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Judge's Ruling: No Gag On Commissioners; Guaranty Still Questionable

After several days of often contentious testimony, and after of week of deliberation, a ruling has been rendered in the case brought against the Lancaster County Commissioners by the developers of the controversial downtown hotel and convention center project. The verdict: A victory for County taxpayers.

Judge Joseph C. Madespacher ruled that no gag order could be placed on the Commissioners, affirming their right to discuss any aspect of the convention center project, including shrinking the market area for the hotel room tax.

The Court also acknowledged there is a very substantial legal issue concerning the validity of the 2003 guaranty. Madenspacher indicated there is a substantial cloud over the financing in the form of the question of the validity of the guaranty. That cloud existed before, and is now stronger than ever in light of the Court's decision acknowledging this substantial question.

Howard Kelin, the County's special counsel, said after the ruling, "We believe the testimony was sufficient to establish the guaranty is invalid because of substantial deviation from conditions established by the Commissioners in 2003 that had to be met prior to delivery of the guaranty. However," Kelin continued, "we respect Judge Madenspacher's acknowledgment that this is a substantial legal issue on which he wishes to defer ruling until after the final hearing. Very importantly, the Judge left open whether the Commissioners will be permitted to implement the resolutions and terminate the guaranty after the final hearing."

Commissioner Molly Henderson was also pleased with the judge's decision. "The Court respected the right and duty of the Commissioners as government officials to express their views concerning the Convention Center project, Authority wasteful operations, Authority misrepresentations to the public, the need for public accountability by the Authority and Penn Square Partners, and the need for taxpayer protections," she said. "The Commissioners will continue to fulfill this public duty."


updated July 26, 2006 at 7:00 AM

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