This post has been a long time coming.
In 2006 & 2007, the Susquehanna County Railroad Authority had a $2.5 million grant release from a $4 million capital budget item which the members had worked with (retired) Senator Madigan to achieve. The overview of the project was initially twofold.
First, the Authority was to work with Canadian Pacific Railway to create a 10,000 foot passing siding North of New Milford. The purpose of a passing siding is to allow two trains travelling in opposite or even the same direction to go past each other.
Along with increasing the flow of rail traffic, removing a few trucks from the road, saving fuel, man hours, among other things, this would also allow for the second item to occur. For those who live or travel along US 11 or I-81 in that part of the county, you know this has occurred and this new infrastructure is being used several times per day.
The second item was the construction of a small transload facility in roughly the same general area as the passing siding. This did not happen as most know.
The purpose of a transload facility is to transfer commodities from rail to truck for local delivery and from truck to rail to ship products out. Some examples of this are bluestone, timber, finished concrete products - OUT; and fertilizer, feed, aggregate, cement, propane, and general merchandise - IN.
Additionally, storage, both covered and open could have been constructed, so that there could be warehouse space available.
Finally, although never envisioned until much later, a transload facility could also be used to transport items for natural gas well drilling in along with shipping “fracing” water in and waste water out, thus removing more trucks from our fragile, outdated roadways (including our interstate highway system).
Again, none of that happened. The obvious question is Why?
A bit more background. The Authority was represented by counsel, at the direction of the Bureau of Rail Freight. This counsel, Patrick Lavelle, Esq., a very well regarded attorney from Clarks Summit worked with the owners of the land to structure an acceptable offer as well as interfaced with the Professional Engineer and the Commonwealth to make this all happen. All that remained at the time was to go to a local bank, borrow the match money and get started. Sounds easy, right? Not so fast. There is a bit more.
At a special meeting in December, 2006, the members of the Authority, along two of the three Commissioners went on record as supporting this plan wholeheartedly. The third commissioner, who was not present at that meeting, was previously on record as supporting the project. This is really on the fast track (pardon the pun) now, right? Not so fast.
You will note that nothing has been said to this point about the Central Bradford Progress Authority, the Economic Development arm of Susquehanna County. That is because, although they had met with members of the Authority several times, they were playing their own games, such as attempting to grab portions of the land for the transload facility out from under the Authority.
After the December, 2006 special meeting, the members approached a local bank to obtain the local match money to get the project started.. They were extremely supportive, but soon after (early January, 2007) sent correspondence stating they would require a county guarantee of the loan. This, by the way, is typical for startup Authorities, especially for their first project.
This all came to a head in early 2007 at a meeting of the Commissioners, the Authority and the Central Bradford Progress Authority. At that meeting, several things came out. First, it was apparent there would be no support from two of the Commissioners (the same two who supported the project in the December, 2006 meeting). Second, the Executive Director from Central Bradford Progress Authority let it slip that he had been told NOT to work with the Authority. When pressed by the Authority Chairman, the man from Central Bradford Progress Authority refused to indicate who told him so.
After that, it was all down hill. In April, the Commissioners attempted to get the Chairman of the Authority removed. There was a vote of confidence brought on by an Authority member at the succeding meeting, with Attorney Lavelle present. The Chairman remained as the vote was 4 - 2. The members went to several other banks, all who were supportive of the project, but all wanting a guarantee from the Commissioners. During this time, the Central Bradford Progress Authority didn’t respond to verbal or written correspondence from the Authority OR at least one Commssioner, requesting assistance.
The time was growing short for the project to be completed (or at least started). Nothing was happening. The Bureau of Rail Freight, split the two part project, allowing Canadian Pacific Railway to use other grant money and their own match to construct the passing siding. As mentioned previously, this was completed and is being used today.
Time ran out for the transload facility project and Rail Freight allocated the funds to other projects in the commonwealth.
A second confidence vote was brought about by the same member as done previously. The result was the same. The Chairman of the Authority remained. The (at the time) Commissioners had indicated they would not consider any guarantee with out the removal of the Chairman. The Authority members saw through the Commissioners, noting that they were only trying to save their own skins so they could be re-elected.
In the end, two of the three Commissioners were NOT re-elected. The Chairman, whose term expired at the end of the year was not reappointed, but also was not replaced until the April, 2008 meeting.
So, that brings us to the current Commissioners and what they are doing to support the Susquehanna County RailRoad Authority. Two words - ABSOLUTELY NOTHING.
It has been reported that the Authority has a total of $50.38. Absolutely no funding has been allocated to the fund the continuing operations of the Authority.
The acting Chairman, in November, 2008 wrote a letter to the (current) Commissioners requesting help with an audit, which is required by the Commonwealth on an annual basis. The letter also noted an outstanding invoice from Attorney Lavelle. Of course the Authority has no funding to pay a CPA (required by the Commonwealth) and certainly not Attorney Lavelle’s bill. In the past, a previous member had personally paid for the audit. The counsel fees were incurred, as stated above, through direction of the Bureau of Rail Freight.
The response came about a month later, signed by all three Comissioners, MaryAnn Warren (D), Chairman, Leon Allen (D), Vice-Chair, and Michael Giangrieco, Esq. (R). Paraphrasing here, the letter stated that while they understood the situation, but they were not going to do anything about it - and further - they stated that thought should have been given to how the debts were to be paid before they were incurred.
This is economic development in Susquehanna County? Give me a break. So, apparently it doesn’t matter who the Chairman of the Authority is, each is to treated with contempt. Obviously, the long range plan is NOT to have any meaningful economic development in Susquehanna County.
