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.