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.