HomeMy WebLinkAbout983 TaylorSTATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Pe: William Taylor File Docket: 94- 006 -C2
Date Decided: 08/03/95
Date Mailed: 08/14195
Before: Daneen E. Reese, Chair
Austin M. Lee, Vice Chair
Roy W. Wilt
Allan M. Kluger
John R. Showers
Rev. Joseph G. Quinn
Boyd E. Wolff
The Investigative Division of the State Ethics Cerson
conducted an investigation regarding a possible violation of the
State Ethics Law, Act 9 of 1989, . P.L. 26, 65 p.S. §4,01., gt saeq,.
Written notice of the specific allegation(s) was served t the
commencement of the investigation. A Findings 'Report, was issued
and served upon completion of the investigation which constituted
the Complaint by the Investigation Division. An Answer was file
and a hearing was waived. A consent .agreement was submitted by 'the
parties to the 'Commission for consideration which was suhsequent1y
approved. This adjudication of the Commission is hereby isaued
which sets forth the .individual Allegations, Findings €rf F Fa at
Discussion, Conclusions of Law and Order.
This adjudication is :final and will be made available #ffl s
public document 'thirty days after issuance. However,
reconsideration may 'be . requested which will defer public releases of
this adjudication ,pending action on the request by the Commissexa.
A request for reconsideration does not affect the finality of
adjudication. :A reconsideration request must be received at th:
Commission within 'thirty days of issuance and must inc a.
detailed explanation tf the reasons as to why reconsidenation
should be• granted in conformity with 51 Pa. Code §21.29(b).
The files in this will remain confidential in appor4
with Act 9 of 1989, . 65 P.S. §408 (h) . Any person who vi1yl
"confidentiality of the Ethics Law is guilty of a xlisaimitstaAsw
subject to a fine of not than $1,000 or imprisonmen.t tf,cr r:Pt
More than one year, 6:5 P.S. 5409(e). 'Confidentiality dl..a.fts_qpt
preclude .discussing this with an attorney at law.
Taylor, 94- 006 -C2
Page 2
I. ALLEGATION:
That, William Taylor, a public official /public employee, in
his capacity as a Director of Property for the Altoona
Redevelopment Authority, Blair County, violated the following
provisions Qf the State Ethics Act (Act 9 of 1989) when he
attempted to use his public position to obtain a parcel of property
at below market value from the Authority.
section ; . Re$t>±icted Activities
(a} No public official or public
employee shall engage in conduct that
constitutes a conllict of interest. 65 P.S.
5403 (a) .
Imo.. F INDINGS : ,,
Sec - ct - i o - -.De i itj
"Conflict" or "conflict of interest. "'
Use by a public official: or public employee of
the ai tlhori ty of his office or employment or
any confidential information. received thrau r
-hi_I= holding public office aa employment for
the private pe. iary benefit c ff aimsel.f, a
member of hts immediate: family, an a bass
w,i th which, he or a member cat Bata iintmediarte
fete .,'.Zy— $: as %oc eted., "'Cozrfl±cti" "'con'f , rtT�
of interest. does not include air ac____ hsoriznr
a, de mi•:nirmais economic imps t or wiittalt. mffiar•is
t.0 the same degree, a class. coneri.sH rIj oa£: tti
general public- or a svhclase cxa * +Ming; oafr art .
iz d stry,. occupation. or other: sranp , wliriah
incbzdes the public. of'±aial'.
e tkpl.oyee., a member o£ him immediate famitly or:
a business with which.: he or as mem n off hai
immediate family. is asscaniate . 65 P..S=., MOW.
1. William Taylor has served as the Di of: P.i =roperty for the*
Altoona Redevelopment. Authority ace.. Maly 1'„ 1969)..
2;,. The Altoona Redovelapment: Authority is- operatetV by, art
apppinted five mem.b.e board-
a,„ The five board members: of the.. Altoona R ieve=].opmeist'
Authority. (AR_) are appointed: by; tom_ Mayor_ of: the City or
Altoona, for five= year- terns..
3. T. Redevelopment_ Authority, iz- responsible- far haudrinn
aspects of. the;acs i:s±tion. antEdijsposd.t ion. of land traiisf'srred
Taylor 94- 006 -C2
Page .3
to it by the City of Altoona or any of its municipal
authorities.
a. The Redevelopment Authority is also responsible for
'handling properties determined to be blighted under the
conditions of Act 94 Blighted Property Guidelines -.
4. By -Laws of the Altoona Redevelopment Authority include
provisions for the employment of personnel and conflict of
interest.
5. The employment guidelines contained in the By- -Laws state that
"from time to time, the authority may engage such 'personnel,
either permanent or temporary, as it may be required, and
shall determine the qualifications of such persons, their
tenure and compensation."
a. Employment decisions and job duties are "handled .by the
board as part of their vested duties -as board members.
6. The conflict of interest provision contained in the By -Laws.
states that members or employees are prohibited from having
any direct or indirect antt.erest in any projec° or property
under the Redevelopment Authority's contrci1.
7. Specifically, the By -Laws of the Altoona Redevelopment
Authority include the following conflict of . interest
provision:
Article VII Interest in Projects:
"t o member or employee of the Authority shall acquire any
interest, direct or indirect, in any redevelopment
project or in any property included or planned to be
included in any project, nor shall he have any interest,
direct or indirect, in any contract or proposed contract
for materials or services to be furnished or used in
connection with any project. If any member or employee
of the Authority owns or controls an interest, director
indirect, in any property included or planned to be
included in -any .;project of the Authority, or has any such
interest in any contract for `materials or services to be
furnished or used in connection with any project, he
shall immediately disclose the same in writing to the
Authority, and such disclosure shall be entered in
writing upon the minute books of the Authority. Failure
to disclose such interest shall constitute misconduct in
office."
B. A violation of the By -Laws conflict of interest provision is
identified as "misconduct in office."
Taylor, 94- 006 -C2
Page 4
a. Penalties for a misconduct in office am not de.f="'ned:: as
part of the By -Laws.
9. The job description for the Director of. Property ixrc:iudasr. thx=
following general definition and typical examples of wanks
GENERAL, DEFINITION:
The employee in this position is directly responsible for
the purchase and disposition of all land' in eaccth
Authority protect. In addition, this employee wiles: with
third party appraisers and negotiates a, prize wi:.th
owners. In cases requiring condemnation, he recbramaexsds
conderanatian. and prepares the: necessary supporting
do cuutexon.. Iii addition,. the Director of Property
shall. he in charge of the.. record keeping for such
property and shall prepare all necessary reports'.
T:!t'I•CA ,. El 'anZS OF WORK:
1.. Assures that basic prcaj,ect` information• such as
property ownership s; accurate.
Reviews completed appraisals and recommends- prices
to the Authority.
..
Negotiates. with. property owners.
..< Recommends: groperties. far condemnation.
Khows parcels available for sale.
6�.. Nta;intains acquisition and.. disp filee.
7. Reegonsible for al: I:• insurance and talc iranctl ing as
they relate to real. property.
g..
gectorans related work as required..
l� . Ate. graperty Director, Taylor typically perbrzmed. thee dxxt les
i c tiff. a.eri
above.
».• The Redeve~7.ariment Authority erred into an agraexaent wzi:.th t1.e
Gate Altoona.. E"connmic- Devel.oprate ct Corgi sz. 1914'„ to
prtvvide° staff services.
w.• Be S'. 8.5 and- G . A . E. D . C:.. perfnrared functions
similar: to that. of the Redevelopment: Alat3iors
12.. Orr May a l s,, the Grea {tom lfatoorra, Economy DilentatIcgutentt
Ccs nr-ti on: ( G:..X...ff. D . G.• )) was created. . as a r -pr fs t
Taylor, 94- 006 -C2
Page 5
organization for the purpose of promoting economic growth and
development in the Greater Altoona area.
13. By way of a Staff Service Agreement dated December 11, 1989,
between G.A.E.D.C. and the Redevelopment Authority, G.A.E.D.C.
agreed to provide staff services for the Redevelopment
Authority under the following conditions:
To the extent that Authority funding is available,
G.A.E.D.C. will provide the Authority all of its
requirements for staff services.
b. G.A.E.D.C. shall pay for all staff support services for
both G.A.E.D.C. and the Authority, provided that the
Authority reimburse G.A.E.D.C. each month for the staff
support services provided. Each employee of G.A.E.D.C.
shall maintain an accurate record of the employee's
working hours including the nature of the performed.
c. G.A.E.D.C. shall supply staff services as an independent
contractor. All staff engaged in performing services for
the Authority shall be subject to the direction and
control of G.A.E.D.C.
