Scranton City Council told a concerned resident Thursday it would look into whether a developer requesting a tax abatement for a housing project involving the Scranton Lace property owes delinquent taxes on a vacant lot downtown.
Joan Hodowanitz questioned whether the city should approve a tax abatement for the Scranton Lace project when the vacant lot at 500 Lackawanna Ave. has tax delinquencies.
The issue stems from council’s meeting Oct. 13, when council expressed support for giving a tax break on redevelopment of the former Scranton Lace property. Before that council meeting, Lace Building Affiliates LP lead developer Donald Rinaldi gave an overview of a project called Laceworks Village. The plan calls for turning the 10.3-acre site on Albright Avenue into a 192-unit residential complex, with lofts in salvageable factory buildings and new townhomes.
Mr. Rinaldi asked council for a 10-year tax abatement on new construction improvements, under the Local Economic Revitalization Tax Assistance Act.
During the past week, Ms. Hodowanitz said she learned from public records that the vacant lot at Lackawanna and South Washington avenues owned by a different firm involving Mr. Rinaldi, 500 Lackawanna Development Co., has a $5,517 city tax delinquency from 2014, and owes $4,931 in county, library and school taxes from 2015.
The Scranton Redevelopment Authority sold the lot to 500 Lackawanna Development Co. for $1 in 2008, part of a sweeping redevelopment of the 500 block of Lackawanna Avenue.
“Would you not expect that someone coming before you and asking for a LERTA tax break would have paid their taxes?” Ms. Hodowanitz asked. “I think that should be a condition of any kind of loan, grant or tax break.”
Councilman Tim Perry agreed.
“If there is a correlation (between the two matters), before we give out any type of benefit, whether it’s a grant or abatement, everything in the past needs to be caught up,” Mr. Perry said.
Council said it would contact Mr. Rinaldi. Efforts by The Times-Tribune to contact Mr. Rinaldi were unsuccessful.
In another matter, council split on authorizing the city to give a $250,000 business loan to Roll Call LLC, a firm owned by Thomas Harris that sells equipment and accessories to police, fire, emergency medical services, security personnel and sportsmen. Roll Call is moving from Duryea to 701 Hudson Ave. in West Scranton. The city loan would convert to a grant if the firm meets a condition of creating eight full-time jobs within a certain time frame.
Mr. Gaughan and Mr. Evans sought to table the resolution to get more information on the company. It is owned by the parents of a Scranton police officer, Joseph Harris, and has done limited business with the city, said Mr. Gaughan. The firm’s website lists Joseph Harris as company co-founder.
Mr. Gaughan asked if the city has a conflict of interest in loaning the money to Roll Call.
Councilman Pat Rogan said the U.S. Department of Housing and Urban Development fully vetted the loan and found “absolutely no conflict of interest.”
Mr. Gaughan and Mr. Evans said such information should have been given to council.
The motion to table died in a 2-3 vote, with Mr. Gaughan and Mr. Evans voting yes to table, and Mr. Rogan, Mr. Perry and council President Joe Wechsler voting no.
The vote to approve the resolution then passed in a 3-2 vote, with Mr. Rogan, Mr. Perry and Mr. Wechsler voting yes, and Mr. Gaughan and Mr. Evans voting no.
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