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Friday, August 01, 2014

Panto Defends Conflict of Interest

According to its City-hosted website, the Easton Redevelopment Authority (RDA) "oversees the redevelopment of the Simon Silk Mill and seeks to facilitate the rehabilitation of other blighted or vacant structures within the City limits." Developer Mark Mulligan, who is the paid construction manager at the Silk Mill redevelopment and is involved in other properties, is clearly their biggest customer. In "Mark and Mike's Excellent Adventure," Parts One and Two, I told you about the disconcerting relationship between Mulligan and RDA employee Michael Brett. There's an undeniable conflict of interest. But rather than condemning it, Easton Mayor Sal Panto has embraced it, and is dismissing all criticism.

For a Mayor who prides himself on transparency and accountability, and who has largely conducted himself this way, this is an alarming flaw. It's what happens when a City puts all its eggs in one basket, as Easton has done with Mulligan.

In Part One, I told you that Brett, who also happens to sit on the Easton Zoning Hearing Board, has a realtor license parked with Mulligan's VM Realty.

Panto asked, "Where's the beef?"

In Part Two, I revealed that Mulligan formed both a LP and LLC - 356-358 Wilkes-Barre L.P. and 356-358 Wilkes-Barre 1A, LLC - to purchase and rehab a set of row homes that had incurred fire damage. Records reveal that the LP's General partner is the LLC. Records provide no name for the owners or shareholders of the LLC.

These entities were formed to prevent the public from learning who is involved in this fire restoration project. But the addresses gave Mulligan away. They tied back to his Flemington and Easton offices.

I questioned whether Brett was the other partner, especially since his phone number is listed on the work permits, and it turns out he is. Yesterday, Easton Director of Administration Glenn Steckman acknowledged the connection.
Mike Brett is a part-owner of the Wilkes Barre property. The properties as I understand it where [sic] purchased $5,000 each plus the cost of the escrow amounts. The properties were burned and the outside secured to an acceptable condition. Deals like that are available throughout the city. VM [Mulligan} as [sic] since partnered with VM and created a limited liablity [sic] partnership. A number of landlords and other property owners do this through out the city. And I agree he should get some direction from the state ethics commission which he falls under.
Were you aware that deals like this are available throughout the City? Only insiders have this special knowledge.

Brett used his insider knowledge as a public employee to get a South Side Special. Even worse, he did it with a developer whose work at the Silk Mill is overseen by the RDA.

This is a blatant conflict of interest. Brett and Mulligan know this, which is why they formed both a LLC and LP to keep everyone from finding out.

If this were Bethlehem, Brett would already be on the outside looking in. I would expect Mayor Sal Panto to condemn this, too. Instead, he condemned me.
I am working fior [sic] the betterment of our city and have stated before that I will never again participate in this blog. Mr. O'Hare is nothing more than an agitator who stirs the pot with half-truths and inuendos [sic] from individuals that feed him what he thinks is factual.
So much for transparency. ... And spelling.

When I first raised this matter, Panto promised to give it his "personal attention". He promised to ensure that "every decision is transparent and ethically acceptable." There is nothing transparent or ethically acceptable about a public employee and a developer hitching their wagons on a sweetheart deal they actively tried to hide from the public. 

35 comments:

Anonymous said...

The fact that Panto is openly hostile to any ethics investigations in Easton and this raises no eyebrows is utterly disheartening.

Bill Coker said...

Mayor Panto apparently reads this blog he vows not to participate in. Frankly I'm shocked by his comments on other articles. He was always open to criticism and welcomed comments and questions. What happened? Has all the money available through NIZ's and other tax exempt and publicly funded projects gotten through to his pockets, too? If so, another good man has bitten the dust.

Bernie O'Hare said...

So it would seem.

Anonymous said...

Sal puts on the big smile and old Italian backslap but the money always pulls the strings.

Anonymous said...

Pantos pissed because more than likely he will need to fire a director and a an RDA employee

Anonymous said...

Good work, Bernie. Good work.

Anonymous said...

Bernie, you must have gotten in the way of a church festival crowning or deli bankruptcy. He's really pissed at you.

Anonymous said...

Very serious story. Keep up good work.

Anonymous said...

and people wonder why the public has no faith in our elected leaders.

Anonymous said...

Panto is just making sure his post mayor job of development director is firmly established... Any comments here might give some (courts) the words for him to choke on!

Anonymous said...

ANOTHER Democrat slob ...

Anonymous said...

Stop picking on our Northampton County elected officials. Northampton County has the best politicians money can buy. Bar none.

Anonymous said...

