URGENT COMMUNITY MEETING
TRRAAC
Tuesday, October 7, 2008 at 7:00 PM
Grace Baptist Church
1899 Marietta Avenue

Dear Neighbor,

As you may know, Franklin & Marshall College, Lancaster General Hospital and Norfolk Southern plan to move a large portion of the Dillerville Rail Yard from Dillerville Road to land directly behind the Harrisburg Pike Post Office. What you may not know is that this project is NOT a “done deal,” but we must act immediately.

The project will affect us all – - Old School Lane Hills, Madison at Barrcrest, Windsor Court, Barrcrest, New School Lane Hills, Homestead Village and surrounding neighborhoods, schools, businesses and communities. Not to mention that the tranquility and programming at Long’s Park will be disrupted by on-going switching station noise. The project could begin as soon as October!!

The Railroad Action and Advisory Committee (TRRAAC) has recommended to F&M alternative sites that meet all the project goals – except providing access to pork barrel government funding. By insisting on moving the rail yard OFF THEIR CAMPUS to a long-standing residential neighborhood, (on top of a former municipal dump that contains asbestos fill), F&M is clearly putting its financial interests above our health and quality of life.

When this project begins, you can expect:

• ONE HUNDRED AND FORTY TRUCK TRIPS A DAY – - six days a week from 6:30 AM until 5:30 PM for at least eight months – - hauling tons of waste that include asbestos- containing materials that could release carcinogens into the air we breathe every day.

• ANOTHER WAVE OF TRUCKS hauling clean fill to the site over a period of many months to elevate the base for new tracks.

• A HUGE, FIFTEEN TRACK WIDE rail yard to be built on this 13-acre site.

• Once the project is completed, at least THIRTEEN TRAINS EACH DAY hauling materials that will include hazardous materials for generations.

• Potentially longer waiting time at local railroad crossings, due to longer trains.

• Noise, pollution, and much more train traffic for generations.

If you haven’t visited the existing switching station between Harrisburg Pike and Manheim Pike when trains are present, do so as soon as you can. Watch the train activity, smell the diesel and decide for yourself whether a station with more than seven times the number of existing tracks would affect your quality of life, health and property values.

We strongly encourage you to attend the Urgent Community Meeting on Tuesday, October 7, at Grace Baptist Church on Marietta Avenue to hear the facts from environmental engineer Gary Brown. And find out what you can do to help protect your neighborhood.

The rail yard relocation is not a “done deal,” BUT WE MUST ACT IMMEDIATELY. Otherwise, the rail yard will be in our back yards forever.

For more information, please visit The Railroad Action and Advisory Committee at www.trraac.com. Email us at info@trraac.com .

We look forward to seeing you on the 7th!

You stated Mayor Gray intends to introduce a lost/stolen gun ordinance.

Did you know that Mr. Gray would be in violation of state preemption
under the uniform firearms act of 1995? Maybe someone should bring that
to his attention.

18 PA.C.S. § 6120 states, “No county, municipality or township may in
any manner regulate the lawful ownership, possession, transfer or
transportation of firearms, ammunition or ammunition components when
carried or transported for purposes not prohibited by the laws of this
Commonwealth.”

This will leave the City open to lawsuits if they try to prosecute under such a proposed ordinance.

Pittsburgh Post-Gazette,Sept. 28:

“For years, promoters of the new $373 million David L. Lawrence Convention Center championed the project as the key to attracting larger shows and boosting tourism.

“But nearly five years after its full opening, the center, three times the size of its predecessor, appears to be struggling to fulfill that promise, even as its operating losses grow larger…”

“There was a Latino Fest and parade scheduled for today (Sept. 27, 2008). The Latino Fest was held at Lancaster Square; I saw three food stands, and a half dozen commercial booths. Attendance was light.

“The parade was scheduled for 1PM, and was to follow Orange St. from Broad to Queen, then pass a reviewing stand that was already set up at Lancaster Square. But it was pouring down rain between 1PM and 2PM, so I must assume the parade was canceled…

“There was NO mention whatsoever of either of these events in any of the Lancaster Newspapers over the past week. These events weren’t listed on either the Lancaster City website, or on the web site of the Mayor’s Office Of Special Events. The only listing I could find of these events is on the Downtown Investment District’s calendar:

http://www.downtownlancaster.com/events.htm

Sat, Sep 27, 08
Latino Fest & Puerto Rican Parade
8:00 a.m. Latino Fest begins and activities continue throughout the day until dark. 1:00 p.m. 29th Annual Puerto Rican Parade. The route starts at the
intersection of E. Orange and Broad and will end at Binns Park. The parade theme this year is “Together: Preserving Our Latin Culture”.
Tickets: Free of charge
Location: Downtown Lancaster/Binns Park

“Last year’s parade took nearly 45 minutes to pass by, and included numerous local officials and organizations. Both the parade and the Latino Fest were heavily attended.

