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The project was proposed on a 27-acre parcel, south of the Phoenix Center II shopping center. The council recently approved rezoning and a development plan for the multifamily project.
In the first step of the application process, a developer is required to obtain letters of endorsement from the mayor and state legislators representing the area.
Mayor Dick Stratman and state Sen. John Griesheimer submitted unqualified endorsements for the project to the Missouri Housing Development Commission which awards housing tax credits for qualified developments. State Rep. Scott Dieckhaus issued a qualified endorsement and indicated he would withdraw that unless six of the eight council members approved the project.
After the application was discussed at the council's Nov. 2 meeting, opposition grew among council members and residents of nearby Stone Crest subdivision.
The opposition centered on the firm's plan to "target income-qualifying residents with incomes at or below 60 percent of the area median income."
During Monday night's meeting, Councilman John Rhodes challenged Stratman's authority to give the endorsement without the council's approval. "I don't believe you have the power to represent the city without council approval. You did and you hid it from us," Rhodes said.
Stratman said that the first he learned details about the project was at an Oct. 13 meeting he attended with Mark Gardner, Unnerstall and Councilman Jeff Mohesky. Mohesky and Rhodes represent Ward 2 where the project was proposed. Rhodes also was invited to the meeting but was a "no show," Stratman said. Rhodes said he was out of town.
Rhodes questioned why Stratman or Mohesky didn't report the meeting to council members at two subsequent meetings. "The first time it was brought up was when I raised it," he said.
"I was told they needed a letter from the mayor, not the council," Stratman said. He said he also was told by a MHDC representative that this was the first step in the application process and there would be "many venues" for input from the council and residents.
"Maybe I made a mistake but others did, too," Stratman said. "At no time did Mr. Rhodes ask about the meeting. Why did he not ask about it? Was he asleep at the switch? After I issued the letter of support, he does a gotcha."
Mohesky initially endorsed the project as well. He said Monday night that was a mistake and he changed his position after questions were raised at the Nov. 2 meeting. "I screwed up," he stated.
Stratman and Mohesky both have said they will run for mayor next year. Rhodes ran for mayor four years ago but lost to Stratman.
"I think the voters will need to decide if they can trust anything these guys do," Rhodes commented.
"I know Jeff changed his mind, but it was only after you folks called him up and changed his mind," Rhodes told Stone Crest residents who were in the audience.
"I think John got it right but he also got it wrong," Mohesky said. "Hindsight is 20-20 but I it was never my intent to put subsidized housing in there." He said no Stone Crest residents called yelling at him. "They were all very nice," he noted.
"What I find distressing it the demagoguery by Rhodes for his own political gain," Stratman said later in the discussion.
The mayor charged Rhodes with "making up stories," and denigrating city staff. Stratman began referencing a statement Rhodes made in a court deposition in a lawsuit filed by a former police officer. That drew a retort from Rhodes who said Stratman was disclosing information in a legal action that has not gone to court yet.
Rhodes and other council members remarked that while they approved multifamily zoning and the development plan they were not aware that it would involve a subsidized housing project.
"I've said before I couldn't endorse anything with public assistance," said Tim Overschmidt.
Guy Midkiff said the MHDC has given out "over $4 billion" of taxpayer money to developers over the years. "This is anti-capitalism. It's anti-free market. This is taxpayer money we're talking about." He said it's not fair to local developers who finance projects with their own money.
Midkiff said while the council approved the R-4 zoning plan, "I can assure you if we would've known this was subsidized housing," it would not have passed. He acknowledged that he owns apartments in town and has several tenants who receive rent subsidies.
"You knew about this" but didn't share it with the council, Tim Buddemeyer said to Stratman. "Do we have to ask you? Why wouldn't you tell us?"
"I didn't think it was that important," Stratman replied. "The process was just beginning. The council was going to have plenty of input."
"I bet the people out there think it was pretty damn important," Buddemeyer shot back.
"I felt he (Gardner) was a good developer. I felt this was the first step and I put my name on the line. If I could do it over I would have brought it up," Stratman said.
"It was probably a mistake. I admit it. I didn't make the decision on the 19th (of October). I was still checking out Gardner. He was going to do everything the plan called for down to the last brick."
Rhodes said Stratman stated in his endorsement letter that he felt this was a "great project" and that the property offered an "ideal location" for the complex.
"I doubt that the residents agree this is an ideal location," Rhodes said.
