The $14 Million that H&R Block might owe to Kansas City is getting more public reaction while the local media stay quiet!!!


A Note from TKC: It has been quite awhile since I've had a guest post but this one was too good to pass up . . . The following e-mail was sent my way a few days ago regarding one of the many local news stories that TKC published before the local media got a hold of it. The Topic: An ongoing dispute between minority contractors and H&R Block that could be worth millions. I hope the author doesn't mind but I've highlighted a few of the more important passages . . . Meanwhile, the local media has been sitting on the topic and once again ignoring the concerns of people of color in Kansas City.
This is in response to City Councilwoman Beth Gottstein's request that the City Manager look into the H&R Project Fiasco as was first reported on Tony's Kansas City Blog:

Good for Gottstein! And good for the Kansas City Hispanic Contractors Enterprise organization for bringing this to everyone's attention.

In the ensuing days, do not accept from the City leadership, the excuse that they need time to review this information. It has been said that the city has been aware of these issues for nearly two years. If memory serves, it has been about that long since KCHACE filed a suit over this very project.

Ms. Gottstein wasn't even in office then, but Funkhouser was a city insider as auditor. It seems he should have been aware of the millions of dollars that were being recklessly doled out to developers. Did he not base his campaign, in part, on his objections to the way the TIF Commission was caving in to developers? KCHACE, too, is denouncing TIF.

After the Semlar affair, one would think, if Funkhouser was truly regretful and desired to make peace with the Hispanic Community, that he would at least respond to a more tangible issue facing KC Hispanics than a wayward senior citizen gardener.

But this is not solely an Hispanic issue. At stake are millions of dollars that the city could use to counter the budget shortfall. At stake are the jobs of city employees. At stake are public services that have to be cut back. At stake are worthwhile social service agencies that depend on city funds. At stake are facilities like the Zoo that we were once led to believe would be world class. At stake is this City's reputation.

The actions of H&R Block didn't just harm the Hispanic Community. Their corporate greed cheats everyone. What's more, this is just one of many TIF projects that have been administered in the same manner. Any one think there should be a much higher level investigation, like at state or federal level?

Now it is the time for all concerned citizens to act and demand accountability. This includes the mainstream media who has also been aware of these issues for two years and have remained as mum as Funkhouser.

With full knowledge of JE Dunn's involvement on the H&R Block lawsuit, the City and TIF granted approval for JE Dunn's TIF handout, the east village project. Both were also previously involved in a previous H&R Block project that utilized TIF financing.

The truth be known, H&R Block could have funded their projects out of their petty cash account. Why do they feel they are entitled to corporate welfare?

Could it be that a leading Kansas City corporation like H&R Block and a leading Kansas City contractor like JE Dunn have so much power that they and their peers actually control City Government....and us? Are you OK with that?

If you are not and you work for the City or TIF and you have witnessed similar violations you can step forward with what you know. The Mayor's threat to lay off city employees could have been prevented if the TIF process did not over subsidize developers. Inform fellow city employees of your discontent.

If you care about City services, monies that could have been devoted to infrastructure maintenance and expansion were instead given away irresponsibly to greedy developers and their attorneys. You can demand accountability from City hall. Don't hold back.

If you work for a social service agency that will now be hampered in carrying out its good works for the needy, you can and should be demanding an explanation.

If you have pride in this city and region and you face the prospect of seeing the city you love tarnished by the pillaging that is going on then you too should settle for nothing less than an immediate reversal of the no questions asked policy that seems to be guiding the TIF Commission. Perhaps it is time to re-tool and re-man the TIF commission.

And what about H&R Block? They are such a giant corporation and they are being sued routinely by many. Are Henry Bloch and the President and Board of Directors even aware of how the construction of their world headquarters has devastated the economy of the city in which they were founded? Someone needs to demand that Mr. Bloch and the company's top leadership (no lower level surrogates) personally be accountable.

So, if you are not OK with the status quo, you are not powerless to act and there are many things you can do. Question is......Will you?

