最新杏吧原创

ST. LOUIS 鈥� While condo owners are paying thousands of dollars to fix water leaks, wood rot and other structural issues at their Central West End building, the developers have been collecting over $200,000 a year from residents to help them recoup money they spent building the project.

Residents鈥� money goes toward a special taxing district the developers, Austin Barzantny and Michael Gingrich, established in 2016 when they were beginning development and construction of the building at 4101 Laclede Avenue. It鈥檚 located a few blocks from 最新杏吧原创 University.

They still control the district even as they and companies they hired to build the project face a $10 million lawsuit from residents alleging they ignored residents鈥� pleas for repairs and left them to deal with an allegedly unsafe building.

The 4101 Laclede condo association said the fee further exacerbates their frustration and anger towards Barzantny and Gingrich, who condo owners allege abandoned them as the building鈥檚 problems came to light.

The association, in the lawsuit, claims the building 鈥� erected just six years ago 鈥� suffers from widespread water damage and is missing key structural elements meant to help keep the building standing during high winds and seismic activity.

鈥淭his is a betrayal of trust and a stark example of homeowners paying the price for failures we did not create,鈥� condo association president Madison Dobrovolskis said in a statement. 鈥淚t鈥檚 time for accountability to replace greed.鈥�

An attorney for Barzantny and Gingrich did not respond to a request for comment, but the developers have previously denied responsibility for any problems at the building.

Experts say the special taxing district is legal and not uncommon 鈥� though the 4101 Laclede district raises questions as to why it was formed and who is charged.

鈥淚t鈥檚 self dealing,鈥� said Marvin Nodiff, an attorney who specializes in condo and homeowner association issues. 鈥淭he developer recovers the cost of the development through (condo sales). This is double dipping.鈥�

The special taxing district at 4101 Laclede is known as a community improvement district, a political subdivision that has the power to establish and collect special assessments or additional property and sales taxes.

Community improvement districts, or CIDs, can be formed for a building, a business development like Ballpark Village in downtown 最新杏吧原创 or for a neighborhood, like the Central West End or Bevo Mill.

They鈥檙e typically used to pay for improvements the city could not or would not pay for, such as security cameras, additional streetlights and sidewalk repairs.

In some cases, CIDs collect funding via a special assessment levied on property owners; in others, they collect an additional sales tax that consumers pay for when they shop in a neighborhood with a CID.

At 4101 Laclede, the developers established a CID to help repay a $1.2 million bond that went towards the acquisition of the land, construction and other financing costs of the $16 million project.

The project also received 10 years of property tax abatement, according to the developers鈥� petition for the special district. It is expected to expire by 2028.

The developers recoup the money from condo owners who are charged a special assessment. Each owner pays a different amount depending on the size of their condo. The CID has collected about $1.2 million so far, documents show.

Experts say it鈥檚 not uncommon for condo buildings to have CIDs; they typically pay for infrastructure improvements outside of the scope of their association fees.

But the 4101 Laclede CID is 鈥渦nique in its breadth as to what the CID is authorized to expend its funds on,鈥� said Todd Billy, a condo and homeowners association .

And Dobrovolskis said the condo board was not aware the developers were collecting a special assessment from owners. The fee appears in sales contracts, documents show, though it does not disclose what the CID pays for nor who receives the money.

It also does not disclose who controls the money.

At the time of its creation in 2016, the 4101 Laclede CID was controlled by a board led by the developers, Barzantny and Gingrich, as well as Barzantny鈥檚 father and Gingrich鈥檚 then-wife and former father-in-law.

Today, Barzantny and Gingrich still , along with three others: Mark Breihan, Laura Breihan and Laura Lashley. But city records show that their terms on the board have been expired for over four years. None of the five also appear to own a business or property at the building, which is required in order to oversee the CID.

Lashley confirmed in an email that she does not own any property in the CID. The Breihans could not be reached for comment.

But state and local law that governs CID don鈥檛 address ramifications for board members that don鈥檛 meet the requirements.

Conner Kerrigan, a spokesman for Mayor Tishaura O. Jones, said there are no penalties for members serving beyond terms and that the mayor 鈥� who appoints people to CID boards 鈥� does not provide oversight to the boards.

He said the boards typically hire attorneys to notify the mayor of new board nominees and to ensure the board is following local ordinances.

Editor's Note: A previous version of this story incorrectly stated the amount residents pay into the CID.