14. Effective December 11, 1989, Redevelopment Authority
activities were handled by G.A.E.D.C.
a. Oversight of Redevelopment Authority activities was still
handled by the Authority's five member board.
b. Staffing and the day to day operation of the Authority,
was handled by G.A.E.D.C.
c. G.A.E.D.C. and the Redevelopment Authority share common
office space.
d. The Altoona Parking Authority was also put under the
G.A.E.D.C, umbrella on or about this same time.
15. Effective December 11, 1989, William Taylor became a
G.A.E.D.C. employee.
a. Taylor's duties to the Redevelopment Authority remained
the same.
b. Between 75% and 90% of William Taylor's normal duties are
performed for the Redevelopment Authority.
16. Since December 11, 1989, Taylor has been compensated as an
employee of G.A.E.D.C., Taylor's wages are paid - to G.A.E.D.C.
under the conditions set forth in the Staff Service Agreement.
Taylor,, 94- 006 -C2
Page 6
17. Funding for G.A.E.D.C. comes from many sources including
but not limited to the City of Altoona, The Altoona
Redevelopment Authority, the Altoona Parking Authority,
the Commonwealth of Pennsylvania, the Federal Government
and private sources.
18. G.A.E.D.C.'s conflict of interest provision has the following
restrictions
19. There is no evidence that any By -Law provisions of G.A.E.D.C.
or the Altoona Redevelopment Authority were communicated to
the employees of either body.
20. Taylor acted as Property Director of the G.A.E.D.C., which
itself was contracted to perform all adminstrative and
operational functions of the Altoona Redevelopment Authority.
21. William Taylor's in -laws resided at 2603 17th Avenue, Altoona,
PA., until Taylor and his wife relocated there around August
of 1993.
22. The Altoona. Redevelopment Authority owned and was in
possession of three properties identified as 2508 -30 17th
Avenue the unopened 26th Street at 17th Avenue; and 2600 -2614
17th Avenue.
The Redevelopment Authority had controlled these
properties since at least 1985.
b. As Property Director, Taylor had oversight
responsibilities of these properties.
c. These properties ate all connected and located directly
across 17th Avenue from Taylor's property.
23. By -way of memorandum dated. September 4, 1985, from William
Taylor to the Redevelopment Authority Board, Taylor offered to
purchase a 50' x 120' lot known as unopened 26th Street at
"No Director, officer or employee of the Corporation
shall have or shall acquire any interest, direct or
indirect, in any project which the Corporation is
promoting, or in any contract or proposed contract for
materials or services or in any lease, mortgage, sale, or
contract or any nature whatever relating to any such
project or to the Corporation, without forthwith making
written disclosure to the Corporation of the nature and
extend of his interest, and such disclosure shall be
entered in writing upon the minute book of the
Corporation. No Director who has such an interest shall
vote on any matter relating to such interest.
Taylor, 94- 006 -C2
Page 7
17th Avenue, from the Redevelopment Authority far the eiiat of
$1.00 and transfer costs.
24. File records of the Redevelopment Authority include a deed
dated October 18, 198 between the Redevelopment Authority of
Altoona and William and e#rol Taylor. The Deed is for parcel
74A, known as an Unopen Might - f =Way on 26th Street, Altoona,
PA. This deed identi conveyance occurring on Navember 26,
1985, for the sum of $1.00.
25. Records of the Blair County Recorder of Deeds confirr that a
50' x 120' unopened portion of 26th Street at 17th Avenue was
conveyed to William J. Taylor and Carol A. Taylor from the
Redevelopment Authority for the sum of $1.00, on November 26,
1985, as recorded in Deed Book 1121, pages 648 -650.
26. This transaction is not involved in the present proceedings
and is not considered a violation of the State Ethics Act.
27. On October 17, 1991; Williain Taylor purchased the property
located at 1901 - 15 3rd Avenue, Juniata- Altoona from Penn
Central Pro Inc.; Penn Central Corporation four the gidm
of $3,000.00.
a. The Redevelopment Authority was not a principal involved
with this transaction.
28. Records of the Blair County Recorder of Deeds include
Quitclaim Deed dated October 17, 1991, between Penn Central
Properties Inc.; Penn Central Corporation and William Taylor
for 1901 -15 3rd Avenue, Juniata- Altoona as recorded in Deed
Book 1203, pages 217 -223. Consideration is identified as the
sum of three thousand dollars ($3,O06.00).
29. Taylor asserts that he purchased this property with the
intention of opening, an organic recycling facility upon his
retirement from the Redevelopment Authority /G.A.E.D.C.
a. 1901 -15 3rd Avenue is zoned heavy industrial and measures
approximately 200' x 120'.
b. Approximately one -half of this property required fill to
be useable.
30. Taylor in his capacity as Property Director negotiated" an
arranged for the sale of Redevelopment Authority owne
property located at 1904 -30 Fourth Avenue, Juniata- Altoona; to
Lawn Doctor in approximately May, 1992, for the sum of
$4,000.00.
a At the time of the sale; the City of Altoona's Public
Tailor, 94- 006 -C2
Page 8
Work's Department maintained a storage trailer on the
property which had to be removed.
b. The city's storage trailer was without ales, wheels and
tires.
c. 1904 -30 4th Avenue, Juniata, is separated from Taylor's
property at 1901 -15 3rd Avenue by an alleyway.
31. Taylor, in his capacity as Property Director, notified Publid
Works' Director, Robert McPhee, of the approved sale of 1904 -30
4 th. Avenitie , 'Juniata," to Lawn Doctor.
a. Taylor advised McPhee that the city's storage trailer' on
the property would have to be removed so that the
Redevelopment Authority could complete the sale.
b. A suggestion was raised that part of Taylor's neighboring
property, 1913 -15 3rd Avenue, as a possible storage site
for the - city'" trailer.
32. A , tease Agreement `was entered into between Taylor annd the City
Of i itodna for 1913 -15 3rd Avenue, Juniata. The city leased
only a portion of Taylor's property on 3rd Avenue, Juniata.
33. A1tocina City Resolution No. 1318-92, dated kay 13, 1992,
authorized the lease betviden the City of Altoona and William
Taylor: Leased was the parcel of land identifit+_d as 113 -15
3rd Chile; , Juniata, Altoona to the City of Altoona for the
purposes of a storage area.
34. Terms of Leaee Agreement between Taylor and the City of
Altoona indicated the following language on usage and required
consideration.
a. Intended city use: Storage Facilit:
b. Consideration: $1.00 plus, add needed backfill, complete
a. property survey, and prepare a plot plan and legal
description at the city's expense for Taylor.
c .
Lease term: - 05/01/92 -` e4/30/93 .
d. Lease Option: "The lessee with written 'Consent of the
lessor shall continue in p'i ssession of the said itemises
after the expiration of the " said term ei aiiY i.tikewal
thereof, then this agreement shall become immediately
o ,erative for another lute term:"
35. As Property Director, Taylor's responsibiiiti'es included
oversight of additioinai properties owned by the Redevelvpfitent
Taylor, 94- 006 -C2
Page 9
Authority on 17th Avenue, Altoona.
36. Redevelopment Authority property records include inquiries for
the purchase of the parcel identified as 2508 -30 17th Avenue,
Altoona.
a. Five phone inquiries are contained in the file: two from
1989 and three undated.
b. A written offer from Thomas Daughenbaugh also is
contained in the file.
37. Redevelopment Authority property records for 2508 -30 17th
Avenue, include a memo dated April 1, 1993, from Thomas E.
Daughenbaugh doing business as Blair County Brothers
Construction, 2828 Pine Avenue, Altoona, PA 16601, to William
Taylor. Daughenbaugh indicated that he was interested in
purchasing 2508 -30 17th Avenue, Altoona and offered $6,100.00
for that parcel.
a. Daughenbaugh never submitted a development site
application which was sent to him by Taylor.
38. On November 30, 1992, Joyce Weaver telephoned Taylor inquiring
about Redevelopment Authority land in the 17th Avenue area of
Altoona.
a. Taylor provided Weaver with a listing of all
Redevelopment Authority property.
b. Taylor's phone log for 11/30/92, includes entry #13
"Joyce Weaver RE: Vacant land - Garfield area."
39. Weaver reviewed the property listings that she received from
Taylor. Weaver noticed that the property she was interested
in on 17th Avenue, 2508 -30 was highlighted as sold.
a. Weaver questioned Taylor about the parcel and was advised
that:
1) The parcel was marked sold.
2) It had a wetland problem and electromagnetic field.
3) It would take three months to get a deed and
another three months to get a price set.
