Shaky Foundation

Details as to why outgoing Missouri Attorney General Josh Hawley decided to give $12.5 million of the state’s settlement with Republic Services to the St. Louis Community Foundation remain a state secret — because nobody’s talking. 

Bridgeton Mayor Terry Briggs (right) participates in a roundtable discussion at a forum held at the Bridgeton Recreation Center by the St. Louis Community Foundation on Tuesday November 27, 2018

St. Louis Community Foundation CEO Amelia Bond says she doesn’t know why outgoing Republican Missouri Attorney General Josh Hawley handed over $12.5 million of the state’s settlement with the Republic Services to the charity she heads.

“I can’t speak to why. You’ll have to ask the attorney general’s office,” Bond says.  The foundation CEO then shifted the conversation and began reciting a litany of laurels  about the non-profit organization’s other charitable work.

Bond was on hand Tuesday morning at the Bridgeton Recreation Center for the first of a series of forums that will be held this week and next to discuss how best to use the money for community betterment in the vicinity of the radioactively-contaminated West Lake Superfund site in North St. Louis County, which is owned by Republic Services.

The Office of the Missouri Attorney General first informed the St. Louis Community Foundation of its decision to consider awarding the majority of  the $16-million lawsuit settlement to the charity in May, says Maria G. Bradford, the foundation’s director of community engagement.

St. Louis Community Foundation Engagement Director Maria G. Bradford

Bradford also denied knowledge of why the state attorney general made the unusual decision to transfer the public funds to the non-governmental foundation. She too referred questions related to  the terms of the settlement to  Hawley’s office. The office of the attorney general has repeatedly declined to answer those questions in the past.

Under the terms of the brokered deal, the charity will oversee the specially created Bridgeton Landfill Community Project Fund, which will dole out grants to qualified non-profits to address environmental, public health and safety issues within a four-mile  radius of the landfill site, where nuclear waste leftover from the Manhattan Project was dumped illegally in 1973.

Though not unprecedented, Bond says to her knowledge there are only a few other cases in which the  Office of the Missouri Attorney General has designated the St. Louis Community Foundation to act as its fiduciary. In those rare instances, the amount of public money placed under the foundation’s control was much smaller than the $12.5 million that was part of the deal Hawley cut with Republic  Services.

St. Louis Community Foundation CEO Amelia Bond

Bond is married to Arthur Bond III, the nephew of former U.S. Sen. Christopher “Kit” Bond of Missouri. In 2016-2017, Kit Bond Strategies, the lobbying firm headed by the former senator, was paid $230, 000 to represent the interests of the St. Louis Economic Development Partnership, including congressional lobbying efforts to turn over the West Lake clean up to the U.S. Army Corps of Engineers. That effort failed. The Partnership is a joint agency of the city of St. Louis and St. Louis County set up to promote economic growth by melding private and public interests. It is not directly connected to the activities of the St. Louis Community Foundation.

But there is an indirect connection between the two organizations. Kit Bond, the founder of Kit Bond Strategies, has served on the board of directors of the St. Louis Community Foundation. However, Amelia Bond, a well-qualified investment banker, says she was hired to lead the St. Louis Community  Foundation prior to Kit Bond joining the board of directors of the charity, and that her relationship to the senator did not play a role in her being named CEO of the foundation.

Linda and Kit Bond of Kit Bond Strategies

About 40 people were present at the kick off event at the Bridgeton Recreation Center.  Attendees included residents, community advocates and municipal officials, including Bridgeton Mayor Terry Briggs, Councilman Ferd Fetsch, and Police Chief Don Hood.

The agreement announced in June, closed the book on five years of litigation conducted mainly behind closed doors between the state of Missouri and the trash company, which owns both the smoldering  Bridgeton Landfill and adjacent West Lake Lake Landfill that is contaminated with radioactive waste.

Then-Attorney General Kris Koster filed the suit against Bridgeton Landfill and Republic Services, its parent company,  on behalf of the Missouri Department of Natural Resources in 2013,

Missouri Attorney General and U.S. Senator-Elect Josh Hawley.

asserting violations of the law by Republic Services  that caused harm to the environment and human health. The case continued after Hawley took office last year. Hawley, now U.S. Senator-elect, will leave his state post for Washington in January. Gov. Mike Parson, who was installed as  Missouri’s chief executive after Gov. Eric Grietens resigned in  June, has appointed Missouri Treasurer Eric Schmitt to take Hawley’s place. Schmitt is a partner in Lathrop & Gage, a law firm that represents Republic Services.

The agreement required Republic to reimburse MDNR for $2 million in staff time, pay a civil penalty of $1 million and $500,000 for damages to the state’s natural resources. The corporation is also required to monitor air and groundwater under state supervision contingent upon obtaining $26 million in bond funding. 

But three-quarters of the settlement will be put into money market accounts exclusively handled by the St. Louis Community Foundation — which was not a party to the suit and does not have a depth of experience in environmental protection issues.