Panto's hubris comes from running a one party town and from reading your fawning coverage of him over the years. You've been critical of the urban growth regime in Allentown, but have previously given Sal a pass for his bush league version of it in Easton. Welcome to Sal's Easton, Bernie; better late than never. I'd watch you back on this one. He's not a nice guy and you've really embarrassed him here.

Anonymous said...

Mulligans loves to golf with a city director - just ask the club at morgan hill :)

Anonymous said...

Do the give each other Mulligans?

Anonymous said...

Who sold the properties to the buyer? Was it the city? Was it the redevelopment authority?

It may not support your yellow journalism conspiracy theory but you are ethically above reproach we all know that.

Anonymous said...

Your writing is almost as poor as your employment of facts. Almost.

Anonymous said...

There is a thought. The State Ethics Commission is useless. We know that because bio solid Bernie says so. Set up a new local ethics board. Waive the requirement that you cannot be disbarred and name him as it's chair. Then he will appoint his friend angle to advise him on ethical matters and he can then dispense ethical pronouncements.

Bernie O'Hare said...

The above three comments come from Tricia MezzacRaZy. Her support for the Mayor should be enough to convince him he's wrong.

Anonymous said...

Sal's worried about inside deals with developers when the West Ward is like the OK Corral. The emperor has no clothes and his incestuous team thinks he's sexy. And people seriously considered this dirty pol for higher office? Wow.

Anonymous said...

Starting to explain the outrageous taxes in Easton.

Anonymous said...

Yeah. That Mulligan is a straight shooter.

Anonymous said...

What interest does a large developer have with a small property like this? Sounds like a exchange of favors.

Anonymous said...

This sounds like just another Lehigh Valley project the AG should investigate. The Silk Mill is no cheap project - it is millions of taxpayer dollars.

After the museum and the mill you wonder what isn't dirty around here.

Anonymous said...

Bernie, you've hit a nerve! You're finally realizing Panto isn't a nice guy.

Bernie O'Hare said...

I don't care whether he is a nice guy. I do care whether he is accountable and transparent. He has been, but not with Mulligan and this nonsense. It's a real shortcoming.

Anonymous said...

Everyone knew mulligan would destroy Panto's reputation. He is as stuck up as they come . Real shame.

Anonymous said...

Walking my dog today early,need ethics commission installed ASAP from some sources, at even 05;45 whom are up at at them. I still maintain Mr. Steckman integrity on the top.He has never made any statements or mislead any public employees to my knowledge.I think you need to look elsewhere .

Anonymous said...

Any reader who forms an opinion based on the accusations of the author of this blog is a fool.

Anonymous said...

City director in charge of rda and who let this happen reports to the city administrator then the mayor. I would say if anyone is covering this up, should they be, it would be Steckman.

Bernie O'Hare said...

In response to 7:54, it is undisputed fact that RDA employee Michael Brett is involved in a side deal with developer Mark Mulligan, whose work is overseen by RDA and who is the paid construction manager at the silk mill. It is also beyond dispute that they tried to hide it from the public. Brett is using his official position to enrich himself and has violated the Ethics Act. Instead of accepting responsibility for and addressing this situation, the Mayor has blamed the messenger.

Peter J.Cochran said...

From P.J.Cochran My post was 7;46 -somehow as is I sent this-Old Peter

Anonymous said...

The West Ward is infested with drugs and crime and this administration is busy dumping money to these developers. Hire more cops. Government is supposed to provide security for its citizens, not dump tax $$ into development projects.

Anonymous said...

Blaming the messenger in these "whistleblower" matters is always the first thing that happens. Hopefully a process will be followed and the truth will come out. If there were violations, then penalties need to be assessed and a plan needs to be put into place to minimize the chances of the same thing happening in the future. If the Mayor wanted to be above board and transparent, and at a minimum, he would have this investigated by the State Ethics Commission. Glad that BO is on to things like this. Hoping he gets out into the Townships where growth is rampant and looks at the connections between Supervisors and Developers and the meetings that are held. What would be a nice fix to all of this stuff would be an "ex parte" communications law for all local elected officials and their staffs as part of any development or redevelopment application. What this type of law (would have to come from the State, of course) would require is that prior to any meeting involving a development or redevelopment application, all elected officials and involved staff would need to disclose who they spoke to, when they spoke, where they spoke and the gist of the conversation within the confines of the open records law. Failure to report these conversations would be discoverable and result in criminal penalty. This would keep things above board. Florida has a nice law and maybe its time for this in PA

http://www.leg.state.fl.us/statuTes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0286/Sections/0286.0115.html

Bernie O'Hare said...

I really love this idea. Good townships often do mention their discussion and sometimes invite the public to participate in staff meetings with developers. I've seen Howard Kutzler do it.