Collection of Harrisburg development loans improvingJason Scott
Collections on delinquent economic development loans are up about 28 percent, but Harrisburg still has about $988,000 in outstanding funds, said Jack Robinson, director of the city's Department of Building and Housing Development.
Delinquency is down to 60 percent from 95 percent, Robinson said.
Mayor Linda Thompson suspended the Mayor's Office of Economic Development small business program in 2010. She has said she will reinstitute the program after delinquent loans are collected.
Among the top five delinquent borrowers is Cameron Real Estate, backed by West Shore developer David Dodd.
Dodd made no payments on a $240,000 loan for the defunct Capital View Commerce Center project on Cameron and Herr streets. The amount past due is now more than $308,000, according to the city.
Dodd pleaded guilty in November to federal fraud charges in connection with the $28 million failed project. He awaits sentencing.
All individuals with delinquent MOED loans are asked to contact the department at 717-255-6636.
"We can construct a payment to fit borrowers' circumstances; however if delinquent borrowers do not respond to our mailings or calls, we will be forced to move that loan to the legal department for further action," Robinson said in a statement.