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Harrisburg City Council plans to go over Mayor Stephen Reed's plan to lease the city's parking garages and meters with a fine-toothed comb. Council Vice President Dan Miller said they plan to hire an independent financial consultant to evaluate the Mayor's deal. Reed unveiled the plan on Monday. He wants to lease nine garages and 1200 meters to a private company for the next 75 years. The $215-million dollar up-front payment received by the city would be used to erase debt, add 25 employees and provide tax rebates to property owners.
Homeowner Maggie Johnson helps pay her 80-year-old mother's' taxes. They're excited about the possibility of getting some of it back. "It'll sure help my mom a lot and it'll help me too," said Johnson. "I guess most of the other property owners in Harrisburg. With the economy being like it is, they're struggling to pay their taxes and everything."
Mayor Reed's parking deal includes big tax breaks. Property owners earning less than $40,000 annually would get a rebate of 100 percent. Those who earn more than $40,000 a year would receive a 50 percent rebate. Reeds wants rebates and tax reductions in 2009 as well. "I think we should be rewarding people who have taken the time, effort and trouble, and the risk of buying and restoring a house in the City of Harrisburg," said Reed.
But before those rebates become reality, the proposal has to be approved by City Council. Council Vice President Dan Miller already has questions about the term of the lease and the loss of a valuable city asset. "Even simple things," said Miller. "If we decided to change the parking meters on 2nd Street to make it more friendly to outdoor dining. Maybe we're not going to be able to do that."
Miller said the plan could appear on their meeting agenda as soon as Tuesday night. It would then go to committee and a number of public hearings would be scheduled. Miller called it unlikely Council would make a decision before the end of July, when the Mayor said he wants one. "Council needs to be 110 percent certain that this is the right decision for the city," said Miller.
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