Scranton City Council OKs Revised Recovery Plan

Scranton City Council on Thursday passed the first of three votes needed to adopt a revised Act 47 recovery plan.

Council voted 4-0, with President Bob McGoff and Councilmen Joe Wechsler, Wayne Evans and Bill Gaughan all in favor, to introduce an ordinance to adopt the recovery plan crafted by the city’s Act 47 recovery coordinator, Pennsylvania Economy League.

Councilman Pat Rogan was absent.

Before the meeting, council held a caucus with PEL officials Gerald Cross and Joseph Boyle, city Business Administrator David Bulzoni, and Jim Rose of the state Department of Community and Economic Development, which oversees PEL.

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http://thetimes-tribune.com/news/scranton-council-oks-revised-recovery-plan-1.1844068

Scranton Councilman Worries New Union Contract Ties Hands In Exiting Act 47

Scranton could have a difficult time shedding its distressed city status because of the pay raises and other perks in the revised police contract, a city councilman warned.

The city has until 2020 to successfully exit the state’s Act 47 financially distressed municipalities program. The new seven-year police contract approved by a split city council Thursday and signed by Mayor Bill Courtright Friday will hinder the city because the contract locks in pay raises and benefits beyond 2020, said Councilman Bill Gaughan.

He questioned whether the contract extension would “tie the city’s hands” by eliminating the possibility of negotiating in 2017 savings in a new police contract, while at the same time locking in raises and benefits a year beyond the Act 47 deadline of 2020.

Mr. Courtright disagreed that the contract extension will make it more difficult for the city to successfully exit Act 47.

Read more: http://thetimes-tribune.com/news/city-councilman-worries-new-union-contract-ties-hands-in-exiting-act-47-1.1825840

Boscov ‘Donates’ $700,000 To Scranton To Make Good On Mall Loan

Al Boscov gave Scranton Mayor Bill Courtright a check today for $715,173, to make good on a loan the city had given years ago to The Mall at Steamtown that went unpaid.

Calling the check a “donation” from Boscov’s Department Stores to the city, Mr. Boscov said he felt obligated to pay the loan back even though neither he nor his company is legally on the hook to do so.

The donation check is intended to replace a $612,480 loan that the city gave to the former mall owner in 2001 from federal funds that the city receives, as well as $102,693 in interest.

Read more: http://thetimes-tribune.com/news/boscov-donates-700-000-to-scranton-to-make-good-on-mall-loan-1.1795802