The final clean up plan by the U.S. EPA, which carries an estimated price tag of more than $200 million, was announced in late September.  That compromise decision calls for the partial removal of the radioactively-contaminated materials from the site, leaving the remaining waste to continue leaking into the groundwater of the Missouri River.  Making matters worse, acting EPA Administrator Andrew Wheeler last week officially downgraded the urgency of cleaning up the West Lake Superfund site, which will further delay remediation.

Current efforts by the St. Louis Community Foundation on behalf of the office of the state attorney general to address ancillary issues and allegedly bring healing to residents of the impacted area seem premature given that not a single shovelful of radioactively-contaminated dirt has yet to be removed from the long-neglected site.

During a break in the meeting,  Dawn Chapman, who has led community efforts to address the landfill problem for years, expressed frustration in the latest turn of events. “It seems like they’re putting the cart before the horse,” she says.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bradford also denied knowledge how and and why Missouri Attorney General Hawley made the unusual decision to transfer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Charity Case

The Office of the Missouri Attorney General finally settled with Republic Services for $16 million on behalf of the Department of Natural Resources for the trash company’s egregious environmental violations at the smoldering Bridgeton Landfill. But the majority of that money will be put into the hands of a non-government foundation that caters to the rich. What gives?

The St. Louis Community Foundation, #2 Oak Knoll Park, Clayton, Mo.

Amelia A.J. Bond, President and CEO of the St. Louis Community Foundation.

  Sometime in the next month, Bridgeton Landfill LLC will deposit $12.5 million into the coffers of the St. Louis Community Foundation, a tax-exempt non-profit, charitable organization. The landfill, which is a subsidiary of Republic Services Inc., did not make the contribution out of  kindness, but as part a court-ordered consent judgment signed by St. Louis County Circuit Court Judge Michael T. Jamison on June 29.

Republic Services lawyer John B. Nickerson

The agreement, part of a $16 million  settlement, closes the book for now on  five years of litigation conducted mainly behind closed doors between the state of Missouri and the trash company, which owns both the smoldering  Bridgeton Landfill and adjacent West Lake Lake Landfill that is contaminated with radioactive waste. A final plan for the clean up of the site by the EPA is still pending.

Then-Attorney General Kris Koster filed the suit against Bridgeton Landfill and its parent company on behalf of the Missouri Department of Natural Resources in 2013,

Missouri Attorney General Josh Hawley

asserting violations of the law by the landfill that caused harm to the environment and human health. The case continued after current Missouri Attorney General Josh Hawley took office last year.

The pact requires Republic to reimburse MDNR for $2 million in staff time, pay a civil penalty of $1 million and $500,000 for damages to the state’s natural resources. The corporation is also required to monitor air and groundwater under state supervision contingent upon obtaining $26 million in bond funding or face paying the state hundreds of millions of dollars.

But three-quarters of the settlement will be put into money market accounts exclusively handled by the St. Louis charity — which was not a party to the suit and does not have a depth of experience in environmental protection issues.

The agreement to earmark $12.5 million of the state of Missouri’s settlement to the private St. Louis Community Foundation was signed by Republic Services’ lawyer John B. Nickerson and the St. Louis Community Foundation President and CEO Amelia A. J. Bond. The foundation will control the money through an entity of its own called the Bridgeton Community Fund.

When initially asked by email about the agreement, a spokesperson for the Attorney General responded by sending a  link to the original press release, which does not explain the decision to award the money to the private, tax-exempt institution.  Further calls and emails requesting an explanation from the Office of the Missouri Attorney General did not elicit any answers.

Daniel C. Hartman, an aide to the Missouri Attorney General, indicated that a state Sunshine Law request for documents asking for all communications between the Office of the Missouri Attorney General and the St. Louis Community Foundation will likely not be available before Aug 14 due to the volume of records to be searched. The requisite response to the request includes this warning: “Please note that we reserve the right to close responsive records in whole or part pursuant to law.”

Controlling the message is an obvious imperative for both the private foundation and the state government. The foundation in this case deferred to the state, recommending that all questions  be directed to  Mary Compton, the spokeswoman for the Office of the Missouri Attorney General — who already had declined to respond to repeated inquiries.

Though she did not answer how and why the  St. Louis Community Foundation was selected to receive $12.5 million from the state of Missouri as a part of the settlement, Neosha S. Franklin, a spokeswoman for the private philanthropy did offer this pat response, which had already been released to the media weeks ago:

“The Bridgeton Landfill Community Project Fund will provide grants [to non-profit corporations] that promote the betterment of the environment, public health and safety, within a four-mile radius of the Bridgeton Landfill. The Fund does not address the West Lake Landfill or Coldwater Creek. St. Louis Community Foundation is prohibited from making any grants to individuals.”

The agreement, which is good for the next four years, allows  any non-profit corporation in the area to apply for a grant, but those that target their efforts within the four-mile radius of the landfill site will receive the priority.

