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No charges filed vs. county official, not at work since Sept. 30, when he revealed his link to corruption probe.
Bellas
Luzerne County Redevelopment Authority members vote Tuesday afternoon to suspend executive director Allen Bellas because Bellas had indicated that he was ‘in trouble’ in connection with the federal corruption probe.
CLARK VAN ORDEN/THE TIMES LEADER
The Luzerne County Redevelopment Authority unanimously voted Tuesday to suspend Executive Director Allen Bellas without pay.
Bellas had informed board Chairman Paul Paternoster on Sept. 30 that he would be resigning within 10 days because of something connected to the federal corruption probe. Paternoster said Bellas indicated that he was “in trouble.”
But authority Solicitor Garry Taroli said Bellas’ attorney, Joe Nocito, contacted him Monday afternoon to say that Bellas was not resigning.
Nocito did not indicate why Bellas changed his mind or whether he plans to submit his resignation at a later date, Taroli said. Nocito could not be reached for comment Tuesday.
Charges have not been filed against Bellas, and authority representatives say they have not received any official notification of any crime allegedly committed by Bellas.
However, Bellas has not been to work since the Sept. 30 phone call, and authority members decided suspension was warranted based on the comment made to Paternoster, Taroli said.
“When somebody comes to you and says what he said and hasn’t been here to work, then you have to take some action,” Taroli said.
“The man came to me and said he was in trouble,” Paternoster said. “That’s something we should have considered, so we acted on that. That’s as much as I can tell you.”
An authority representative, speaking on the condition of anonymity, has said Bellas’ promised resignation appeared to be connected to a tax break program that was overseen by the authority.
The program, known as Tax Incremental Financing, or TIF, is designed to encourage development of blighted property. Taxing bodies must agree to divert new tax revenue from development to pay off some of the expenses required to prepare the site for development. Bellas would help to market these tax-break programs to the taxing bodies.
Paternoster said the public should still have faith in the authority.
“We have our auditors constantly auditing what we do here. In fact, there was just an audit not too long ago. Everything’s above board,” Paternoster said.
The authority voted Tuesday to name administrative assistant Marge Thomas and controller William Kratz the interim executive directors. They have worked at the authority for 37 years, Taroli said.
The authority directed Taroli to contact Nocito about the suspension.
Taroli said it’s possible, though unlikely, that Bellas will attempt to return to his $59,000-a-year position. If that happens, Bellas would have to “provide explanations as to what occurred,” Taroli said.
Taroli said he hopes details regarding Bellas’ situation are clarified within 15 working days.
A source familiar with the investigation said Bellas has signed a plea agreement with federal prosecutors and is expected to be charged soon with accepting money in connection with some official action. The source, who spoke on condition of anonymity, said he did not know if the alleged wrongdoing was related to Bellas’ position on the authority, the Wyoming Valley West School Board or some other entity.
County Commissioner Chairwoman Maryanne Petrilla and Chief Clerk/Manager Doug Pape attended Tuesday’s special meeting. Petrilla said she wants to increase communication with county boards and authorities.
Commissioners appoint authority board members but have no control over authority operations. Petrilla said the county has invested millions of dollars in authority projects.
The authority bought the Market Street Square train station in downtown Wilkes-Barre more than three years ago for $5.8 million using county community development funds. Renovation of the historic station has been on hold indefinitely due to a lack of funds to renovate the property.
The county also came up with $3.5 million in 2001 through bond funds and a loan to save the authority’s more than 50 miles of active train track. The authority had defaulted on its 1996 loan to buy the track from Dunmore businessman Louis DeNaples and his company, the former Pocono Northeast Railway. The authority still owes the county $1.8 million from this bailout.