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PRESS RELEASEOffice of Missouri State Treasurer |
JEFFERSON CITY -- Missouri Treasurer Sarah Steelman today issued a harsh reprimand of the construction practices of the NRP Contractors, Related Capital of New York, and Gundaker Commercial Group following the recent arrests of five illegal workers on their way to a Missouri Housing Development construction site in O’Fallon. Steelman serves as Chairman of the Missouri Housing Development Commission.
“The use of illegal aliens is inexcusable and will not be tolerated,” Steelman said. “This practice is going to stop. The state will not do business with developers who think they can rip off the taxpayers and workers of Missouri.”
Steelman summoned officials from the developers to provide testimony at Friday’s MHDC meeting in Jefferson City. She also invited Tom Heinsz, Carpenters’ District Council Director of Organizing, to attend the meeting and brief the commission.
Steelman and other commissioners had questioned these developers’ alleged use of non-state labor and illegal alien workers over the past few months, and demanded officials of Gundaker appear before the commission in May to explain its practices and assure the commission it would use local labor (see attached meeting minutes).
In fact, as a result of these discussions, the commission incorporated new language into every commitment letter, conditional agreement and bonding authority agreement, requiring that developers pledge to use local vendors, suppliers, contractors and laborers when available and feasible.
Steelman said the pattern of behavior exhibited by these developers, even after the Commission’s direct instructions and public condemnations, is indefensible.
Gov. Blunt, who serves as a member of the commission, joined Steelman in rebuking this practice.
“The state will not do business with developers who do not abide by the law,” Blunt said. “I am pleased to join with Treasurer Steelman in sending a strong message to businesses and developers operating in our state currently or who seek to do business here in the future. We owe our exceptional Missouri workforce nothing less.”
Neither Gov. Blunt nor Steelman were members of the commission when this contract was originally awarded.
(An excerpt of the minutes is attached below. The relevant section is in bold-faced type.)
Excerpt from Minutes of the Annual Meeting, May 20, 2005. Page 7.
do charge a fee for applications for federal credits as well as a compliance fee which helps fund the compliance monitoring for the 15 – 30 years the properties are in our inventory.
The Property Watch List for the month of April 2005 was presented next. (Copy attached and made a part of these Minutes.) The Assistant Attorney General said that, for the record, YARCO has no properties on the financially troubled list. There were no other questions and the report was accepted as presented.
The Report of Financial Advisor and Bond Counsel was next on the Agenda. Mr. Bob Detjen, CSG Advisors, said that they would be making a full presentation at the Planning Session. Bond Counsel had nothing to report but both Mr. Wells and Mr. Hardwick thanked the Commission for the confidence they had placed in them by renewing their contracts.
Treasurer Steelman requested an update on the Wentzville and O’Fallon projects. Commissioner Luetkenhaus reported that he had spoken with the Executive Director and Gundaker that week. Wentzville is 85% complete and they are using local contractors. In O’Fallon, Gundaker is trying to get control of the construction and is working with the bank involved. He said Gundaker committed to him that they will use local people and he knows personally they are bidding it. The Commissioner said they were going in the right direction at this time. The Executive Director invited Greg Lee of Gundaker Commercial to address the Commission. Mr. Lee thanked Commissioner Luetkenhaus for taking a meeting with Mike Henja, president of Gundaker Commercial, and then explained Gundaker’s involvement. He said he appreciated the opportunity to speak to the Commission and hoped to have more details in June. Commissioner Luetkenhaus added that he had offered his assistance to Gundaker and that he thought they might take him up on it.
Before adjourning, Ms. Dobreff gave a brief synopsis of what the Commissioners could expect at the Planning Session. She encouraged them to attend and said that staff was eager for the opportunity to talk in depth, to hear the Commissioners’ ideas and to share the staff’s. The Chairman added that what is accomplished in June culminates in the December recommendations and it is a very important meeting. The Executive Director encouraged the Commissioners to call staff when they look at the draft budget and added that it was critical to adopt it in June for the beginning of the fiscal year in July.