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Wednesday, April 16, 2014

Bethlehem Has 90 Pages of Documents Detailing Dolan's Nonprofit Debt

Steve Antalics
I arrived early yesterday for Bethlehem City Council's Finance Committee. I went there because I thought that maybe the same Council members trying to save $5,000 here and $4,000 there, might have some questions about what the hell happened to the $127,000 that the City fronted fellow Council member Karen Dolan for Illick's Mill. But the meeting, and it was a long one, nearly ended without a peep from any of them about just what happened.

Maybe they thought it would be a violation of their so-called rules of civility to look out for the taxpayer.

They almost got away, but just as the meeting was about to end, an old bastard stood up and began asking questions.

That bastard is Steve Antalics, who has been on something of a quest to learn just ho Dolan was able to get $127,000 for her Mill from the City without so much as a Thank You note. Antalics has also raised questions about unpaid utilities and free heating oil.

"It looks like the money disappeared and no one seems to know," Antalics said. "This is our money. We want to know what happened to our money."

"Anyone care to answer that?"

Antalics was answered with uncomfortable silence, after which Bryan Callahan suggested that they just don't know what happened themselves.

That's why they're there. After pushing a meaningless hiring freeze to save money, six Council members (Dolan was absent) showed an amazing lack of will to look into what one of their own was doing.

Then Mayor Bob Donchez, who was at the meeting, answered Antalics, noting that the administration had just sent City Council 90 pages of documents detailing unpaid invoices accumulated by Dolan during her tenure at Fox Environmental Center.

In addition to failing to file tax returns, Dolan was also ignoring City bills.

That explains the $127,000

After the meeting, I learned that most of these invoices were for capital improvements that the City fronted for Dolan. She was supposed to pay from grants that were restricted for that purpose, but spent the money on other needs. The City decided to write off the balance due because the improvements increased the value of a building owned by Bethlehem Authority.

I don't accept that reason because most of the money fronted by the City came from borrowed money. This means the taxpayers could have spent as much as twice the amount of money spent on improvements. That is money that could have been used to help residents, pay cops or plow roads. Instead it was sunk into a building without a vote by Council.

Last week, in addition to sending a new lease for the Fox Environmental Center (Illick's Mill), Mayor Donchez asked to be paid for $8,000 in utilities fronted by the City.

Dolan, on Friday, sent Donchez an email vowing to close the Mill and "vacate the premises immediately." Later, she sent another missive. "I will do everything I can to prevent this lease from going to Council",she threatened.

Last night, right before the Finance Committee met, Dolan resigned as Executive Director at Fox Environmental. She still needs to resign from Council.

Corrected 8:16 am to indicate they are 90 pages of documents, not just invoices.

55 comments:

Anonymous said...

You give the big fish in all of this a pass but Karen(a woman) gets targeted.

What smells here?

Anonymous said...

Big fish as in former and current mayor and council members?

Anonymous said...

4:46

BINGO!!!!!!!!!!!!!!!!!!!!

Anonymous said...

Your work here is very good. But it's a bit disingenuous. What did John Callahan know and when did he know it? My God, you provided him months of unpaid political advertising.

Kevin Cerino said...

Bernie,

You have laid out the case for Councilwoman Dolan's violation of the state's conflict of interest law as well as misfeasance of grant funds. Why wouldn't the DA bring her up on charges?

Anonymous said...

The former mayor is in up to his eyeballs.

Anonymous said...

As a student who worked on the Mill with Mrs. Dolan, she should be commended for taking an abandoned city owned property and refurbishing it to its' current state. That property went from being rotted and falling apart to now being over a
$ 1 Million asset to the City. The City spent $127,000 to improve a City owned property. It's now worth 10 times the money that was invested in the property. Sounds like a good investment to me!

Anonymous said...

Karen Dolan's actions as a member of the Bethlehem City Council VIOLATE the Commonwealth's Ethics Laws.

She needs to resign or an investigation needs to be conducted by Harrisburg.

Bernie, keep this in your cross-hairs.

Bernie O'Hare said...

