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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Unholy Bond

When U.S. Reps. Ann Wagner and Lacy Clay testified before Congress to have the West Lake Landfill clean up turned over to the Army Corps of Engineers in 2016, the public had no clue that a scandal-tainted St. Louis County government agency had paid big bucks to former U.S. Sen.Kit Bond’s lobbying firm to do its bidding on Capitol Hill. 

Academy Award Performance:
GOP Rep. Ann Wagner pounding home her message in testimony before the congressional subcommittee, July 13, 2016.

 

July 13, 2016 was just another day on the sound stage that is Capitol Hill. But veteran congressman Lacy Clay couldn’t help noting that his usual role had changed. As the audience filed into the gallery behind him, the Democrat from St. Louis took his seat at the witness table next to Republican Rep. Ann Wagner of St. Louis County.  In the moments preceding their testimony,  a C-Span microphone captured Clay’s candid remark:

“It’s kind of different being on this side,” Clay said.

Clay’s awkward small talk with his conservative counterpart ended when the chairman of the Environment Subcommittee of the House Energy and Commerce Committee gaveled the hearing into session at 10:03 a.m. By all accounts, what happened next in Room 2123 of the Rayburn House Office Building was a rare display of bipartisanship.

Wagner and Clay — who represent polar ends of the American political spectrum — bonded together that summer morning to send a unified message. The odd couple appealed to their fellow representatives to send House Resolution 4100  to the floor for a vote. If passed, the bill would have mandated the transfer of control of the controversial West Lake Landfill Superfund site in Bridgeton, Mo. to the U.S. Army Corps of Engineers. Corresponding legislation had already been successfully steered through the Senate under the bipartisan guidance of Republican Sen. Roy Blunt and Democratic Sen. Claire McCaskill of Missouri.

Under the lax management of the EPA, the cleanup of the radioactively contaminated site had languished for decades. Attempting to correct  the agency’s negligence was the shared responsibility of  both congressmen because the dividing line between their respective districts literally runs through the landfill. Angry residents in St. Louis County were demanding change and they made it clear that the Corps was their preferred choice to oversee the long-delayed remedy for addressing leftover nuclear waste from the Manhattan Project. The previous autumn, their protests had been amplified by local and national news coverage and the release of two documentaries on the subject.

Public pressure continued over the intervening months, stoked by monthly community meetings and non-stop social media posts. By summer, the heated issue had reached critical mass. Local activists traveled to Washington, D.C. to show support for their representatives at the congressional hearing. Besides C-Span coverage, Wagner and Clay’s joint testimony blanketed the local St. Louis news.

Unfortunately, despite the concerted effort the measure failed to clear the subcommittee. Similar legislation in the next session was also derailed.  The back-to-back failures occurred even though the St. Louis Economic Development Partnership ,  a local governmental agency, had quietly bankrolled the well-financed federal lobbying campaign for two years.

The details on how the grassroots, community-based movement morphed into a high-powered, Washington, D.C. lobbying project remain fuzzy. Calls and emails made to various private and public officials asking for comment have went unreturned.

Since its inception, no one has been in a hurry to divulge the machinations surrounding the deal, which flew under the radar using public funds without the knowledge of the vast majority of St. Louis area citizens. Organizing the congressional lobbying drive involved considerable time, a bundle of cash and lots of inside wheeling and dealing. To handle a job of this scale, the Development Partnership hired Kit Bond Strategies (KBS), the lobbying firm of former U.S. Sen. Christopher “Kit” Bond of Missouri.

In hindsight, the failure of KBS to accomplish its goal set the future course for the West Lake clean up, which is now in the hands of the Trump administration.

Enter stage right: The Superfund Czar

The move to turnover the West Lake clean up to the Corps is now history.  Last month, the final EPA remedy for a partial clean up of the site — a decision that falls short of full removal — was announced by the agency.  If carried out as planned, large quantities of radioactive waste will remain on site and continue to be a threat to human health and the environment.

