Citizen group sues Brenton Davis for leasing out Blasco Library to Gannon University

Opponents of a controversial lease agreement that allows Gannon University to build a water research lab inside the county’s main public library are taking their opposition from the streets to the courthouse.

Keep Our Library Public, a citizen-led protest group that has staged several demonstrations against the lease, filed a lawsuit Thursday against Erie County and Erie County Executive Brenton Davis, who negotiated the lease agreement with Gannon.

The lawsuit, which was filed in the Erie County Court of Common Pleas, and which will be adjudicated by Judge Joseph Walsh, is seeking a declaratory judgement to render the lease void.

The lawsuit contains three primary reasons why.

Firstly, it alleges the lease violates the intended purpose of the Blasco Memorial Library property, located at 160 E. Front St. The suit claims the property was specifically donated to the county for use as a public library — not to be leased out to a private institution like Gannon.

The lease, the suit claims, violates Pennsylvania’s Dedicated or Donated Property Act, which states all land and buildings held by a trustee ― in this case, the county ― shall be used for the purpose for which they were originally dedicated or donated.

Secondly, the lawsuit alleges that Davis violated the Erie County Administrative Code by negotiating lease terms that are not favorable to Erie County taxpayers. The suit claims Davis executed the lease without obtaining any other proposals or offers and without any market value analysis.

The results, the suit claims, are “so disadvantageous to the county that it will lose money due to the lease.”

Thirdly, the lawsuit alleges that Davis breached his fiduciary duty, that he "negligently or intentionallymishandled" donated property in negotiating and executing the lease.

“This really comes down to elected officials who are making decisions that don’t smell right to a lot of people, and when you start digging into it, you realize that this isn’t our imagination — it really is this bad,” said former Erie County Public Library Director Mary Rennie, who’s a member of Keep Our Library Public.

“The county executive wants to be seen as a leader. But if you’re a leader and you have a destination in mind, it shouldn’t be just a handoff of money or assets or services or buildings to a private institution that carries no mandate of accountability to citizens and taxpayers. We find that unacceptable.”

Erie County Public Information Officer Chris Carroll did not immediately respond to a text for comment sent by the Erie Times-News on Friday.

What is the research lab?

The proposed Gannon project in the library is formally called the Great Lakes Research and Education Center.

The 3,280-square-foot center ― a part of Gannon’s multi-phased $24 million water quality initiative called Project NePTWNE ― is to be located on the eastern wing of the library’s first floor and comprise of hands-on exhibits, a NOAA Science on a Sphere and a research lab, all of which will be accessible to the public at no cost, according to Gannon officials.

The center, officials said, will serve as an ecotourism attraction; enhance research done on the university’s research vessel, the Environaut; and complement the educational programming and services offered by the library.

Opponents have argued the lease is an affront to the library, contending it gives away space from a vital public asset to a private, religiously affiliated university. They also say the lease was approved by Erie County Council with little advance notice and no public engagement.

The Davis administration has maintained the lease was approved lawfully and that the center will prove a boon to the library and the county overall.

Gannon anticipates construction of the center to begin in late fall, with a projected opening in early 2025.

Lawsuit claims lease violates spirit of property’s intent

The lawsuit states how the property in question was donated to the county by the Port Authority of the City of Erie and the Pennsylvania Electric Company in 1994 for the intended purpose of a public library.

The building was erected, in large part, due to an endowment from philanthropist Raymond Blasco through the Erie Community Foundation for the purpose of a public library. Indeed, the building was dedicated as a public library in a public ceremony in 1996 by then Pennsylvania Gov. Tom Ridge.

However, the suit claims that Davis violated the property’s intent by executing the lease agreement with Gannon.

The suit states that any changes to the building’s intended use could have been authorized by a court order. However, the suit continues, Davis did not seek or obtain a court order.

“The county was without the authority to enter into the lease of the building and property with a private institution absent an order of court,” the suit stated.

Lawsuit claims lease was poorly negotiated

The lawsuit further states the lease favors Gannon more than county taxpayers.

Under the lease, Gannon will pay a fixed rate of $22,956 per year, or $1,913 per month, or $7 a square foot, for an initial term of 25 years.

That rental amount, the suit claims, is far below the fair market value of the leased premises, adding the county pays rental amounts as high as $15 per square foot for various county departments.

“Instead of giving away the leased premises, the county could have moved one of its own programs or departments into the building to save money on existing county rental expenditures,” the suit stated.

The suit also states how construction of the center will be funded by $1.5 million in American Rescue Plan funds that were approved by Erie County Council, adding the county is "essentially paying itself for the lease."

"The terms arrived at by Davis, especially in light of the American Rescue Plan award, practically give away the leased premises to a private, religious affiliated institution," the suit stated.

Citing the Article 3, Section 2 of the Administrative Code, the suit states the county executive, when negotiating the terms of a contract for the lease of real estate, should arrive at a rental amount and lease term "most favorable to the county of Erie."

The suit claims Davis did not meet this requirement and violated the code. The suit further accused Davis of mismanaging county finances and donated property, which will "continue to cause harm to plaintiffs."

"Plaintiffs have no other adequate remedy in law or equity to cure this violation by Davis except to have the lease declared void," the suit stated.

“We expect our county leaders to be good stewards of what belongs to the people,” Rennie said. “I don’t think they did here and that’s partly what the lawsuit argues. They are not acting in the fiduciary interests of the rest of us.”

Keep Our Library Public is being represented by Pittsburgh-based law firm Strassburger McKenna Gutnick and Gefsky.

A.J. Rao can be reached at arao@gannett.com. Follow him on X @ETNRao.

This article originally appeared on Erie Times-News: Citizen group sues Davis for leasing out Blasco Library to Gannon