Frustration over the Convention Center's board of trustees' failure to make recommended improvements in the center's operations, negotiate a new labor contract, or even appoint a CEO that met legal requirements, prompted the state legislature last year to table the center's request for $232 million, half the bill of an expansion plan that would double the center's current size. The expansion is considered crucial to making the center competitive.
Before leaving office, then-Gov. Mark Schweiker ruled that the board be expanded from eight to 12, and be weighted with greater suburban representation. Mayor John Street sued to have that law reversed, and Commonwealth Court responded by ordering a preliminary injunction against expansion of the board.
In issuing the injunction, the judge cited the "rush" in which the new law was enacted and said the public was given no indication of such a "radical change" in governance, though "taxpayers will be footing the bill." The court put aside any question of whether or not a law requiring expansion of the board violates the state constitution.
State attorneys have not indicated whether or not they plan to appeal the judge's ruling in state Supreme Court. For now, the task of setting the center on course for obtaining funds for a 300,000-sf expansion is back in the hands of its previous eight-member board.
Meanwhile, an offer by three local charitable trusts to raise $150 million to build a Barnes Museum here is in the hands of the Montgomery County Orphans Court, which oversees charitable and nonprofit institutions. The collection, now housed in Lower Merion, PA, is on the verge of bankruptcy. The Barnes Foundation is petitioning the court to take the trusts' offer, but covenants by the late Albert C. Barnes prevent its removal and dictate the configuration of the Barnes board of trustees.
The trusts' offer only stands if the covenants can be lifted and other governing rules are changed, including the configuration of the board. Among the governing rules is a stipulation that Chester County-based Lincoln University appoint four of the board's five trustees.
The petition calls for expansion of the board to 15, retaining the four Lincoln appointees. While the court is allowing Lincoln to participate in arguing before the court, it has denied participation of the Violette de Mazia Trust, which was established by Albert Barnes' longtime assistant; a graduate of the Barnes' art program and three current students of the art program. Lincoln and those denied participation are expected to object to changes in the governing rules.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