"Your work here is very good. But it's a bit disingenuous. What did John Callahan know and when did he know it? My God, you provided him months of unpaid political advertising."

First things first. Up until now, Dolan and her defenders were denying anything was amiss. Even as she resigned, there were still defenders claiming that she committed no violations of the Ethics Act.

It is now beginning to appear that there is substantial evidence that she did violate the Act. She voted on matters in which she had a direct pecuniary interest. She apparently (what Dolan says and what I am discovering as true is not always the same) worked out some sort of sweetheart deal with Callahan. She continued to use her public office to pressure Donchez.

Now I agree it is time to take this to the next level. Why did the City decide to forgive $127,000 in documented debt? What role did Callahan have? What pressure did Dolan bring to bear? Why did she start getting free fuel oil?

With Callahan, the law is different. He had no pecuniary interest in the Mill. Thus, it is no conflict. But was he looking for Dolan as a vote on Council?

I agree that these questions must all be explored. I doubt that the City Council will ask those questions.

Anonymous said...

Guys like Steve Antalics are a treasure to the community. I never met him, but have read of his efforts over many years. Surely, many politicians see him as an annoyance and he might well be proven wrong now and then, but this man's participation in civic affairs is highly commendable. This is one example of 'Big Brother is watching' I can accept.

Fred Windish

Bernie O'Hare said...

"As a student who worked on the Mill with Mrs. Dolan, she should be commended for taking an abandoned city owned property and refurbishing it to its' current state. That property went from being rotted and falling apart to now being over a
$ 1 Million asset to the City. The City spent $127,000 to improve a City owned property. It's now worth 10 times the money that was invested in the property. Sounds like a good investment to me!"


The problem with your reasoning is that no City Council ever voted to undertake improvements at the Mill. Also, the City was using borrowed money for these improvements, meaning that taxpayers could be on the hook for as much as twice the $127,000 spent.

If I steal from the City's general fund and use all the money to fix the roof at the ice house, it's still stealing.

Anonymous said...

That is money that could have been used to help residents, pay cops or plow roads. Instead it was sunk into a building without a vote by Council.

Oh geesh. And when the ice rink building needs to be repainted, we should just sent that money to the cops. Or when the sidewalk cracks at city hall, we should just send that money to the snow plows. And when a pavilion in a city park needs to be fixed, screw it, send the money to "help residents".

What a joke. This faux outrage is getting tiresome. Everyone's on the take, right, Bernie?

Anonymous said...

Hey, did you see this lady's wicked Porsche?

Anonymous said...

You give the big fish in all of this a pass but Karen(a woman) gets targeted.

You don't remember the blogger accusing the former Mayor of fixing his brother's DUI?

Bernie O'Hare said...

"You have laid out the case for Councilwoman Dolan's violation of the state's conflict of interest law as well as misfeasance of grant funds. Why wouldn't the DA bring her up on charges?"

The DA has quite a few things on his plate, and a lot of this is only coming to light now. This might go beyond Dolan. That's why grand juries exist. But whether he pursues this is his call. He has to weigh the resources expended against the welfare of the city. Also, Dolan only became a paid employee in the last two years.prior to that,her actions were not a conflict, as a matter of law.

Bernie O'Hare said...

"You don't remember the blogger accusing the former Mayor of fixing his brother's DUI?"

First, it was the brother-in-law. Second, there was no DUI. Third, I questioned whether someone, possibly Callahan, was involved in a cover-up be virtue of the fact that nearly three years elapsed after an accident that sent an officer to the hospital without a word in either paper.

I aggressively pursued this possibility. I filed RTKs for phone records, including cell phones. There was , in the end, absolutely no proof that the Mayor lifted a finger to help his brother-in-law.

If anything, I can be faulted for not making that clear.

Bernie O'Hare said...

" This faux outrage is getting tiresome. Everyone's on the take, right, Bernie?"

What's tiresome are these anonymous defenses to someone who blatantly engaged in a conflict of interest, and as recently as Friday.

City resources were diverted, without a vote by City Council, for improvements at a mill with borrowed money, and a time when the City was bleeding money. There is nothing "faux" in being outraged at that.

