From: MollyHenderson02@aol.com
Date: Mon, 2 Jan 2006 23:54:10 EST
Subject: New Convention Center Authority Board Members/Wednesday's Public Forum

Friends:

Happy New Year! It's been some months since there has been a County Commissioners' Penn Square Hotel/Convention Center e-mail update (for ease of e-mailing from home, I have sent you a copy of an e-mail to hccquestions -- more on that below). If you are interested in one County Commissioner's perspective, please read on. If not, please hit the "delete" key and accept my apologies for the intrusion.

This fall, the County Commissioners appointed three new members to the seven-member Lancaster County Convention Center Board. The new appointees to this joint City/County Authority were selected because they were experienced and capable people without a bias one way or the other about the hotel/convention center proposal. They bring a set of fresh eyes and thoughts to the LCCCA Board and continue the tradition of high quality County Board appointees. Allow me to briefly introduce them:

Lancaster Township resident Laura Douglas has owned and run a local manufacturing business for many years and has been active in business and community volunteer organizations. She served on the Board of the Lancaster Chamber of Commerce and as President of the Lancaster Symphony Board.

Akron Borough resident Deb Hall, who is the Executive Director of the Ephrata Area Chamber of Commerce, is involved in Ephrata Area tourism efforts as well as having valuable non-profit entertainment venue Board experience with the Playhouse in the Park. Deb also previously obtained elected governmental official experience as a member of the Akron Borough Council.

Manheim Township resident Jack Craver, unanimously appointed by the Board of Commissioners, brings a lifetime of national-level hospitality industry experience to the Board. He has served in executive level capacities in major hotels (such as New York's Plaza and D.C.'s Mayflower) and received the American Hotel & Lodging Association's prestigious National Lodging Award.

Laura, Deb and Jack have already established themselves as active and interested LCCCA Board members. Long-time LCCCA Board member and officer Garth Sprecher, upon leaving the Board, publicly praised the appointment of Laura and Deb and their informed questions (Jack was later appointed to replace Garth).

If you are interested in the current status of the hotel/convention center proposal, I urge you to attend a public forum called by Laura, Deb and Jack on Wednesday, January 4, at 7 p.m. at the Farm and Home Center (located on Arcadia Road just off Route 72). I believe you will be impressed with the new Board members. They state that they want to hear questions and concerns from the public and that they will do their best to answer questions, or find the answers to questions they cannot answer at the forum. If you wish to send you questions ahead of time, or cannot attend, you can e-mail questions to hccquestions "at symbol" yahoo.com.

Many people have come to our Commissioners' meetings to ask questions and express concerns about the proposal. As County Commissioner, I also have a number of concerns about the present status. At this point, I understand that design work is expected to completed some time in January, with construction bids to be returned sometime in March. Recent local public construction bids (such as the Manheim Township High School) have shown increases of 40% over estimates, even with attempts to factor in the effects of Katrina and Chinese pressure on construction materials and fuel costs.

We have requested that the LCCCA, Penn Square Partners, and the Redevelopment Authority of the City of Lancaster not: (a) begin demolition or other construction work, (b) transfer the Watt & Shand building for the proposed $7.05 million sale price, nor (c) enter into a "swap" which would lock in $40 million in County-guaranteed bond financing for a 40 years until (i) bids have been returned and (ii) adequate financing is in place to fund the project as bid. Newly elected Mayor Rick Gray and I have met to discuss these and other matters and I intend to keep that line of communication open.

Also of concern is the recent revelation that PricewaterhouseCoopers in March 2005 requested Dave Hixson of the LCCCA not to use the 2003 PwC study to promote the project. This information was not revealed to the public or the governmental officials (City or County) asked to approve various government grants and guarantees. Further, it now appears that the PwC study was not a full feasibility study, but rather a partial market study. If PSP and LCCCA cooperate with the Commissioners, there is time (before construction could possibly begin in any case) to have an independent, third party, current, full feasibility study completed. I believe it is imperative that this occur before demolishing parts of the Watt & Shand building and historic Thaddeus Stevens house -- potentially creating an enormous hole on Penn Square without a viable project.

Please feel free to contact me directly on this or any other County matter of concern to you. Lancaster Newspapers, Inc. is an investor in Penn Square Partners in an undisclosed percentage. This makes it difficult for me to convey information about the project -- or any County matter -- through the traditional print media means. That is the reason I have turned to e-mail. Thank you.

Molly Henderson