By Sula Pettibon The Herald
(Published February 11‚ 2004)
An investigation by the State Law Enforcement Division shows FrontDoor Communications committed no crime in the way it received incentive money from Lancaster County.
The SLED report shows the company did not misuse, misappropriate, steal or scam the county out of $500,000, Lt. Mike Brown said.
But at least one County Council member, Stanley Smith, scoffed at the SLED investigation and said the agency didn't do a thorough job.
"I was one of the main players, and no one approached me -- there were no telephone calls and no personal contact," he said. "I don't know how many hours they put in, but I don't feel like it was sufficient."
The investigation was requested by council member Calvin Blackmon and backed by Smith and council member Jack Estridge after they learned the company was given $500,000 in cash as an incentive to locate in Lancaster County. They say the money was improperly paid without a public vote.
Council Chairman Rudy Carter has admitted the council made procedural errors, but the SLED report confirms there was no criminal intent, he said.
The controversy began to settle down last month when FrontDoor President and CEO Robert Davis announced he was giving the county the second mortgage on 200 acres he'd purchased in Lancaster.
Davis hopes to sell the land and business, and the contract requires the new owner to repay the county. If the deal falls through, Davis has pledged to make the payment after putting in water and sewer and refinancing.
Smith, however, doesn't believe the county will ever get its money back, he said. "A second mortgage is not worth 15 cents if there is no money there."
The company has been under scrutiny since it announced in late 2002 plans to spend $150 million and create 1,600 jobs over five years. At that time they planned to build a complex and produce magazines. The company later downsized its investment, and the county eventually severed its contract for land and incentives.
Davis returned the $500,000 in June, but his check bounced and he was later charged with one count of writing a fraudulent check and released on bond.
Davis was pleased with SLED's findings and said the finger-pointing had tarnished innocent lives.
The report allows the council to get back to business, Carter said. "We can begin to pursue what needs to be pursued without this overshadowing us."
Contact Sula Pettibon at 329-4033 or spettibon@heraldonline.com.
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