TKC EXCLUSIVE!!! IN MINORITY CONTRACTOR CONTROVERSY KANSAS CITY HUMAN RELATIONS DEPARTMENT FINDS LACK OF "GOOD FAITH" EFFORT ON H&R BLOCK PROJECT!!!

From the outset, I've believed that the so-called Downtown Renaissance would ultimately leave out minorities and developers and contractors wouldn't live up to their agreements.

Now, THANKS TO KICKASS TKC TIPSTERS, I have the paper work which proves I'm correct.

Here's the background on this story that TKC has blogged for more than a year . . .

Today's a big day for this town, TIF and the so-called Downtown Renaissance because we'll find out if the TIF Commission will do the right thing and agree with a division in City Hall that H&R Block and J.E. Dunn didn't live up to their part of the agreement to include minority contractors . . . Meanwhile, The Kansas City Star is still running a love letter to the H&R Block in what almost looks like a paid advertisement rather than performing any of their "journalism" which they tout but rarely publish nowadays.

Here are the Kansas City reports which say they didn't and provide a lot of details as to how they allegedly gamed the system . . .

The latest, final, nicer draft appeared on May 8:



However, the even more direct memo was released last month:



Again . . . From a previous post . . .

Word on the street is that J.E. Dunn is applying political pressure and threatens to tear apart the City's MBE (Minority Business Enterprise) program if the TIF Commission rules against the H&R Block project. Also, there's talk that Kansas City could be on the line as well for big bucks if the TIF Commission finds in favor of minority contractors.

But even in the report . . . The biz in the minority community they're doing doesn't seem to be doing ANYONE any good. I think this is the money quote from the report:

It should be noted that throughout this project, J. E. Dunn engaged in contracting tactics with MBE's and WBE's that were designed to artificially boost the reported amount of MIWBE participation. As an example, Heartland Specialty Contractors, a majority contractor, submitted a bid for the drywall scope of work. According to internal documents from J. E. Dunn disclosed during the project manager's deposition, Heartland listed Skyline Construction, an MBE contractor, as a subcontractor. Heartland was asked by J. E. Dunn if it was possible to increase its minority participation. Heartland then suggested that Skyline could subcontract for the entire amount and Heartland would be listed as the subcontractor to Skyline. This would allow J. E. Dunn to count the entire contract amount, $2,427,742, as MBE participation. This arrangement was approved by J. E. Dunn. Skyline's bid to J. E. Dunn was the same amount, to the dollar, as the Healtland bid. J. E. Dunn simply allowed the two subcontractors to switch roles so that the entire amount of the contract could be counted as MBE participation. Skyline Construction was paid $536,000, or 22% of the contract.

This type of arrangement was used on other contracts during this project. These arrangements allowed J. E. Dunn to inflate its MBE participation numbers in a manner that was outside of the normal industry standard.

Even worse. . . Blame is being cast of City Manager Wayne Cauthen for having the report cleaned up which initially alleged even more details of despicable tactics used by H&R Block and J.E. Dunn in order to fake minority participation.

What all of this really means is that big companies are dictating how Kansas City reports are put together . . .

A major part in this story will be decided in a few hours.

Developing . . .