On July 14, 2015 Stephen Russel Reed, former mayor of the city of Harrisburg was charged with 499 criminal charges, six of the charges are for allegedly bribing members of Harrisburg city council in return for voting to approve a incinerator retrofit project. The grand jury report details how council president Richard House requested $700K from mayor Reed, Reed agreed to $500K but due to budget restraints the amount was reduced to $200K.
Right-to-know requests to the Harrisburg Redevelopment Authority and the City of Harrisburg provided information on how a city owned parking lot was leased and later sold to mayor Reed's director of Public Works in the summer of 2004, the sale proceeds totaled just under the $200K allotted to council in 2004.
Were the proceeds of the sale of the parking lot the source of funds granted to council members by mayor Reed.
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History 720 Herr Street.
Deed recorded January 6, 1993.
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Commercial Lease 2.26.2002 City of Harrisburg and James Close/Karen Close d/b/a MLC Park LLC.
4 year lease
year 1 16K
year 2 26K
year 3 27K
year 4 28K
Rent shall begin to accrue 10.15.1993
Signed by Harrisburg City employees.
Napoleon Saunders, Acting Mayor
James McCarthy, City Controller
James Close, Director of Public Works.
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March 16, 2044.
Resolution #12 2004 Harrisburg Redevelopment Authority agreement of sale for 720 Herr Streets.
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July 13, 2004.
Harrisburg City Council resolution No 71 2004 tax parcel 07.102.021 720 Herr Street transfer to HRA passed 7-0
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Letter dated July 15, 2004.
Karen T. Close d/b/a MLC Park to Teresa Martini Chair HRA
MLC Park notifies HRA and the City of Harrisburg of intent to exercise our first right of first refusal
October 15, 1993 City of Harrisburg entered into a lease with MLC Park
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Deed July 2004 Harrisburg Redevelopment Authority to James Close Karen Close dba MLC Park.
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Audio recording from Harrisburg Authority meeting 2004.
Discussion of Special Projects fund and artifacts purchased by former Harrisburg mayor Steve Reed.
Board member Trent Hargrove.
We have always considered the artifacts unconditional donations to the city.
They are assets of the city, they show up on the city's books.
Board member John Keller.
If somebody questions me, I would not answer them like that.
Thats not true in my opinion, my opinion is we were just giving him money.
Whatever they were buying we didn't know.
I just don't want to see city council to take possession and start selling these things and generate that $200,000 WAM money into a million dollars of WAM money.
Hell lets take them, lets take them and sell them ourselves.
Executive Director of the Harrisburg Authority Tom Mealy.
I think that's the balancing act that Steve has, he would rather this thing die with people just believing one thing or the other and nothing happening, because I think ultimately he doesn't want city council to know that their in control of them. And that's why he's operating in this grey area,
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July 14, 2015.
Grand Jury Report released.
Bribery in Official and Political Matters.
On or about diverse dates between 2003 and December 14, 2005, the defendant offered,conferred or agreed to confer upon (6) members of Harrisburg city council a benefit as consideration for their decision, vote, recommendation or other exercise of official discretion by the recipient in a judicial, administration or legislation proceeding.
Page 42.
A city council woman suggested that House ask Reed for $1 million and indicated that was the amount of money it would take for her to vote yes for the bond deal. Mr House testified that he felt that was too large a sum of money and directed to ask Reed for $700,000. He had another meeting with Reed where he pitched the special projects fund and the $700,000 figure. Mr. House testified that Reed was angered by the request but when told the fund was what it was going to take to get the yes votes from city council , he acquiesced and agreed to $500,000. Ultimately, due to budget constraints, the special projects only received $200,000
Page 43.
Randy King testified that the city council wanted a WAM fund (Walking around money) in exchange for pushing forward the vote on incinerator bonds. He indicated that the WAM funds were desirable to city council because "they wanted to throw money around to the community groups so they could gather political support" as they were gearing up for re-election.
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Archive video April 2005.
Harrisburg city council member Eric Waters introduces a request to award a councilmantic grant to a high school student to attend a leadership conference.
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Archive video broadcast 3.28.12
Harrisburg Mayor Linda D. Thompson - I didn't take no bribe
An agitated Harrisburg Mayor Linda Thompson responds to questions by CBS News reporter Chris Papst concerning a 2003 transfer of funds moved into City Council's account at Mayor Stephen Reed's order.
Five days prior to the 2003 vote to approve the Incinerator retrofit project, hundreds of thousands of dollars were allocated to Council for what is commonly referred to as Walking Around Money (WAMs).
As a City Councilor at the time, Linda Thompson voted yes to approve the 2003 bond issuance. The vote was 6-1 with Councilor Pat Stringer casting the only nay vote.
Declaring it had nothing to do with her vote, Thompson defends her use of the money she received as a member of Council.
As Reporter Chris Papst asks Thompson about the appearance that the money was transferred so Mayor Reed could secure votes for the retrofit, she cuts him off and says, "I don't know whose votes he secured because he didn't secure my vote. I cannot be bought by no penny or no million dollars."
The Incinerator Forensic Audit Report highlights the occurrence of the transfer, but Thompson tells Papst, "I don't care what the audit says."
She ends the interview abruptly, "I'm done with it." --
Tara Leo Auchey
Photo/Natalie Cake
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Archive video August 2012.
Camp Hill Pa.
Mayor Reed questioned on the 2003 Councilmanic funds.
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Archive video. 10.4.12
Senate committee hearing on the Harrisburg incinerator.
Fred Clark, former chair of the Harrisburg Authority is questioned about the special projects fund set up for city council members to approve the retrofit project.
The 2003 city council fund. I never spoke with Mr. Richard House (Hbg council president)