Luzerne County Government

May 7, 2010

Feds eye another leasing

The county controller says he’s found after-the-fact approval for leasing of a building that became the southern annex.

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

Luzerne County Controller Walter Griffith said he has forwarded information to federal investigators about another county lease in the Hazleton area stemming from an unfounded mold scare in 2005.

Federal agents had recently subpoenaed records from the controller’s office about the county’s leasing of a Hazleton building that houses the offices of District Judge Joseph Zola.

Leonard Rossi, who is friends with Zola and owns another building with Zola’s son, purchased the building at 615 E. Broad Street in October 2005 – a month after county officials vacated the county’s southern annex on suspicion of mold that was later deemed non-toxic.

Zola’s office moved into the building in December 2005, but county officials didn’t vote to lease the space until the following October.

Griffith said he found similar after-the-fact approval for the county’s leasing of a West Hazleton property that became the new southern annex.

County offices moved into that building in November 2005, but county commissioners did not publicly vote to lease the space until April 2006, Griffith said.

Slusser Real Estate LP, which owned the 123 N. Warren St. property at that time, was paid a lump sum of $39,387 on April 12, 2006, to cover rent dating back to the previous November, invoices show.

“This was another one of these retroactive things,” Griffith said, reiterating that commissioners are supposed to vote to lease space before it is occupied.

County commissioners had declared a seven-day state of emergency after the mold scare in September 2005, indicating that the county must “move to another location in the Greater Hazleton area” for use as an interim annex. However, Griffith said an emergency declaration doesn’t wipe out the requirement to vote on new locations before they are occupied by county offices.

Griffith said the original lease for 123 N. Warren St. isn’t filed in his office, and he is trying to obtain a copy from probation officials.

Former county judge Michael Conahan, who was president judge during the mold scare, had agreed to pay the West Hazleton lease with probation supervision funds. The fund, built from fees on offenders, is controlled by the president judge and must be used for probation-related expenses. Robert Powell had previously rented space in the West Hazleton building for his law firm.

Slusser Real Estate was paid $136,347 in rent for the property from April 2006 through August 2007. The property was then purchased by BEKIDS Property Management, which was paid $186,294 in rent through April 1 of this year.

County offices recently moved out of the West Hazleton building into Rossi’s property and another building owned by the county.

Griffith said county spending reports indicate that the county has been paying to rent furniture in the West Hazleton property since April 2006.

His office is digging up invoices to determine the amount of the furniture rental because he doesn’t have the copy of the original contract.

Commissioners had only approved payment of a $4,042 base rental to Slusser Real Estate in 2006, but invoices indicate the business was paid $6,060 per month for rent, Dumpster, cleaning and furniture.

The most recent contract for 2009 says the county must pay BEKIDS the following monthly expenses for the West Hazleton property: $4,042 base rent, $60 Dumpster fee; $300 furniture; and $1,500 cleaning.

But Griffith said the county paid $400 per month for furniture in 2009.

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

Tweet	Follow @TLnews

Send Question or Remark to the Publisher

This story also appears on the following websites...