DAUPHIN COUNTY LOANS THE FINANCIALLY STRUGGLING HARRISBURG UNIVERSITY $2.2 MILLION IN UNRESTRICTED GAMING FUNDS.

On April 9, 2010, Dauphin County signed a $1 million agreement with Harrisburg University for a loan the University needed to for "funds for necessary and appropriate activities related to the operation of Harrisburg University." Per the agreement, the loan was to be paid in full---principle and 1% annual fixed interest---on December 31, 2010. Signed by Dauphin County Commissioners Jeff Haste, Nick DiFrancesco, and George Hartwick III as well as Harrisburg University President Melvyn Schiavelli, the loan was defined as a "bridge financing loan."

On October 21, 2010, Schiavelli requested a 6-month payment extension in order to "provide a much needed safety net" to the University, thereby making the new due date to be June 30, 2011. However, on June 22, 2011, Dauphin County and the University entered into a Supplemental Agreement not only extending the due date for a second 6-month period (making a new due date of December 31, 2011), but also issuing a second loan to the University for an additional $1.2 million for "certain operating expenses." Collateral for this loan was cited as "tuition paid by Harrisburg University students."

Commissioners Jeff Haste and Mike Pries signed this Supplemental Agreement with George Hartwick's signature noticeably missing.

Again, on behalf of the University, President Melvyn Shiavelli signed. Dauphin County requested that the University include the principle amount of $2.2 million plus the 1% accrued interest be included in the 2011 Budget. To date, no payment on these loans as yet been made.

---Tara Leo Auchey

Photo/Natalie Cake