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Lehighton man questions council on annex rental income, expenses

Edward Conarty Jr. of Lehighton Monday night alleged that Lehighton borough is losing money on its operation of the borough annex by not charging rent on "any common area" and not having leases which are consistent.

Borough Council members disputed Conarty's claims, but one councilman agreed to review the allegations. Dale Traupman, chairman of the streets, buildings, and codes committee, said he will have a report on his findings next month.The council denied, on the recommendation of its solicitor, a request by Conarty to allow him to physically measure floor space in the rooms - including locked rooms - throughout the annex. The solicitor said although council, being the owner of the building, has the right to enter such rooms if deemed necessary, that it would be inappropriate to allow a member of the public to do so since the tenants are paying rent for this space.The annex is the former Lehighton Area Junior High School on North Third Street that was converted by the borough into office space in the mid 1990s. The borough obtained grants and loans for the project. Among the tenants are the Head Start program, Carbon County Area Chamber of Commerce, State Representative Keith McCall, and the Delaware and Lehigh Heritage Corridor.Conarty reminded the council that when it obtained the building, it intended to use the structure for borough offices. Council President Grant Hunsicker said that because certain government grants that were obtained prohibit this."You're losing money," said Conarty, adding that the council should be making $149,000 a year on the "common areas."The solicitor, Attorney James Nanovic, said not all the leases expire at the same time. He also stressed that there were rate increments every year for the tenants and these are specified each time the leases are renewed.Nicole Beckett, the borough treasurer, added that new bookkeeping methods assure that there is more accurate accounting of expenses associated with the building.Hunsicker said he feels it's "pretty remarkable" the whole building is rented. Conarty responded with the allegation that this is because taxpayers are subsidizing the rents."If you're saying the borough should sell the building, you're looking at a huge loss because we'd have to pay back the grants," Attorney Nanovic told Conarty.John Bird, a councilman, suggested that the council "look at reformulating the leases." Attorney Nanovic said this can occur only when they become due for renewal, and that this should be done by the building committee.Traupman then interjected that as chairman of the building committee, he will take Conarty's information and investigate the allegations by next month's meeting.Conarty has also stated that in May 2007, the council voted 6-1 to hire a building manager.Hunsicker agreed that a manager was never hired because this would be an added expense for the taxpayers."At this time I would like to know who is the building manager," Conarty said.Hunsicker added that it is the borough council.