Lawsuit puts sale of Cape Girardeau federal building on hold

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

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Pertinent address:

339 Broadway, Cape Girardeau, M0