The $15 million proposed South Square project just received a $500,000 show of support from the City of Lancaster. Counting an additional $200,000 in “home improvement” funds, City financing would account for about 5% of the total project cost, economic development director Randy Patterson said at the February 23 city council meeting.

Council members voted unanimously to apply for a $500,000 grant with the state department of community and economic development on behalf of the project. Patterson said that the grant funds would be provided by the City as a loan to the project developer, the nonprofit Housing Development Corporation (HDC).

City resident Sheldon Weaver questioned the cost of the project, noting that a rough breakdown would price the sixty completed apartments at $250,000 a piece.

Mike Carper, president and CEO of the HDC,  explained that a number of necessary factors cause the price tag for this type of project to surpass typical renovation and construction costs. According to Carper, the project cost is significantly inflated by the following factors:

• A sophisticated demolition plan to preserve the historic nature of the structures
• Legal expenses associated with the pursuit of special financing for affordable housing
• Setting aside capital reserves and operating reserves to keep the facilities affordable and financially viable

“If I’ve got a nice open green field to build on, I can predict those costs pretty easily,” Carper later told NewsLanc, “But when you’re acquiring historic property and you’re trying to preserve historic facades, that’s costly right away….This is really a community redevelopment project, so it has a cost above and beyond what you will see with other affordable housing projects.”

Carper did not elaborate on exactly how much of the total project cost is dedicated to legal fees and reserve funds, noting that the plans and expenses remain in flux.

Cynthia Fuhrer, who works closely with the South Square project for the HDC, said that she understands why people are initially surprised to hear the figures: “When I started this I was amazed at how much it cost, but its for all those little things—the accounting you have to do, the lawyers we have to have…”

David Brooks’ column “Into the mire” discussing proposals for healthcare points out:  “The excise tax is one of those ideas health care economists of all stripes love. Currently, we have a perverse tax system that taxes salaries but not health benefits. This exclusion favors the rich over the middle class…

“According to the Congressional Budget Office, taxing health benefits is one of the two most effective ways to bring down health care costs. Plus, it brings in a ton of revenue…

“The White House, to its enormous credit, has tried to think about the long term.  But it has been dragged ever lower into the mire by Congressional special interests that are parochial in the extreme.” (more)

WATCHDOG: A wag of the tail.

From the Financial Times:

Figures on Tuesday showed that consumer confidence in the US fell to the lowest level in 10 months on fears about a slow labour market recovery.

The Conference Board’s index of consumer sentiment fell to 46 in February from a revised 56.5 the prior month. Lynn Franco, director of the Conference Board’s consumer research centre, said that fewer consumers were expecting improvements in business conditions or the jobs market in the next six months.

Click here to read the full article.

If approved by the commissioners, Lancaster County’s $2 million urban enhancement fund will be distributed in 2010 with eligibility criteria stricter than in previous years. At their Tuesday, February 23 work session, the county commissioners voted to approve the new requirements; however, they will not vote to authorize the actual funds until their Wednesday public session.

The 2010 guidelines will place special emphasis upon physical infrastructure improvements such as water and sewer systems, downtown and neighborhood revitalization, and mixed-use residential construction, according to James Cowhey, executive director of the county planning commission.

Municipal projects dealing with green space development and conceptual studies will be less likely to qualify for the funds this year. Cowhey explained that, with limited County funds as well as the current economic climate, the focus is being placed on matters fundamental to strengthening urban centers.

Commissioner Craig Lehman agreed, noting that the new parameters will ensure that Lancaster County is getting “the biggest bang for your buck.”

If approved, the 2010 urban enhancement fund will be $500,000 less than the previous year’s allocation of $2.5 million. Also, the County will match 33% of project expenses as opposed to the previous 50%. The $2 million total includes a funding commitment of $250,000 to the Community Safety Coalition—as was the case in years past—as well as a $250,000 commitment to the Central Market Trust.

Commissioner Scott Martin, who had earlier expressed reluctance toward the old parameters and perhaps even the entire fund itself, was not present to comment at Tuesday’s meeting. The commissioners will vote on authorizing the 2010 urban enhancement fund at their Wednesday meeting.

An editorial points out: “Pennsylvania is facing a huge shortfall in the way it funds the state’s two largest public pension plans &tstr; the State Employees’ Retirement System and the Public School Employees’ Retirement System.

“Other states are in a similar predicament.

“Collectively, states are a trillion dollars short when it comes to paying for public sector retirement benefits, according to a study by The Pew Center on the States.”

WATCHDOG: Informative editorial. A wag of the tail.

From the Patriot News:

… Last year, human-service agencies throughout Pennsylvania went almost four months without state aid during the standoff. From July 1 through Oct. 9, state money for day cares, drug and alcohol treatment services, emergency shelters, food banks and more was held up while Gov. Ed Rendell and state lawmakers fought over taxes and spending.

