Scranton council members call upon University of Scranton to donate more money to city

Scranton City Council members called upon the property-tax-exempt University of Scranton to donate more money to the city in the form of voluntary "payments in lieu of taxes," also known as PILOTs.

The issue arose during council's weekly meeting Tuesday when council considered a resolution from the administration of Mayor Paige Gebhardt Cognetti that would authorize the city to seek a $204,000 grant from state Local Share Account funds, for the university to put toward its Nursing Simulation Laboratory Expansion Project at McGurrin Hall on Jefferson Avenue.

Over the years, the city acting as a pass-through sponsor has routinely sought such grant applications for the university and other nonprofit entities for various projects and endeavors.

Most recently, in September, council passed a similar resolution to seek a $157,000 state LSA grant on behalf of the university for its Weiss Hall Workforce Development Project.

ROBERT TOMKAVAGE / STAFF PHOTO

Students walk through the campus of University of Scranton Wednesday, Nov. 13, 2024. (SEAN MCKEAG / STAFF PHOTOGRAPHER)

DEAMSTIME via Tribune News Service

The future site of the Center for Workforce Developement, Applied Research and Outreach on the University of Scranton campus in Scranton Wednesday, Nov. 13, 2024. (SEAN MCKEAG / STAFF PHOTOGRAPHER)University of Scranton students walk on LInden St. in downtown Scranton between classes Wednesday, Nov. 13, 2024.The future site of the Center for Workforce Developement, Applied Research and Outreach on the University of Scranton campus in Scranton Wednesday, Nov. 13, 2024. (SEAN MCKEAG / STAFF PHOTOGRAPHER)The future site of the Center for Workforce Developement, Applied Research and Outreach on the University of Scranton campus in Scranton Wednesday, November 13, 2024. (SEAN MCKEAG / STAFF PHOTOGRAPHER)

At Sept. 10 and 17 council meetings, residents expressed concerns about the city seeking another grant for the university.

"They take so many buildings off the tax rolls. Why are we giving them all this money? They need that money like I need another head. It's ridiculous," resident Les Spindler said during the Sept. 17 council meeting, according to minutes of that meeting.

Councilman Bill King replied the university's workforce development project would "greatly benefit" city residents. Councilman Tom Schuster said the university donated $150,000 to the city in January as PILOT.

Council unanimously passed that Weiss Hall grant resolution that night with King, Schuster, council President Gerald Smurl, Mark McAndrew and Jessica Rothchild all in favor.

On Tuesday, when the legislation arose to authorize the city to seek the $204,000 grant for the Nursing Simulation Laboratory Project, Smurl pointedly said the university needs to donate more in PILOT funds to the city, according to an Electric City Television simulcast and video of the meeting posted on YouTube.

"I do have a problem with this. The city of Scranton continually helps the University of Scranton. Everything they ask of us, we do, put grants in for them, whatever. I believe now it's time for the University of Scranton to step up and help the city of Scranton with your donation in lieu of taxes," Smurl said.

"We continually have increases in our fire, our police and our garbage, and everything that the university uses, and your (PILOT) donation continually decreased," Smurl continued. "And another reason is at the end of the school year, the buildings are cleared out up there and the city of Scranton taxpayers pick up tons and tons of garbage throughout the entire Hill Section and this has been going on for many, many, many years. So I would just like to see that (PILOT) increase."

Schuster added, "I'll also chime in on that. I'm glad to hear you say that, Mr. Smurl. The University of Scranton benefits off the city of Scranton for countless things, whether it be the zoning ordinance or whether it be things such as this (grant application). I would like to see an increase in that PILOT payment to the city."

Council then split 3-2 on introducing the resolution authorizing the city to apply for the grant. Smurl, McAndrew and Rothchild voted yes to introduce the legislation, while Schuster and King voted no.

Reached for comment Wednesday on the issue, university spokesman Stan Zygmunt issued a statement from the university saying, "We are grateful for the city's help in applying for state funding to purchase additional specialized equipment to educate and train our nursing students, who, as graduates, are an integral part of the regional and statewide healthcare workforce."

The grant would support "transformational education that nursing students receive by participating in simulation scenarios that provide real life experience with cross-disciplinary circumstances," according the university's grant request contained in the council legislation. The goal of the nursing lab is to "continue to graduate nurses who are more confident and better prepared to be successful nurses and leaders in their profession. The University of Scranton nurses will continue to contribute to the local healthcare workforce and distinguish themselves by their academic excellence, competence in clinical skills and compassionate dispositions."

The resolution would come back before council for a second vote on adoption at council's next weekly meeting Tuesday.

The deadline for the grant application to be submitted to the state is Nov. 30, according to the legislation. If the city seeks and gets the grant, the university would get $200,000 and the city would receive a 2% administration fee of $4,000, the legislation says.