The long-postponed announcement came after the nascent Trump administration fast tracked the West Lake clean up in early 2017 as part of a campaign by then-EPA Administrator Scott Pruitt to “streamline” the Superfund program. The task force created by Pruitt to accomplish that objective is now the subject of an EPA inspector’s general probe announced last month, which intends to examine the group’s secretive agenda. Pruitt and his top lieutenant Albert “Kell” Kelly both resigned earlier this year under a cloud. The controversial EPA administrator and former Oklahoma attorney general appointed Kelly, a Tulsa banker,  in early 2017 to the newly formed post of EPA Superfund Czar. Kelly’s appointment came shortly after the FDIC had imposed a fine of $125,000 and barred him from banking for life.

Lights, Camera, Action: Rep. Lacy Clay testifying before Congress, July 13, 2016.

With the latest rush of developments, the earlier pleas by Wagner and Clay to transfer the project to the Corps have now been largely forgotten, relegated to a footnote, a curious moment in time when congressional adversaries from opposite sides of the aisle put aside political differences for the common good. For a moment in the summer of 2016, it looked as if a spontaneous consensus had arrived on the scene in the nick of time.  The St. Louis area congressmen gave heroic performances on camera — and the video went straight to YouTube, where Wagner can still be seen vehemently driving home her talking points by pounding on the table. Clay’s oratory was equally impassioned. Their words expressed sincere convictions and righteous outrage, echoing the pleas of their constituents.

St. Louis Economic Development Partnership CEO Sheila Sweeney.

It almost seemed too good  to be true — and it was. In retrospect,  Wagner and Clay now appear to have been reading  from the same script of a made-for-TV movie.

Linda Bond and hubby.

What the public didn’t know back then was that  the director of this staged congressional performance was KBS.  Linda Bond, the former senator’s wife, is  a senior partner in the lobbying firm. She signed the contract with St. Louis Economic Development Partnership CEO Sheila Sweeney in January 2016.

The Development Partnership is a joint government agency of the city of St. Louis and St. Louis County, which wields broad powers and operates largely in the shadows with the benefit of millions of dollars in annual payments from  casino interests raked in by the St. Louis County Port Authority, an agency that shares the same staff as the Development Partnership. The County Port Authority’s purpose has nothing to do with ports. Instead, it acts as a conduit for the casino payments.

 

The 2016 contract between KBS and the St. Louis Economic Development Partnership.

In 2016 and 2017, the St. Louis Economic Development Partnership funneled $230,000 of public funds to Kit Bond Strategies, according to federal lobbying reports. Part of that total went to pay for the failed congressional effort to turn the West Lake Landfill Superfund Site over to the U.S. Army Corps of Engineers — an agency that expressed serious reservations about assuming the responsibility for taking control of the project in the first place. The exact amount spent specifically on the West Lake lobbying effort is uncertain. A request under the Missouri Sunshine Law for further details is pending.  But this much is known:  the development agency’s contract called for KBS to be paid $10,000 a month for its services. The lobbying records show that the public money was doled out to the lobbyist in quarterly payments. The St. Louis Economic Development Partnership paid the lobbying firm an additional $60,000 in 2018 , but by then the effort to persuade Congress to turn the West Lake clean up over to the Corps had been dropped.

In July, a St. Louis County Council ethics committee announced it was embarking on an investigation of a wide range of questionable activities by the St. Louis Economic Development Partnership involving alleged improprieties related to the agency’s contract procedures and real estate transactions in recent years. Its lobbying contract with KBS is not known to be a part of that investigation.

The announcement followed a series of revelations published in the St. Louis Post-Dispatch focusing on the dodgy dealings of the Development Partnership and the County Port Authority under the Democratic administration of St. Louis County Executive Steve Stenger  [1, 2, 3]. Among the allegations are those involving unusual  bidding practices by businessman John Rallo, a Stenger supporter and an heir to the Rallo Construction Co. fortune. Rallo has been the beneficiary of a lucrative real estate sale by the Development Partnership and he has also sought advise on two consulting  deals from Development Partnership CEO Sweeney, a Stenger appointee, in advance of submitting his bids, according to the Post-Dispatch.

Sheila Sweeney, Kit Bond, Lacy Clay and Steve Stenger celebrating the opening of STL Partnership’s Wellston Business Center expansion in July.

At the same time, political opponents of Stenger’s on the St. Louis County Council, have alleged that Sweeney is under federal surveillance. Councilman Ernie Trakas, a Republican from South County, and Councilman Sam Page, a North County Democrat, raised the allegations on July 24. The allegations were reported by Post-Dispatch reporter Jeremy Kohler in the newspaper and on Twitter.

