and pay the loan back? That does not make sense," Henderson said.

http://www.ktul.com/news/stories/0809/649066.html


The city council approved the use of Federal grant money to be used for a loan to build a grocery store in North Tulsa.  The money will be allocated to the Greenwood Chamber of Commerce and then to the store/company.  If that venture is profitable and the loan/interest fully repaid, Greenwood is expected to pay back the loan so the grant money can be used to fund another project.  Therefor, it's racist.

What am I missing?  Are these "loans" never repaid when made to predominantly white areas for urban renewal?  If not, they should be.  Such provisions should be the status quo.  Was there some discussion that we should make sure to get our money back before the African Americans squander it, or some other racist discussion in that regard?   I must be missing something.

What I'm not missing is that North Tulsa is getting the loan to a large extent because it is a majority black they black area.  If the areas was predominantly black they wouldn't have their own chamber of commerce and wouldn't get the loan in the first place.  Whenever the problems of North Tulsa area brought up it is almost always pointed out that these are underprivileged minorities, which in this context is a euphemism for black.  So asking for a loan to be repaid if possible is racist, then isn't making a loan based on the predominant skin color of an area at least as racist?  Or is it a one way street for Councilor Henderson?   

Both accusations are ridiculous.  The loan is being made to put in a grocery store in a part of Tulsa that lacks that amenity and either the profitability, community wherewithal, or otherwise the ability to have one put in without such a grant.  The loan is to be repaid if possible so the council can allocate money to improve other or the same area of the city as need may dictate.  How is either racist?

I think a grocery store in North Tulsa is a worthy cause for grant money.  I think repaying a "loan" if the program is successfully administered should be expected.  I would hope that successful administration of the program would bode well for future allocations for the Greenwood Chamber.     And I know that crying "racist" is a tactic that garners little sympathy and rarely wins an argument.

[Conan71]

There was a better 'splaination of it in the TW yesterday.  There are other block grant applications which have not had the stipulation to be re-paid. 

"But several years ago, the council approved CDBG funds to be used to pay a similar loan for Community Action Project of Tulsa County's early childhood facilities with no payback requirement. 

That loan was much larger, but because the city didn't go through the proper public notice process, it was never granted and CDBG funds were never awarded."

The crux of the issue is that the councilors want the CDBG to be re-paid so they can use that money to loan to other community projects.  The Greenwood CoC wants to retain control of that money so they can make sure any profits would be re-invested in north Tulsa, which makes sense to me.  The council essentially is wanting to have say over where future funds might be allocated.  I can see in a way how it looks like the City Council doesn't think the Greenwood CoC can manage the funds for re-investment.  However, charging that this action is racist is beyond ridiculous.  I'm really weary of the race card.

http://www.tulsaworld.com/news/article.aspx?subjectid=334&articleid=20090812_11_A1_Ctonio763218&archive=yes

Sounds like Hoss' and my opinion of the D-5 Councilor is more and more accurate, vote Chris Trail:

http://www.tulsaworld.com/news/article.aspx?subjectid=298&articleid=20090812_298_0_Ctonio314095&archive=yes

[rwarn17588]

However, charging that this action is racist is beyond ridiculous. 

Of course it's ridiculous. It came from Jack Henderson's mouth. That's all you need to know.

This is the same moron who was concerned about the possibility of marijuana being grown in community gardens. 

[Conan71]

This is the same moron who was concerned about the possibility of marijuana being grown in community gardens. 

As if that's a bad thing or something. 

[Hoss]

There was a better 'splaination of it in the TW yesterday.  There are other block grant applications which have not had the stipulation to be re-paid. 

"But several years ago, the council approved CDBG funds to be used to pay a similar loan for Community Action Project of Tulsa County's early childhood facilities with no payback requirement. 

That loan was much larger, but because the city didn't go through the proper public notice process, it was never granted and CDBG funds were never awarded."

