From: Tampa Bay Guardian
Edited by: Tom Rask
On April 3rd, St. Petersburg Mayor Rick
Kriseman announced the creation of the city’s “Fightning Chance Fund” (FCF) pursuant to
the mayor’s emergency authority under section 2-426(i) of the City Code. The city
says that the FCF was created to “provide
capital for St. Petersburg’s most vulnerable businesses” during the
pandemic.
However, many important questions remain
unanswered about the FCF and how the money will flow. For example, almost 80%
of the funds are likely to go to businesses, not workers. And by what criteria
where “vulnerable” businesses in some sectors made eligible for funds but not
vulnerable businesses in other sectors?
Since the application forms will only become
available this morning, it sounds like it’s going to be a free-for-all, and in
more ways than one.
The Guardian made a public records request for
that application form, even if it only existed in a draft form. After one full
business day, the city had yet to produce that one electronic record. Can we
expect such “hiding of the ball” during the FCF process as well? If so, expect
the administration process of the limited FCF funds to also be corrupt.
Editor’s note: shortly after this article was published,
both the business application form and the individual
application form became available on the city’s FCF page. The eligibility criteria
also changed, leading to more questions. We will have a follow-up article.
Whatever information businesses and
individuals provide to the city will become public records, subject to
disclosure to anyone requesting that information. In its information
flyers for businesses and for individuals, the city implied that applicants
may submit a “Request for Exemption from Public Records.”
However, which public records are exempt or
not exempt from disclosure is specified by Florida Statutes. The city cannot
honor any “requests” for exemption.
 |
| Pete Boland |
“We don’t have any concern about our finances
becoming a part of public record,” said Pete Boland. “I think it comes with the
territory if you’re seeking public money.” Boland is the co-owner of the newly
opened Mary
Margaret’s Olde Irish Taverne, located at 29 3rd Street North.
Boland, a career restaurant industry
professional, also co-owns The Galley, located at 27 4th Street. The
Galley’s employee count is over the 25 person limit in order to be eligible to
receive FCF funds.
But does the city mean 25 FTE’s (full-time
equivalents) or just 25 employees, period? The city’s information doesn’t say.
“We have encouraged our employees to seek the
funds,” Boland said. “This is an unconscionably difficult time for our
industry, we’re all just clawing along to survive. The free for all nature of
the FCF process is not ideal, but I think if you’re in our business now, and
you’re not trying to do everything you can to stay afloat, and not seeking
whatever beneficial programs that are available, then that’s kinda on you.”
“We pay an awful lot in sales taxes, matching
taxes, and income taxes, so I think if they’re offering you money, you gotta go
get it,” Boland added.
However, none of those types of businesses are
eligible to apply for FCF monies, even if they are able to prove that they are
objectively more “vulnerable” than long established businesses who are
eligible.
Apart from city funding, the Pinellas
Community Foundation (PCF) has been accepting donations to the FCF since the
day the fund was announced. On their own website, the PCF
says that it “provides grants to carefully vetted 501(c)(3)
nonprofit agencies.”
Given that the city is not a 501(c)(3), we
asked City Communications Director Ben Kirby how the city and PCF intend to
resolve that apparent stumbling block without jeopardizing the PCF’s tax exempt
status? Kirby did not answer that question directly.
“Our legal team is completing a Memorandum of
Understanding (MOU) with the PCF,” Kirby said. “I will provide it to you as
soon as it is completed.”
We had not received the MOU from Kirby by the
time of publication, which means that the PCF has been raising money for the
FCF for six days without any written agreement about how the money is to get
from the PCF to the FCF.
 |
| Ben Kirby |
“The Pinellas Community Foundation (PCF) are
fundraising professionals, whereas city staff generally are not,” Kirby said.
“The PCF is taking zero commission and will disburse to us upon our request
after the agreement has been signed.”
With the maximum grant amount being $500 for
individuals and $5,000 for businesses, the $6.8 million figure and some
simple math shows that the city intends to give the maximum amounts to the
1,000 businesses and 3,000 employees the city says it expects will apply. It
also means that almost 80% of the funds would go to businesses, not workers.
Will all applicants receive funds, or will the
city run out of funds? Why is a “first to the trough” method used to distribute
the funds rather than some lottery-based method? What criteria were used to
decide what types of business were eligible to receive funds? Those aren’t the
only questions.
How can we be sure that the process is clean?
Will the mayor’s political supporters magically receive funds while his critics
equally magically receive nothing? Will haste make waste? Or will the
program turn out to be a economic and political winner?
As always….the Guardian reports and our readers decide. Like our
Facebook page to find out when we publish articles.
This post is contributed by
the Tampa Bay Guardian. The views expressed
in this post are the author's and do not necessarily reflect those of the
publisher of Bay Post Internet or any publications, blogs or social media pages
where it may appear.
Cross
Posted with permission from: Tampa
Bay Guardian
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