TKC Guest Post courtesy of
Trey Randolf

Comments

  1. The reason no one wants Mexicans working on these projects is their work and quality of work sucks.

    I've been involved wtih projects were minorities were part of the work force and it's insane how unprofessional they are and how god aweful the work turns out!

    Bottom line....if you want something done right and the quality of work to be good don't hire minorities - they are just there to collect there check and could care less about the work they are doing. Personally I'm sick and tired of this "you have in include the minorities" battle cry for projects around town. They should be like everyone else and bid for the project...if they don't get the bid then toooo bad.

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  2. Your opinion is racist and it's also unimportant. Following MBE guidelines was part of the deal and H&R Block cheated the system and lied on their part of the contract to get public money. That's a fact that can be proven and has been documented, not just your racist opinion.

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  3. Didn't this group's lawsuit get thrown out of court?

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  4. I believe that's true. Looks like they're back to their old tricks.

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  5. I was all, "Why is this post so well written?" Then I realized it's all a quote from somewhere else. That explains it.

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  6. This has been a common practice among big contractors for awhile. They hire a minority contractor, eg. Rodriguez Electric, who then contracts the work back to the big contractor. Then they do all the work and still meet MBE regs. The minority contractor has to do a little paperwork and walks away with a small percentage. In this case Rodriguez Electric got around 67,000. Rodriguez Electric is a member of KCHACE and has practiced this technique for years, yet KCHACE has done nothing until now. This is devistating to all minoritys and cost kansas city alot of tax payers dollars.

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  7. Nadia, why are you still reading Tony's blog every day? Or is it one of your friends in the Mayor's office? It's hard to tell the difference between all of the "progressives" in that group. Like the Mayor they all think they're better and smarter than everyone simply because they grew up wealthy.

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  8. I'll take my 12 million and promise to give the rest to the minorities.

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  9. Hey Anon 9:55am the word Hispanic is used because contrary to the belief of idiots like you, "Mexicans" are just 1 group of Hispanic/Latino people within Latin America.

    Is there anything funnier than when country Amerrrrrrricans call every brown person they see "Mexicans"?

    How did you graduate?

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  10. H&R Bloch's entire business model revolves around screwing over those who are not sophisticated about financial matters. And who could be more ignorant of economics than the TIF Commission?

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  11. anonymous said...
    "I was all, "Why is this post so well written?" Then I realized it's all a quote from somewhere else. That explains it."

    LOL. So true. You know Tony can't write anything coherent and logical. If you see something like that on here, you probably also will see the phrase "guest post" right above it. Hehehe.

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  12. hey look what happened to the tony acquire center in the west side it was build using minority contractors and now they got a building thats leeks and flawed construction on it. thats why most companies that build new building prefer je dunn

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  13. Hyperbole much?

    I'm an ex HRB employee and have had various contracts there since my departure. So, treat this how you think is should be in that context.

    First off, Henry Bloch is the "honorary chairman", which means absolutely nothing whatsoever. He has no executive or board duties, and is rarerly even in town. To say he bears some responsibility is ridiculous.

    Additionally, at least half of senior management, including CEO Mark Ernst and COO Jeff Yabuki are no longer there, and they were at the helm for much of the construction.

    And, do you really think senior management was involved at the level of choosing subcontractors? Do you think they would willingly violate the law to save a few bucks? Doubtful - the only one with the incentive to do so would be the construction company.

    I have no idea whether there was any wrongdoing, but do know that this post is mostly ridiculous.

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  14. "a building thats leeks" Leeks... Perhaps you are using flawed english. The word is "leaks" although I like the mind picture of green onion-like vegetation emanating from the Aguirre structure.
    The KCHACE lawsuit was dismissed from court, BUT the ruling left a lot of maneuver room for an appeal.
    WBE/MBE is structurally flawed. When public projects are being built, the minority contractor gets work, when the public sector projects dry up the minority workers are not in the loop on private sector jobs. A better way would be for RFPs to include language that would give prime contractors added points for having verifiable WBE/MBE programs on private sector projects. This current feast and fame cycle does not work.

