Judge gives Rice another shot at Broadway federal building

New Life Evangelistic Center won almost everything it asked for in a lawsuit over the Broadway federal building in Cape Girardeau.

In a ruling issued Tuesday in Washington, D.C., U.S. District Judge Colleen Kollar-Kotelly ordered the Department of Health and Human Services to vacate its decision denying New Life the building for use as a homeless shelter and re-evaluate the ministry's application.

In the meantime, Kollar-Kotelly ruled, the property "may not be made available for any other purpose until the application has been resolved." That part of the order puts on indefinite hold the hopes of Cape Girardeau County officials to buy the building for courthouse and service offices.

New Life did not seek, nor did Kollar-Kotelly order, an outright award of the federal building to the ministry.

New Life, the ministry controlled by controversial preacher the Rev. Larry Rice, applied in May to use the federal building at 339 Broadway for an emergency shelter, transitional housing and a free store. The department rejected the application in late May, and Rice filed the lawsuit in July.

In a 22-page memorandum opinion, Kollar-Kotelly wrote that she found three errors in the department's work. The department shouldn't have faulted New Life for not explaining how it would deliver primary health care services it didn't propose to offer, she wrote. The department also failed to address contradictory evidence of the need for homeless services when it decided that the building, at 48,000 square feet, was too large for the need. And the department mistakenly decided that New Life did not have the funds needed to prepare the building for use.

While New Life alleged political influence was a factor in the initial denial, Kollar-Kotelly avoided the issue of political influence in her decision.

"Although New Life has raised a plethora of additional challenges to HHS' decision, the court finds it unnecessary to address many of New Life's remaining arguments in light of the current procedural posture of this case," she wrote.

New Life is pursuing the legal action because there is a gap in homeless services in Cape Girardeau, Rice said. "We just want to help people, is all we want to do," he said. "I think the ruling is quite clear. It is pretty explicit and speaks for itself how Health and Human Services erred."

St. Louis attorney Dan Boyle, who represents Rice and New Life, called the decision the first major court ruling in 16 years on the federal law making assistance to the homeless a priority for use of surplus federal property.

"It is a victory for those who have little or no voice within communities due to their status as homeless," Boyle said in a statement announcing the decision. "New Life will move forward with a supplement to their application, and will continue to pursue all avenues to obtain this property for homelessness assistance."

Rice's application generated a strong opposition effort, coordinated by Mayor Jay Knudtson, that included local business leaders, social service providers and public officials. Missouri's two U.S. senators, Kit Bond and Claire McCaskill, as well as U.S. Rep. Jo Ann Emerson of Cape Girardeau opposed the New Life application.

In a statement, Knudtson said the city is disappointed with the ruling. "We take great pride in being a compassionate community, and all the various agencies and stakeholders do a wonderful job of addressing these issues. We look forward to again demonstrating that the city of Cape Girardeau is meeting the needs of our citizens."

Larry Rice at New Life Evangelistic Center on May 19, 2009, in St. Louis. (Kit Doyle)

The local opposition is already gearing up to convince the department that Cape Girardeau doesn't have the extensive homeless problem that would require a shelter the size of the federal building, Knudtson said in an interview. "It will require the same passion and commitment when this first came up," he said.

The federal building was declared surplus property after most agencies using it moved either to the new Rush H. Limbaugh Sr. U.S. Courthouse at 555 Independence St. or found new quarters elsewhere. For years, Cape Girardeau County officials have been hoping to take over the federal building as a replacement for the historic Common Pleas Courthouse and Courthouse annex.

Presiding Commissioner Gerald Jones and District 1 Commissioner Paul Koeper both said they were disappointed with the ruling. The county made an offer for the federal building that was frozen by the courts while the New Life case is pending.

"The highest and best use of that building is what we were going to use it for, a state courthouse and county offices," Jones said. "The Common Pleas Courthouse, we can't spend enough money to make that building" handicapped accessible "and we don't want to spend any money on it."

The county will consider its options but likely will try to wait out the courts in hopes of obtaining the building, Koeper said.

That could be a lengthy wait. If the department rules against New Life again, the issue moves back to the courts. And in case Kollar-Kotelly rules against New Life, Rice said he will appeal.

"I feel strongly enough about this that it is an issue that needs to be pursued all the way to the Supreme Court if needed," he said.

rkeller@semissourian.com

388-3642

Pertinent address:

339 Broadway, Cape Girardeau, MO

555 Independence St., Cape Girardeau, MO