Micozzie Ethics Complaint

Hon. Ron Buxton, Chair Hon. Kate Harper, Chair Pennsylvania State House Ethics Committee Room 528 MC Pennsylvania State Capitol Harrisburg, PA 17102 October 10, 2008 Dear Representatives Buxton and Harper: I am writing for clarification on the relationship between Rep. Nicholas Micozzie and the Historic Lansdowne Theater Corporation (HLTC) and the Partnership for Community and Economic Development (PCED). I believe that there is evidence to suggest that Rep. Micozzie has arranged for public money to be placed in the hands of his political supporters and to be used at his direction. If true, such an action would be in direct violation of the nonprofit clause in House Rule 14 as stated here: A member shall not create, maintain or cause to be created or maintained a legislative nonprofit organization. A "legislative nonprofit organization" means a nonprofit corporation or other entity whose primary purpose is to receive funds under the General Appropriation Act or another appropriations act at the discretion or by reason of the influence of a member for the use at the direction or discretion of the member. After reading an article published in The Daily Times on July 26, 2008 (see enclosed) regarding a non-profit group—apparently established by Rep. Micozzie and comprised entirely of contributors to his campaign in Clifton Heights—that would receive over $800,000 in grant money from the state, I began investigating online and in my community to see how other state funds that were awarded to our area had been used. I found that in 2004 Rep. Micozzie helped get $1.5 million in grant money to complete three projects in Lansdowne. He arranged for the money to be given to a joint venture of the Lansdowne Economic Development Corporation (LEDC) and the Greater Lansdowne Civic Association (GLCA) named the PCED. The money was intended for the following uses: 1) $200,000 to acquire & improve open space for a gateway park; 2) $400,000 to renovate the historic 20th Century Club; 3) $900,000 to entice a developer to buy & renovate the historic Lansdowne Theater. I have been told that Rep. Micozzie has attended most (if not all) of PCED meetings and maintained an apparent veto power over the grant fund use. I believe that awarding grant funds and then participating in day-to-day management of the organization receiving the money would be a violation of House Rule 14.

Since the Lansdowne Theater project failed to attract a developer after approximately two years, the money was scheduled to be returned to the state. I have been told that as a result of this Rep. Micozzie caused the HLTC to be created in November 2006. Five of the six members of the HLTC board are direct contributors to Rep. Micozzie’s campaign efforts. Historic Lansdowne Theater Corporation Board: • • • • • •

Bob Jara: Bill Brown: Terry Ponton: Matt Shultz: John Carpenter: Adrian Fine:

Contributor to Friends of Nick Micozzie Contributor to Friends of Nick Micozzie Contributor to Friends of Nick Micozzie Contributor to Friends of Nick Micozzie Contributor to Friends of Nick Micozzie No Contributions Found

Rep. Micozzie appears to be very active with the HLTC. He attends meetings, holds press conferences and publicizes his involvement on his legislative web site and campaign material. This behavior seems to mirror his actions with respect to the Clifton Heights Borough and would seem to constitute a pattern of violating the state’s ethics rules. At minimum, it certainly gives the appearance of impropriety and smacks of a “pay-to-play” climate in our district. I strongly urge you to investigate the circumstances surrounding the creation and funding of the HTLC and the PCED. Sincerely,

Michael W. Ceci

cc:

Hon. Nicholas Micozzie Mr. Kevin Lee Mr. Alex Rose, The Daily News Ms. Phyllis Edwards, News of Delaware County

Enclosure:

The Daily News article

07/26/2008

Questions surround grant in Clifton Heights By: Dawn Mitchell , Times Correspondent

CLIFTON HEIGHTS - Residents and some council members questioned the transfer of $825,000 in grant money to the Clifton Heights Economic Corp., a nonprofit entity that council has no control over, at a recent council meeting. "I don't know how we authorized this corporation when we never got papers on this corporation," said Councilman Mario Alpini. A listing for the corporation at nonprofit compendium Guidestar.org could not be found. Council President Anthony Casadei, answering a question from the audience, revealed state Rep. Nicholas Micozzie, R-163, of Upper Darby, "took care of allowing money to go to the corporation," but said he did not know who established the corporation or who is in it. According to a document disclosed at the meeting - which one council member insisted each member of council had received during a caucus meeting the previous Thursday - former council president James Salmon is listed as president of the nonprofit. Salmon was running for another term on council last year, but was forced to step down for violating the federal Hatch Act because of his employment with the Department of Defense. Under the act, federal employees cannot hold elected office. Other nonprofit board members include: Clifton Heights Business Association President Rich Angelucci, owner of Full Cycle Ink Jet; Vice President Joe Lombardo, owner of M.F. Williams Funeral Home; and Financial Secretary Russ Jirik, owner of Family Matters Adult Day Care, according to that document. Also on the Clifton Heights Economic Corp. board is retired Clifton Heights police chief Ronald Berry, whose wife, Betsy, is a Clifton Heights council member. He is currently deputy director of the county Juvenile Detention Center in Lima. Angelucci and Jirik each made contributions totaling $300 to Micozzie in 2005 and 2006, while Lombardo has contributed at least $850 to Micozzie and $2,500 to the Delaware County Republican Finance Committee between 2002 and 2006, according to the Pennsylvania Department of State. "Ron and Betsy Berry" have also contributed at least $795 to Micozzie since 2000, according to state records. In late June, council voted 5-3 to return $300,000 and $525,000 in grants issued last spring by the Pennsylvania Department of Economic Development. Alpini and fellow council members Robert Penjuke and Harris Resnick opposed the motion. But minutes at the meeting show council instead voted to redirect the funds to the private entity, which was formed June 16. Some council members now allege minutes were interpreted wrong, altered or even deleted. The grants were to facilitate the purchase of the adjacent Mac and Sam property and to redevelop borough hall. They were not set to expire until 2010 and 2011, respectively. According to Casadei, criteria specified in the grants were problematic and would have cost taxpayers $7 million to $8 million. Penjuke disagreed in a phone interview Thursday, saying the plan was to purchase property in stages, as money became available. He had anticipated having a community center. "We were originally told it wouldn't cost the borough anything for the revitalization project," said Penjuke. "Micozzie didn't think we had a good enough plan ... that we were not moving fast enough." "Personally, I'm not ready to give up $825,000," said Alpini, who opposed returning the funds since it was first discussed in May. "It's too much money and too hard to get to walk away that quickly." Penjuke also questioned the Clifton Heights Economic Corp.'s handling the borough's money. "We have no control over the corporation," he said. "As council, we're going to still be held accountable because we started the ball rolling. I just want to improve things in Clifton Heights and build it back up to a cute little town." Staff Writer Alex Rose contributed to this report. ©DelcoTimes 2008