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By Nancy Cambria
ST. LOUIS POST-DISPATCH
02/15/2006

O'FALLON

The arrest of five workers on immigration charges on their way to an area construction project is the evidence watchdogs say they need to prove that poor labor practices are taking place at the site.

O'Fallon police said they discovered the workers inside a passenger van in a routine speeding stop Friday morning. An investigation revealed that the driver and the passengers were living in the country illegally, police said.

The group was on its way to work at the O'Fallon Lakes apartment complex, a housing project for lower-income people off Veterans Memorial Highway, the police report said.

The men were taken into custody by the federal Immigration and Customs Enforcement office, said Carl Rusnok, an agency spokesman. Four of the men had prior immigration violations, and the fifth had a criminal record, which means each is subject to deportation hearings, he said.

O'Fallon City Administrator Robert Lowery said the arrests provided the government with proof that illegal immigrants were working at the site and opened the door for a needed investigation.

"The reason (the government) was doing the cold shoulder and didn't want to come here was because we didn't have any kind of proof," Lowery said.

When such arrests are made, Rusnok said it was customary for his agency to investigate the employer and the circumstances surrounding the employment to determine whether illegal immigrants were knowingly hired. Rusnok said he could not name the employer or comment specifically on investigations. One of the men arrested told police they were working for a contractor based out of Texas.

The project, originally introduced to O'Fallon aldermen by the Gundaker Commercial Group last year, is being primarily developed through Related Capital of New York and constructed through NRP Contractors, a Cleveland-based developer that routinely subcontracts with out-of-state contractors. It is backed by $14.6 million in tax-exempt bonds issued by the Industrial Development Authority of St. Charles County in August 2004.

Gundaker Commercial Group could not be reached for comment.

Rick Bailey, a principal with NRP, said the company was unaware of the arrests or of any illegal worker activity on the site. He said NRP was not liable for the practices of its subcontractors.

For members of several local trade unions, including carpenters, bricklayers and electricians, the incident is proof that the developers have been using illegal labor. Representatives from several unions have repeatedly staged protest rallies at the construction site over the past two months.

Tom Heinsz, Carpenters' District Council Director of Organizing, said most out-of-state contractors failed to pay a prevailing wage - an industry wage standard set by the average professional rate in a particular area. The local carpenter's union, which pays an average prevailing wage of $26 an hour, was underbid by Texas firm Duo-Mark Construction by more than $1 million.

The situation has also prompted action by elected officials. Last month, O'Fallon Alderman Bob Patek successfully introduced an ordinance requiring contractors and subcontractors receiving any public money to supply workers compensation, pay a prevailing wage and verify U.S. citizenship or lawful status of all workers.

"Everybody needs affordable housing, but this isn't the way to do it," Patek said.

The St. Charles County Council is also grappling with the issue. It is currently withholding its $56,700 subsidy to the Economic Development Center of St. Charles County, which runs the authority. It is thinking of ways to ensure that the Industrial Development Authority levels the playing field between local and out-of-state companies. In addition to O'Fallon Lakes, the authority also issued $12.9 million in bonds for a similar housing project in Wentzville called Peine Lakes.

Reporter Mark Schlinkmann contributed to this report.