4) Taylor then indicated that the parcel had not
really been sold, and expressed his interest in
swapping a property he owned for the one Weaver was
inquiring about.
Taylor, 94- 006 -C2
Page 10
b. Taylor asserts that if he told Joyce Weaver 2508 -30 17th
Avenue, Altoona was sold, it was because it was promised
to the Altoona Housing Authority.
40. Weaver was willing to pay upwards of $12,000.00 for 2508 -30
17th Avenue, Altoona.
a. No offer was made by her on the property because she
believed it was sold.
b. Weaver felt that Taylor was stalling about the property.
41. Weaver purchased '2516 -30 16th Avenue, Altoona, on July 7,
1993, for $12,000.00.
a. This property is located one block away from 2508 -30 17th
Avenue.
b. Lot dimensions are 200' x 120 ".
c. Sale price was $12,000.00 as recorded in Blair County
Deed Book 1225, page 980.
42. Thomas Daughenbaugh has been a residential builder in the
Altoona area for approximately ten years.
a. Daughenbaugh operates a business known as Blair County
Brothers Construction, 218 East Laurel Drive, Altoona, PA
16601.
43. In the spring of. 1993, Daughenbaugh obtained a list of
Redevelopment Authority properties from Taylor.
a. Daughenbaugh was interested in building several homes in
the 17th Avenue area of Altoona.
b. Daughenbaugh viewed several authority properties in the
17th'Avenue area of Altoona.
c. Daughenbaugh did not notice any defects with 2508 -30 17th
Avenue when he initially viewed it.
44. By way of written memorandum dated April 1, 1993, from Thomas
Daughenbaugh to William Taylor regarding 2508 -30 17th Avenue,
Altoona, Daughenbaugh made the following offer:
"I am •Interested in purchasing the property at the above
address (2508 -30 17th Avenue). I would be willing to pay
$6,100.00 for this ground. Please contact me at your earliest
convenience to inform me of my next step. Thank you for your
time."
Taylor, 94- 006 -C2
Page 11
45. Daughenbaughs offer dated April 1, 1993, was stamped received
by the Redevelopment Authority on April 5, 1993.
46. Shortly after the Redevelopment Authority received
Daughenbaugh's proposal, Taylor had a telephone conversation
with Daughenbaugh about it.
a. Taylor expressed his own personal interest in the
property indicating he was going to swap a parcel he owns
in Juniata with the city, for it.
b. Taylor advised Daughenbaugh that there was a wetland
problem with the lot and there would be a lot of
headaches associated with it.
47. Taylor, in his capacity as Property Director, did not take
Daughenbaugh's offer before the Redevelopment Authority Board
for consideration.
48. After discussing the matter with Taylor, Daughenbaugh took
another look at 2508 -30 17th Avenue.
a. This time Daughenbaugh noticed cattails which he believed
indicated the presence of water.
b. Daughenbaugh did not further pursue his offer at this
point.
49. By way of correspondence dated April 16, 1993, from Taylor to
City Manager Hagemann, Public Works Director McPhee, and City
Authority Executive Director Cochran, Taylor inquired as to
the city's intentions with respect to the lease of his Juniata
property. Taylor's correspondence contains the following
information:
"As Mr. Hagemann and Mr. McPhee are aware, I am owner of the
above referenced vacant lot and have an executed Lease
Agreement with the City of Altoona, to store a trailer on the
site addressed as 1913 -15 3rd Avenue, Juniata. The Lease
Agreement is dated May 1, 1992 and runs for one (1) year at a
One ($1.00) Dollar consideration. In exchange, the City has
maintained their area and have provided me with an on -site
survey, plot plan and legal description.
The Lease time has about expired and I find that I cannot
renew the Lease for gratis. We must discuss your intentions
for the coming year and a fair rental fee, or removal of the
storage shed, within a sixty (60) day time period, or
there is another possibility that may change the total
complexion of this matter.
Taylor, 94- 006 -C2
Page 12
There is more than a remote chance that a 2" water service
line is located inside my property line. If so, the line
crosses the majority of my frontage, to service Mr. & Mrs.
McCulloch, residing at 1923 3rd Avenue, Juniata. I have been
in contact with Mr. Bonasso and we will meet in the near
future, to check it out.
This lot is zoned Heavy Industrial and is in the Enterprise
Zone. However, my wife and I are preparing to relocate from
Fairview to the Fifth Ward area and this lot would not be as
valuable to me as City land in close proximity to the new
location. We may strike some kind of deal.
Should you have any questions or thoughts on this matter,
please feel free to contact me."
50. Taylor's April 16, 1993, letter, referenced a potential
agreement between himself and the city with respect to his
entire parcel in Juniata.
a. Nothing would have prohibited Taylor from selling his
Juniata parcel directly to the city.
51. Taylor's April 16, 1993, letter, was dated eleven days after
Taylor received Thomas Daughenbaugh's offer on 2508 -30 17th
Avenue, Altoona.
52. On May 6, 1993, Taylor again directed correspondence to City
Manager Hagemann, Public Works Director McPhee, and City
Authority Executive Director Cochran. Taylor's letter
outlined water problems he had encountered at his properties,
2603 17th Avenue, Altoona; and 1901 -15 3rd Avenue, Juniata,
and his proposed solution to them.
53. Taylor's May 6, 1993, letter, provided the following
background history, and proposal for a property exchange
between him and the City of Altoona:
"Gentlemen: Let me preface what I am about to propose with
the following:
1. If anything appears to be improper, stop and find another
way and,
2. that you bear with me while I sometimes mix apples with
oranges to explain this proposal,
Apples with Apples
My wife and I are preparing to relocate to 2603 17th Avenue.
The Redevelopment Authority of Altoona is owner of land
Taylor, 94- 006 - C2
Page 13
located at 2508 -2530 17th Avenue. This land was quit-
claimed to our agency by the three (3) taxing bodies in
,pz=il,
1§75t As Director of Property for our agency, I have
actively marketed this parcel.
Ovei the yea =3, we have had about 10 -12 inquiries with no
takers. The last two (2) parties have deposited monies and
then hakre backed out. One said his business, was down, the
other stated that he did not want to raise children in close
proximity' to EMF, Electro Magnetic Field.
In February, 1982, ion and Assoc.'s appraised the parcel at
$10,800.00. Interest rates were out of sight. In November;
1983, we had a proposal and our board reduced the sale price
to $8,100.00, yet that fell through. Last month, Blair Co.
Bros. Construction offered $6,100.00 for the parcel. This
offer can be actively pursued. The questions are that our
board may not reduce the price and the developer may back
down as others have done.
Market Value for 2508 -30 17th Avenue might range between
$6,100.00 and $10,800.00.
Land has no value, until someone wants it.
The plus for this parcel ii that it is in close proximity to
where we will soon be relocating. The typography is fair to
good. The negatives, along with the aforementioned EMF, is
that moisture does not seem to run off. A stream separates
2508 -10 from 2512 -14 17th Avenue. The zoning is low density
residential.
The lot at 1901 -15 3rd Avenue, Juniata, is 200 x 12p, zoned
heavy industrial. The entire rear portion needy fill but
the various city departments are always looking for a ?lace
to dump clean fill.
The former owner, Penn Central Properties, Wanted $6,000.00
far the parcel in 1991. The lot is in the enterprize zone
and I can assume that any building would qualify for tax
program (LERTA) and whatever additional benefits might
accrue. The City Highway Dept., presently has a trailer on
the site and they use 50 60% �f the useable level land.
I purchased
in the near
being close
negative is
home.
this lot to start an organic recycling business
future. The enterprize zone; the zoning and
proximity to Lawn Doctor are pluses. The one
the distance from either my present or friture
Taylor, 94- 006 -C2
Page 14
In my opinion, the lot in Juniata has the eathe value as the
lot on 17th Avenue, all things considered.
Apples with - oranges
The presence of the city water line on my property is.:ot an
item. of market value. I consider it a continuing trespass
If the City of Altoona owned the land, the water line coii1a
remain and the garage that is owned by Mrs. Horan
encroaching on 80% of the alley could remain if the city did
not want to force the issue during her lifetime residency:
I have advised the city water authority in the,paet that
there is a discolored water situation at 2603 17th Avenue:
The water at best is like tea colored and deteriorates to
bright orange. A new water heater did not correct the
problem; flushing did not correct the problem. The house is
on a dead end line. To correct the problem we discussed the
purchase of a water filtration system with a local dealer
and this is my separate proposal to the city water
authority.
