ABC27 WHTM Deal to keep Harrisburg running in final negotiation

Deal to keep Harrisburg running in final negotiation

Mayor Linda Thompson said Wednesday that funding for the proposed 10-year lease extension agreement between the City and the Harrisburg Parking Authority has been put in place and is in final negotiation.

The agreement would provide the Parking Authority with a $10 million loan to be used to pay for the extended use of city land from 2016 to 2026, as well as pay for capital improvements in the parking system.

The City will be paid $7.4 million and the balance will be used by authority.

Under the terms of the agreement, still in process, the City will receive the payment by September 14.

"This payment will balance the city's $6.8 inherited structural deficit for 2011," Thompson said in a news release.  "All city bills will be paid to our business partners and vendors both small and large who have stood by this city in its toughest hour."

The mayor said all employee payrolls will be met through the end of the year.

The lenders involved in the agreement have asked to remain private until the transaction is finalized Thursday.