Some of your know this, but given the issues of the moment, it may be worth a review. See four part summary from our archives below. Jim Foster The story unfolding regarding Congressman Chaka Fattah is built around how federal funds through a front non-profit were purposefully misused and the allegations are that Fattah and other high placed individuals conspired to get it done. Our newspaper published this four part installment outlining our belief that those tactics had been standard practice within the structure of a monopoly of non-profits and for profits known as Germantown Settlement, a former Quaker social service agency. Run by Emanuel Freeman, with day-to-day assistance from Councilwoman Donna Reed Miller, City RDA Chief Herb Wetzel, and a host of other elected and appointed city officials, they were the recipients of untold millions in federal and state tax dollars, as well as private charity contributions. We contend that none of this was possible without the direct approval from the U.S. Congressman who lived nearby to this Germantown section of Philadelphia - - Chaka Fattah. For those of us who watched a powerful publically-funded monopoly take over and destroy the quality of life of one of the oldest communities in the United States, the misuse of hundreds of millions in public funds through non-profits is old news. Two investigations were mysteriously buried and the only in-depth overview other than our own was printed in Philadelphia Magazine in October 2010 entitled: “The Man Who Duped City Hall”. Jim Foster Germantown Newspapers The Independent Voice Newspaper and WURD Radio 6661 Germantown Ave Phlladelphia Pa 19119 The Settlement Saga, Part 1 Below Part 2: germantownnewspapers/Settlement_Saga_Part_2.html Part 3: germantownnewspapers/Settlement_Saga_Part_3.html Part 4:germantownnewspapers/Settlement_Saga_Part_4.html The Settlement Saga The Settlement Saga, Part 1 October 14, 2010 Founded in 1683, Germantown Pennsylvania is still celebrated as the first recognized colony of German immigrants in America. Its forward-thinking characteristics were amplified by the first known anti-slavery petition in 1688, actually pre-dating the community’s Charter in 1689. This community was on the leading edge of development in many ways. In 1884 a number of Germantown Quaker women formed Germantown Settlement as a human services organization that provided day care, education and social services to arriving immigrants. Expanded development during the 20th century included neighborhood councils, housing projects, job assistance and related assistance projects, still under Quaker leadership and direction. According to the recollections of local residents, Settlement leadership changed in the mid-1970s when Emanuel Freeman and a few other local activists assumed controlling authority and the organization then became a tax-exempt corporation with non-profit status as a 50l(c)3 organization. During the years that followed, multiple affiliated corporations, with the same or similar leadership, morphed Settlement into a massive real estate development enterprise that eventually became one of the largest Community Development Corporations (CDC) in this city. Social services took a distant place to property acquisition, with enormous financial assistance from private grants and city, state and federal agencies, all shepherded along by close affiliations with elected political leadership. To quote from published documents issued by their 1977-created real estate development arm, The Greater Germantown Housing Development Corporation (GGHDC): “We work closely with various government agencies including our City Council Person as well as the local brokerage community to keep informed of the real estate market…” “In addition GGHDC works closely with the Redevelopment Authority to assist us with obtaining site control. We have successfully used such City programs as the donor taker program, condemnation and real estate tax foreclosure.” Herb Wetzel , who chaired the Philadelphia Redevelopment Authority for many years is reported to have authorized and channeled many properties for $1 or less to Settlement related entities, and he himself appears in state records as the treasurer of Germantown Settlement, GGHDC Management Group, Freedom Square, Hamill Mill Corporation, and Lower Germantown Development Inc., all affiliates in project development by Settlement over the years. The relationships of these closely-controlled corporations appear at times as vague or convoluted, with one corporation appearing as a for-profit with an almost identical name as one that is a non-profit. An example is the Germantown Settlement Construction Company, listed as a for-profit with Sterling Flowers Esq. as its only officer. Also active in designating and providing financing for Settlement-based and Settlement-affiliated projects were Donna Reed Miller, 8th District Council Representative; Allyson Schwartz, former State Senator; John Myers, State Representative; Dwight Evans, Chair, State Appropriations Committee; LeAnna Washington, State Senator and Mayor Ed Rendell. The expansion of the real estate and service provider empire of Settlement cannot be understated. By the end of the 1990s no less than 30 Pennsylvania corporations, most with one of the same two addresses in Germantown, appeared with Emanuel Freeman as a controlling officer, with 17 of them indicating him as president. In addition a charter school and multiple social service and education and training-based entities were designated to Settlement to operate with funding streams through the city both through one-time grants and continuous subsidies. A close and ongoing relationship with the community organization Wister Neighborhood Council was also established. As of late 2002 an internal GGHDC document indicated that this one non-profit alone owned or was controlling the development of 24 Germantown projects with a total value of approximately $100 million dollars, with financing running the gamut from RDA grants, HUD mortgages, OHCD grants, PIDC mortgages, tax exempt bonds, private mortgages and foundation funding. This total was exclusive of projects run by Settlement itself or any of the other entitles it controlled through stock ownership, officer affiliation or management agreements. It was abundantly clear by this time that Germantown Settlement was declared the exclusive developer of any project of any size that might take place in the Germantown area. Many of these projects were RDA-initiated. This process continued up through 2006 when the city financed Settlement’s purchase (through the RDA) of the former Germantown Woman’s Y facility for $1.2 million. Political relationships at the highest level were amplified in 2007 when U.S.Congressmen Chaka Fattah announced a $6 million First Home Buyers program with Emanuel Freeman at the offices of Germantown Settlement. Although no comprehensive audit has ever been performed in the 28-year existence of Settlement in its present configuration, records seem to indicate that federal funds were the most-utilized source, followed by state, city and private grants. It has been estimated that hundreds of millions of dollars has been channeled through these corporate enterprises. Although positive news stories about Settlement and Emanuel Freeman appeared in the 1990s, the court records of Philadelphia began to tell a different story even as early as the late 1980s-early 1990s, when projects slowed and financial judgments began to appear in substantial numbers from private parties, utility companies, the Commonwealth of Pennsylvania and the Internal Revenue Service. Despite the fact that on the one hand, governmental agencies and others were filing multiple court actions and wining judgments in the millions of dollars, other arms of the same governmental agencies were continuing to fund new projects in even greater amounts. The mystery regarding how taxpayer funds would not only continue to be channeled to Settlement but expand, when audits, reports and related documentation were missing for many years, is yet to be fully understood. James Foster Publisher
Posted on: Sat, 30 Aug 2014 17:52:36 +0000
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