If the city should accept my proposal for a land swap, the
city water authority might consider issuing the Taylor's a
check for $2,000.00 to enable us to remedy the water problem
at 17th Avenue;
Or, '
Issue a check for $1,000.00, and convep to lire 260d-2614 i7th
Avenue. This parcel is also in the inventory of the
Redevelopment Authority of Altoona and hat not had any
inquiries for purchase;
•
Or,
I would end tap retaining the Juniata property and we still
have an assortment of problems. A city dater" employee
recently advised 'me that the water authority could employ
the pottier of eminent domain. Possibly. However, I doubt
that a Board of View or subsequent trial by judge and /or
jury would allow condemnation to clear a municipal Mistake.
Mr. Bonasso asked recently for my proposal: Here it ia: A
least it is a place to start. Your prompt attention to this
matter will be greatly appreciated. Should 7bu have any
questions or require more information please feel fr'eg to
contact me."
54. Taylor referenced the $6100:00 offer made by Blair Causi€Y
Broth Construction in its May 6, 1993, proposal le
Tavlo.r, 94- 006 -C2
Page 15
b.
indicating that "this offer can be actively pursued. The
questions are that our board may not reduce the price and the
devel•oPer Way back down as others have done."
a. Taylor; as Property Direetor,
negotiating sale prices.
is responsible for
b The Redevelopment ,uthotity Board generally approves la*
negotiated price.
c. The Redevelopment Authority Board was never advised df
Daughenbaugh's proposal.
d. The Redevelopment Authority Board was not included in the
process at this time.
e. None of the individuals receiving
letter, had the authority to
Authority property.
55. Taylor used the $6,1 proposal made
Blair County Brother's Construction as a
Juniata property was of equal value.
a. On November 19, 1985, when Taylor
Board about 17th Avenue properties
30 17th Avenue, and 2600 -06 17th
lot
b.
a -.
Taylor did not Vite any defects
him at that time.
Taylor's May 6, 1993
convey Redevelopment
by Daughenbaugh D /B /A
barometer to show his
a. Taylor writes "the former owner, Penn Central Properties,
wanted $6,000.00 for the parcel in 1991."
b. Taylor, at no place in the letter stated that he only
paid $3,000.00, for the property.
56. Taylor referenced drainage and electromagnetic field p'roblems
at 2508 =30 17th Avenue, Altoona.
memoed the Authority
, he referred to 2508 -
Avenue, as buildable
as they were not known tb
57. Tay or cited water problems at his resid hce 2603 17th Avenue,
Juniata.
Water problems are between Tayl bt as a - private cit-i t
said the Altoona City Authority.
The Altoona City Authority provides sewer and swayer
ervice for the City of Altoona and sarroiinding
communities.
Taylor, 94- 006 -C2
Page 16
c. The Altoona City Authority has no power to convey
property owned by the Redevelopment Put•rity.
58 . By way of correspondence dated May 17, 1991, to fthlic Vdeltid
Director McPhee and City Authority Executive Director C6ehtatii,
City manager Hagemann requested t$ eir "thoughts' ofr the ifta tter
office you've (they) clarified how this ever surfaced im fke
first place."
a. Neither McPhee nor Cochran p i ed Hagemann *itti
written response to his request.
59. Sometime between May 6, 1993, and dune 21, i911, rm�a
Edmiston, .Public Works Departiient Secretary, contaCteS t-tie
Consiglio Agency, 1220 13th Avenue, Altoona/ PA regtidttiiig
drive -by appraisals be pevf -brmed fo' the city on op'ties
identified as 2508 -30 17th Avenue, Altoona, and 101 -1t' 3rd
Avenue, Juniata.
a. Edmiston contacted the Consiglio Agency at Rvbeft
McPhee's request.
60. The Consiglio Agency wad the designated city real estate
appraiser for the period 03/144/93 - 0' §/14/94:
a. The Consiglio Agency would provide the C'a:t f of Altoona
with drive -by appraisals for a fee of fifty d611ars each.
b. Drive -by appraisals entailed noting afore, than a
representative of the Consiglio Agency driving by the
property to be appraised/ looking at it and estimating
its fair market value.
c. -No formal market research or coaiparis'ons axe done ad
would be the case in a standard teal estate appraisal.
61. The Consiglio Agency' also has perf-ormedi real est�;at@ aplpraisals
for the Redevelopment Authority at P7illiam' fiaylot's request.
a. Taylor would re4 est appraisals on - ite'devslopaieiitF-
Authority - property as part of his duties as Propeft -'
Director.
62. Drive =by appraisals were the method of Eh'oice by Altoona C=i•t -y
offic=ials because they were inexpensive.
a. Formal real estate appraisals woli-1d be perforated oh' a
case by case basis if the situation necessitated it.
b. The city did not request formal real estate appraisal in
this instance.
"i°.av ._or, 94- 006 -C2
Pqe 17
63. David Consiglio is the owner of the Consiglio Agency. Frank
Thompson was employed by Consiglio as an appraiser
a. Both Consiglio and Thompson viewed the properties
identified as 2508 -30 17th Avenue, Altoona, and 1901 -15
3rd Avenue, Juniata.
b, Frank Thompson was the employee who actually performed
the appraisals.
64. Records of the Consiglio Agency include two Fair Market Value
Opinions dated June 22, 1993, for 1913 -15 3rd Avenue, Juniata,
and 2508 -30 17th Avenue, Altoona.
a. Both Fair Market Value Opinions are on Consiglio Agency
stationery.
b. The fair market value is identified as an identical
$3,500.00 for each property.
c. No reasons for the fair market value figure was listed.
d. The opinions are signed by David Consiglio.
65. After receiving the appraisal information from Consiglio,
McPhee decided to proceed with the property swap based on the
belief that both properties had identical fair market values.
66. By way of correspondence dated August 13, 1993, Robert McPhee,
Director of Public Works, advised Patrick Miller, Executive
Director of G.A.E.D.C., of a proposed exchange of
Redevelopment Authority property located at 2508 -30 17th
Avenue for property owned by William Taylor at 1901 -15 3rd
Avenue, Juniata, and inquired as to Miller's thoughts on the
exchange. McPhee writes:
"We are in receipt of a proposal from Bill Taylor, owner
of the parcel of ground situated at (1901) 1910 -1915 3rd
Avenue. Juniata, 200' x 120' zoned heavy industrial, to
trade his parcel of ground for a plat of land owned by
the Redevelopment Authority situated at 2508 -30 17th
Avenue, 300' x 120'. My department proceeded to have
both properties appraised and the appraisals came in
equal at $3,500.00 fair market value.
At the present time, my department has a highway storage
trailer situated on the parcel in Juniata and it is my
desire to retain the ground for this purpose because it
affords easy access for tools and equipment to my area
foreman when crews are working is the Jiinists area.
Because the 17th Avenue parcel is curre ,.t1y owned by the
Taylor, 94- 006 -C2
Page 18
Redevelopment Authority, I am interested if yQUr AgOAcy
considers this proposal a fair exchange so than we may
finalize the matter between the city and Mr. 'Taylor.
Copies of the plot plans and the appraisal reports are
attached for your review. Your early response will be
appreciated."
67. Minutes of the City of Altoona Redevelopment Authority's
September 20, 1993 meeting, include the following actions by
Taylor regarding property in the Vacant Land Management
Program:
"Mr. Taylor presented for approval the sale of ParQei
#74, vacant lot, 2508 -30 17th Avenue, to the cit of
Altoona, for $1.00. Robert McPhee, Director of Parks., aid
Public Property for the City of Altoona, has requestgd
that we transfer this lot to the City of Altoona, Mr.
Kievan made a motion to approve the transfer of Parcel
#74 to the City of Altoona for $1.00; second by Dr.
Messner; motion carried."
Present: Betty Farrell, Harry Kaufman, Rodney Messner,
Tom Kievan.
68. Nothing was recorded as part of the meeting minutes that this
parcel was going to subsequently be transferred from the City
of Altoona to William Taylor in exchange for Taylor's Juniata
parcel with city council approval.
69. When the Redevelopment Authority Board took action to convey
2508 -30 17th Avenue to the City of Altoona, members had no
knowledge of any offers the Authority received on the
property.
a. Board members were never provided with the $6,100.00
offer made by Thomas Daughenbaugh on April 1, 1993.
b. Board members also were excluded from Taylor's April 16,
1993, and May 6, 1993, correspondence "which the property
swap proposal originated."
70. Taylor's first known contact with any of the Redevelopment
Authority Board Members regarding his proposed swap occurred
in August, 1993. Taylor discussed it board member Rodney
Messner.
a. Messner was under the impression that the idea of a
property swap just came up recently.
b. Messner had no idea the idea had been pursued by Taylor
since April; 19'93.
