Wednesday, September 27, 2000
City asked to pay bills of developer
By Robert Anglen
The Cincinnati Enquirer
A Milford company wants Cincinnati to fork over nearly $80,000 that it can't collect from a West End development group under investigation by the FBI.
SRW Environmental Services Inc. is threatening a lawsuit if the city won't pay bills incurred by the nonprofit Genesis Redevelopment Inc.
SRW says the city is obligated for bills and interest totaling $79,838 since it cut off funds to Genesis after questions arose over where the group's spending.
“The irony is that the services performed by SRW were performed while Genesis Redevelopment was an active and viable project,” company officials said in a July letter that was given to city council members Tuesday. “Therefore, SRW should be reimbursed by the city of Cincinnati for services rendered.”
The letter asks for payment before Oct. 31.
A city solicitor told council members Tuesday it was unclear if the city shared any liability.
City administrators asked investigators to probe Genesis in February, a day after The Cincinnati Enquirer reported that board members wrote checks to themselves, hired relatives and repaired family members' homes. Although Genesis was approved for $800,000 in federal grants to develop low-income housing since 1991, it has remodeled only its office, done minor repairs to 11 homes and built one other.
Genesis members say they are innocent of any wrongdoing.
Officials say Genesis has not gotten any money from the city since November. But SRW asks for payments on five invoices between Sept. 25, 1998, and Feb. 28, 1999, nearly a year before the city halted funds.
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