A statewide survey of nearly 350 agencies conducted by the United Way of Pennsylvania indicates that the impasse hurt social-service agencies at precisely the time when more residents were turning to them for help. Some are still recovering…

Click here to read the full article.

From the Pittsburgh Post-Gazette:

State Transportation Department officials credited more targeted police patrols — funded by the federal agency — for the significant drop in fatal crashes on state roads in 2009. The 1,256 fatalities recorded represent the lowest number since PennDOT started keeping records in 1928 and a 14 percent decrease from 2008. There were 116 fewer deaths in 2009 than the previous year attributed to failure to wear seat belts, 89 fewer due to alcohol and 11 fewer because of aggressive driving.

Click here to read the full article.

It is terrible injustice when mistruths become popular beliefs concerning people of good intentions and meritorious service. For example, Charlie Wilson is misquoted as saying, “What is good for General Motors is good for the USA, and vice versa.” What he actually said was “What is good for the USA is good for General Motors, and vice versa.”

General Alexander Haig, who died last week, was ridiculed for having said “I am in charge” to the press corp immediately after the attempted assassination and serious wounding of newly elected President Ronald Reagan. At the time, Haig was Secretary of State. (Previously he had headed NATO and served as Chief of Staff to Richard Nixon. Some say he virtually ran the government during the final month of that administration.)

According to NewsMax.com, this is what Haig actually said:

“Constitutionally gentlemen, you have the president, the vice president and the secretary of state, in that order, and should the president decide he wants to transfer the helm to the vice president, he will do so. As for now, I’m in control here, in the White House, pending the return of the vice president and in close touch with him. If something came up, I would check with him, of course.”

The message was meant as much to the Soviet Union as to the Americans. There was the serious danger that an attempt on the president might be the first step in the Soviet launching a missile attack.

The description of what actually took place, based upon transcripts later made available, is a fascinating read for those interested in history.

Since the County has not been awarded a $91.5 million federal transportation grant, High Real Estate Group is looking for other ways to fund about $48.2 million in Route 30 / Harrisburg Pike improvements needed to accommodate their planned “Crossings at Conestoga Creek” shopping center. At the Monday, February 22 meeting of the Lancaster County transportation coordinating committee, the prospect of County help appeared unlikely.

The planning commission’s transportation improvement program (TIP) determines the allocation of more than $197 million in local, state, and federal funds for area transportation improvements over the next four years. Lancaster City Mayor Rick Gray, vice chair of the committee, told NewsLanc that improvements accommodating the shopping center are nowhere on the immediate horizon.

“It’s a big jump at this point,” Gray said, “They’ve got a lot of bridges to cross before they get to that one.”

The 650,000 square foot Crossings center, with an estimated $100 million dollar price tag, would be one of the largest shopping destinations in Lancaster County, located within a mile of the Park City Center. The project has proven controversial due to its potential impact on local traffic, its development of nearby farmland, and its likelihood to shrink the City’s dwindling tax base. (The Park City Center pays taxes to the City, while the Crossings would be located within Manheim Township.)

Lisa Riggs, executive director of the James Street Improvement District, asked that the committee remain open to supporting a particular element of the grant application—namely, the implementation of a pedestrian walkway to connect the city to Long’s Park.

“We’re hoping to get some private money in to do some preliminary design work on that, and we don’t know what direction that may lead,” Riggs said, “Again, we don’t know exactly what we’re talking about (we’ll need to look at that a bit further), but, as we go down that road, we’re hoping to do it very quickly, and it may be a real strong candidate for some improvements in the time frame [of these funds].”

“We see it as a major quality-of-life opportunity for people in that corridor—trying to connect downtown Lancaster, Long’s Park, and some of the other amenities there by bike or walking,” Riggs asserted.

County Commissioner Scott Martin, chair of the committee, later noted that, in the future, other streams of transportation enhancement funding could also be available to support the trail project.

According to Lancaster Township manager Bill Laudien, March 31 at 7:00 PM has been chosen for a public meeting at the Maple Grove Community Building to discusst the proposed relocation of the fire house and other services to Lancaster Community Park.

Laudien stated further information will be forthcoming as we draw closer to the event.

NewsLanc suggests that interested parties discuss the format with the township officials at least two weeks before the event.  Unlike the public meeting last year held by Franklin & Marshall College and Lancaster General Hospital to discuss the relocation of the Norfolk  Southern railroad yard when officials rigidly controlled who could speak, when, for how long, and did not allocate a block of time for opponents of the project,  it is important that the planning and organizing of the township meeting be transparent and fair to all.  

This is not to suggest that the township would act in the underhanded manner described above.