At last month’s organizing meeting of the School Lane Hills Neighborhood Association, a lanky, bearded and socially uncomfortable old man stood up and suggested that dues be set higher so that the organization could be represented by an attorney in discussions with John Fry over F&M’s desire to move the Norfolk – Southern freight yards to the fringes of their community. In response, the meeting’s organizer explained that the best way to deal with Fry was by being unthreatening. Hmm.

Now that same old codger has a proposal to seize the moment and hold Fry to his word that under no circumstance would F&M be party to Baker Field being connected to Wilson Drive. (Words, words, words…)

Wilson Drive ends with a stub connecting Clayton Road with Baker Field. From all appearances, the stub is a dedicated road which is clear testimony that the plan approved some decades ago by Manheim Township intended Wilson Drive to ultimately serve the development of Baker Field, and perhaps continue through to Harrisburg Pike. Of course, this would be ruinous for the livability and the property value of the SLH community where people and children stroll, run and play safely in the streets.

At this moment when nerves are raw over the ram-rodding of the freight yard location, it is time to ask F&M to make good on its promises by encouraging Manheim Township to legally ‘abandon’ the Wilson Drive stub so that that ownership of half of the right-of-way and roadway reverts to each home owner.

The abandonment of these “stubs” would alter the presumption that Wilson is to be continued to Baker’s Field to a new reality that it is not to do so. Future developers and Manheim officials could no longer claim this is what was always intended.

So once again the old fellow has made a suggestion. And this time the Association’s leader who encouraged ‘making nice’ to Fry says he is willing to go along with the suggestion. So now is the moment for SLH residents to get behind this, encourage the relevant home owners to make the request, and, if necessary, provide funds to pay a lawyer to get the work done before the end of the year.

Oh, who will plow the snow on the stub? Theoretically, no longer Manheim Township. But if Fry has security guards to send into School Lane Hills to mug the media, he probably can also send a plow truck.

Last night the attendance at the Convention Center Authority board meeting was scant. As I sat there and listened to ALL the change orders, the quote “It is what it is” kept running through my mind. Looking up at the board, I humbly respect all the time and effort put forth on behalf of our County and again thank heavens for Douglas, Campbell, Nelson, Dixon and Morris. Fry is never there, how many meetings can a board member miss?

The remaining member, Mr. Darcus was chairman of the board whose City appointed majority members who accepted the line , “If the attorneys approve of these agreements, we do not need to read them.” Remember?

I had the pleasure of meeting the new Executive Director, Kevin Molloy… very enthusiastic and he knows the industry. Too bad he wasn’t known years ago but, then again, I doubt he would have been hired to be the ‘yes man’ that Stevens and Lee needed.

Hopefully all the knowledge and skills that now hold this board together will bring this project to reality and be a success.

Finally, I have to go back to the money situation. ALL financial institutions and investment companies are CASH POOR right now, my friends. We may have to pay dearly for gambling for a higher rate of interest. I am afraid this situation is not going to get better soon.

In times like this Cash is King and this firm with whom Authority money has been invested is Cash poor according to my financial information. We may have a huge White Elephant if we do not get OUR money back.

Mr. Beckett was smiling, was it because he has been paid? I was not smiling when I heard the news last night

If the lights go out on the corner of King and Queen for lack of funds, the Crap Shooters should be listed on the front page of the Lancaster Post for the next 8 issues!!!!!!!!! I can see it now, all the Post boxes glued, stolen and Chris and Ron kidnapped, later found safe and sound on Figi, not knowing how they got there like Mr. T, (Remember him?), and PSP changing their addresses to DUBAI with not a word about this printed in the LNP.

The 500,000 residents less the above citizens will just go about their business paying higher County taxes. Lurking in the background will be another admirable County leader waiting for his or her turn to be creative with supposedly free money.

Editor’s note: Do we laugh or cry?

The U.S. Conference of Mayors, which makes policy recommendations addressing the concerns of the nation’s cities, just unanimously adopted a resolution in support of comprehensive overdose prevention policies such as 911 Good Samaritan laws. Good Samaritan laws encourage people who witness an overdose to call 911 by providing limited immunity from drug possession charges. This and other measures endorsed in the resolution could save thousands of lives.

The implications of their recommendation especially have meaning to families who have lost youngsters or loved ones from overdoses because the victim’s companions tragically delayed seeking medical aid for fear of being prosecuted for using illegal drugs.

It is important that there be an understanding between hospitals and police that such calls will be kept confidential and that the police will not seek to discover the identitiestities of the “Good Samaritans” who called the hospital or 911 for help.

When the Lancaster County Convention Center Authority sold $25 million in construction bonds, it invested that money with a public bond insurer.

“With an amount that large, you don’t simply have it sitting around in the bank,” Finance Committee Chair Laura Douglas said.

The Authority’s funds are invested with a financial management group called MBIA.

On June 19, however, the Moody Investor’s Service downgraded MBIA’s “insurance financial strength rating from Aaa to A2 on its Asset/Liability Management Business (ALM).”

Under the terms of an agreement between LCCCA and MBIA, the latter has until July 7th to collateralize on the Authority’s investment, or the Authority will withdraw its funds.