“I believe it is noteworthy that Lancaster Newspapers published no notice of either the Latino Fest or the parade. On what basis did Lancaster Newspapers decide to ignore these culturally significant events?”

On September 25, the Intelligencer Journal published “Corbett talks issues at Rotary Club meeting.”

Despite past assurances from Rotary Club officials that NewsLanc would be included in invitations to the Lancaster Newspapers to cover events and despite NewsLanc’s written request, Rotary did not invite NewsLanc to cover last week’s address by Attorney General Tom Corbett.

Considering that from 4,000 to 5,000 Lancastrians read NewsLanc each week, Rotary’s action (which is in defiance of national Rotary Club policy) suggests that it has come under the sway of those who resent a popular and candid alternate press. To their credit, the local newspapers have criticized Rotary for restricting coverage.

It is a sorry sight indeed when a civic organization that is normally considered a pillar of civility and fair play is reduced to such undemocratic, small minded actions.

In a column headed “Acknowledge wrongdoing” in the Sept. 28th Sunday News, Rabbi Jack Paskoff explains that Rosh Hashana, the start of the Jewish new year, is a time when Jews “seek out the people we have wronged, ask forgiveness, and do our best to change our behavior to avoid a repeat offense.”

Later in the column he observes “These exercises sound very personal, but I want to suggest that they have a global implications as well. Can Jews forgive Germans? Can Armenians forgive Turks? Can Israelis and Palestinians forgive each other?”

Perhaps Rabbi Paskoff should have provided some local examples:

Should the Intelligencer Journal reporters and Editor Ray Shaw ask forgiveness of the public for their indiscretion in illegally accessing restricted State web sites?

Should the Lancaster Newspapers ask forgiveness for their mistreatment of former Commissioner Molly Henderson and their prejudicial coverage of the convention center project?

Should ex-convicts who violated our laws and social mores concerning sexual conduct ask the forgiveness of their victims and the public? (Many have.) And, when they do, should the public and the print media exercise forgiveness by allowing ex-cons to be assimilated into local housing without wide scale publicity so they can rebuild their lives?

If so, perhaps then those among us who have been so affronted and pained would accept the challenge of forgiveness, and community healing would take place.

As for NewsLanc.com, we know that on occasion we may err in our coverage. We welcome corrections and acknowledge them publicly. And if we wrong someone, we express our apology both privately and publicly. We have been so taught by our tradition and our rabbi.

A “Letter” of about 675 words (What happened to the 150 word target set by Editor Marv Adams?”) appeared on page one of the Perspective Section of the Sept. 28 Sunday News.

Let’s examine some of its assertions:

“We want to meet the needs of a broad public. This public ranges from downtown employees who could park in perimeter lots, school children reaching after-school activities, First Friday patrons, 15,000 residents within three blocks of the route, and many more. We are proposing about 15 boarding stations along a 2.3 mile route, with an expected ten minute interval between arrivals.”

How is this nearly as desirable as the service provided by the faux trolley buses that currently run much of that route, serve the same potential riders, and can pick up patrons at any corner?

“The path of streetcars delineated by steel rails tends to have a calming influence on rubber-tired vehicles, and traffic flows more smoothly when a city commits to solid enforcement of traffic regulations.”

Calming traffic? More likely the trolleys would slow down and often halt traffic as they pick up and drop off customers . Furthermore, they cannot drive around delivery vehicles that partially block the lane. Finally, most drivers consider their slow progress on North and South streets to be too “calming” as it is.

“This project must not be a burden on the taxpayer. We are proposing a system whose capital cost is covered largely by state and federal grants…”

From whom other than “taxpayers” do they think the state and federal governments get their money?

“Fares will be voluntary, which enhances ridership, reduces auto usage, and meets the needs of elderly people and those with infirmities.”

If voluntary fares are a good idea (and perhaps they are), why not permanently provide them for the the trolley buses?

“The project will be designed to reduce, not aggravate, traffic congestion.”

How? Do they propose to provide the streetcars with wings?

Fascinating. After no mention of the [Latino Fest]- all week, the Sunday News published an article after the fact.

It would appear that they held the parade in the pouring rain after all.

