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Elks to be transferred to authority

A real estate closing is scheduled for Thursday, Sept. 18 to transfer ownership of the Elks Building in Middletown from the Greater Middletown Economic Development Corp. to the borough’s Industrial and Commercial Development Authority.

 

As part of the closing, GMEDC is to provide payment to satisfy a lien that had been placed on the Elks property by the Pennsylvania Department of Labor and Industry for non-payment of $1,610.66 in unemployment compensation, said Gordon Einhorn, vice chairman of GMEDC.

 

Einhorn said that the authority requested GMEDC provide the payment so that it can be made part of the settlement. Einhorn said the authority was concerned that if GMEDC sent the payment to the state ahead of time, the state might not process the paperwork and send it back in time for the closing.

 

The lien came about because a private payroll service that GMEDC had used had advised GMEDC to deduct for unemployment compensation at the “standard” rate, Einhorn said. 

 

“We should have been deducting at a higher amount,’’ he said. “We were just contributing at too low an amount, but we didn’t know that at the time.