The crux of the issue is that the councilors want the CDBG to be re-paid so they can use that money to loan to other community projects.  The Greenwood CoC wants to retain control of that money so they can make sure any profits would be re-invested in north Tulsa, which makes sense to me.  The council essentially is wanting to have say over where future funds might be allocated.  I can see in a way how it looks like the City Council doesn't think the Greenwood CoC can manage the funds for re-investment.  However, charging that this action is racist is beyond ridiculous.  I'm really weary of the race card.

http://www.tulsaworld.com/news/article.aspx?subjectid=334&articleid=20090812_11_A1_Ctonio763218&archive=yes

Sounds like Hoss' and my opinion of the D-5 Councilor is more and more accurate, vote Chris Trail:

http://www.tulsaworld.com/news/article.aspx?subjectid=298&articleid=20090812_298_0_Ctonio314095&archive=yes

Yep...I don't like Martinson very much.  The first time I ran into him was at the Bank of Kai...err BOK Center grand opening and he couldn't have been more dooshy.  He was worse the second time; he almost acted like it was a burden to be D5 councilor.  If you don't like it, get out.

Conan, do you live in D5?  If you live in Lortondale I'm guessing you're in D4 but right on the boundary.

[Conan71]

Yep...I don't like Martinson very much.  The first time I ran into him was at the Bank of Kai...err BOK Center grand opening and he couldn't have been more dooshy.  He was worse the second time; he almost acted like it was a burden to be D5 councilor.  If you don't like it, get out.

Conan, do you live in D5?  If you live in Lortondale I'm guessing you're in D4 but right on the boundary.

D-4.  Very close on the boundary.  In fact I was not sure until I ran into Maria Barnes at the home tour 6 or so weeks back.   I've still not make a decision on whom I'm going to vote for yet.  I can tell you who I wouldn't vote for if I lived in D-5.

[DowntownNow]

I'm really hoping that Henderson's words were just a poor choice and he issues an apology tonight to the other Councilors for calling them racist. 

As for Martinson, I applaud his control of the meeting as Chairman and applaud his stand on this issue.  It is ludicrous what Greenwood and Reuben Gant are suggesting.

Here's a bit of info I dug up that makes me dig into this position all the more.

Just to put this in perspective since Greenwood is saying they never expected to have to repay the loan...

Council CDBG Fund Allocation Committee Meeting on 07/30/2009 meeting minutes:

"Ms. Pharis explained that the Greenwood Chamber's 'Shoppes on Peoria' proposal is to initiate a Section 108 LOAN. The amount tentatively allocated, if adopted, would be the first of ten annual payments on that LOAN."

So...Greenwood knew before this last Tuesday's meeting that their proposal was to request loan proceeds from a City backed Section 108 Loan...wasnt news to them that it was a LOAN.

According to the HUD website, Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects. This makes it one of the most potent and important public investment tools that HUD offers to local governments. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods. Such public investment is often needed to inspire private economic activity, providing the initial resources or simply the confidence that private firms and individuals may need to invest in distressed areas. Section 108 loans are not risk-free, however; local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan amount as security for the loan.

The key here for me is the last sentence in that description...that it is the local government (not the Greenwood Chamber's) risk to bear and must be covered by current and future CDBG allocation in the event of default.

So the Greenwood Chamber and Mr. Gant would have us all believe that there is no risk involved and the City should not have a worry at all in handing over these funds without repayment...sorry, but in today's economic climate, I can see why the Council chose this path, which honestly seems to be the only one they could.

For this to get to the point of Henderson leveling a racism charge is assinine.  This proposal is the only Section 108 allocation from this years CDBG funds, the CAP program Gant referred to is covered under the standard CDBG allocation, not the Section 108 Loan program.

[Conan71]

For this to get to the point of Henderson leveling a racism charge is assinine.  This proposal is the only Section 108 allocation from this years CDBG funds, the CAP program Gant referred to is covered under the standard CDBG allocation, not the Section 108 Loan program.

