OP ED Honesdale PA: Anchor Building Truth
In the spring of 2011 my partner Stephen Smith and I decided that there was an opportunity to expand a Business Continuity and Disaster Recovery that was currently operating on a smaller scale. It was our intentions to not only do that but to also refurbish a dilapidated building on Main Street in Honesdale. In order to do this we would have to transform the building to meet international standards of security and redundancy. It was then that Smith & Morris Holdings, LLC (SMH) and the Anchor Building project was formed. What started out as the transformation of Wayne County to include e-commerce and e-manufacturing and employing hundreds of individuals, quickly turned into a nightmare for SMH.
Over the past year, several articles have the citizens of Wayne County believing that SMH owes the Borough over $300,000 from the Anchor Building Project. This couldn’t be further from the truth. We have exerted all our efforts in trying to resolve this matter peacefully and without placing the burden on hard working Wayne County residents. However, due to the incompetence and/or dysfunction of the local government serving the citizens, we have no other choice but to break our silence and dispense the truth to all who are interested in such.
To set the record straight, no money is owed to the Borough of Honesdale as they would like you to believe. Honesdale Borough Council is the direct cause of the failure of the Anchor Building project. Honesdale has not put one penny into the project. A grant was applied for and received by SMH, with the Borough of Honesdale simply being the administrator of that grant. The following will give you insight on just how the Borough destroyed this project:
1. The Borough broke off all contact with SMH from April, 25th, 2013 (the closing date of the loan with personal guarantees) and we had no contact again until August, 12th 2013, 78 days later. This is only after hundreds of phone calls and emails not just from us, but Senator Baker, Cindy Campbell (DCED), Marybeth Wood (WEDCO) and many others. Only when they were threatened by DCED to have funding pulled did they start up dialogue with us again. Due to the serious delay and breach of contract by the borough, SMH was unable to pay contractors in a suitable time period. Scott Smith, the Boroughs finance chairmen, had the responsibility of releasing the funds from the Dime Bank which he did not do. This alone voids any and all contracts with the Borough of Honesdale.
2. The Borough filed a false criminal investigation against SMH and either lied or gave half truths to you the citizens of Wayne County, even though they had full knowledge of the truth. This became a front page story. This again voids all contracts.
3. Borough Solicitor Richard Henry Esq. violated the agreements in this matter when he suggested that the Borough “forward” the invoices to DCED for approval. This again voids all contracts. We could go on and on.
Why would the Borough council want to destroy a project that would essentially employ hundreds of residents, improve property values and the overall welfare of its residents? We have asked ourselves this question over a thousand times. It is now time that the citizens of Wayne County ask the people that have been entrusted to represent their best interests that question.
Our project was determined to be a benefit to the community. It is our opinion that the corruption of the local government has reached criminal levels. Trying to collect money for something that you were the direct cause of the failure is absurd. Secondly, voting as a Borough to seek a criminal investigation including Smith & Morris Holdings LLC knowing full well that the allegations would be false is a criminal act. The Boroughs whole purpose was to once again to smear the good name of Smith & Morris Holdings LLC.
Citizens of Wayne County need to understand that businesses do not agree to open, move, or expand a business budgeting millions in legal fees to fight corrupt or dysfunctional governments or get sued. Most business would much rather focus on creating jobs and growth in an area where the government is supportive. Neither Wayne County nor Pennsylvania is that place right now. We have tried over 10 times to sit down with all parties involved to settle this before it lands on the taxpayer’s back and we have been consistently refused. It seems that the government and politicians would much rather protect themselves than to worry about the cost to their citizens.
Why don’t they care you ask? Because it is not their personal money they are playing with. It is taxpayer money. They were asked on numerous occasions if the money to cover expenses on this project were coming out of their own pockets, if there would there have been the same delays?
Tell the Borough of Honesdale, DCED, Senator Baker and others that you deserve the truth of what happened and why. This has the potential of the settlement financial burden being placed on your backs, the taxpayers when it does not have to be that way. It is your right as citizens to demand the truth from your elected officials. If they do not want to give you the truth, we have the material evidence and would be glad to share it with any company or citizen that requests it. Please email me, [email protected] and I will send you this information along with my contact information.