The Authority passed a resolution at their full board meeting, Thursday night, permitting their Executive Director, Kevin Molloy, to do just that – to withdraw the Authority’s funds from MBIA, Inc. if it does not collateralize on the funds by July 7.

In a Press Release dated June 20, MBIA, Inc. assures its investors that it has the resources to protect their investments.

MBIA, Inc. (NYSE: MBI) closed Thursday at $4.39, down from a 52-week high of $68.98 in October 2007.

The Pa League of Cities is one of the groups touted from the beginning in the pitching of the project)…

If, at 500 attendees, it is the largest group: that is truly disaster. The Convention Center can take 2,000 at a gathering. If all the other booked events are smaller, then there is still no evidence to justify the construction of such a large venue.

Rick Gray is very influential in the PA League of Cities. It was announced in the newspaper last year that Gray was working to get their convention in Lancaster for 2009. (Editor’s note: The date has indeed been booked.)

LCCCA Executive director Kevin Molloy said he expects that it will be 10 to 15 years before the PA League of Cities would return to Lancaster. Chairman [and former Lancaster mayor] Art Morris stated he, as past president of the League, believes they will return in five.

The newspaper article noted the PA League of Cities convention will require 200 hotel rooms. Since the Penn Square Partner’s Marriott Hotel will have 300 rooms, this means there will be no overflow rooms needed.

At a recent Convention Center Authority committee meeting, Josh Nowak of Interstate Hotels admitted there are no events yet booked that will require any lodging beyond the Marriott. So much for the many repeated promises (lies) made to Lancaster taxpayers [and to the hoteliers throughout the County when the hotel room tax was enacted].

The LCCCA construction bond revenue balance was reported tonight to be $25 million. I suspect this is because hard construction expenditures totaled nearly $6 million this month.

The Moody’s rating of MBIA was reported to be A2. I had quoted from a Reuters news article.

The interest rate being received from MBIA was reported to be 5.3%. If the remaining funds are cashed out, they will be deposited in a money market account, at a little more than 2% return.

If MBIA does not collateralize the LCCCA’s account, the LCCCA would need to ask for a refund from MBIA; it would not be automatic. The refund would include accrued interest, with no penalty. The LCCCA is under no obligation to claim its cash, but their intention is to do so.

The Guaranteed Interest Contract was reported to expire on October 1, 2008.

I may have missed a few other details, I had to briefly leave the meeting at an inopportune time. My apologies

* The editor acknowledges at this point the subject matter is over his head. The source is credible but not expert, and is not necessarily correct in this instance. Comments by others are most welcome.

When Wachovia Bank sold the $64 million in convention center construction bonds, the proceeds were transferred to M&T Bank for investment. Under the terms of the investment contract, the account holding these funds must have been put out for bid. One of the few methods allowable under the bond agreements is known as a “Guaranteed Investment Contract”, where a financial company will invest these funds for the maximum rate of return. Only companies with AAA ratings were considered.

The winner of the bidding process was MBIA, a diversified insurance company that has several divisions, including one that specializes in municipal accounts. Their contract provides the LCCCA with somewhere around 5 1/4% interest on the remaining balance in their construction account, which is currently around $30 million.

One of the terms of this agreement is that if the rating of the company falls two full steps, from AAA to AA, the investment company has 15 days to either refund the LCCCA’s cash balance, or “capitalize” the remaining balance by holding enough cash on hand to cover the LCCCA’s account balance.

On Friday, June 20th, 2008, Standard and Poor’s lowered MBIA’s ratings to “AA”. The same day, Moody’s lowered MBIA’s ratings to “Baa2″, the second lowest investment grade. Fitch initially lowered its rating to “AA”; but after MBIA stopped providing financial information, Fitch today (June 26) ceased rating the company. These actions last Friday immediately triggered the capitalization provision of the Guaranteed Investment Contract; MBIA has until Monday, July 7 to either set aside enough cash to back up the LCCCA’s investment, or refund the LCCCA’s balance in cash.

In the extremely unlikely event that MBIA would declare bankruptcy before the company fulfills its contractural obligations to the LCCCA, nearly half of the convention center’s construction funds would immediately become unavailable. If this were to happen (there is a very low probability that it would), whether the LCCCA’s funds would ever be returned would depend on the courts. Without the ability to access its funds, the LCCCA would be unable to pay its bills, and construction of the convention center would quickly come to a halt – indefinitely.

MBIA closed today (June 26) at $4.39, down from a 52-week high of $68.98.

Editor’s note: Wachovia Bank has guaranteed the bond funds. It would seem likely that no matter what arrangement Wachovia may have subsequently entered into with others, Wachovia would remain obligated to the Convention Center Authority and Penn Square Partners to fund construction draw requests. Meanwhile, the Authority awaits passage of the State budget so that it can draw down promised State funds.

At the meeting on Thursday evening of the Lancaster County Convention Center Authority, in response to an inquiry from NewsLanc, Chairman Art Morris stated that there were no obstacles to routinely drawing down funds under the construction financing. Similarly he continued there are no problems in routinely drawing down $15 million in previously approved State funds.

Morris said the only funding not yet available is the additional request for $3.2 million which is part of the proposed new state budget. The money is needed to cover existing cost overruns.

Dental

Emergency Shelter Bed

Normal Residence Quarters

The Building

Training

Food