SLACO Leadership In Turmoil
St. Louis Association of Community Organizations (SLACO) has long been a hub for the city’s neighborhood associations. The nonprofit provides a central meeting point and information clearinghouse for local neighborhood leaders. It also allows city neighborhoods that may be spatially separated to build closer ties. Today, the future of the organization’s leadership is in doubt.
In a letter dated April 22nd and obtained by Mound City Messenger, Catherine Smith-Morgan, the organization’s board president, has leveled serious allegations against SLACO Executive Director Kevin McKinney. The letter accuses McKinney of numerous improprieties that include significant record-keeping failures and diverting grant monies to cover unauthorized expenses. It further indicates that procurement requirements were ignored in city-funded activities and that he approved “unreasonable and duplicative” costs. The letter goes on to say McKinney’s actions displayed “a consistent lack of transparency in the organization’s financial management. For instance, there are multiple cash withdrawals, unapproved expenses, and a failure to provide financial reports to the board that are complete and accurate. This lack of accountability undermines trust and poses a significant risk to the organization’s financial health.”
A major concern cited in the letter was McKinney’s decision to form a company named SLACO Neighborhood Development LLC. He then used this new entity to purchase real estate. According to the letter, SLACO’s board was never made aware of either the new company being incorporated or the subsequent real estate purchases. According to the letter to SLACO board members, Mr. McKinney is listed as the new corporation’s sole officer. The letter states that Mr. McKinney also purchased property without the SLACO board’s notification or approval. It further notes that loans were procured to finance the purchase of the purchased properties. City records show that these loans were made by Justine PETERSEN, another local nonprofit. Justine PETERSEN provides a variety of lending and financial services for individuals and small businesses in the region.
One of the addresses mentioned in the letter matches a SLACO social media post advertising the address for sale as part of the nonprofit’s “SLACO HOMES” program. The program appears to be a partnership with Evergreen Resimercial Realty LLC, which is a real estate company associated with Keith Antone Willis and his wife. Mr. Willis has been identified as a SLACO Project Manager in recent reporting. Signs of this partnership include posts indicating that a home at 8706 Annetta in Baden was sold by the SLACO HOMES program and a recently-debuted podcast related to Willis’ Evergreen Resimerical business list SLACO and SLACO HOMES as sponsors. City property records show that SLACO took out multiple permits for plumbing work on the Baden property in January and February of 2024. City records also indicate that the home is now owned by a private individual. Assessor data does not show a sale to SLACO or SLACO Neighborhood Development, LLC., but documents filed with the Recorder of Deeds office indicate that Mr. Jones purchased the property on March 18th, 2025. These filings also indicate that the property was sold by SLACO, not the newer LLC. Additional filings with the Recorder of Deeds office indicate that the property was deeded to SLACO by the city’s Land Reutilization Authority (LRA) in 2023.
The price paid in the most recent loan documents is close to the listed price in the advertisement shared on SLACO’s social media. This property is in addition to the two properties mentioned in the letter to SLACO neighborhood leaders. That it is not listed in the letter indicates that the board was likely aware of this rehabbing project, though not the other two.
The letter focuses on two other properties: 227 Louisa in Ferguson and 2147 Stansbury in south St. Louis. A search of county records shows the address on Louisa appears to have been purchased by the newer LLC in 2024. It then appears to have been deeded over to SLACO in August of that year. Both of these properties appear to have been purchased by the LLC with financing from Justine PETERSEN. While the Ferguson property was originally purchased by the LLC, county records show that Justine PETERSEN identified SLACO as the entity taking out the loans, even prior to the deed’s transfer to SLACO’s ownership. The fact that the loans were made to SLACO indicates that the nonprofit was intended to be the final owner, even though the LLC made the initial purchase. The letter indicates that the board was unaware of the transactions related to the home in Ferguson.
The second property mentioned in the letter is located on Stansbury in south city’s Marine Villa neighborhood. This property has not yet been advertised and still appears to be owned by the LLC. Its purchase also seems to have been financed by Justine PETERSEN. The property was acquired in late August 2024.
When contacted for comment on this story, Mr. McKinney stated that the decision to put the property ownership under the new LLC was made to avoid potential liability. “If you keep title in SLACO’s name and someone gets hurt, they could sue SLACO. You might have insurance, but it would be a claim that would drive your insurance premiums up. You put title in an LLC, and liability stays there. They can’t get to SLACO itself. It’s a way to protect SLACO,” said McKinney. He added that the properties’ acquisitions had in fact been approved by the board.
“All contracts to buy property and procure financing were approved by the SLACO Executive Team. A delay was created by the Board President and Board Secretary regarding the purchase of a piece of property on Stansbury. It cost the organization additional funding because of a delay in closing but SLACO is the owner,” continued McKinney. “Our first home sale through CDA created a developer fee for SLACO. In the nonprofit world, the sale of the home gave SLACO much-needed revenue and provided a great home for a first-time homebuyer.”
SLACO’s website notes that Ms. Morgan-Smith has 20 years of experience in accounting. SLACO is not the only nonprofit for which Ms. Smith-Morgan serves in a leadership capacity. SLACO’s website states that she also serves on the board of directors for the Restorative Justice Movement Center and the community advisory board for PreventEd. Her SLACO profile says that she is currently a Vice President and Compliance Risk Officer for Citigroup.
Mr. McKinney has served as SLACO Executive Director since 2016. He was also appointed to the commission overseeing the city’s Civil Rights Enforcement Agency by former mayor Tishaura Jones.
An attempt was made to contact both Ms. Morgan-Smith. As of publication, she has not responded to our request. The article will be updated in the event that a response is received. As indicated in the letter, the organization had a board meeting scheduled for Monday night. It is unknown what, if any, actions were taken by the board.