Anonymous said...

What is the big deal with the "building"? It is nice. Glad it is repaired but so what? What is it used for?

As a taxpayer, I prefer better roads, police and fire protection.

Also the part about a city council persona los running the building she helped fund is as bad as using school district students as free labor for her pet project.

Talk aobut an era of entitlement.

Anonymous said...

What's tiresome are these anonymous defenses to someone who blatantly engaged in a conflict of interest, and as recently as Friday.

City resources were diverted, without a vote by City Council, for improvements at a mill with borrowed money, and a time when the City was bleeding money. There is nothing "faux" in being outraged at that.


Well, we each have our opinion on that. I consider that building a city asset that the city should be paying for. If there is some sort of goofy non-profit set up to shuffle pennies around that wasn't managed correctly, so be it. Shame on the non-profits accountant and shame on the numerous public officials who DIDN'T say something at the time they were voting on things concerning the miil.. Like "What the fuck Karen? You cannot bring this in front of the council!" Was that ever uttered? And "free" heating oil? Give me a break. It's a city building for christs sake.

Anonymous said...

What is the big deal with the "building"? It is nice. Glad it is repaired but so what? What is it used for?

Get a load of this clown. These are your people, Bernie.

Itsa grist mill from the mid 19th century. Just tear it down, right Gomer?

Bernie O'Hare said...

Yeah, and I'll take them over some small cabal that decides on their own how to spend the City's money without Council's approval. But you know what's best for everyone, right?

Anonymous said...

I'm not seeing a misdirection of funds for any purpose other than fixing up the mill. What am I missing? Where was this nefarious cabal diverting funds to - a Swiss bank account?

Crdit Suisse TB-42297221 (look into it)

Anonymous said...

Maybe this is why Karen voted to close a Fire Station and not build a new greatly needed EMS Station ( Remember the EMS Tax ? ). Dolan wanted the little saved money for her own pet project? $127,000
RESIGN FROM COUNCIL !

Anonymous said...

She needs to resign from council ASAP.
I believe this is only scratching the surface
STAY TUNED

Anonymous said...

Although I agree that Dolan knew exactly what type of deal she was entering into, I must agree with 9:05 in that the previous administration had to have some responsibility for executing the deals. It just proves that city council only knows what the administration tells it. They have no staff to find things out for themselves.

Keep up the good work Bernie.

Anonymous said...

Some of the comments above reflect an tacit acceptance that corruption and/or incompetence are to be accepted in public government. Kind of like "let them do what they want, if in my opinion (and theirs) it is for the overall good of the community." Why go through the motions if you aren't going to actually do the job? For your own benefit?

Anonymous said...

While this council person's actions may fall short of a major scandal they are certainly unethical. I am astounded at the number of people who are willing to justify these actions. Absolutely astounded.

Anonymous said...

Wasn't Donchez on City Council when this was going on? Didn't he vote on any of this as a councilman? Dolan should resign from City Council also, before the Grand Jury indicts her.

Anonymous said...

Plain & Simple, it's abuse of power just as in Chris Christie's NJ Bridgegate scandal, abuse of power & criminal.

Our political system is in such peril by these abuse of power issues but in the heads of these power grabbing politicians (some with drug and alcohol addictions) it's OK but it's not OK.

Prosecute!

Anonymous said...

Bernie - From cognitive standpoint, fantastic design decision to start including italicized reference quotes. Also, excellent reporting. Real reporters are supposed to be pains. I just hope I never see the wrong end of your gun.

Bernie O'Hare said...

I will try to do that a bit more. Thanks for the suggestion.

Anonymous said...

What's a little spillage here and there?
We're all friends,aren't we?

Anonymous said...

In Allentown, Councils can be bought off for free.

Bernie O'Hare said...

11:38, Donchez and other members of Coucil voted for this, and were under the impression that Fox was paying the city under the terms of its lease. They were not given the whole story.

Anonymous said...

Morganelli's not too busy. He's too unethical and too Democrat. Is that redundant? Is that redundant?

Anonymous said...


