Redevelopment Authority will retain attorney as Davis team considers removing board members

A.J. Rao, Erie Times-News
·4 min read

Erie County Executive Brenton Davis was hoping to remove and replace three board members of the Erie County Redevelopment Authority — until questions of legality got in his way.

On Monday evening, Davis released a statement requesting County Council take no action on a resolution Tuesday calling for the removal of authority board Chairwoman Kate Philips, Secretary William DeLuca and Treasurer Laith Wardi.

Davis, who had requested these members submit their resignations last week, said he received a letter from them Friday refusing his request and questioning the legality of their removal. Davis said further actions by his administration are "pending legal research."

Davis holds off on resignations:Davis requests council to hold off on removal of Redevelopment Authority board members

Lawyered up, extended contracts

In the meantime, the Redevelopment Authority board on Tuesday approved authorization to retain legal counsel on the matter. The board will retain Drew Crompton of McNees Wallace & Nurick, a Harrisburg-based law firm.

The board also gave approval to authorize an amended employment contract for authority CEO Tina Mengine. The new contract provides for a two-year extension to 2025; a continued annual salary of $143,231; increased severance pay from three to six months; and continued health coverage.

The board also authorized Mengine to execute a contract for Chris Groner, who heads the county's Office of Capital Finance and Lending, which is a part of the Redevelopment Authority. The new contract will continue through 2025 at a continued annual salary of $94,500.

The actions were approved by a unanimous voice vote following a one-hour executive session Tuesday. Board member John Laird abstained from the approvals.

Board members declined to comment on the matter to the Erie Times-News. However, County Council Vice-Chairperson Mary Rennie, who attended the public meeting, said the contract extensions were likely an attempt by the board to protect its leadership from the administration.

Davis has previously criticized Mengine for her political ties to former County Executive Kathy Dahlkemper and has appeared intent on establishing a board more compliant with his economic development priorities.

"It's important that these boards be held up as independent, otherwise how can you do your work?" Rennie told the board Tuesday. "It shouldn't be political."

Checking his claims

In a statement Monday, Davis voiced his concerns about the Redevelopment Authority extending its development activities into "financially risky areas."

"The Erie County landscape is littered with overreaching failures by authorities including the loss of Knowledge Park property, the former Lord site on 12th and Greengarden Boulevard, the proposed juice plant in the former Koehler Brewery, the Mercantile Building at 14th and State and the loss of $3 million in unsecured county funds,” he stated.

But there was an inaccuracy in his statement, and a subjective claim:

  • IFP North America and its chief executive and primary shareholder, the late Herb Fiss, in 2005 proposed an $85 million juice plant at the former Kaiser Aluminum site on East 12th Street — not the former Koehler brewery property near East 21st and State streets.

  • Chuck Peters, managing partner for Erie’s Altair Real Estate Services, said all 14 condominiums at the Mercantile Building are occupied, and there is roughly 14,000 square feet of commercial space available for rent. Altair manages the building. The U.S. Postal Service consolidated two downtown Erie branches —at Griswold Plaza and at Perry Square — into one new full-service site at the Mercantile Building in 2011 and remains a tenant there. The USPS leases approximately one-third of the 21,000 square feet of total space.

Resolution, appointments pulled

On Tuesday, County Councilman Jim Winarski confirmed to the Erie Times-News that the resolution to remove members Philips, DeLuca and Wardi has been removed from the regular meeting agenda for Tuesday.

The three separate appointments to replace them have also been removed. These were:

  • Charles "Boo" Hagerty, chief development officer of the Hamot Health Foundation

  • Timothy McCormick, president of McCormick Structural Systems in Erie

  • David Knapp, owner and general manager of Chrysler Dodge Jeep Ram in Corry. Knapp gave more than $5,000 in campaign contributions to Davis, according to Erie County election financial reports.

Winarski said the measures involved too many unresolved legal questions and that more research was required.

County Council Tom Talarico said the Redevelopment Authority is empowered by a state statute known as the Pennsylvania Urban Redevelopment Law of 1945, and that two state Supreme Court cases interpreting that statute determined a political leader could not remove members of a redevelopment authority prematurely without cause. The state statute supersedes the county's Home Rule Charter, he added.

Winarski could not confirm when the matter will return for council consideration.

County Council will meet Tuesday at 6 p.m. at the Erie County Courthouse.

A.J. Rao can be reached at arao@gannett.com. Follow him on Twitter @ETNRao

This article originally appeared on Erie Times-News: Erie County Redevelopment Authority retains attorney over potential removal of board members