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Lawsuit puts sale of Cape Girardeau federal building on hold

Wednesday, August 5, 2009
Cape Girardeau County commissioners didn't know a federal judge had ordered a halt to attempts to sell the Broadway federal building when they voted to make an offer last week in a closed session, Presiding Commissioner Gerald Jones said Tuesday.

The county faced a Friday deadline to decide if it wanted to buy the building and make a 10 percent down payment. But on July 24, U.S. District Judge Colleen Kollar-Kotelly ordered that all activity related to a sale cease until Jan. 1, 2010.

Kollar-Kotelly issued the order as part of a lawsuit by New Life Evangelistic Center accusing the Department of Health and Human Services of acting illegally when it turned down the religious group's request to use the building as a homeless shelter. The lawsuit asks that the department be ordered to re-evaluate its proposal and bar the officials who did the initial review from participating in the re-evaluation.

Told of the lawsuit and order Tuesday, Jones said he was aware that New Life's founder, the Rev. Larry Rice, had promised court action when the application was denied in May. Commissioners needed to act because of the Friday deadline to make an offer, Jones said.

"We don't have any control over" Rice or the General Services Administration, Jones said Tuesday. "We have done what we are supposed to do, and we will wait and see what the outcome is."

The county has not revealed how much it offered for the building, and the GSA has not said how much it expects the county to pay. Jones said the lawsuit will at least delay the purchase, potentially driving up renovation costs.

A decision allowing the county to complete its financial package and begin planning the renovations was expected long before Jan. 1, Jones said. "If we have got to sit around and wait, that just throws us further behind," Jones said.

When Rice first announced his application to take over the building in May, he said he wanted to create a transitional housing shelter for up 125 homeless veterans and people in family groups on an annual basis. Rice also proposed an emergency shelter capable of providing room for 1,100 people during a year -- about three per day -- and a free store to provide goods to the poor. The transitional housing program would be tied with Rice's broadcast and renewable energy programs to help with job training.

Rice's application generated intense opposition led by Mayor Jay Knudtson, who enlisted providers, community groups and business interests in the fight against the shelter. U.S. Sens. Claire McCaskill and Kit Bond, as well as U.S. Rep. Jo Ann Emerson, sought to use their influence to block Rice as well.

Health and Human Services turned down the request in late May, citing a lack of need for a program of the size Rice proposed and a lack of partners to provide mental health and substance abuse help. The department also said Rice's proposal lacked a promise to begin his program within 12 months and that he lacked the financial backing to succeed.

The lawsuit by New Life challenges all those decisions, said Dan Boyle, a Florissant, Mo., attorney representing New Life. The lawsuit was filed July 13.

"We are seeking a complete review of the decision," Boyle said.

New Life could have answered any questions about its application with facts and supporting documentation, Boyle said. "They said New Life does not have an adequate budget," he said. "Everything that was mentioned as inadequate is clearly in" the application.

Kollar-Kotelly's order gave Health and Human Services until Oct. 2 to put the record of its administrative decision into the record as well as any arguments countering New Life's accusations. New Life is given until Nov. 2 to respond. If the lawsuit is still pending Jan. 1, GSA must provide notice within 30 days if the building is sold, the order states.

In a letter sent Monday to Cape Girardeau County 1st District Commissioner Paul Koeper, the GSA said it must stop negotiations with the county over the sale of the building.

Despite the lawsuit, GSA spokesman Charlie Cook said GSA remains confident the government will be able to sell the building, either to the county or another buyer. "We didn't intend to transfer the building until Jan. 1, 2010," Cook said. "At this point we don't see any delay in that schedule."

rkeller@semissourian.com

388-3642

Pertinent address:

339 Broadway, Cape Girardeau, M0


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Oh boy here we go again. Rice sure doesn't mind spending donated money to his organization to hire attorneys and tie up our courts in frivilous lawsuits. Cape Girardeau made it perfectly clear that we don't want him in our town!.

Rice will do ANYTHING to get a federal building for free so that he can make money off of it later on. And any publicity he receives is just a way for him to drum up more money from his supporters.

Oh- and on the 4th of July when he did his bio-fuel demonstrations, people asked what does alternative energy have to do with the homeless??. Well, I have the answer to that.... MONEY! He gets federal buildings for free from the government to run homeless shelters, he then receives federal grant money for providing shelter to the homeless. There are also federal grants for producing alternative energy. See- he is all about getting free money from the government!

-- Posted by adidas on Tue, Aug 4, 2009, at 4:59 PM

I think Cape City Council should offer up a group of representatives of the community to go to that court proceding and let the judge know we don't want Rice in our town and there is NOT a need in Cape with a homeless shelter in Jackson that isn't full!

-- Posted by adidas on Tue, Aug 4, 2009, at 5:06 PM

good...this will cease both parties. Just condemn it, tear it down, build a park.

