Petrilla admits to secret legal deal over Yankees francas
By Michael P. Buffer
The (Scranton) Times-Tribune
WILKES-BARRE - Luzerne County Commissioner Chairwoman Maryanne Petrilla explained Thursday why she secretly signed an agreement Aug. 11 to hire legal counsel for a lawsuit over the Scranton/Wikes-Barre Yankees.
"We were directed by our attorneys not to tip our hands," Ms. Petrilla said. "We wanted to protect the taxpayers' interest in the franchise and not publicize anything."
Just two days after signing the agreement, Ms. Petrilla didn't tip her hand during a conference call with Lackawanna County Commissioner Chairman Mike Washo and Gov. Ed Rendell. The three officials talked about funding renovations at PNC Field in Moosic with state money and all proceeds from selling the Triple-A franchise to SWB Yankees, a partnership of the New York Yankees and Mandalay Baseball Properties.
Mr. Washo said Thursday he was "under the impression" Ms. Petrilla wanted the two counties to be partners, not adversaries, during the Aug. 13 conference call. Mr. Rendell promised state funding if both counties agreed to invest all sale proceeds in the stadium project.
"To the best of my recollection, it was never mentioned that counsel had been retained," Mr. Washo said. "It does surprise me."
Officials from the two counties have been publicly swapping insults and accusations since Aug. 30 - the day Luzerne County commissioners voted to hire Reed Smith LLP, a Philadelphia law firm. Also that day, the law firm filed a complaint in Lackawanna County Court claiming Luzerne and Lackawanna counties must equally split proceeds from a sale of the franchise.
Melissa Melewsky, media law counsel for the Pennsylvania Newspaper Association, said signing the Reed Smith agreement before the Luzerne County commissioners voted to retain the firm "raises significant Sunshine Act compliance concerns." The Sunshine Act requires public votes on official actions.
Ms. Petrilla said she signed the Reed Smith agreement because the county faced a deadline to file a civil lawsuit. Under a contract negotiated in 2007 by former Lackawanna County Commissioner Robert Cordaro, SWB Yankees agreed to manage franchise operations and had an option to buy the franchise for $13 million by Oct. 1.
The Lackawanna Multi-Purpose Stadium Authority owns the franchise, which was purchased in 1986 with $1 million from each county. Reed Smith proposed terms of its agreement to file a suit against the stadium authority in a letter to Luzerne County solicitor Vito DeLuca dated Aug. 5.
Ms. Petrilla agreed to the terms by signing the letter Aug. 11. Times-Shamrock newspapers obtained a copy of the letter from a right-to-know request.
Last week, the stadium authority agreed to sell the franchise for $14.6 million to SWB Yankees, which will sign a 30-year lease for PNC Field under a renegotiated deal. Mr. Rendell promised $25 million in state funding for stadium renovations.
Because of the litigation, only $4.3 million from the franchise sale will be earmarked for the stadium project, and $7.3 million will be set aside. Lackawanna countersued on Oct. 1, arguing Luzerne County should pay half of the more than $20 million Lackawanna County taxpayers invested in baseball.
According to Luzerne County's agreement with Reed Smith, the county will pay $395 an hour for work by attorneys and $195 an hour for paralegal work. Luzerne County has paid Reed Smith more than $15,000 for services in August and September.
An invoice shows Reed Smith started to do research on the baseball franchise July 26.
Ms. Petrilla said officials needed to know exactly what Luzerne County's rights were under the 1986 agreement to buy the franchise.
The (Scranton) Times-Tribune
WILKES-BARRE - Luzerne County Commissioner Chairwoman Maryanne Petrilla explained Thursday why she secretly signed an agreement Aug. 11 to hire legal counsel for a lawsuit over the Scranton/Wikes-Barre Yankees.
"We were directed by our attorneys not to tip our hands," Ms. Petrilla said. "We wanted to protect the taxpayers' interest in the franchise and not publicize anything."
Just two days after signing the agreement, Ms. Petrilla didn't tip her hand during a conference call with Lackawanna County Commissioner Chairman Mike Washo and Gov. Ed Rendell. The three officials talked about funding renovations at PNC Field in Moosic with state money and all proceeds from selling the Triple-A franchise to SWB Yankees, a partnership of the New York Yankees and Mandalay Baseball Properties.
Mr. Washo said Thursday he was "under the impression" Ms. Petrilla wanted the two counties to be partners, not adversaries, during the Aug. 13 conference call. Mr. Rendell promised state funding if both counties agreed to invest all sale proceeds in the stadium project.
"To the best of my recollection, it was never mentioned that counsel had been retained," Mr. Washo said. "It does surprise me."
Officials from the two counties have been publicly swapping insults and accusations since Aug. 30 - the day Luzerne County commissioners voted to hire Reed Smith LLP, a Philadelphia law firm. Also that day, the law firm filed a complaint in Lackawanna County Court claiming Luzerne and Lackawanna counties must equally split proceeds from a sale of the franchise.
Melissa Melewsky, media law counsel for the Pennsylvania Newspaper Association, said signing the Reed Smith agreement before the Luzerne County commissioners voted to retain the firm "raises significant Sunshine Act compliance concerns." The Sunshine Act requires public votes on official actions.
Ms. Petrilla said she signed the Reed Smith agreement because the county faced a deadline to file a civil lawsuit. Under a contract negotiated in 2007 by former Lackawanna County Commissioner Robert Cordaro, SWB Yankees agreed to manage franchise operations and had an option to buy the franchise for $13 million by Oct. 1.
The Lackawanna Multi-Purpose Stadium Authority owns the franchise, which was purchased in 1986 with $1 million from each county. Reed Smith proposed terms of its agreement to file a suit against the stadium authority in a letter to Luzerne County solicitor Vito DeLuca dated Aug. 5.
Ms. Petrilla agreed to the terms by signing the letter Aug. 11. Times-Shamrock newspapers obtained a copy of the letter from a right-to-know request.
Last week, the stadium authority agreed to sell the franchise for $14.6 million to SWB Yankees, which will sign a 30-year lease for PNC Field under a renegotiated deal. Mr. Rendell promised $25 million in state funding for stadium renovations.
Because of the litigation, only $4.3 million from the franchise sale will be earmarked for the stadium project, and $7.3 million will be set aside. Lackawanna countersued on Oct. 1, arguing Luzerne County should pay half of the more than $20 million Lackawanna County taxpayers invested in baseball.
According to Luzerne County's agreement with Reed Smith, the county will pay $395 an hour for work by attorneys and $195 an hour for paralegal work. Luzerne County has paid Reed Smith more than $15,000 for services in August and September.
An invoice shows Reed Smith started to do research on the baseball franchise July 26.
Ms. Petrilla said officials needed to know exactly what Luzerne County's rights were under the 1986 agreement to buy the franchise.
