Harrisburg Has Paid More Than $630K In Debt Service On $3.795M Capitol View Loan

Map of Pennsylvania highlighting Dauphin County

Map of Pennsylvania highlighting Dauphin County (Photo credit: Wikipedia)

HARRISBURG. PA – More than $630,000 in city grant funds have been diverted to repay a federal loan for the failed Capitol View project whose bankrupt developer awaits sentencing for fraud.

City officials say they’re hoping David Dodd’s sentence includes some restitution for Harrisburg, which guaranteed a $3.795 million federal loan for the project in 2006 that Dodd never repaid.

Between that, unpaid property taxes and another unpaid loan from the former Mayor’s Office of Economic Development program, Dodd’s project has become a $5 million liability for the city.

That amount doesn’t include city legal bills from engaging in his bankruptcy and fraud proceedings, or to defend the city against lawsuits from contractors never paid for their work on the $28 million project.

Read more: http://www.pennlive.com/midstate/index.ssf/2013/09/harrisburg_paid_all_630k_of_de.html#incart_m-rpt-2

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s