 |
|
|
|
 |
 |
Harrisburg Mayor Stephen Reed calls it the best financial opportunity to come along in fifty years. Reed wants to lease eleven city parking garages and lots to a private company for $215-million dollars. The lease, with LAZ Parking of Hartford, Connecticut, would run for 75 years. Mayor Reed wants to use the money to eliminate much of the city's debt, including bonds issued by the Parking Authority.
Reed estimated the lease would result in an annual savings of seven million dollars in debt service payments. He wants to use that money to provide tax rebates for property owners. Homeowners making less than $40,000 a year would receive a 100% rebate. Homeowners making more than $40,000 annually would get a 50% tax rebate. The Mayor said there would also be enough money available this year to hire 25 employees, including ten police officers. Reed said the rebate program would continue in 2009 along with additional hires. "This is a good deal," Reed told reporters during a Monday afternoon news conference. "It retires almost all city debt and frees up general fund money, resulting in lower taxes, tax rebates and more municipal services."
Mayor Reed was asked if the lease would result in higher parking rates. He said it would, but only in the long term. He also said no employees would lose their jobs.
Mayor Reed's proposal must first have the blessing of Harrisburg City Council. He is optimistic about passage. "I believe, at the end of the day, the majority of council members will, as I do, see this as a positive, comprehensive plan for the city because of its extraordinary impact not just for the short term, but for the long term," said Reed. Council President Linda Thompson said they'll take a long, hard look at the plan. "Whether this will be the deal of the century, that would be a win-win, that would wipe out all of our problems, is something that remains to be seen," said Thompson. "This will come before council and receive rigorous scrutiny, as it should."
Mayor Reed would like to finalize the deal by the end of July. Thompson expected it would take Council longer than that.
<
abc27 News to leave comments on news stories.