The deal between Republic Services and the foundation, which is part of the larger consent judgment, sets up the Bridgeton Community Fund and  puts the private foundation in control of $12.5 million in public funds. Moreover, the directors of the foundation have absolute power to change how the money is used in the future and who gets it.

According to the agreement: … The Foundation shall have the ultimate authority and control over all property in the Fund, and income derived therefrom.  …  If in the sole judgment of the Foundation, the purposes for which the Fund was created ever become unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community served by the Foundation, the Foundation’s Board of Directors shall modify any restriction or condition on the use or distribution of the income and principal of the Fund. …”

The foundation’s offices are located in a stone mansion on the grounds of the city of Clayton’s Oak Knoll Park at Big Big Bend Boulevard and Clayton Road. In 2015, the St. Louis Community Foundation Inc. claimed assets or fund balances of more than $207 million, according to its IRS non-profit tax statement.  Bond, a former Wells Fargo investment banker and the president and CEO of the foundation, was paid more than $263, 000 in annual salary, and more than $17,000 in expenses, according to the IRS.  Previously, she headed the public finance division of Wachovia Securities in St. Louis for two years in the late 2000s following its merger with A.G. Edwards. Wells Fargo bought out Wachovia during this period of financial instability. Earlier in her career, she sat on the board of the Municipal Securities Rulemaking Board. In short, Bond is an expert in municipal bonds. The settlement agreement hashed out by the state and Republic Services requires that its subsidiary, Bridgeton Landfill LLC, secure $26 million in bond funding to maintain, monitor and mitigate air and groundwater quality in the area around the troubled landfill in North St. Louis County.

Wells Fargo, the foundation head’s former employer, is one of the banks that provided Republic Services a five-year $1.2 billion loan in 2014 under the stipulation that the trash company was free from any environmental violations that would harm the company’s bottom line. The suit by the state of Missouri claiming environmental damages by Republic was filed a year earlier in 2013. To secure that loan Republic had to indemnify itself through a subsidiary located in the Cayman Islands. 

Pastures of Plenty: The back door of the St. Louis Community Foundation in Oak Knoll Park.

Charity Begins at Home

One previous director of the well-heeled charity is former Republican U.S. Sen. Christopher “Kit” Bond, the uncle of Amelia Bond’s husband, Arthur Doerr Bond III, the son of the senator’s late brother.

Besides the newly created Bridgeton Community Fund, the St. Louis Community Foundation runs two other non-profit outfits, the Greater Saint Louis Real Estate Foundation and the Alberici Foundation.

The favorite means of donating to the St. Louis Community Foundation is through what is called “donor advised funding.” In this method of tax write-offs,  anonymous donors target the non-profit institutions of their choice. Donors who use this way of making contributions support a wide array of worthy causes, including St. Louis Public Radio, the St. Louis Public Schools Foundation, Channel 9,  the Special School District, Operation Food Search, the Salvation Army, Planned Parenthood, and the  St. Louis Zoo and Art Museum.

But  many other contributions are made to wealthy private institutions and religiously-affiliated organizations,  some of which are located hundreds of miles away from St. Louis.  Recipients in this category included Washington University and John Burroughs School, which both bagged more than a $1 million in recent years, according to the foundation’s tax returns. An even more generous donation of $2 million was made anonymously through the foundation to the Journey Fellowship, a fundamentalist Christian church.

The out-of-town donations to the foundation were funneled to non-profit organizations such as the exclusive Cushing Academy in Ashburnham, Mass., which charges more than $60,000 a year for tuition and boarding. Other distant recipients of the foundation’s generosity include: the Bank Street College of Education in New York City; the Regent Preparatory School of Oklahoma; The National Jewish Center for Learning and Leadership, New York City; the Miami Conservatory of Music, Miami, Fl.; and the Zion Lutheran Church of Dallas Texas.

At the top of its tax return the foundation summarizes its mission and most significant activities as being the administration of “charitable funds for the betterment of St. Louis.” But apparently there are frequent exceptions to that rule.

Analyzing the arcane aspects of the federal tax code and how it applies in this case without the aid of a battery of tax lawyers and CPAs is nigh impossible;  and lacking any explanation from the foundation itself leaves more questions than answers.

There are, for example, two non-profit tax returns filed by the foundation in 2015, which cover the same time period.  One is in the name of the aforementioned St. Louis Community Foundation Inc., the non-profit corporation,  listing claimed assets or fund balances in excess of $207 million. The second  entity that filed a return the same year is identified simply as the St. Louis Community Foundation — without the “Inc.” The latter charity is organized under state law as a Missouri Trust.  It lists a little more then $72 million in claimed assets and funds balances.

The bottom line is this: Since the St. Louis Community Foundation has agreed to be the fiduciary of  $12.5 million won in a settlement  by Missouri Attorney General Josh Hawley  it may be prudent for his counterpart — Missouri State Auditor Nicole Galloway — to examine the foundation’s ledgers.