The protracted controversy has been roiling for more than a year. But until now,  the ties between the Development Partnership and KBS have been unreported even though Sweeney’s signature is on the bottom line of the lobbying contract with that of KBS partner Linda Bond.

Trouble in River City

The St. Louis Economic Development Partnership is an autonomous county agency that distributes public money for various economic development schemes  with the help of casino revenue that it receives from the St. Louis County Port Authority. The port authority gets its funding from an estimated $5 million in payments paid by the River City Casino in South St. Louis County. Pinnacle Entertainment opened the casino in 2010. It is now operated by Penn National Gaming. The casino property is owned by Gaming and Leisure Properties Inc., a real estate investment trust that was spun off by Penn National, which controls a virtual monopoly on the overall operations and ownership of the St. Louis area gambling industry.

KBS lobbyist Julie Murphy Finn

The South County gambling site, which is located in unincorporated Lemay, is no stranger to controversy. Development of a casino at the location met stiff resistance from local businesses, churches, and residents in the past. Despite the widespread opposition, the St. Louis County Economic Development Council began wooing prospective casino developers there more than 20 years ago. Those initial efforts under the late St. Louis County Executive Buzz Westfall in the 1990s failed.  But they set the precedent for current practices.

Dec. 25, 1995 St. Louis Post-Dispatch story citing then-St. Louis County Port Authority Chairman Sheila Sweeney.

As early as 1995, the St. Louis County Port Authority accepted payments from an earlier casino developer interested in developing  the site. The chairman of the Port Authority at that time was Sweeney, who in 2018 is still pulling strings as head of the St. Louis Economic Development Partnership, the umbrella agency that controls the purse strings of  the  County Port Authority funds.  In 1995, Sweeney was already advocating spending payouts from gambling interests  to support the development of other sites in St. Louis County.

Dec. 25, 1995 St. Louis Post-Dispatch story reports then-County Port Authority Chairman Sheila’s Sweeney’s strident support of spending casino cash for development schemes throughout St. Louis County.

Others involved in past issues tied to  South County politics and the Lemay casino site include former South County Councilman Jeff Wagener, a Democrat who is now policy chief for St. Louis County Executive Stenger; and Wagener’s former assistant Julie Murphy Finn, the  Kit Bond Strategies’ lobbyist who oversaw the congressional lobbying  effort on behalf of the St. Louis Economic Development Partnership in 2016. Wagener also sits on the board of directors of the St.  Louis Economic Development Partnership.

Murphy Finn was aided in her congressional lobbying assignment by fellow KBS lobbyist Kenny Hulshof, a former Republican congressman and gubernatorial candidate from Northeast Missouri.

Cold War Redux

But Hulshof and Murphy Finn were not the bosses of the operation. That distinction goes to KBS senior partner Linda Bond, who signed the sweetheart deal with Sweeney, the head of the St. Louis Economic Development Partnership.  Both women are savvy political operatives. Sweeney has been an inside player in St. Louis County politics for decades under multiple county administrations; whereas, Bond’s career in national politics stretches back to the Reagan era and is rooted deeply in Cold War politics.

Long before she married the senator, Bond worked for the Voice of America, the propaganda arm of the U.S. State Department.  From 1985 to 1991 she served as the director in Germany of the International Rescue Committee (IRC), a non-governmental agency with long-established ties to the Central Intelligence Agency.  The late William Casey, the former OSS agent and CIA director during the first term of President Ronald Reagan’s administration, served a stint as the president of the IRC, which aided Eastern Bloc and Soviet defectors.

In this case,  however, there appears to have been no need for cloak and dagger skullduggery.  Instead, the deal between Kit Bond Strategies and the St. Louis Economic Development Partnership was as easy as walking next door and borrowing a cup of sugar. KBS and the St. Louis Economic Development Partnership are neighbors in the Pierre Laclede Center II, a high-rise office tower at 7733 Forsyth Blvd. in Clayton. The development agency calls Suite 2200 home, and KBS lists its address as Suite 2300.

In the end, the motive behind the 2016 lobbying deal seems to have been predicated not on bi-partisan cooperation and concern for the environment as much as it was realpolitik, and cold hard cash.

 

 

 

 

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.