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  15. To Nick Davis: For your information, H&R Block signed the Development Agreement with the TIF commission in order to get the tax breaks. It is their responsibility and they are responsible for the contractor. Are you authorized to speak on behalf of Henry Bloch to state with confidence that he doesn't care? Do you also speak for the current sitting board of Directors? If not, since you are an "insider", pass the word to the board and tell them the community would like them to weigh in on this matter. Do your homework son.

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  16. "I've been involved wtih projects were minorities were part of the work force and it's insane how unprofessional they are and how god aweful the work turns out!"

    Okay.. what project? what time frame?
    what Prime contractor? what sub contractor? and what scope of work?

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  17. Also to Nick Davis. Are you man enough to tell Henry Bloch to his face that as Honorary Chairman, this "means absolutely nothing whatsoever"? Please invite us all to this encounter. I'm certain your contracts with H&R Block will go through the roof! Go on, I'm sure Henry will be delighted to here from you.

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  18. Nick Davis makes a lot of good points. He's one of the smartest guys who has a blog in KC. This could be the most intelligent thread Tony has ever hosted.

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  19. If H&R misrepresented themselves they should be accountable. Who cares is Mexicans weren't used or minorities for that matter. I'm sick and tired of the fact that a certain number of minorities have to be placed on a project. Contractors should be able to hired whoever the hell they want. However, if they misrepresent themselves for the sake of getting public money, then they should pay. As far as social services... who cares if they get cut. Go out and get a job if you want food, water, shelter, etc. Quite living off my dime... um... 45 cents. As for the city workers... who cares.. they should be thinned out a bit. I witnessed 4 blacks sitting in their cars at various intersections sleeping, while the sign outside their "Conversion" Van read "Traffic Counters" or some shit like that. Why should we pay city workers for sleeping on the job. I've also seen snow removal crews parked on the side of the road on some side street during a snow storm and accidents were happening all over time. Get real... Some city workers have no accountability and need to go.

    It's funny that when white developers allegedly cheat to get a little extra money, Tony is all over it like flys on crap. But when the City Manager and Terry Riley scammed the city out of millions by linning the pockets of Perfect Output he says that's okay... because blacks were the beneficiaries. What a retard.

    At least Tony is consistent. I haven't read his whinning bullshit in over a month and find that nothing is changed. Tony is Anti-white (except for the white trash hoes he bones in his dreams) and pro-dirty mexicans.

    Go figure... keepin' it real.

    RAS

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  20. Ras you racist and ignorant prick. You know you read this site every day, way more than you visit your mom. And the Perfect Output contract wasn't worth millions. Grow up, get informed.

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  21. Some of these small minority contractors like Rodriguez Electric named in the lawsuit are scamming money by selling their minority statis,they dont even have any employees. I dont know why KCHACE and the unions put up with it. They might as well hire SCABS, its the same thing.

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  22. *H and R Block business grew because of the Blocks.

    *JE Dunn businesss grew because of the Dunns.

    *Any hispanic organization grew because the government gave them grant money. For example: The National Coalition of La Raza and lets not forget the Gradulupe Center.

    Keep poucing on the big businesses and they'll leave. Then you won't have anyone to complain about you big baby.

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  23. Paintman: Your minor mistakes are: "H&R Block" is the company, "Henry W. Bloch" is the founder. Don't ask me why it's spelled differently; I've asked around and have learned that KCHACE recieves no grant money from any government body; and spelling "pouncing" wrong. Let's hope your 6th grade teacher is not reading this! Your major mistake: Being so naive that you actually believe that predatory big businesses are innocent victims that deserve your loyal defense. But all is not lost, pretty boy, you take a great photo.

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  24. >>Are you man enough

    Yes, I love getting my character impugned by someone "not mane enough" to actually use their name in their comment!

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