Minneapolis sues North Side nonprofit 
alleging negligence, fraud

Steve Brandt, Star Tribune 
  
Published July 15, 2003
 
A north Minneapolis business development 
nonprofit and three people associated with 
it have been sued by the city to recover
 more than $589,000 in grants that allegedly 
were used for unauthorized purposes.


The lawsuit has been served on the 
Northside Economic Development Council (NEDC), 
its onetime executive director, Robert Woods, 
and two board members, Charles Graham and 
James L. Stroud. They couldn't be reached 
for comment.

"We need to show that we are going to be tough 
on grant recipients. . . . Whether it will 
actually be fruitful in terms of getting any 
funding returned, I am less hopeful," said 
Kim Havey, a city official who now heads one
 of the programs that aided NEDC.


NEDC was founded in 1996 to stimulate 
business development on the lower North Side. 
But city officials cut off federal and city funds 
in 1998 after learning that several loans went 
bad, that some money was used to buy property, 
and that NEDC conducted transactions with its 
own officials. A state audit reported in 2000 
that NEDC might have mishandled more than 
$700,000.

http://www.startribune.com/stories/462/3987911.html

Shawn Lewis, Field Neighborhood

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