Harrisburg Mayor Ousted

thompson-linda-bl102011-357.jpg
Linda Thompson, mayor of Harrisburg, speaks during news conference in Harrisburg, Pennsylvania, U.S., on Thursday, Oct. 20, 2011. Pennsylvania Governor Tom Corbett is planning to seize control of Harrisburg's finances even as City Council members seek bankruptcy for the capital in an effort to ward off state action. Photographer: Paul Taggart/Bloomberg *** Local Caption *** Linda Thompson

Businessman Eric Papenfuse unseated incumbent Linda Thompson in Tuesday's Democratic mayoral primary in distressed Harrisburg, Pa.

Papenfuse, who also defeated city Controller Dan Miller and community activist Lewis Butts, will face independent Nevin Mindlin in the general election. Mindlin lost to Thompson in November 2009.

"This is an emotional, emotional moment," Papenfuse told cheering supporters at the Midtown Scholar Bookstore in Harrisburg, which he owns. "Harrisburg's best days have yet to come."

Thompson finished third, according to final results provided by Dauphin County election officials. The tally had Papenfuse with 2,467 votes, or 39%; Miller 2,066 or with 32%; Thompson 1,810, or 28%; and Butts 64, or 1%. The turnout of 6,407 exceeded that of the general election in 2009.

Papenfuse, who had strong business backing, advertised heavily on local television. He is a former member of the Harrisburg Authority public works agency.

Harrisburg is mired in $350 million of debt related to bond financing overruns to an incinerator retrofit project and is on the edge of bankruptcy. It is under state receivership and negotiating to sell the trash burner and parking garages. State-appointed receiver William Lynch also hopes to extract concessions from major creditors.

Additionally, its school district has $437 million of debt and is under a separate form of state supervision.

In addition, the Securities and Exchange Commission two weeks ago accused Harrisburg of fraudulent disclosure, saying it misled investors from 2009 to 2011 about its deteriorating finances. 

"Since a state-appointed receiver is calling most of the fiscal shots, a change in elected leadership may not have a huge impact on Harrisburg's finances," said Alan Schankel, a managing director at Janney Capital Markets in Philadelphia.

Only Miller favored filing for bankruptcy.

"I'm not bitter, not emotional, not crying," said Thompson, the city's first female mayor and first African-American mayor. "The opportunity for the next leader on the table is well-established. There's a plan on the table."

Supporters said Thompson spent four years cleaning up a mess that 28-year predecessor Stephen Reed left behind. Opponents called Thompson ill-tempered and divisive. Last month, for example, her "scumbag" remark about rural Perry County residents generated negative headlines.

"The sad chapter of Linda Thompson is over. A new mayor has to step forward and see that Harrisburg is not stripped of its assets," said Mark Schwartz, who represented the Harrisburg City Council in its 2011 bankruptcy filing, which a federal judge invalidated.

In Pittsburgh, where city officials have petitioned the state to remove its "distressed municipality" designation, City Councilman Bill Peduto easily won the Democratic nomination for mayor. Incumbent Luke Ravenstahl is not seeking re-election. Peduto, running in a field of four, defeated former state auditor general Jack Wagner 52% to 40%. Republican Josh Wander ran unopposed.

In another open-seat Pennsylvania race, Scranton tax collector Bill Courtright defeated Elizabeth Randol in the Democratic primary for the mayor's office. Private sector financial consultant Gary Lewis beat entrepreneur Marcel Lisi on the Republican side, according to unofficial Lackawanna County election results, although Randol could win the nomination if she wins enough write-in votes. Lackawanna is still counting write-ins.

Twelve-year incumbent Chris Doherty is not seeking re-election.

Scranton, shut off from the capital markets last year after a parking authority bond payment default, paid its workers the federal minimum wage for two weeks in July before it obtained financing.

Harrisburg, Pittsburgh and Scranton are all heavily Democratic.

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