Pottsville Officials Clash with Solicitor Over $194K in Legal Fees

Two high-ranking Pottsville officials confronted the city’s solicitor last week over what they say are excessive legal fees and a flawed strategy to fight blight, triggering a tense and often combative Redevelopment Authority meeting.

City Administrator Ian Mahal and Pottsville Area Development Corp. executive director Savas Logothetides accused Solicitor Ed Brennan of billing the authority more than $194,000 since the beginning of 2023, mostly for pursuing conservatorships of blighted properties.

A conservatorship is a court process that allows a court-appointed party to take control of a neglected property to rehabilitate or demolish it.

Mahal’s Public Rebuke

Mahal opened the meeting by submitting a letter on city letterhead defending City Hall staff and highlighting redevelopment projects such as the Garfield Diner and the former Miners National Bank building.

But the letter also attacked the Redevelopment Authority’s reliance on conservatorships.

“For all the big wins, they have been overshadowed by the priority of conservatorships,” Mahal wrote. “An approach that would result in such an expenditure on legal fees does anger me and accountability should not be difficult.”

Mahal estimated the authority has spent $200,000 on legal fees since 2021, a point that Logothetides disputed, saying records show it’s about $194,000 since January 2023.

Dispute Over 717 W. Race St.

Outside of his letter, Mahal later raised concerns about how certain properties were designated for conservatorship. He pointed to 717 W. Race St., which he said was approved for conservatorship despite his prior agreement with the owner for the city to demolish it.

Brennan responded that the property was approved for a conservatorship pursuit because the city was not sure the owner would cooperate with demolition plans. He said his billing for that case was minimal, limited to a title search.

Brennan Pushes Back

Brennan said he was blindsided by Mahal’s letter but defended his work.

“My billing is a function of the work done,” he said. “It is disingenuous and deceptive to suggest somehow that over 4 years, fees of $200,000 is taking all the money out of this authority.”

He said the city itself asked him to pursue conservatorships to tackle blight across neighborhoods, not just downtown, and argued it was misleading to cite fees without context.

“This sounds like a lot of money but throwing that out there without an explanation is somewhat deceptive,” Brennan said. “Remember, the city is committed to addressing the problem of abandoned and blighted houses. Sometimes, you have to go to court.”

Brennan also noted the authority has funded more than $1 million in rehabilitation projects, a defense Logothetides called “a deflection” from the legal fees under scrutiny.

“I think it’s deceptive to say they were given this money as that was the point of the grant money,” Logothetides said. “For you to offer that as a response is a little bit of a deflection on what’s actually transpiring within this authority.”

$6,200 a Month in Fees

Logothetides said since January 2023, Brennan’s legal work has cost the authority an average of $6,200 a month — far beyond the $20,000 legal expense cap under the $1 million Keystone Communities grant awarded in 2019 that funded many of the projects Brennan referenced.

“When this grant is audited because it is in excess of $500,000, how will that be explained to the state?” he asked. “How will you determine if you need to pay some of this money back?”

Redevelopment Authority chairman Ian Lipton said that in 2025, the board has authorized $49,396 in legal fees so far, $37,000 of which was for conservatorships.

Brennan said that most conservatorships average $7,000 to $8,000, though some, like the Thompson Building case, were higher due to dealing with a “litigious” owner.

Heated Exchanges

The meeting grew increasingly tense when Brennan referenced Logothetides’ salary in defending his own billing.

“To say there’s no rhyme or reason, Savas, if you read it, it’s a detailed statement,” Brennan said. “It’s not like they pay me $75,000 for a part-time job and I don’t have to tell anybody how I spend my time.”

Logothetides shot back, calling the remark a deflection and “a shot” at him. After the meeting, he said PADCO remains committed to economic development and noted Brennan has never attended one of its board meetings.

Brennan later suggested Mahal and Logothetides had “choreographed” their questioning. Logothetides immediately denied that: “That is an accusation that is completely unfounded, Mr. Brennan, and untrue.”

Authority Appoints Treasurer, Balks at Advertising for Executive Director

Despite the tension, the Redevelopment Authority did appoint Matt Direnzo as treasurer through 2026. But the board stopped short of advertising for a part-time executive director, though that could happen at a joint meeting with City Council this week.

Logothetides warned that without a director, the authority risks financial collapse.

“Without an executive director in place to oversee the operations of this authority, this authority will go bankrupt,” he said.

Subscribe to Coal Region Canary

Get email updates from Coal Region Canary by becoming a subscriber today. Just enter your email address below to get started!

Support Coal Region Canary

Like our reporting and want to support truly local news in Schuylkill County? Your small donations help. For as little as $5, your contribution will allow us to cover more news that directly affects you. Consider donating today by hitting the big yellow button below ...