News Briefs

State audits SLDC’s north St. Louis grant program and former president’s severance pay

St. Louis Public Radio | By Kavahn Mansouri

Published September 30, 2025 at 2:21 PM CDT

Missouri State Auditor Scott Fitzpatrick speaks during a press conference about locating former St. Louis Circuit Attorney Kim Gardner on Monday, May 6, 2024, at the Wainwright State Office Building in Downtown St. Louis. — Missouri State Auditor Scott Fitzpatrick speaks during a press conference in 2024 at the Wainwright State Office Building in Downtown St. Louis. Fitzpatrick announced Tuesday that his office will audit the St. Louis Development Commission.

St. Louis’s development arm will undergo an audit following allegations of improper activity and severance pay made to former president Neal Richardson following his departure.

Auditor Scott Fitzpatrick announced Tuesday his office launched an audit into the St. Louis Development Corporation after uncovering “possible improper governmental activity” in the organization.

Fitzpatrick’s office launched an investigation into SLDC after receiving multiple complaints over the $30 million North St. Louis Small Business and Non-Profit Grant Program that raised “several red flags.” One of those complaints led the auditor to conclude that an audit was needed.

“We received multiple whistleblower complaints that alleged misuse of ARPA funds through a grant program administered by the SLDC," Fitzpatrick said in a statement. "With millions of dollars flowing through this program it is imperative sufficient oversight is provided to ensure the funds are used appropriately.

The North St. Louis Small Business and Non-Profit Grant Program was designed and led by SLDC in an effort to provide grants to nonprofits and businesses on the North side impacted by the COVID-19 pandemic.

Previously, city officials pulled millions in grants awarded to businesses after an investigation by the St. Louis Post-Dispatch revealed issues within the program, including grants being awarded to businesses located in boarded-up buildings or vacant lots.

Richardson, the corporation’s former president, departed earlier this year shortly after Mayor Cara Spencer’s inauguration. The St. Louis Business Journal reported he was paid $141,318 in severance from the development corporation and a $25,000 consulting fee.

St. Louis Development Corporation did not immediately respond to a request for comment.

The audit officially began Sept. 25.

“We will do our best to give the people of St. Louis the answers they deserve and uncover any mismanagement or misuse of funds,” Fitzpatrick’s statement read.