A South Bend employee's firing raised concerns among Black activists. What happened?

SOUTH BEND — A city employee involved in South Bend’s efforts to support minority- and women-owned businesses has been fired, raising concerns among organizers with Black Lives Matter South Bend about how the city works with those historically disadvantaged groups.

A Dec. 8 termination letter shows the city fired Antonius Northern for his “ineffective performance” and an allegedly repeated disregard for city policies. Northern had been with the city since 2018, he said, working as an economic engagement specialist, an inclusion project manager and an assistant director of business development.

Caleb Bauer, the executive director of the Department of Community Investment, fired Northern. Bauer claims in the termination letter, which The Tribune obtained through a public records request, that Northern shared "information about pricing for City contracts with businesses that were planning to bid on those contracts."

Bauer says Northern also failed to properly develop and administer a program called the Small Business Opportunity Fund to all South Bend residents and businesses. The program was designed to direct American Rescue Plan dollars to small businesses by way of small grants and low-interest loans, Bauer told The Tribune.

In a written statement to The Tribune, Northern said he never told businesses to bid certain prices on city contracts. He said he spent months recruiting a base of potential minority contractors and helped to walk them through the bidding process.

His vision was always to build a more diverse business community with more people of color and women, he said. He said he did this mainly through the Small Business Assistance Suite, which helps owners to build budgets and provides technical help.

What happened between employee and businesses?

The accusation of sharing pricing refers to a minor project to install rubber speed humps and signage on city streets. Because the contract is worth under $50,000, Northern was engaged in informal talks with three Black business owners to help them make bids to the city's Board of Public Works last year.

Under state law, the relaxed negotiations are normal for small contracts targeting urgent issues, according to Board of Public Works attorney Michael Schmidt.

But by sharing pricing strategy, Bauer said, the city risks undermining fair competition between bidders.

“A city employee generally should not discuss pricing strategy or information about budget with someone who is actively competing for city contracts," Bauer told The Tribune on Wednesday, speaking generally.

What activists raised concerns about

Black Lives Matter South Bend hosted a press conference last week to question Northern’s termination and to criticize the slow rollout of financial support from the Opportunity Fund. The group, however, defended Northern and placed some of the blame for the delayed funding on a perceived bias against Black contractors.

Among those upset is Kat Redding, an organizer with BLM who also owns Legacy Consulting & Renovation, a small business involved in the bidding.

Redding lamented that she and two other contractors followed the city’s complicated process but still failed to win a bid. Contractors paid for necessary permits and even took part in the installation of two rubber speed humps over the summer. Redding believes they should be reimbursed for that work.

In a statement to The Tribune, Bauer said the summer installation was a voluntary training held for businesses interested in competing for city contracts. It was meant to offer hands-on experience and education on the city's work standards.

Bauer said no bidder is entitled to a city contract, no matter the cost incurred to become eligible. The Board of Public Works has sole authority to award projects, and often the firm that quotes the lowest price wins.

City's track record on minority- and women-business spending

As a Black woman, Redding also drew attention to the city's lackluster history of paying minority- and women-owned businesses.

A 2021 ordinance updated the city's Minority and Women Business Enterprise Inclusion Program, which is separate from the Opportunity Fund. The program sets a goal for the city to buy at least 6% of all its goods, services and public works from firms owned mostly by people of color or women.

The city relied on a disparity study to establish its legal basis for the program. Under federal and state law, however, the city cannot direct money from the Opportunity Fund or other funds based on race or gender or any other protected class, according to Bauer.

The city hasn't made obvious progress in the MWBE program. In 2022, minority- and women-owned firms were paid for 4.5% of the city's goods and services, according to city data. The figure in 2018 was 4.8% and, by 2021, it reportedly had fallen to 2.4%.

In his statement, Northern was apologetic toward the Black and brown residents in South Bend, who historically have faced the worst of the city's economic struggles, he said.

"Because of my inability to better work amongst my colleagues in city government to deliver for them, they (minority and women business owners) will have to endure financial hardship for a longer period of time and I do regret that," Northern wrote. "But I am thankful to them as well as my colleagues for leaning into this inclusion effort and building something transformational."

South Bend Mayor James Mueller disputed the notion, shared by Redding and Black Lives Matter organizers, that the city continuously fails to include disadvantaged businesses in its bidding processes.

"We can't guarantee a contract to any contractor," Mueller said. "What we can do is work with these folks and ensure that they have an opportunity."

Bauer said the city will host a free training for businesses Jan. 18 at the Technology Resource Center to walk them through the process of bidding on city contracts.

Email South Bend Tribune city reporter Jordan Smith at JTsmith@gannett.com. Follow him on X: @jordantsmith09

This article originally appeared on South Bend Tribune: South Bend employee who worked with Black businesses fired