An article in lancasteroneline.com is headed “CRIZ authority secures $6.08 million loan,”
It relates that the Convention Center will receive an immediate $500,00 and “Eventually, another $1.4 million of the loan proceeds will go to the convention center, fulfilling the city’s required payments of $700,000 each for 2016 and 2017. (After that, three more payments are due, totaling $2.6 million, for a total of $5 million through 2020.)
“Conestoga River Plaza, a shopping center project on South Duke Street, will get $3 million, bringing the total disbursed to $5.4 million. The remaining money will go toward a debt service reserve, capitalizing the interest payment for 2016 and fees.”
Then the bad news for City taxpayers:
“In theory, city taxpayers could be on the hook for up to $445,000 a year for 25 years, or $11 million in all, if the authority is unable to meet the debt service.”
“They are optimistic about that even though the first-year yield of state taxes was disappointing: just $2,870, compared with local CRIZ revenue of $126,988.”
Concerning CRIZ (Community Revitalization and Improvement Zone) so called “loans”, a senior bank official recently scoffed and suggested they be better described as “grants.”
Senator Lloyd Smucker was the prime sponsor of the CRIZ hand out. As we commented upon the announcement of his candidacy to succeed Joe Pitts in representing the area in Congress, at least for the first few years he can do less damage there.
Can we imagine Commissioner Scott Martin, a candidate for Smuckers state senate seat, so recklessly disbursing public funds?
Will there ever be an end to pouring more money down the Con Center/Hotel toilet?????
Why must hardworking taxpayers continue to be fleeced of their dollars, just to support the Lancaster Elite????