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Neighborhood House says city ownership snafu requires redirecting 2023 grant funds to City of Saint Paul
Summary
Officials told the committee a 2023 cash grant originally given to Neighborhood House must be routed to the City of Saint Paul because the building is city-owned and subject to bond restrictions; Neighborhood House said it has spent funds and needs reimbursement authority to complete renovations.
Senator Pappas told the committee that a 2023 cash grant intended to support renovations at Neighborhood House requires a technical fix after officials discovered the building is owned by the City of Saint Paul and bond restrictions attach to that ownership.
Janet (identified in the record as Neighborhood House president and CEO) said the renovation project is nearly finished, the facility will have a grand opening in June, and Neighborhood House had to take a $2 million bridge loan in March to pay contractors. She and Paul Sawyer, grants and government affairs manager for parks and recreation, asked the committee to move the appropriation to the City of Saint Paul so the city can contract and then reimburse Neighborhood House for costs already incurred.
Committee members questioned whether the matter involved the Wellstone Action organization; witnesses said Neighborhood House operates programs in the Paul and Sheila Wellstone Center but the grant and building ownership are separate issues. The committee held the file over for possible inclusion.
