Businesses say Kansas City ignored federal laws on minorities

KANSAS CITY, Mo. -- Three black contractors have filed a formal complaint with the federal government claiming the city has ignored federal laws requiring minority participation in some redevelopment projects.

The businessmen filed a grievance with the Department of Housing and Urban Development against the city and redevelopment contractors, alleging they "pre-empted economic opportunities for low- and very low-income people, which causes perverse economic racism."

HUD passes grants and loans through City Hall for qualified redevelopment projects.

"It's a total neglect of the law," said Anthony Arnold, president of construction contractor Arnold & Associates. "Our first concern is training and employment that should have been afforded central city residents."

Arnold filed a complaint with HUD last month and received a letter from HUD saying a review was under way. Arnold recently amended his complaint to include Kansas City, Kan., he said.

'We want to work'

Joining Arnold in the complaint are construction contractor Sam Dowdy and building materials supplier Jim Watts of Kansas City.

"We want to work; it's just that simple," Dowdy said. "We want to work in our community."

The businessmen said city officials and employers had overlooked HUD hiring guidelines since 1975 on projects such as residential and retail developments at 18th and Vine streets in Kansas City.

Watts said the central city would take more pride in redevelopment projects if residents helped do the work.

Stan Barrett, director of the city's Housing and Community Development Department, said Arnold had a "legitimate gripe" about a lack of minority involvement in some projects.

Barrett said developers commonly contend that there are not enough qualified minority contractors or workers to meet HUD requirements.

The requirements say at least 10 percent of money spent on projects should go to companies in the surrounding area, as should 30 percent of new construction jobs. Black residents make up a large majority of people living in redevelopment areas such as 18th and Vine.

Since last year, the city has compiled a list of certified companies owned by blacks that meet HUD requirements and are available for hire, Barrett said. The city hired the Full Employment Council to certify companies and assist in training.

Barrett said bids for HUD-funded projects exceeding $200,000 must now include a specific plan for hiring minority contractors and residents. No HUD loans will be approved without a plan, he said.

Arnold said he was pleased to learn that the city has a list of contractors and will be more insistent that minorities are hired. But he said that doesn't compensate for years of lax enforcement or deter the formal complaint.

A Kansas City, Kan., official said she was unaware of the complaint but thought the city was complying with HUD regulations.