-- Posted by Grandpa_Sassy on Tue, Aug 4, 2009, at 5:58 PM

Now ya'l will wish it was a YMCA !!!

By the way Frazzled, you said, "Cape Girardeau made it perfectly clear that we don't want him in our town!.

Oh yeah, When did we all vote on that? And since when can we tell folks that are law abiding citizens they can't come to Cape Girardeau?

A bit over stated don't ya think.

Tear it down plant some grass and put up a shelter or two and a some picnic tables..

Like Grandpa said!!

-- Posted by GREYWOLF on Tue, Aug 4, 2009, at 6:05 PM

Just went we thought this issue went away...here we go again.

-- Posted by Turnip on Tue, Aug 4, 2009, at 6:21 PM

we need rev rice in our community the sal army dosent help and mayor knutdson is a liar and I am glad he can't get reelected!

-- Posted by capeguy30 on Tue, Aug 4, 2009, at 8:31 PM

YMCA takes $500,000 seed money to apply.

-- Posted by longtime_cape_resident on Tue, Aug 4, 2009, at 9:32 PM

Who is grandpa sassy, where did he come from, and why can't he go back there? Same w/ greywolf. If you're that clueless about the needs of the community, keep your uninformed trap shut. Cape is desperate for a new courthouse, and has been for many years, and this is tailor-made for it. Anybody who thinks otherwise doesn't have a clue. And Rice doesn't belong in any community. He's self-interested filth acting under color of "the lord." He's a complete scumbag.

-- Posted by heye1967 on Tue, Aug 4, 2009, at 9:57 PM

I have known several people through the years that have fallen victim to Larry Rices so called "shelters" and he should not be allowed to spread his filth and theivery in Cape Girardeau much less anywhere else. People are better off on the streets.

-- Posted by happysnap on Wed, Aug 5, 2009, at 1:45 AM

heye1967,

Cape County needs this building like Cape City needs a bike race. Stop wasting our money! Spend it on a sunshine lawsuit or something!

-- Posted by Ainamolagem on Wed, Aug 5, 2009, at 2:18 AM

"YMCA takes $500,000 seed money to apply."

-- Posted by longtime_cape_resident on Tue, Aug 4, 2009, at 9:32 PM

Is that all? Why we spent double that on Commander Premier. Oh..BTW, how's that big business deal going? We get our money yet? Signed on another huge manufacture? Sell the building?

-- Posted by Ainamolagem on Wed, Aug 5, 2009, at 2:21 AM

Larry Rice what a piece of work that guy is, like I said before I wonder what is in it for old Larry he is not doing this out of the goodness of his heart.

-- Posted by swampeastmissouri on Wed, Aug 5, 2009, at 5:22 AM

Great another empty building on Broadway. It will fit right in.

-- Posted by Airborne 95B on Wed, Aug 5, 2009, at 7:13 AM

Heye said, "If you're that clueless about the needs of the community, keep your uninformed trap shut.

Why? because I don't agree with you! I do not have to keep anything shut and I will continue to bash the idea of spending more money on a cash cow!

As for being informed, I am very well informed on City issues as I am a member of one of Capes boards and I pay attention! Perhaps you are a County employee and think you need more space.

That may be true but I prefer something more community friendly in this building rather than another court house and office space. Thats my opinion and I have every right to it.

-- Posted by GREYWOLF on Wed, Aug 5, 2009, at 8:40 AM

I think we should start a petition against the whole idea of Larry Rice and the shelter coming to Cape.

-- Posted by jacksongirl2 on Wed, Aug 5, 2009, at 8:55 AM

When is Rice going to get the message that we DON'T WANT HIM HERE?????

-- Posted by Hookie98 on Wed, Aug 5, 2009, at 11:53 AM

Apparently the crooked doings of Commissioner Jones and gang have preceded them. Even this federal judge wants nothing to do with an offer on the property from the Cape County Commission. Serves the commission right, for holding "closed sessions" when it comes to how they choose to spend the public money. For shame, Jonsey...Stop keeping secrets and deal with us straight.

-- Posted by jacksonjazzman on Wed, Aug 5, 2009, at 12:20 PM

Didn't realize that Rice might be getting grant money connected to his shelters, frazzled, but felt positive that there was more reason for his determination to have 'our' (Yep, we paid for them, right?) old federal buildings than just housing the homeless.

You have the same thought I did ... Rice spending money on attorneys that could be used for better purposes ... like improving the shelters he already owns. Does it seem rather odd that people in this area didn't know about the lawsuit until now?

Um ... Wolf ... Do you honestly believe that a homeless shelter in that area of Cape would be 'community friendly?'

Still think the feds should not give 'our' buildings away to anyone ... and apparently disregarding all public input when they make their decisions.