'£avlor, 94- 006 -C2
Page
c. Taylor did not indicate that he had received any offers
on the property.
7i. The other board tembers did not receive any information on the
proposed swap until the Board's September 20, 1993, meeting
when Taylor presented it to the board.
Information was included as part of the member's meeting
packet for the September 20, 1993, meeting.
b. Meeting packets are distributed to board ether several
days prior to their scheduled meeting.
72. Redevelopment Authority records Include a memorandum dated
September 13, 1993, from William Taylor to the Redevelopment
Authority Board outlining a proposal for the use of property.
"Vacant lot #74, 2.5 08 -30 17th Avenue, sale price $1.00. This
lot measures 300' x 120' containing 36,b0 square feet.
Robert McPhee, Director of Parks & Public Propirty, City Of
Altoona is requesting that we transfer this lot to the City of
Altoona, see attached letter." The attached letter detailed
the following:
"In the fall of 1991, I purchased 190.1 -15 3rd Avenue,
Juniata, from Penn Central properties, formerly P.R.R.
for an organic "recycling site.
This site was approximately 200' from a large City of
Altoona storage ' trailer located at 3rd Avenue Alley and
20th Street, Juniata.
In the spring of .1992, the Redevelopment Authority of
Altoona was preparing to sel -1 land to Michael Foose, Law's
Doctor for construction of a building site. The City
trailer had to be relocated and the highway department
foreman chose my property.
I signed a One dollar ($1 lease agreement with the
city for 1913 -15 3rd Avenue, Juniata, 50' x 120' to run
from May 1, 1992, through April 30, 1993, conditional
upon the following:
1. The City would perform an on -site survey, prepare a
plot plan and legal - description $215.00 value and;
2. Backfill, with clean fill the rear of the 200' lot.
No. 1 happened, no. 2 did not and the lease expired
April 30, 1993.
In the meantime, we survived a fire, adjacent to our home
at 227 23rd Avenue, and temporarily reioeated to Carols
Taylor, 94- 006 -C2
Page 20
Homestead at 2603 17th Avenue. Our home was resto't d ri
May, 1992, and we sold it August 20, 1993. C±i this date,
we will purchase the residence at 2603 17th Mean-tie, Wki;dh
is in diode peoximity to 2508 -30 17th Avenue:
The city contracted appraiser has indicated equal vaiitt
for the two parcels of land. On page 1 of Mr. McPhee's
letter, 3rd paragraph, "so we may finalize the matt•'
between the city and Mr. Taylor'" is very key. IAA f if
preposal to the city, this past spring, I , prefaced AY
statement with the point that if we cannot swing a deal-
free of conflict of interest or inference of .co'lius'.i E,
it would not. happen.
The authority parcel at 2508 -30 17th Avenue iies bed
marketed since 1975. We have 1ad•numerous letters a
phone call interest, but no takers.
I believe this isa.win/win situation for both parties."
73. Correspondence dated September 21, 1993, from Patrick Miller,
Executive Director of G.A.E.D.C. to Robert Hagemann, City.'
Manager, indicates that the Redevelopment Authority Board c
Directors at their. September 20, 1993 meeting, approved
transferring 2508 -30 17th Avenue, Altoona, to the City of
Altoona.
a. Also contained on the correspondence is information dated
September 23, 1993, from Altoona City Solicitor N. John
Casanave. "This swap consisted of the c Sty taking this
piece, and we are then going to deed-it to Bill Taylor of
the Redevelopment Authority in exchange for a piece of
property that Bill Taylor owns ix' Jux ratad for our u'se.
This constitutes the swap maintained Lti Pat Miller's
letter."
74._ Altoona City Solicitor N. John Casanave prom -de& City Manager,
Robert Hagemann, with the following euriimary 6f r €c . /est and
recommendation dated October 7, .1.993, on the pro swap:
Summary of Request:
"The City of Altoona wishes to acquire a piece of
property owned by Robert and Carol Taylor,• located at
1913 -15 3rd Avenue, Juniata, for city purpdeee. r This licit
is most suitable for the purposes contemplated by the
city engineering department. Mr. and_Mrs. Taylor are
agreealile to exchange property` instead of consideration
for the piece. Redeve1opii►ent has a piece of land= wh-z:Eh
it wishes to convey' to the City 6f Altoona in order to
enable (the) city to convey the Piece, as owner" to' Mr.
Taylor, 94 006 - C2
Page' 21
and Mrs: Taylor to complete the deeds of exchange which
transaction constitutes a swap of land which is
beneficial to all parties concerned."
Recommendation:
Approval of this transaction is recommended.
75. By way of correspondence dated Octok3er 8, 1 Robert McPhee,
Director of Public Works, advised N. John Casanave, City
Solicitor, of his desire to swap proper with Taylor for the
below identified reasons:
"The Redevelopment Authority of Altoona has agreed to
give a parcel of ground at 17th Avenue between 25th
Street and 26th Street to the City of Altoona. We are
receptive to receiving this parcel of ground.
At this time, the city, more specifically the Bureau of
Highways, is desirous of exchanging the 17th Avenue
parcel of ground for a parcel situated on Third Avenue
between 19th and 20th Street in the area known as
Juniata, which parcel is presently owned by William
Taylor. Mr. Taylor is receptive to the exchange.
It would be advantageous for the Bureau of Highways to
have this parcel in that it can be used as a foreman's
area and enable the bureau to price and /or store
materials and equipment."
76 Altoona City Council does not transcribe minutes from their
meetings. Agendas are provided to council members. Council
meetings are tape recorded. Resolutions passed are recorded
and maintained as a matter of public record.
77. The City Council Agenda for October 11, 1993, under new
business iizcludes Item B:
"Authorizing Robert F. Hagemann, III, City Manager, to
execute an original and two copies of a preliminary
agreement to purchase real estate, between the
Redevelopment Authority of Altoona and the City of
Altoona, dated the 20th day of September, 1993, for and
on the terms and conditions contained therein. A copy of
same attached to this resolution and made a part hereof,
providing for the purchase by the City of Altoona for the
sum of $1.00, said property known as 2508-30 17th Avenue,
Altoona, PA., and directing the city clerk to attest to
the same;
78. City Council did not approve the land transaction. City
Manager Hagemann was directed to review the matter.
Taylor, 94- 006 -C2
Page 22
Hagemann's review prompted correspondence.
a. Council questioned the value of 2508 -30 17th Aver4e;
Altoona, which was to be given t6 Taylor in e*cliange fbr
his Juniata property.
79. Memorandum dated November 15, 1993, from Robert MdiihLe,
Director of Public Works, to Robert f£agemann, City Manager,
provided the following chronology iegarding Mr +ay1i3r"'s
proposal to exchange his property located at 1Adi15 arc'
Avenue, Juniata, for the Redevelopment Authority 'owned
properties situated at 2508 -30 17th Avenue.
"For several years, to accommodate the storage of
materials, supplies and /or' equipment; the Bureau of
Highways maintained a trailer on a parcel of gronfi
located at 1904 -30 4th Avenue; Juniata; iShic i vies owned
by the Redevelopment Authority. Late in 1981; William
Taylor notified me that the parcel was to be sold to Lawn
Doctor and the city would be required to moire the trailer
from the site. Mr. Taylor inquired if the city ' ioiuld be
interested in moving the trailer td a parcel of ground in
the same vicinity, 1913 -15 3rd Avenue; Juniata, which he
owned. Discussions with appropriate Citypersdinel
followed, and on April 23, 1992, City Canncil approved
the resolution to execute a one year agreement leasing
said parcel of ground far Mr. Tayldf for one dollar
($1.00) for the purpose described therein:
In April, 199 near the date of termination Of laid line=
year lease, William Taylor contacted be cone rniiiq the
City's intentions relative to continued leasing of his
propert He indicated that a - higher monetary
consideration would be required if we continue to lease
the ground. At that time, I± al inquired if Elie city
would consider trading a parcel ownrcd by , the
Redevelopment Authority located at 2508 -30 ±ltth Avenue,
for his entire parcel in Juniata. I explained the city
would require appraisals of both parcels of ground before
we could make any recommendations, therefore" , 1 'request
two drive -by appraisals by the city's aAAWhaEed
appraiser, David Consiglio. Term: 3%14/43 =3/ 4i/ §4.
This procedure is consistent with .past - practIte to
establish fair market values for the 4i468siEleil cif city -
pwned property.