Some of the comments above reflect an tacit acceptance that corruption and/or incompetence are to be accepted in public government. Kind of like "let them do what they want, if in my opinion (and theirs) it is for the overall good of the community." Why go through the motions if you aren't going to actually do the job? For your own benefit?


At this point in my life, I accept incompetence in ALL facets of life, not just government. It's highest in private enterprise, actually.

Anonymous said...

11:38, Donchez and other members of Coucil voted for this, and were under the impression that Fox was paying the city under the terms of its lease. They were not given the whole story.

Donchexz and the entire city council should resign. It's their duty to know what they are voting on and their ignorance is not a cover of complicity.

Anonymous said...

Democrats can do and say what they want, whenever they want.

Just ask Hank Aaron.

His poop definitely does not smell bad (as compared to all the Republicans, who ARE in the KKK, of course).

What a cultural icon!

Anonymous said...

Hank Aaron is the Democratic spokesman now?

He IS the home run king.

Anonymous said...

Amazing what one can cover over in Bethlehem City Government. So many people knew about this; they had to. Every one afraid to blow a whistle ?

Anonymous said...

"Hank Aaron is the Democratic spokes(person) now?"

Yes.

This sort of obvious Hate Speech from Hank Aaron sounds exactly like what the official Democratic spokesperson would be inclined to say ... AND the Democrat-controlled Main Stream Media in all their glory, as well.

Happy Jackie Robinson Day!

Anonymous said...

Hank Aaron used to be a hero to this white kid from a Republican family who worshiped him and grew up with his poster on my wall. Then, he called me a KKK member. Now, he's just another hateful racist piece of political shit. I suspect he was on speed, like most of the cheaters of his day. When he finally croaks, I'll visit his grave to urinate on it.

Anonymous said...

anon 5:15, the hospital has a walk-in mental health clinic. You better hurry.

Anonymous said...

Check this you tube video about closing the Fire Station and Karen Dolan states that she does not live in a poor location in the city and that she has a fire suppression system in her house ( i.e smoke detectors ), and does not have a 3rd floor in her house.

BUT, she works at Illick's mill that does have a 3rd floor. So she works ( getting paid ) and this was in 2011.

How long before 2011 has she been getting paid?

Check this out. Starts around the 14:00 mark

http://youtu.be/RYzIaGWevB4

Resign from Council NOW !!!

Anonymous said...

Let me get this straight.The city owned a property. They abandoned the property. It was boarded up and condemned.
-Then a non profit organization spends tens of thousands of hours of volunteer work devoted to this project at no cost to the tax payer.
The non-profit raises over $1.2 million to totally renovate the building.
-The city spends a total of $127,000 on refurbishing interior aspects of electrical, plumbing and heating units.
-The City still owns the property.
-The property value is now assessed at over a MILLION DOLLARS

And this is an issue? LOL. We should have more issues in Allentown like this.
Bernie you invite these idiots on here by allowing everyone to post anonymously. Put your money where your mouth is and stop allowing anonymous posts. You complain about people posting anonymously and no doubt will attack me for also doing so. Stop allowing it and make people accountable and watch the trash stop. But then that would mean the end of your blog. LOL.

Bernie O'Hare said...

10:47, Let's put it another way, shall we? This nonprofit borrowed the money from Bethlehem for improvements at the Mill, where is has a lease for the next gazillion years with not a dime in rent. The non-profit refused to repay the money it agreed to pay. In effect, it appropriated $127,000 of the City's money for its project, at the expense of other projects that certainly had more priority, like meeting payroll. Worse than this, it took borrowed money. This means the taxpayers were on the hook for much more than $127,000, perhaps even double that amount. Worse yet, the nonprofit made its own decision on how to spend the City's money, when those decisions should be made by Council.

Let's say that, instead of paying my Bethlehem taxes, I use the money to fix the potholes on my block. I may have benefited the City, but I still stole from it. And guess what? No judge would let me off the hook by any argument that I used the money for the City.

By the same token, Foxs and Dolan should not be left off the hook. i doubt they have the resources to pay, but Dolan needs to resign from Council. She substituted her judgment for City Council and abused her office.