-- Posted by gurusmom on Wed, Aug 5, 2009, at 1:06 PM

Greywolf, you say you on a board in Cape, then how did you miss the fact that a lot of the more prominant boards and people of Cape Girardeau wrote letters to protest Rice and the homeless shelter? The city of Cape put a whole package of these protest letters together which helped Rice be defeated the first time. I would like to know what board youare supposedly on. Don't need a vote to see that people of Cape do not want that shelter here. I saw the names of people who wrote those protest letters, including letters from the biggest curches in Cape, and I do believe they speak for their people.

-- Posted by adidas on Wed, Aug 5, 2009, at 4:35 PM

Well, Rice has been saying he needs a "miracle" in the form of donations on his TV station day-in and day-out as he has bills that are due. Maybe he should focus on actually providing help instead of asking for handouts to line his pockets and the pockets of his attorneys.

-- Posted by stlresident on Wed, Aug 5, 2009, at 4:49 PM

Frazzled, I am not sure what part of my comments you don't understand! I never said I wanted a homeless shelter in Cape!!Please Show me where I said that. I was simply pointing out that anyone can come to Cape anytime as long as they obey the law. I am not in favor of a homeless shelter here in the City however, That will not be for me to decide nor will it be yours! Its obvious there are several here who are very prejudice about folks who are down on their luck and it seems you may be one of them. If Rice wins his lawsuit we may all have to live with it! Frankly I would like to see something more community friendly rather than more office space or a homeless shelter thats why I have endorsed a YMCA. By the way, 500k is a drop in the bucket compared to other City waste! I repeat, Iam not in favor of the County buying this property nor Am I in favor of Mr. Rice turning it into a shelter! Hope that clears things up for ya!

-- Posted by GREYWOLF on Wed, Aug 5, 2009, at 6:11 PM

YMCA's are not only great and inexpensive fitness centers. They are wonderful assets to the community. Good places to get kids involved and off the streets. Well worth $500,000.

-- Posted by Ainamolagem on Wed, Aug 5, 2009, at 7:18 PM

Wolf,

Btw...I looked into this myself a couple of years ago. A committee would have to be formed and the Sikeston YMCA at that time offered to help anyway they could. Get it going man! I'll be the first to sign up to help.

-- Posted by Ainamolagem on Wed, Aug 5, 2009, at 7:21 PM

Wolf- I am not prejudice against the homeless. I think Teen Challenge is a great example of a system that works and support them every chance I get. There is a homeless shelter in Jackson that does a great job. I don't see additional need in Cape and many churches in Cape agree with me (that is why they wrote letters requesting that Rice's application be denied.)

What I am against is Rice. Rice has a history proven to be filled with questionability. Rice's shelters have violence, rape, and etc. so often that police are constantly called to Rice's shelters, and his shelters make headlines for all those reasons. And from what I understand- the people Rice "helps" are still homeless 10 years later, so he really isn't helping them.

I don't like Rice because I see him as a fraud. He uses these homeless people to get funds, governement grants and donations. For him to be a non-for-profit he sure has racked up millions in assets. And a lot of those assets he got free from the government.

Read this and then you decide:

http://www.larryricetruth.com/

-- Posted by adidas on Wed, Aug 5, 2009, at 8:23 PM

Frazzled,

No I won't read anything about Rice! I could care less about him or his shelters. I am sure they have done some good with some folks. You can generalize all you want but I would think that Rice's organization isn't completely without merrit. That being said, I still say a YMCA would be a much better fit here in Cape than Rice's or the Counties proposals. Either way this building will be vacant for at least another year or two.

-- Posted by GREYWOLF on Thu, Aug 6, 2009, at 11:36 AM

I guess Larry's got 40-50 million dollars again...

Amazing how just last year his accountant said he had only 5.35 million, yet now he's somehow magically got $40-50 million again.

July 2009 Court Document:

Section 9:

The approximate value of New Life's real estate assets and media holdings is $40-$50 million dollars.

December 31st 2007 Financial Report

QUESTION:

I've heard that Larry Rice and/or NLEC has $40-$50 million in assets. Is this true?

ANSWER:

No. As reported in NLEC's 2007 independent audit, the ministry now has just under $5.35 million in total assets as of December 31,2007.

http://martello.org/blog/2009/08/somethi...

-- Posted by stlresident on Thu, Aug 6, 2009, at 11:55 AM

You want to have a BIG city you are going to have the BIG city problems. I don't know why anyone is surprised. The drugs, homeless, etc. have to be dealt with in an updated manner. Maybe this Larry Rice isn't the answer, but you better update your ideas because the city problems going to get worse. I get the idea the city fathers think Cape is going to be the Beverly HIlls of Missouri. Wrong. More people I know are moving OUT of Cape than IN, me included.

-- Posted by ArcticFox on Fri, Aug 7, 2009, at 2:56 PM


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