SUNBURY - The first five years of a renegotiated lease for the Northumberland County human services complex has saved the county approximately $1.8 million, with millions more in savings to come, Commissioner Chairman Vinny Clausi said.
Clausi updated the lease negotiation savings, first announced in 2008, at a press conference Monday morning in the parking lot of the three-building complex on North Second Street.
July 1 began the new fixed annual lease rate of $668,494, which will bulk up the savings over the 20-year term of the lease to $23,952,246. And when the lease ends in 2028, the county will own the property.
Clausi, joined by Commissioner Steve Bridy and at least 25 other county staff, said he was proud of the savings.
"It's all about taking care of the people," he said.
When Clausi became commissioner in 2008, he put together a team of local businessmen - Joe Pancerella of Kulpmont and Gene Welsh and Craig Fetterman of Coal Township - and successfully renegotiated terms of the lease with Stan and Penn Seiple, father and son owners of the buildings.
"They could have said 'no.' They could have told us to go pound sand," Clausi said about the Seiples.
While Stan Seiple joked that it hurt to renegotiate, he and his son agreed they were happy to help the county and are proud to have these "fantastic" human services.
"We live here. If everybody can help save a little, we'd all be better off," Penn Seiple said.
The new lease took effect July 1, 2008, with an automatic annual rent decrease of $59,602. Since 2008, it has decreased from $1,136,225 to $1,049,540 last fiscal year.
The new rate is now frozen until 2028. Projections show that the county could have been paying $2,817,721 by 2028 instead of $668,494 had the lease not been renegotiated.
Clausi said the lease for the parking lot is approximately $100,000, putting total rent for the property at approximately $788,494.
The original lease was negotiated under the Charles "Chap" Lewis and Allen Cwalina administration, which was criticized when the rent and associated costs became public.
The old agreement included a yearly increase based on the Consumer Price Index (CPI). The CPI measures the average price of consumer goods and services purchased by households. The percent change in the CPI is a measure of inflation, and the CPI can be used to adjust wages, salaries, pensions or regulated or contracted prices for the effects of inflation.
Included in the new agreement is the county's right to sublet space in the buildings.
The 3-acre property has buildings constructed in 2003 measuring 13,000, 23,000 and 43,000 square feet.
Thanks all around
Clausi said the renegotiated lease is an example of how he has done the right thing for the citizens of the county, not what was best for the "political machine." He said he has run the county like a business and cleaned up corruption.
In addition to the Seiples and department heads, Clausi thanked Bridy for his support over the past two years and former Commissioner Merle Phillips for his help. Clausi urged future elected officials to "do the right thing" when he retires in two years.
Phillips, who was also present for the press conference, said the people of Northumberland County should be grateful for Clausi's money-saving ideas and the Seiples' cooperation.
"I am grateful I could play a small part," he said.
Phillips was part of the planning for the new 153-stall parking lot for the complex, which officially opened in June 2012.
Controller Tony Phillips praised Clausi and the Seiples for saving the county money without eliminating any services.
Several department heads also thanked the commissioners for the renegotiated lease agreement.
Commissioner Rick Shoch was not present at the press conference.