| Central Penn Business Journal
Do incinerator offers give Harrisburg leverage?
It's funny how the bargain bidding for Harrisburg's incinerator continues to heat up.
Lancaster's Solid Waste Management Authority has a $124 million offer on the table, and persistent New York City developer Jacob Frydman, who's made pitches on the city's parking garages for more than two years, recently made a $140 million bid.
The Harrisburg Authority, which buried the city in more than $300 million of debt from a failed 2004 retrofit, owns the incinerator. That debt has landed the city in the state's Act 47 "distressed city" program, where a team of advisers are formulating a plan to fish the city from its financial abyss.
Of course, Frydman still wants the garages. His deal would lease the incinerator for 99 years and the city parking system for 75 years for $215 million.
Do the offers give Harrisburg a little leverage, or is this a fire sale? Should the city and its Act 47 team consider the offers?
Christopher Passante is the editor of the Central Penn Business Journal.