“The currently anticipated ‘hotel tax’ revenue which is dedicated to the Lancaster County Convention Center Authority would barely be enough to cover the current cost of the construction bonds, plus the ANTICIPATED operational losses of the convention center. Everyone who has taken a close look at the projected figures agrees that the
current ‘hotel tax’ will most likely not be enough to cover the ACTUAL operational losses.

“The current ‘hotel tax’ is 3.9%, plus 1.1% dedicated to the Pennsylvania Dutch Convention and Visitors Bureau, for a total of 5%. The LCCCA gets to keep 80% of the 3.9%, the rest also goes to the PDCVB. Total ‘hotel tax’ collections in 2007 were about $6.1 million, of which the LCCCA is supposed to have retained about $3.76 million (all of which went directly to Wachovia for processing), and the PDCVB got $2.34 million (note that a significant portion of the PDCVB’s budget goes toward promoting the convention center).

“Increasing the ‘hotel tax’ to the maximum allowable 5% for the convention center (plus another 2% for the PDCVB) would provide the convention center (via Wachovia) with the full $6.1 million, or $2.34 million more than current (these figures are expected to climb every year, depending on the economy of course). This should be enough to cover any actual future operational losses, with some cushion.

But given a combination of negative events (increasing interest rates, the potential need for additional borrowing to complete project construction), additional funding could very well be required well into the future.

“The LCCCA is a joint authority of Lancaster City and Lancaster County, with no taxing powers of its own. But since Lancaster City is also responsible for guaranteeing the hotel, it is most likely that Lancaster County will be held fully responsible for the convention center.

“The Redevelopment Authority of the City of Lancaster (RACL) is building the hotel, and will own it for at least 20 years; this is so the Penn Square Partners can get out of paying their real estate obligations, primarily to the School District of Lancaster. Over half of the expected $75 million cost of building the hotel is from State grants, assuming all of the money actually comes through. Part of this is the $14,513,726 construction mortgage held by Fulton Bank, which is to be repaid by $1million a year in State ‘Act 23′ grants over 20 years.

These grants are supposed to be dependent upon future State sales and income tax revenues from the project;
if this falls below the anticipated $1 million a year, Lancaster City will be forced to pay the difference. Lancaster City taxpayers will also be forced to pay the School District of Lancaster its full amount of real estate taxes on the hotel IF the building is ruled to be taxable once it opens.

“There is also the $24 million which the Penn Square Partners are committed to pay toward the construction of the hotel. Currently, PSP has taken out a $5 million construction loan, for which they are held liable; if the PSP defaults, the lender (I think it’s Wachovia, but I’m not sure) will be able to take possession of the hotel.

The big question is if the PSP will be able to convert this contruction loan into a mortgage. If the PSP is successful, there is supposedly no risk to Lancaster City; the agreement between RACL and PSP specificies that the lender will indemnify taxpayers. However, if the PSP is unable to take out a long-term mortgage for the
balance of the $24 million, RACL will continue to hold title to the building (as it does now), and could be held responsible. Since RACL has no taxing authority of its own, Lancaster City taxpayers will be on the hook.

“There is one more VERY big ‘if’:

“No one has mentioned what would happen if the hotel consistently loses
money.”

In reply to the NewsLanc article: Viewer asks would Wachovia’s demise halt Convention Center funding?

If Wachovia were to be taken over by another bank, it could cost the people of Lancaster County a LOT of money.

It is likely that any successor to Wachovia would terminate the LCCCA’s interest rate “swap” agreement, which could result in a hefty fee for the LCCCA, and exposure to undesirable market conditions. In addition, the agreement between Wachovia and the LCCCA has provisions to convert the “seven-day demand notes” into conventional bonds, which any successor bank is likely to take advantage of, since the current bonds are so undesirable in today’s market.

Conventional bonds taken out today would most likely carry a much higher interest rate, which would greatly increase the bonds’ draw on the “hotel tax” – leaving even less money available to cover operational losses. And any successor to Wachovia is highly unlikely to renew its five year guarantee of the LCCCA construction bonds, which would result in yet another rate increase.

If Wachovia were to cease to exist in its current form, Lancaster County real estate tax increases are certain to follow. This is because the “hotel tax” would be unable to cover the convention center’s operational losses plus increased interest rates, even if the “hotel tax” were to be increased by the County Commissioners to the highest rate allowed by State law.

Editor’s response: Unless there were an economic benefit for Wachovia or its successor as guarantor of the bonds to alter the bond’s status as ‘low floaters’ to conventional, we see no reason why they would want to increase the Convention Center’s expenses, and thus further reduce the value of the bank’s collateral.