On June 22; 1993, my dffsce receilieo the apprai §Ali which
indicated that eac#i parcel hid a fir Aiii0t value of
$3,500:00: The appraisals take into co4sidezat3 n the
fact that the parcels situated 1901 -15 3ra lientie,
Juniata, is zoned Hea+y Industrial, however will require
Taylor, 5.4- 006 -C2
Page 23
a large amount of backfill at the rear of the lot to
level the terrain. The lot located on 17th Avenue, is
Zoned low density residential, has a stream running
diagonally through the parcel which the appraiser
Verbally stated reduces it's falC] value. Based on the
appraisals, and after having discussed the atatter with
you, on August 13, 1993, 1 o siia ly 1 the
Redevelopment Authority to c3ns3.deE the eaceharirF e : On
September 2i, 1993, you received 'confirmati fzof Pat
Miller that the Redevelopment Au yy lhaa e:Ppreki the
transfer.
On October 7, 1993, the city solicitor prepared aM
forwarded to you a summary for City Council's res'®l'ution
accommodating said exchange. Apparently you were not
completely satisfied with the summary, so on Ot:tober 8,
I prepared a memorandum to Mr. Casanave detailiAg this
department's perspective on the exchange. The matter' was
presented to city council for consideration on October
11.
While Mr. Taylor originally suggested that the city
consider the exchange of properties, I believe that it
would be advantageous for us to acquire his property in
Juniata for the following reasons:
1. It is expedient for the Bureau of Highways to
maintain a, facility in the Juniata area for storage
of materials and tools to accommodate crews when
working in the vicinity.
2. Because the City needs dumping areas to dispose of
street cut materials, etc., and the parcel bn Third
Avenue, Juniata, needs a substantial amount of
backfill to level it's terrain. I feel we could
use this site for several years to accommodate both
problems.
3. I checked on a parcel of ground located at 1904 -30
4th Avenue, Juniata, which was zoned heavy
industrial and it was recently sold by the
Redevelopment Authority for $4,000.00. That lot
measured 305 x 120, 4200 square foot. The parcel
at 1901 -15 3rd Avenue, Juniata, measures 200 x 120,
2400 square foot. However the city leased only
6,000 square foot from Mr. Taylor.
4. The city water authority has a water line in the
area of 3rd Avenue which encroaches on Mr. Taylor
property and the garage located at 1900 -02 4th
Taylor, 94- 006 -C2
Page 24
Avenue, J h iata extends into the alley tight-:of-
way.
In an effort to provide better i3iciytess en& eras
for the residents, I had requedted $& fiDdl too
conduct a study of traffic" movement aict s%te
distance problems in the area of 20th s "eree't acid
4th Avenue, Juniata, but Peri iDOT indicated- that a iy
changes would be Major and would be th4 d tjr° s
responsibility. A copy of My corres endence add
their; response id 3tta'dhed. Aft a�ecei�ting
PennD s response, It *da then at' r de re to Make
roadway imp"rovenients at 1 §tom St.feet, betive?en 4th
Avenue and 4th Avenue Alley/ dlifflets, £-e provide
better Vehicular a;nd- . • "p•ededEfiarr eefety to the
residents.
The' map which you were provided de iicts en er "ea 6
16th Avenue where an exdhah4e df prsp'e'r"ty tddk
place, but as I previously stated, t i•s ehee
took place between private indiViduaid t6 seftie en
estate and therefore pro:it Zvars • feeirfed.
If you need any further tadplariatie is f *311 tfy to
answer your questions.'
80. As a result of questions raised by Aibeena pity de''encil
regarding the proposed property swap and the dispa'sitien of
Redevelopment property, the Autho €ifF Miffed withdrew their
offer on October 18, 1993.
81. Minutes from the Redevelopment Authorifire detober 1d, i9 §3,
meeting, include the following discussida on 15repseEY
disposition and action to withdraw the €fendfei 6f 20E1-0
17Eh Avenue td the. city:
"Pat Miller reported staff is preparing a f-i ii re port to
the board and to City Council relative to all the
disposition activities of the authority srii6e 1 §91. It
is hoped this report will clear Up the impfedaidn thet
the authority sits on properties rather than" c iepailr4 et
it. 14rs. Farrell sugge§ted this be presented td cdui611
at a, work s.essinr=:
Parcel Transfer - Pat Miller re €e'r'red td the minutes of
the Redevelopment AUthoritY Meeting of September 20,
1993, relative to a reques€ from the city to acquire
Parcel #74, 2508 -30 17th — Avenue for $1.00: He
recommended the authority rescind the agreement t� sell
the parcel to the city at this point in time Dr.
Messner made a motion to rescind €he agfeement td sell
Ta*loT, 94- 00 -C2
Page 25
Parcel. #74 to the City of Altoona for $1.00, second by
David Miller; motion carried.
Present: •'arre1l, "Messner, Miller, Kievan.
82. Altoona City Council directed Manager Robert iagemann to
provide more information to council regarding the pi-bposed
property swap. Nagemann reported back to council and the
mayor by way of the following memo dated December 2, .99
"Enclosed you will find a report which at- tempts to
clarify the circumstances surrounding a recent itafl
recommendation to gain control of unimproved land
privately owned in the Juniata section of town through 'an
exchange of vacant Redevelopment Aathority land -near
Westfall Park. It is regrettable that so much public
attentions has been foc'tised on an activity that was really
motivated by a sincere desire to minimize any cash outlay
for the City, in an effott to acquire control of land
that would be of immediate value to the city from a
public works perspective.
As you will discover when you review the documents
contained herein every attempt was made on the city's
part to proceed in a logical /above board manner.
Unfortunately, the material eventually presented to city
council lacked much of the background information that
would have been appropriate given the obvious sensitivity
involving someone who could be viewed in a potential
conflict of interest role. To say that such
circumstances will not occur again would be an
understatement!
You obviously will have the opportunity to draw your own
conclusions about this incident. At a minimum, however,
I would hope that you reached the following
understanding:
1. No illegal act was committed by City staff.
2. The intent of City staff was to provide a
continuation of highway related services without
undue delay /disruption to the north easterly side
of town while, at the same time not incurring any
additional costs to the City.
1. The Redevelopment Authority Board's only motivation
was to assist the city in acquiring land for needed
business purposes and to get additional land on the
tax role.
Taylor, 94- 006 -C2
Page 26
4. The process for acquisition and/or disposi:.tia. of
publicly held land mint' be refired ixr terms of
appraisals /marketing /d'ealing with potential
conflicts of interest /professional ethics aad
standards.
.
5 If any lingering doubts as to hidden agendas remain:
regarding any third party involvement n
follow -up should be the responsibility of other
p- &sties external td the City.
Presently the city. Le still using the property located
on 3rd Avenue, Juniata fear highway' purposes. For the
reasons alluded to and Mr. MtPhee' s memorandum dated
11/15/93, the logic is there to continue to use that site
under sore yet to be determined basis with the current
owner. However, given the pii licity' surrounding this
matter and my desire to remove any lloubts about
improprieties, I = belie'ire it would be in-the City's best
interest to vacate the premises as soon as possible..
Unless advised to the contrary by in the near
future, that will be the direction taken.
If I can be of any further assistance in this matter,
please advise. Again, I apoldgize for the way this
proposal was initially presented because form
unfortunately got in the way of substance."
83. In order to answer questions raised by city council with
respect to the property appraisals, Frank Thompson,
representing the Consiglio AgeriCy was asked to explain his
appraisals.
84. By way of correspondence dated December 6, 1993, from Frank
R: Thompson to Irma Edmiston, Thompson provided the following
explanation of how he arrived at the values that he did:
"Please be advised that the opinion of value requested by
your department included a 200 x 120 .vacant parcel
numbering 1901 -15 3rd Avenue, Juniata. In arriving at
vailu s for this lot and the vacant parcel on 17th Avenue
and 25th S treet, I considered the fallowing: 3rd Avenue,
Juniata lot required extensive fill. 17th Avenue lot was
bi= sected by a small stream‘ I trust this information
will assist y+ou."
85. As a kesiilt of 44estions raised dve the fair •market value of
bail '5t8 =tb: 17E AIenet, Altoona, and 1901 -15 3rd Avenue,
�7uri Etta, Taylor had fetMal real estate appraisals performed by
Robert Rostft teel:
Taylor, 94- 006 -C2
Page 27
a. Rosensteel is employed by the Clyde E. Yon & Associates,
1107 12th Street, 3rd Floor, Altoona.
b. Rosensteel has been employed by the Clyde E. an &
Associates as an appraiser for twenty -six years.
c. Taylor personally paid $250.00 per appraisal.
d. The Clyde E. Yon & Associates has been hired by Taylor
over the years to perform real estate appraisals for the
Redevelopment Authority.
