Niles oversight commission approves latest financial plan

NILES

Despite some reservations, the Financial Planning and Supervision Commission unanimously approved the city’s latest amended recovery plan from fiscal emergency – the fifth such revision.

“You have demonstrated quite a bit of progress since the emergency was declared,” said Quentin Potter, commission chairman. However, Potter and several other commission members are concerned about one of the plan’s key elements – the leasing of the financially troubled Wellness Center.

The city hopes to lease the building for $240,000 annually for three years with an option by the tenant for a three-year renewal. John Davis, a commission member, was skeptical about finding a tenant and questioned Mayor Thomas Scarnecchia as to the level or probability of success from low to high.

“If it’s low, then it shouldn’t be in the plan,” said Davis, who earlier this month in an interview with The Vindicator called for the mayor’s resignation after council rejected his fourth revision to the plan.

“I would say it is a high probability,” the mayor promptly responded.

Council later in the evening unanimously approved an ordinance to seek bids for the lease, a process that will last five weeks. The lease would cover the annual payment on the loan that financed the center and the tenant would be responsible for all payroll associated with the building.

Another plan component is elimination of jobs through attrition. Potter described the lease and attrition plans as risky and questioned the mayor about an alternative if they fall short.

Read more about the situation in Thursday's Vindicator or on Vindy.com.