Concerned that fiduciary duties are being compromised, three members of the Lancaster County Convention Center Authority (LCCCA) criticized how decisions are made by the chairman of the Authority and other board members.

In a joint op-ed published in the Sunday News on December 4th, Board members Laura Douglas, Jack Craver, and Deb Hall sharply denounced a decision-making process that routinely dismisses their questions and concerns, and to them is simply “rubber stamp” approval of the controversial hotel/convention center development.

Ms. Douglas questioned who was really running the Authority. “It certainly is not the board,” she says. Douglas also raised the issue of the bidding process for stabilization and demolition, noting that the demolition bids will be reviewed by people with vested interests in the project, or by individuals without the necessary experience to evaluate the bids

The newly appointed board member also expressed alarm at the “extremely risky” bond swap option - the “swaption” - scheduled to voted on at the next board meeting December 14th.

Board Member Jack Craver, also a recent appointment, pointed out that the projected revenue streams of the project “will not be sufficient to cover the debt service and the operating expenses of the convention center.” Mr. Craver also commented that the project which began as $70 million “4 Diamond” facility, is now a $138 million “first-class” hotel, a downgrade which puts it in the same classification as several other area hotels.

Mr. Craver stressed that the project should not proceed until a comprehensive economic feasibility study is undertaken, one which is at least partially financed by Penn Square Partners, the developers of the project.

Deb Hall focused on the complete absence of standard business practice from the board as it deals with the hotel/convention center project. “If the board of a public company conducted its affairs in this manner, a lawsuit would be brought against the stockholders,” she writes.

Both Hall and Douglas also strongly complained of insulting, condescending, and dismissive treatment of their concerns by the board's chairman, Ted Darcus.

More details....

SEND THIS TO A FRIEND