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Tuesday, July 08, 2008
The Hill: Big Earmark Headache for Rep. Kanjorski  

   
 
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KEY QUOTE: "Kanjorski’s family ties to some of the groups that have benefited from his earmarks have stirred criticism and animosity among local Democratic officials."


Big earmark headache for Rep. Kanjorski
By Susan Crabtree
Posted: 07/08/08 07:50 PM [ET]

The Department of Transportation is refusing to move forward on an earmark backed by Rep. Paul Kanjorski (Pa.), the rare House Democrat facing a tough reelection this fall.

Transportation (DoT) is blocking funds to build a $5.6 million parking garage to the Kanjorski Center, which was constructed to attract economic development in the city of Nanticoke in Kanjorski’s Eastern Pennsylvania district. Kanjorski’s earmark for the project was included in the 2005 transportation bill.

DoT contends the garage does not meet federal rules intended to spur the use of public transportation. Those rules allow federal funds for parking garages only if they are connected to other public transportation facilities outside a business area with a population of 50,000 or more, or if it serves high-occupancy vehicles (HOVs) and public mass transportation passengers.

The parking garage is not the only Kanjorski earmark the DoT has scrutinized in recent years. The department has taken exception to more than 20 of Kanjorski’s transportation earmarks totaling nearly $7 million. Kanjorski’s staff worked with the DoT to change those earmarks so they now comply with federal rules.

Kanjorski for more than two decades has brought tens of millions of dollars of federal money home to his district. His earmarks have created several different centers and organizations aimed at stimulating the cash-strapped local economy.

But Kanjorski’s family ties to some of the groups that have benefited from his earmarks have stirred criticism and animosity among local Democratic officials.

State Rep. Joe Yudichak, a Democrat and former Kanjorski ally who is now a critic, said he was concerned that the parking garage was ineligible for federal money despite Kanjorski’s claims to the contrary. Now that the DoT has made that clear, he said, the city can use the money for street improvements and surface parking.

“Over the last 24 years the congressman has built up a reputation as someone who is very difficult to deal with — he does not cooperate well with others over local projects,” Yudichak said. “He puts self-interest over the community interest.”

Some argue Kanjorski’s confrontational approach and conflicts of interest have contributed to his tough reelection fight in a year in which most Republicans are running scared.

When asked about the issues involving the parking garage and other transportation earmarks, Kanjorski immediately denied any problems and refused to discuss the matter further.

He later provided a lengthy written statement to The Hill in which he acknowledged the earmark problems and stressed his years of work for the needs of local communities in his district.

“It became clear from discussions that I had between local officials and the Pennsylvania Department of Transportation officials that some clarifying language was necessary for a few of the projects that I requested funding for in order to meet the local needs,” he said.

He concluded by acknowledging that the parking garage still needed “further clarification” and that he was working with the Federal Highway Administration to find a solution.

The Kanjorski Center, which now stands empty, was built in 1993 with federal funds the congressman helped attain.

Local officials dubbed it the Kanjorski Center out of gratitude for the economic boon they expected it would generate. Initially, 300 employees of Travelers Insurance Co., which later was purchased by United Health, moved into the building to process Medicare claims.

Several years later, however, times toughened. United Health, now named HealthNow NY, threatened to cancel its contract because it needed more space to bring in 125 more positions. The company needed the space quickly and local officials readily came up with a plan to add 20,000 square feet onto the back of the building for $2.8 million.

Kanjorski had another idea that drew opposition from other local officials.

According to a report in the Wilkes-Barre Times Leader, he urged the company to consider relocating to what would be a new, 60,000-square-foot building on South Market Street. That plan would have required the purchase of at least 11 properties, two of which were owned by Kanjorski family members. Kanjorski brought in a private developer with whom he had a longstanding relationship to pitch the Market Street building idea directly to HealthNow.

Charles Margelewicz, who chaired the Nanticoke General Municipal Authority, stepped in to oppose the plans to acquire the 11 properties on Market Street, even though Kanjorski had secured at least two federal grants to do so. After the chairman’s opposition, the authority rejected the plan.

Kanjorski’s office did not respond to questions about this report.

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