News

October 30, 2009

Zola office rental cost comes under scrutiny

County commissioners say they support seeking a less expensive district judge site.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

Costly district judge office leases were criticized during Luzerne County’s recent budget hearings, and county officials now have an opportunity to end one expensive rental agreement.

A three-year lease for Hazleton magisterial office space that Luzerne County minority Commissioner Stephen A. Urban has described as a “sweetheart deal” will expire in December.

The space for District Judge Joe Zola’s court at 615 E. Broad St. costs the county $6,545 per month, or $78,540 annually.

Zola’s office moved into the former restaurant in 2006 after county officials shut down the old Hazleton annex on suspicion of mold, though the annex was later deemed safe.

The 3,500-square-foot building is owned by Zola’s friend, Leonard Rossi, who bought the building for $150,000 in October 2005, county records show. The lease is with Rossi’s company, Grande Inc.

All three county commissioners say they will support a public request for proposals to see if they can find suitable space at a better price.

Commissioner Greg Skrepenak, who voted for the original lease, said he was not aware of any connection between Zola and the building owner.

“People have to remember that when that lease was negotiated, the real estate market was strong. With the way the real estate market is now, maybe we could get better rate,” Skrepenak said.

Commissioner Chairwoman Maryanne Petrilla said she wants to look at all county office space rented in the Hazleton area to make sure no space is underutilized.

Urban said he also wants to determine if space is available in the Broad Street Exchange building, which will be owned by the county, probably within a month, due to back taxes and defaulted community development loans.

The county is still trying to sell a former Hazleton bank building that was purchased by the county in 2007 for $700,000 to use as a southern annex, but Petrilla said there have been no offers.

“I said all along that the lease for Zola’s office was costly,” Urban said. “Nobody pays that kind of dollar amount for that kind of lease in Hazleton.”

Zola has pointed out that the lease covers building maintenance, inside and out, but said he wouldn’t oppose the county seeking proposals from other building owners.

Expenses are an issue because the county faces a $29 million deficit in 2010.

The county spends around $4 million per year on 17 district judge offices, including staff, Urban said. The $1.6 million in reimbursement doesn’t come close to covering this tab, he said.

“The two major cost drivers are leases and employees,” he said.

The courts budgeted $90,000 for Zola’s 2010 lease, but county Budget/Finance Chief Tom Pribula said Thursday that he will cut that request by $11,460 to match the current lease amount. He questioned why the court requested the higher amount.

Here are the amounts the county plans to budget for other district judge office leases/rentals next year:

• William Amesbury, $80,000;

• Martin Kane, $85,800;

• Fred Pierantoni, $12,000;

• Paul Roberts, $12,000;

• Andrew Barilla, $12,000;

• Joseph Carmody, $12,000;

• Joseph Halesey, $30,200;

• Donald Whittaker, $12,000;

• John Hasay, $27,432;

• Daniel O’Donnell, $27,000;

• Thomas Sharkey, $19,392;

• Gerald Feissner, $14,000;

• Ronald Swank, $21,000;

• Michael Dotzel, $32,000;

• Diana Malast, $15,800;

• James Tupper, $29,000.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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