In other words, they are damn lucky to have the CDBG available and he'd better get his fangs out of the hand that's feeding his district on this.

[shadows]

The posters on this forum is a testimony to the accusation of racialism put forth by their councilor.  The city is divided by race equal or more so as existed in the war of 1860.  We continue to treat the black race like the were ignorant little children.  The city destroyed the emerging north city in 1921 and has made every effort to sow the ground with salt.  As I understand the money was a grant of which the city retained a high percentage to administrate it in improving the north twin city.  The question now is that they continue their destruction by building a ball park in the area and if any money is created by the rebuilding of the north city they want to control it.  There seem to be few who know what a grant is in relation to a loan.  In the north twin city there are intelligent persons who can decide how to improve their part of the city with any income derived by such grant.

Is the $4,500 grant for turning the clunkers in on a new car only a loan to be paid back? 

[Red Arrow]

Is the $4,500 grant for turning the clunkers in on a new car only a loan to be paid back? 

No, just wealth re-distribution.

[RecycleMichael]

Grocery stores are racist. How else do you explain that green olives are in a jar, but they put black olives in a can?

[Wilbur]

Henderson tends to throw the 'racist' word around so much it has lost its intended use, and, has just inflamed the community once again.  You get tagged by Henderson as racist and you really have no response.

But...  I've never heard of CDBG funds being repaid.  I'd be curious to know if the Feds realize that money was going to a particular project with the requirement they be repaid.  I doubt it.  Nor do I believe they would approve the use of those funds in that fashion.

[sgrizzle]

But...  I've never heard of CDBG funds being repaid. 

As explained by GT Bynum this morning, MOST CDBG funds aren't used on "for-profit" ventures.

[Conan71]

Henderson tends to throw the 'racist' word around so much it has lost its intended use, and, has just inflamed the community once again.  You get tagged by Henderson as racist and you really have no response.

Didn't he used to be the local NAACP ball-buster?  No surprise.

[Townsend]

Federal Government Taking Back $700,000 In Grants From City Of Tulsa

http://www.newson6.com/story/20619085/federal-government-taking-back-700000-in-grants-from-city-of-tulsa

TULSA, Oklahoma - The federal government is taking back $700,000 in grant money from the City of Tulsa, blaming poor management, and is telling the city to change how it works.

It's money supplied by federal taxes, spent on local projects selected by the city.

The feds say Tulsa selected poorly, giving money to groups that couldn't do what they promised.

Tulsa's leaders are trying to make sure it doesn't keep happening.

The Shoppes on Peoria looks like any other venture of private enterprise, but the fact is this shopping center was built with your tax money.

And $705,000 of the cost - that was from a federal grant - will now instead come from city sales tax money that would otherwise be spent on basic government services.

The City Council hashed out how that happened in a meeting where the grants department blamed the people who got the money, while the city Council blamed poor oversight by the city grants department.

"I'm wondering why, my constituents are wondering why," said City Councilor Jeannie Cue.

The feds blame the city for giving money to groups that can't finish the job. In their words, the city "poorly managed" the grants and said Tulsa "has a pattern" of selecting unqualified recipients.

"Some of these paybacks we're looking at go back years and years," said City Manager Jim Twombly.

The feds have taken back $7 million from Tulsa over the last 40 years of the grants.

During that time, Oklahoma City hasn't had to pay back a dime because of uncompleted projects.

"And if they can't complete them, due to any reason, then we need to know that so that money can be re-allotted. They can always reapply," Cue said.

The Shoppes project was built and the other projects will be, too, because the city plans to make up the shortage with money from other departments.

"In other cases, what we do is take general fund money and put it back into the CDBG or home program, that's how we pay it back," Twombly said.

The changes demanded by the feds went through council for the first time Thursday night.

The new processes have to be approved by the end of the month to meet a deadline or risk losing more money.