Weather | Sports | Forums | Comics | Classifieds | Calendar | Movies
Tampa's former housing chief, now a private real estate broker, tries to set up a sale with the city.
By DAVID KARP, Times Staff Writer
© St. Petersburg Times, published February 20, 2002
TAMPA -- As the city's housing chief, Steve LaBrake supported the nonprofit Tampa-Hillsborough Action Plan when the group bought an old Ybor City school site with taxpayer-backed loans.
And when a developer needed the city's support to apply for tax credits for the site, LaBrake backed that plan, too.
Now, with LaBrake out of office and a federal grand jury investigating his dealings with THAP, the city wants to find another developer to take over the project.
Enter Steve LaBrake, now a private businessman.
LaBrake, a real estate broker, showed up at his old City Hall offices Tuesday to introduce city officials to executives who may want to develop the property.
LaBrake said he was introducing them to his old boss, Fernando Noreiga, the mayor's development administrator. Noreiga said LaBrake discussed whether the city might support a plan to win tax credits to build low-income apartments for the elderly.
"We will treat him like we treat anyone else," Noreiga said.
Mayor Dick Greco said there was nothing the city could do to stop LaBrake from earning a living as a private real estate broker.
"You can't say he can't come into a city building," Greco said.
Greco said city officials will evaluate LaBrake's real estate proposal competitively and seek the best deal for taxpayers. Two or three other investors also have expressed interest in the site, he said.
"Just because Steve wants something, it's not the way it will end up," Greco said.
But LaBrake's appearance raises questions about the revolving door for government officials who resign and then do business with their old bosses.
"I think that would be the ultimate insult to the taxpayers, to have (LaBrake) make money on the very mess he created," said City Council member Bob Buckhorn, who is running for mayor.
"At some point, you have to draw a moral and ethical line in the sand and say enough is enough," Buckhorn said.
An ordinance prohibits city employees from representing anyone on government business at City Hall for one year after they resign.
But City Attorney James Palermo said the ordinance does not apply to LaBrake. The ordinance affects only employees who took office after the rule was passed in 1989. LaBrake was first hired in 1986; he was appointed a department head later.
Another ordinance requires people who represent others and discuss city business to register as a lobbyist within three days after a meeting. LaBrake hasn't done so, and he said he doesn't have to.
"I was not lobbying," LaBrake said. "I asked for nothing from the city."
When a Times reporter ran into LaBrake outside his old office Tuesday, LaBrake said he was stopping by to pick up gifts from former co-workers for his new son. He had the child with Lynne McCarter, a former aide who worked in the department.
In an interview later, LaBrake acknowledged his other purpose for the visit. He said a real estate broker asked him to facilitate a meeting with city officials.
Jane Finkel Levin, a broker with the Founders Group, declined to discuss LaBrake's role in the deal.
"It's none of my business and it's none of yours," Levin said.
LaBrake, who would co-broker the deal, said he didn't know what commission he could earn.
Brokers typically earn a 10 percent fee on commercial real estate deals. Since city officials say the building could sell for about $600,000, LaBrake could make between $30,000 and $60,000, depending on whether he splits the fee with another broker.
LaBrake said there's nothing wrong with helping the city work out a deal that would help the elderly, create jobs and generate new taxes.
"Why am I the only one singled out that can't do business with the city or can't have a private life?" LaBrake said. "What have I done wrong?"
Federal prosecutors, the FBI, the Department of Veterans Affairs and the state Ethics Commission are investigating LaBrake's work as city housing chief. Authorities want to know whether LaBrake used his post to steer city business to THAP in exchange for THAP officials' doing favors for him and his fiancee.
THAP's former head, Chester Luney, told the Times he did a series of favors for LaBrake and McCarter to help the couple build a luxury house in South Tampa.
But with LaBrake's resignation, the city has moved to cut ties with THAP. The VA also froze more than $1.25-million in payments to THAP.
With THAP's finances in question, the city was forced in November to make a $17,500 interest payment on one of the 150 THAP properties bought with city-backed loans.
City officials are now negotiating the purchase of those properties. They plan to resell many of them to other nonprofits and developers. Palermo, the city attorney, said the city should close the sale on the old Ybor school site in about a week.
As for LaBrake, he blamed the city for unfairly cutting off payments to THAP -- and creating the nonprofit's financial squeeze.
"If anyone even implies that I created a mess there, that would be in error," LaBrake said.
-- Staff writer Jeff Testerman contributed to this report. David Karp is at 226-3376 or karp@sptimes.com.