Ovem Lupo Commitere said...

Please don't take the "war" analogy too literal folks, but only a noble battle has been won here, and I have my doubts about the long-term war. So long as she is on Council, in the long run the same de facto relationship exists.

Bernie O'Hare said...

10:36,

Wow!

The condescending attitude of Karen Dolan:

"I don't live in a poor neighborhood. ... Excuse me, they're not supposed to me talking back to us."

Bernie O'Hare said...

Ovem, You are correct. This is a won battle, but not a won war.

Anonymous said...

11:05 - The other guys argument was much better. This non-profit did apparently consume city dollars but they also maintained a historic property that the city didn't have to worry about. The problem here was forming this non-profit to begin with to deal with the mill. It was never going to make money to pay back any loans. Be real. The city obviously knew that and absolved the debt.

Dude, you are on a serious witch hunt.

Bernie O'Hare said...

I see, Requiring a nonprofit to honor its own word is a witch hunt. Asking questions about the favoritism shown, when its Executive Director just happens to sit on Council, is a witch hunt.

Well, Dolan has resigned from the Mill, but she needs to resign from the office she disgraced. Then the hunt will end.

Anonymous said...

I'm not seeing this corruption you are seeing. I don't disagree that she should resign her council seat but I'm seeing how she enriched herself personally or made any monetary gain on this thing.

Anonymous said...

Bernie,
City money was spent on a city property. I think you are right when it comes to the question of paying rent and utilities. But if you rent a home or office space, the renter is not responsible for any electrical, plumbing or foundation upgrades or issues. That is the responsibility of the property owner. The property and the Fox Environmental Center in my mind is a wonderful place that hundreds of children get to visit every year. Considering what this building was and what it now is, I think the City made a great investment in a fabulous part of our beautiful Monocacy Park.
If the Admin. and Council doesn't have a problem with it, which they obviously don't , I'm just not getting where the big scandal is?

Anonymous said...

"Yes, they should. Now let's go to our second case study, entitled How Not To Be A City Councilwoman. For variety, let's call this city … Bethlehem.

"In addition to your duties as a city councilwoman — let's call you Karen Dolan — you are paid $24,000 to be executive director of a nonprofit environmental center in one of the city's parks. Your group raised $1.2 million and restored an 1856 grist mill, which it leased from the city. It also has been benefiting from free city services.

"The mill can be rented for weddings and other events in addition to its environmental objectives. Its website says it hosts about 20 weddings and another 100 other events a year.

"There have been concerns that your arrangement with the city was uncomfortably generous. Whatever lease you had at one time has not been enforced, and the parties haven't been able to negotiate another one, so the organization has been using city property — and until recently not being billed for utilities — without a formal legal arrangement.

"At one time the organization owed the city $128,000, but that debt was quietly written off. Still, you could reasonably argue that Bethlehem is better off with a restored and open historic building in its park, so it has a stake in keeping this organization and its building financially viable.

"Anyway, you are named chairwoman of City Council's Parks Committee, and in that capacity, you propose changes in park regulations, including easing restrictions on alcoholic beverages in such a way that it would permit wine to be served in park facilities. You use the city's Ice House as an example of a facility that would benefit from this change by becoming more attractive as a place for wedding receptions.

"What you don't mention is that another beneficiary would be the facility you run as executive director.

"The city's relationship with your nonprofit is under fire, and the new mayor proposes a new lease that would formalize and legitimize whatever arrangement has been made. You respond by threatening to do whatever you can to keep this from reaching City Council for a vote — then back off and eventually announce your resignation as executive director.

"Have you behaved properly? Yes, Fred?"

"As a city councilwoman, she never should have proposed changes that would benefit her facility," he said. "But if she did, she should have disclosed how the change would benefit her organization. It's one conflict of interest after another."

"Very good. It may be in the city's best interests to help this nonprofit. But any such arrangements should be out in the open — and this city councilwoman has behaved stupidly and unethically.

Bernie O'Hare said...

I am not crazy about extensively quoting from the copy of another person without his consent or a link.

This copy is about half of Bill White's column.

I generally delete this kind of comment.