This writer believed that anyone would have been better than the last set (Roberta Kelly, MaryAnn Warren and Jeff Loomis) of Commissioners.
After the lack of respect shown to constituents at the Commissioner meetings, their inaccesability, their arrogance and superior attitudes this writer has to admit, he was wrong!
Finally, please make no mistake about these comments. This is not limited to the actions toward the Railroad Authority.
Please also consider the fact that no minutes are kept on Public Comment at Commissioner meetings. Why?
Please further consider the lousy treatment offered to the innkeepers throughout the County who requested the room taxes collected to be used to further tourism.
It is incumbent on all who live in Susquehanna County to ask our elected officials to explain their actions. Are they really representing us or are they only being self serving?
Your thoughts.
I can’t believe no one has begun a conversation on all this.So here goes–If this attorney was engaged at the request of the funding agency, why didn’t they fund his fees?And if it did not have to be this particular attorney, why not use the county solicitor?If the current Commissioners are not working with this authority,Why? Didn’t this crew appoint 2-3 of these members? This audit you speak of, why does a CPA need to do it? I was under the impression a CPA was only reqiured if grant funds had been involved? Did the original committee (Authority or County) get grant funds ,spend all the funds, and now needs an audit - after not reserving the funds to now do the required audit?This group of Commissioners was elected on the premise of working together.Remember all the ads at election time about lack of civility and direction from the last group and how change was needed.I agree that civility has reappeared.How difficult can it be in a nine minute meeting?But where is the direction? What is the agenda for the Warren administration?I believe that all these areas you discuss are from a real lack of vision, a plan of where the county is going and how to get there.Even when they do something different, like the tourism board funding, they do not reveal the plan of why they do what they do.If the reasons for some of these actions are part of a bigger plan and that plan is public then the difference will be in opinions, not being skeptical of motives.One year plus has passed with this administration, should we start looking now for the next group or is there still hope?
Let me clear up some of the questions suscoresident has posed above.
First, the Authrority had named Patrick Lavelle attorney of record. Attorney Lavelle had only done work on this project. All previous work was done by the members at their own expense. The Commonwealth needed to have the Authority use an attorney. They didn’t care which one.
Regarding using the County Solicitor - with all due respect, that is a bad joke. If you remember, for the first half (at least) of the Kelly administration, the solicitor was Michael Giangrieco. If you go back and look at the earlier posts on this blog, you will find a letter he wrote as solicitor (during the Smith, Marcho & Dean) administration denouncing the possibility of even having an Authority. If you can’t find it, I will repost it here. After Giangrieco, Raymond Davis didn’t do much other than sort of keep things together until the end of the Kelly Administration.
It is my understanding that the current solicitor, Michael Gathany, does’t make a move unless the current commissioners tell him to.
You will also note that none of the three administrations the Authority has existed under have EVER offered any financial assistance (for ongoing expenses). There is one exception to that statement. Immediately after the Authority was formed, $1,000 was given to pay for the corporation kit and initial expenses.
Regarding the Audit - Although there is no outstanding grant money, the Commonwealth still requires an audit by a CPA. Regarding reserving money to do the audit, the Commonwealth required ALL outstanding money be returned at the end of the time frame for the grant. Further, it is my understanding that this type of an audit is required annually whether or not grant funds are involved. Generally, the Commonwealth thinks that the county would provide basic life support to any Authority located in their county (but not here). They do, however support the Housing and Redevelopment Authority. I guess the Railroad Authority is the ugly red headed unwanted stepchild. Sort of a sad way to treat an agency who was able to secure a $4 million grant. Don’t know for sure, but I would bet it is one of the largest grants ever awarded in Susquehanna County.
By the way, the original members worked with Senator Madgian’s office to get a “startup” grant of $15,000. The Authority didn’t spend more than a few thousand dollars, including Directors and Officers insurance. Actually, the membership wanted to keep as much available as possible as they wanted to have sufficient cash available to keep operations going during the initial phase of the transload facility. They were able to do this as the membership donated both equipment and money to the Authority.
A second grant of $25,000 was given as a preliminary engineering grant. About $19,000 was spent with the professional engineer. The remainder was returned to the Commonwealth.
The discusion you raise, regarding civility v. direction is a valid point. Again, how will any of us really know what or if there is a direction, as long as these nine minute meetings continue.
Regarding “is there still hope?” How could there be a lot of hope, given this information and your own observations. I only hope the NEXT group actually are there for the good of the county, not just there because they need a job or want to fulfill some ego based need.
Actually, this is a really good time to get the short list of Comissioner candidates together for the next election so they can be properly vetted. The people of Susquehanna County deserve better than what they have now.
The extent of the county’s/commissioners’ true interest in actually improving our local economy can be seen in their support of the Central Bradford Progress Authority. The CBPA is good at words, both spoken and written. But action is something else. It seems as though CPBA is interested in the glitsy, but don’t know how to deal with the common folks of the county. No economic progress will happen if the everyday people are forgotten.
Yes, the CBPA has contacts, and can smooze with many high sounding agencies. But they need to get out into the county with real people.
And, is there any more ineffectual group of people than the county’s own Economic and Development people? They need more everyday people to balance out the group. Time for new blood! These economic times demands input from people with a wide range of job and business knowledge.
Rotary, I agree with you.We elected new Commissioners to do new things.The Kelly administration released one of the best things for the county in the person of Justin Taylor.If you remember he did just what you are saying.The current group talked alot of change, but every time they have an opportunity to exemplify what they promoted they repeat the mistakes of the past.Appointments to boards like the one you highlight is such an example.Common sense dictates that if something is not working– do something else.We can only ask these elected officials to try.Doing the same thing with the same crew is not trying, it is foolish and useless.