Information contained in Lake Worth CDC's application to CRA for $300,000 "grant or forgivable loan"

As posted previously, the CRA rightly denied this application this past Tuesday night. Here is a copy of the application narrative with some pertinent sections highlighted and comments here and there. By the way, this information was listed as Exhibit A on the back-up material on the City's website, but not available on-line. Click here to check it out. This information was provided to me by a CRA board member and is supposed to be public information. Intentional? You decide.

Notice above that this was a request for "permanent loan financing" from the CRA, but only in the form of a "grant or forgivable loan". The CRA did not have the money budgeted and would have had to transfer money out of their Land account to make the $300,000 "loan". Remember the cries about providing $25,000 for the upgrade of the Paradiso restaurant downtown? And that was part of budgeted and funded program that didn't utilize all of its allocation this fiscal year.

Does "publicly supported" organization mean that it pays minimal rent in a City building? By the way, the Lake Worth CDC is repeatedly asked to provide financial statements when their lease is renewed for the building. Requests made by me for follow-up have gone un-answered. Said one commissioner, "Some things just don't get followed through on around here."

Above, under total project costs, we are witness to the explanation of the 71% project cost over-runs. The main reason given is that "some missing components" were "identified by the new contractor" and costs have risen over the past five (5) years.

This $300,000 of CRA money would be used for a small, 6,340 square foot, two story building. Upstairs are four (4) rental units targeted to those families of low and very low income (under $66,000 for a family of four).


Page 2 of the application narrative above: "Since 2005, LWCDC has paid out $90,000 in predevelopment costs from equity sources..." And what would those be? Then it goes on to say that this development organization is suffering from the residential slump as will and hasn't been able to bring the "developer fees" it expected to provide additional equity in the project. Hmmmm.

It then mentions its "15 member board of Directors" and is proud of its "80% attendance" at board meetings and "CDC events". Strange thing to boast about. There have always been questions about the make-up of the CDC board. For example, how many are actually Lake Worth residents living in the community they target their services to? More on the board later. It is interesting to note that the Lake Worth CDC's board is not listed on its website. Intentional? You decide.

Mention is also made above of the "organization's annual reports". Why weren't any submitted with this "forgivable loan" request? Members of the CRA said that these should have been submitted with the application. Why do these reports remain a mystery?
Here the application proclaims that the Lake Worth CDC has increased the number of residents on its board and the current president is a resident of Lake Worth. An admission of past guilt, but how many live in Lake Worth now - what portion of the board?
Here City Commissioner Jo Ann Golden is identified herself as the Lake Worth CDC's "Project Manager". Under the heading of Governmental Relations and Advocacy, it is proclaimed that the "LWCDC has won respect at City Hall..." perhaps having a sitting City Commissioner as part of your staff helps? This new found "respect" has resulted in office space, operating support grants, lot donations (like this lot - see copy of deed in the above post) and building permit fee waivers. Hmmmm .

And I don't count or see all fifteen board members listed here - who makes up the balance? Do we have a right to know?
Admission here above that the CDC is happy with the donated space from the City - that would make a great recreation facility for the youth of the neighborhood where the building is located, by the way. The application also states that it will retain ownership of the proposed mixed use building. Hmmmm.


$72,000 is a high figure for soft costs - engineering and architecture - for this size of property. Dirt is ready to fly in July of 2008? How likely is that had the LWCDC received the "forgivable loan/grant?"