86. Real estate appraisals performed by Clyde E. Yon & Associates
were dated April 15, 1994. The appraisals constitute formal
real estate appraisals of the properties. Comparisons were
done of comparable properties as determined by Rosensteel.
87. With respect to the property located at 2508 -30 17th Avenue,
owned by the Redevelopment Authority, Rosensteel provided an
Opinion of Value of $.10 per square foot /$3,600.00, (lot size
300' x 120'), 36,000 square feet. Comparable property values
range between $.35 and $.50 a square foot. Deficiencies were
listed as running water, small stream bed and a 15' Penelec
right -of -way. Zoning was identified as low density
residential. Comparison properties were identified as:
Comparable Price
Property Location Size Price
Per sq. foot
1. 2600 16th Ave. 150 x 120 $ 7,500.00 $ 0.42
2.. 2500 -14 16th Ave. 200 x 120 12,000.00 0.50
3. 2516 -30 16th Ave. 200 x 120 12,000.00 0.50
4. 1420 -30 E. 6th Ave. 150 x 120 7,000.00 0.39
5. 200 -06 Beech Ave. 100 x 120 4,850.00 0.49
6. 1841 -47 6th St. 50 x 70 + 2,750.00 0.35
60 x 72/66
88. With respect to the property located at 1901 -15 3rd Avenue,
Juniata, owned by Bill Taylor, Rosensteel provided an Opinion
of Value of $.10 and $.15 per square foot. The lot size is
200' x 120', 24,000 square feet. Rosensteel opined $.10
(2,400.00) per square .foot with the current property
conditions given the existence of an unauthorized water line.
A value of $3,600.00, $.15 a square foot was identified
without existence of the water line on the property. The
water line value was based upon information provided
Rosensteel by Taylor. Deficiencies on the Juniata property
are identified as only half of the property is useable, and
the location of an unauthorized city water line.
Similar properties used for comparison included:
Taylor, 94- 006 -C2
Page 28
Comparable Price
Property Location Size Price fey ja tout
1. 217 -19 E. 6th Ave. 50 x 120 $ 3,000.00 $ 0.50
2. Juniata St. Logan Twp. 120 x 1.00 7,000.00 0.58
3. 1128 4th Ave. Rear 1.62 acres 30,000.00 0.42
4. 2317 -19 8th Ave. 50 x 120 •.7,900.•00 1.31
5. 706 -08 3rd St. 50 x 50 3,000.00 1.20
89. The appraisals performed by Yon & Associates, outlined above
support Taylor's assertion that both of the properties in
question were of equal valve.
a. Yon & Associates appraisals were higher than the
Fair Market Value Opinion given by the Consiglio Agency.
90. No reference was made by Yon & Associates to the property
identified as 2501 -IL 17th Avenue,' Altoona.
a. This property is located directly across 17th Avenue from
the property Taylor attempted to obtain by way of a swap.
b. Charolette McCall purchased it on May 15, 1991, for
$22,000.00.
c. Lot dimensions for 2501 -31 17th Avenue, Altoona, measured
400' x 120'.
91. Towards the end of 1993, Scott Koehle inquired about
purchasing 2508 -30 17th Avenue, from the Redevelopment
Authority.
a. Taylor advised Koehle of his personal interest in the
property.
b. This was after Taylor's proposed swap was rejected.
c. Taylor advised Koehle that he would have to build on the
site within sixteen months.
d. Taylor did not quote a selling price indicating Koehle
would have to submit a bid.
e. Taylor indicated there were wetland and electromagnetic
field problems associated with the property.
92. Koehle was concerned about the possible 'defects in the
property and did not submit a bid.
a. Koehle purchased two lots from Charolette McCall on 17th
Avenue measuring .80 x 120' and 40' x 120' for
Ta la 94- 006 =C2
Page 39
$11,000.00:
93, Taylor did ride receive a financial gain since no property swap
ddducted%
a. The City of Altoona continues to Use Taylor's Juniata
property as a storage facility,
be The Redevelopment Authority is still in possession of
2508-'30 17th A'trenue .
III. DISCUSSION:
As a Director of Property fOr the Altoona Redevelopment
Authority, Blair County, William TayiAr hereinafter° Taylor, is a
public employee as that teat is defined wider Act 9 of 1989. 65
P.S. 8402. As such, his coiaduct is subjedt to the provisions of
the Ethics Law and the restrictions therein ate applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26,
1989 provides, in part, as followst
This amendatory aet shall not apply to
violations committed prior to the effective
date of this act, and causes of action
initiated for such violations shall be
governed by the prior law, which is continued
in effect for that purpose as if this act were
not in force. For the purposes of this
section, a violation was committed prior to
the effective date of this act if any elements
of the violation occurred prior thereto.
Since the occurrences in this case transpired after the
effective date of Act 9 (June 26, 1989), we Must apply the
provisions of Act 9 to determine whether the Ethics Act wes
Violated.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official /employee shall not engage in conduct that constitttes a
conflict of interest. The term "conflict of interest" is defined
under Act 9 of 1989 as set forth in the allegations.
The issue before us is whether Taylor, as the Director of
Property for the Altoona Redevelopment Authority (ARA), violated
Section 3(a) of Act 9 of 1989 as to his attempt to use his public
position to obtain ARA property at less than market value.
Factually, Taylor has served as ARA Property Director since
July 1, 1969. The ARA, a five member board appointed by the
Taylor, 94- 006 -C2
Page 30
Altoona City Mayor, has the responsibility for the acquisition or
disposition of property transferred to the City of Altoona or other
municipalities. In a Staff Service Agreement dated December 11,
1989, between the ARA and the Greater Altoona Economic Development
Corporation (GAEDC) , a non - profit organization for the promotion of
economic growth and development in the greater Altoona area, the
GAEDC took Over the operations and activities of the ARA subject to
oversight by the ARA Board. Under that agreement, Taylor became a
GAEDC employee but performed the same duties which included direst
responsibility for the purchase and disposition of all land as to
ARA projects.
Both the ARA and GAEDC have conflict provisions within their
by - laws which prohibit any member or employee of the agency from
having or acquiring any direct or indirect interest in any agency
project.
By Quitclaim Deed dated October 17,`1991, Taylor purchased
property from Penn Central Properties, Inc., Located at 1901 -
Third Avenue Juniata - Altoona for $3,000.00. Subsequently, in May
1992, Taylor as Property Director negotiated a sale of ARA property
located at 1904 -30 Fourth Avenue, - Zuniatat Altoona to Lawn Doctor
for $4,000.00. At that time a City storage trailer was situated on
the property which had to be removed due to the sale. That
property is located near Taylor's property, being separated only by
an alleyway. After Taylor notified the Altoona City Public Works
Director of the Fourth Avenue property sale which necessitated the
removal of the City storage trailer, Taylor suggested that the
City's trailer might be moved to Taylor's neighboring property
situated at 1913 -19 Third Avenue, Thereafter, Taylor and the City
of Altoona entered into a lease for a portion of Taylor's property.
The terms of the lease, which ran from May 1, 1992 until. April 30,
1993, were for the placement of the City storage trailer on the
property for one dollar provided the City would add needed
backfil,l, supply a Complete property survey, prepare a plot plan
and legal description at City expense.
As Property Director, Taylor had oversight responsibility of
the ARA Properties situated on 17th Avenue in Altoona. As to the
ARA property at 2508 - 30 17th•Avenue, there were a number of
inquiries about the property including a written offer of purchase
from a Thomas Daughenbaugh, a residential builder in Altoona, who
obtained a list of ARA properties from Taylor. Daughenba i gh "was
interested in building several homes in the 17th Avenue area and
examined several ARA properties including 2508 - 30 17th Avenue. By
memo dated April 1, 1993, DaUghenbaugh submitted an offer to Taylor
td purchase 2508 -30 17th Avenue for $6,100.000. Daughenbaugh was
centaCted by Taylor who advised that he had an interest in the
property which had a wetland problem and that he was going to swap
the property for a parcel he owned on Third Avenue. Taylor did not
take Daughenbaugh's offer to the AAA Board for consideration. _.
av].or, 94- 0:0.5 -C2
Page 31
A rather individual, Joyce Weaver, telephoned Taylor to inquire
about the 17th Avenue property. Weaver had received a listing of
ARA. property from Taylor wherein the property situated on 2508 -30
17th :;Avenue was highlighted as sold. When Weaver questioned Taylor
about that particular parcel, he advised that the parcel was marked
sold and that there were wetland and electro- magnetic field (EMF)
problems associated with the property. Taylor also indicated that
it would take three months to get a deed and another three months
to get a price. Subsequently, Taylor advised Weaver that the
parcel had not been sold; at that time, Taylor expressed an
interest in swapping property he owned for the property on which
Weaver was making an inquiry. .although Weaver was willing to pay
in the vicinity of $12,000,00 for the 17th Avenue property, she
made no offer because she believed it was sold. Subsequently,
Weaver purchased ARA property at 2516 -30 16th Avenue for
$12,000.00.
