The Westminster Redevelopment managed by Richard Baron of Urban Strategies provided below-market-rate loans after a lawsuit challenged the redeveloper's secretive application for a demolition permit for residents' homes.  

Return to FPSE whatsnew page.

Bob Babione's response to
Richard Baron about how residents
fared in Westminster Redevelopment.

 
Some history
   At the October 7 Housing Corporation meeting, Richard Baron cited his efforts to provide financing for home owners in the Westminster development, one of his earlier developments. He added that people could ask Bob Babione about it. See the meeting report.
   It is true that the redeveloper in that case provided loans that had below-market interest rates (which were very high at the time). Those who participated also got tax abatement. (I did not participate in that program; my law firm represented the owners.)
   I believe the context is important. First, Baron held a meeting at the Salad Bowl to announce the redevelopment plan to the residents. Sometime later, surveyors came around and placed stakes at the corners of the lots and put markings on the buildings.
   Then, one of the residents found out by accident that the redeveloper had applied to the city's Heritage and Urban Design Commission for demolition permits for our homes. This was without our permission and without any notice to us. The plan seemed to be to level two blocks and do all new construction of rental units.
   I do not remember the exact proceedings before the commission. At any rate, five or six home owners filed a lawsuit for trespass and, I think, slander of title. It was after the filing of the lawsuit that Baron offered the loans to the resident owners. After agreement of those who wanted to take the deal, the plaintiffs dismissed the suit. Participants in the lawsuit and a few others were allowed to stay in their homes and the redeveloper rehabilitated a few of the original buildings.
   On the eminent domain front, the developer offered some figure in the low 30 thousands for the commercial property at Sarah and Westminster. My partner and I also represented these owners. In the course of negotiations (as best I remember), the offer went down into the high 20 thousands. At trial, the jury awarded the owners $90,000 (which is what the owners said it was worth). The developer then changed lawyers, appealed, and got a reversal. A second jury awarded only $87,000 (which is what the owners' appraisers said it was worth). The developer appealed again, but the court affirmed. I had to contact the insurance company that put up the appeal bond before any money was paid to the owners.
The present situation
   The usual question asked after I tell anyone that Baron had asked for a seat on the Housing Corporation Board is, "Is that good or bad?" It seems like it should be good.
   I agree with Kathib Waheed that -- no matter how organized and how dedicated residents may be in a neighborhood like FPSE (with so many households in poverty) -- connections with big money interests are needed to provide major assets that the political process ordinarily would provide (schools and hospitals, sewers and roads, for example). The need for big-money connections is seen in FPSE. The people of FPSE could not have provided the $16 to $18 million needed to renovate Adams School and build the new Community Center. (Though I believe the Board of Education's need for classroom space to meet demographic trends would have led to more classrooms somewhere.) As Baron said at the October 7 HC meeting, more resources are needed, especially in view of the city's current financial plight.
   Apparently there is a new contract between the Washington University Medical Center Redevelopment Corporation and McCormack Baron and Associates or Urban Strategies (which has a three-member board with Baron being one of the three and the president with one of Baron's employees serving as secretary and treasurer, according to the corporations last filing with the Secretary of State). That is counter to the representations at the outset of the building of the senior Assisted Living Center and the Adams School rebuilding. More than once, Vince Bennett (and others too, including Baron, I think) said that the McCormack Baron involvement with FPSE would taper off. Was there any public discussion of the desirability of such a contract before it was announced? I suggest that HC board member Kate Reese's request for the "exact agreement" should be met with full disclosure of the agreement rather than Baron's non-response at the meeting.
   The bad thing about Baron's presence on the HC board is, I think, the risk that the HC's project-oriented approach will continue to dominate the neighborhood. People and people values will loose out to the completion of deals.
   But Baron's presence on the board should have one very healthy effect -- especially with Marcella Palmieri's resignation as the HC's executive director and the opportunity that resignation creates for him to influence the appointment of her replacement. Baron's open presence should dispel the illusion that the majority of the people who live in FPSE have any substantial say about what happens to them, their homes, and their neighborhood. The risk is that the roles of resource gathering and policy determination will not be separate, that the power to set policy will not be separate from implementation. That is, the "policy" will be whatever Baron finds he can get a deal to implement. Unless, of course, Baron's presence means that he actually listens to the people who are here. Hard work and communication are needed now.

Return to top of this Baron history page

or to Whats new page, or to FPSE Home.

Send questions and suggestions to the Community Council.