Hearing Confirms CBS 21 News Investigation into Liquor License

A public hearing by Harrisburg’s City Council seemed to confirm what CBS 21 News Sports Director Jason Bristol uncovered nearly three weeks ago: the City of Harrisburg possibly gave a liquor license to Harrisburg’s proposed National Sports Hall of Fame.

The Mayor of Harrisburg contends the City will receive at least $70,000 for the license.

But a CBS 21 News Right to Know request filed with the City returned no signed agreement or contract for that amount – or for any amount – between the City and NSHF Food Services, LLC. The LLC is a for-profit organization set up by The National Sports Hall of Fame Foundation and its President and CEO, John Levenda.

Levenda was asked to attend the public hearing but did not attend.

When contacted Monday night by CBS 21 News’ Bristol, Levenda yelled at Bristol and told Bristol to not contact him anymore and hung up.

CBS 21 News also went to Mayor Reed looking for answers about the lack of a signed agreement.

"Shouldn't there be some sort of an agreement signed?" Bristol asked Reed.

"There's a complete understanding to that regard and I expect it to be honored," the Mayor replied.

"Is that because you're listed as an officer (of the Hall of Fame Foundation) and that's why that understanding takes place?" said Bristol

"Its because that was the understanding at the time the license got transferred and that commitment will be honored," Reed said

A City memo from 2006 and "acting Mayor" Linda Lingle suggests the City of Harrisburg "should" receive fair market value for the license from the Hall of Fame, but there’s no mention of any money owed or paid in the assignment agreement.

And that kind of commitment doesn’t satisfy City Council.

"Its completely not regular, standard operating procedure," said Vice President Dan Miller.

Miller and the rest of City Council learned the Mayor's Office of Economic Development (MOED) recently sold another liquor license it got through a defaulted loan and received $120,000 for it. Meanwhile, the transfer of the Hall’s liquor license has been pending for close to three years...

"We have no written documents or agreements and it went to the Mayor's buddy, John Levenda," Miller said, "It's a pretty scathing indictment."

City Controller Jim McCarthy said he wasn’t in a position to question to assignment of the license to NSHF Food Services, LLC. "Frankly I can't imagine that the Mayor could give this (license) away if he wanted to," McCarthy said to Council.

McCarthy also said the license hasn’t been transferred because there’s no entity to transfer it to.

Council President Linda Thompson, who’s been an opponent of the hall of fame for years, plans on introducing legislation that will prevent NSHF Food Services, LLC from ever using that license.

She wants it sold immediately; with the money returned to MOED’s revolving loan fund.

An individual that deals with the buying and selling of liquor licenses told CBS 21 News he believes the one assigned to the National Sports Hall of Fame is worth between $100,000 and $140,000.

"I"m glad this is coming to the surface," Thompson told Bristol. "And particularly the media and yourself, is really delving into this issue. You should be commended for that."