On April 16, 1993, Taylor contacted the Altoona City Manager,
the Public Works Director and the City Authority Executive Director
concerning the City's intention as to the existing lease of his
Third Avenue property on which the City had its storage trailer.
Taylor advised that he would not renew the lease far gratis and
suggested a possible scenario which could change the situation.
After referencing the possible illegality of a City water line on
his Third Avenue property and after discussing the p°ep
location and zoning, Taylor noted that he was planning to relocate
to 17th Avenue and suggested that some arrangement could be made as
to the Third Avenue property.
By letter of May 6, 1993, Taylor made a formal proposal to the
City of Altoona to exchange his Third Avenue property' for ARA
property at 2508 -30 17th Avenue. After Taylor referenced his plans
to relocate to 2603 17th Avenue, he stated that the 2508 -30 17th
Avenue property had generated a number of inquiries but no offers
to buy. Taylor suggested that there were no offers because of a
business decline and EMF problems. Taylor referenced an appraisal
of the 17th Avenue property at $10,$00.00 folloirr'ed by a reduction
in sales price to $8,100.00 based upon an offer of purchase which
was not effectuated. Taylor noted that Blair County Brothers
Construction (Daughenbaugh) offered $6,100.00 for the property, but
he suggested that the developer might back out of the purchase. As
to Taylor's property at 1901 -15 Third-Avenue, Taylor stated that
the property, being zoned heavy residential, would have advantages
for the City. It would provide: a place to dump clean fill, a
storage trailer site for the City Public Works Department, and tax
incentives for a building on the property. After Taylor concluded
that the. Third. Avenue property had the same value as the lot on
17th Avenue, Taylor referenced the possible trespass of a City
water line on his Third Avenue property and presented different -
options, one of which was a swap between Taylor and the pity
whereby Taylor would give his Third Avenue property ix return for
Tailor, 94-006-C2
Page 32
the 17th Avenue property. In terms of the property swap. offer
Taylor made to the City, he utillized the Daugftenbaugh afeee- 04
$6,160.60 as - the basis for valuation for his Third Avenue proptectr;
Taylor did 'Aot advise that he only paid $3,Q-Q0 ) tor that
property. Tailor also claimed that. the 17th Avem property had
both draiffage and EMF problems. .
The City Public Wbrks Department contacted .a real estate
agency to do drive-by appraisals as to the properties. The reel
estate agency arrived at.valuations of s'a,scw.aa far both the Third
Avenue and 17th Avenue properties.. The- valuations were mot
determined by performing any market research or comparable alee
is done in standard real estate appraisals, . As soon as the Clty
Public Works Director received the appraisals, he decided to
proceed with the property swap based upon the belief that both
properties had identical fair market values. Since the 17th. Avenue
property was not owned by the City but by ARA, the Public Works
Director contacted the Executive Director of GAEDC to Outline the
proposed exchange and .elicit his views on Taylor's proposal'.
• The minutes of the ARA for September 20, 1993 reflect action
by TayIef in submitting the 17th Avenue property for•sale to the
City Of Altoona for one dollar as per a request by the City Public
Work a DitectOr. A motion carried to the property to the
City Of Altoona. When the ARA Board took action, it was not
provided with information concerning Daughenbaugh's offer to
purchase the for $6,100.00 nor with Taylor's letters that
originallY proposed the property swap. In fact, Taylor's first
contact With the ARA Board regarding the proposed swap did not
occur. until August, 1993. Most board members did not have any
informaEion until the September 20, 1993 Board Meeting. There is
a MemOrandum-dated September 13, 1993 in the ARA records from
Taylor to tht ARA Board outlining the proposal which provides some
information as to. Third Avenue and 17th Avenue properties
followed by Taylor's conclusion that such would be a "win/win"
situation fer beth.patties.
With the approval.bf I7th Avenue property transfer from
the ARA to the City of Altoona, the Altoona City Solicitor in a
lieMOrandum dated October 7, 1993 outlined the swap proposal and
recommended . an approval,of the transaction. The agenda for the
City CounCil of Altoona .for October 11, 1993 had an it of mew
bueiheSs which referenced the - authorization of the City Manager to
exedU'teimagteement at ' to the purohase of the 17th Avenue property
from the ARA for one dollar. he City Countil did not approve the
land transaction because Cbuncilmembers had questions as to the
value Of the 17th Avehue propetty whioh was being given to 'Taylor
inexchange for his Thitd Avenue property. Due to such questions
being 'raised, the ARA Board withdrew its offer for the property
swap ori:Octbber 18; 199 The :minutes of the .ARA Bard an Mhat -
date reflect the pastage of a motion to -rescind the agreement,of
Taylor., 94- 006 -C2
Page 33
sale of the property to the City:
Altoona City Council directed its Manager to supply more
information regarding the proposed property swap. In a memo dated
December 2, 1993, the Manager provided certain background
information._ and_ proffered conclusions that no_ illegal act was
co'itted by City staff, , that the ARA Board's motivation was to
assist the City in acquiring land; that the process for acquisition
or disposition of , publicly held land must be refined in terms of
appraisals, marketing, and self-dealing as to potential coinfl'icts;
and that any doubts would be resolved by non -City parties.
Since questions were raised about the original drive-by
appraisals, Taylor obtained formal real estate appraisals fr'dm
another agency. That other appraisal supported Taylor's assertion
that both properties were of comparable value. Lastly, Taylor chid
not receive any financial gain in this case since . the property swap
did not occur. The City of Altoona. continues to use Tayldr's Third
Avenue property as a storage facility and the ARA still °mils the
17th Avenue property.
In applying the provisions of. Section 3(a) of she Et ZP^s Law
to the above facts, . we find a technical violatl'on. It is clear
that Taylor used the authority of office in his position f
Director of Property. In that position, Taylor used the author Of
of office for_self- dealing in terms of arranging a swa_authority
for the
17th Avenue property owned by the ARA in exchange for the Th..rd
Avenue property_owned by Taylor. There is also evidence that
Taylor in his position discouraged attempts by other parties wfio
expressed intereot in the purchase of the 17th . Avenue property.
Clearly, such self-dealing by Taylor in his public position wad ,4
use of authority of office. Further, the use df enthority oit
office on the part of Taylor was for the purpose df obtairtin .a
private pe benefit. The evidence supports a finda rig that
Taylor would have obtained the 17th Aver a property for a , 5riCe
less than certain other persons who were interested would 1i ve
paid. On that 1 asis we find a technical violation of Section 3(i)
of Act 9 Of 1989, but we will take no .further aeticrt and w wtll
not impose restitution in that no pry: •ate pecuniary benefit w4s
received ,by Taylor as to hie activities,. See, O'M,ell .r + qse,
Opinion filed at 2658 C.D. 1987 ohs 1atcY. 17, 1989. The parties ir
this case have entered into a cczriseht agreeasten for the . a25dvd
result. We, approve the consent agreement which we believe ie the
proper disPOsition for this case gi s the tot Iity df facts and
circumstances.
IV. CONCLUSIONS OF LAW:
1. William Taylor as the Director Of Property for the Altoona
Redevelopment Authority, Blair County is a pab2it e
Taylor, 94- OO6 -C2
Page 34
subject to the provisions of ,ct 9 bf 1989:
2. A technical viola fah of Section 3(i) of Abt of 1.989
occurred when Tay fir used tha authdri 8f o fYce in ib
attempt to bb a reel of pro erty fre the kiutho y at
a price less than alatket Vale.
In Re: William Vaylor
File Docket: 94- 006 -C2
Date Decided: 06/03/ IS
Date Mailed: Q81141.95
ORDER MCA a .9 8 3
1. William Tay .dr as the Dia'edtor' of Property fdr the Altodna
Redewolopment Authdriey, Blair County teohnidally violated
Section 3(a) of Adt 9 of 1989 when he used the authority of
office in an attempt to obtain a parcel of pfoperty from the
Authority at a pride less thafl market Value
2. Bad upon the totality of the farts and dirdumstances, this
Cmiii issiOi't will take iii further action ir3 this case.
BY TIM COMMISSION,
a6 eti.eu.
DANEEN E:�EESE, Tb''fkR
,