DCED & Chester efforts to force sale

Since 1995, the City of Chester has been under the financial oversight of Pennsylvania’s Department of Community and Economic Development (DCED), specifically, the DCED’s “Act 47 Recovery Team.” Now—after nearly three decades under the DCED’s financial management—the City is bankrupt. In the years leading up to the bankruptcy, the DCED began looking for a way to bail itself out—a quick fix that would allow the City’s finances to suddenly improve after the years of failed DCED oversight. The DCED sees selling the CWA as that quick fix, despite the fact that Chester’s financial problems are long-term structural issues that will not be solved by a one-time infusion of cash.

Through Right-to-Know Law requests, the CWA has sought to uncover the extent to the DCED’s involvement in the scheme to sell the CWA. Documents reveal that in the year leading up to Aqua’s offer to purchase the CWA, the DCED’s attorneys obtained the CWA’s articles of incorporation and the DCED and Aqua began discussing a sale of the CWA to Aqua. These discussions were held in secret and did not involve anyone from the City of Chester or the CWA. Then, after Aqua made its unsolicited offer in 2017, the City’s mayor, Thaddeus Kirkland, sent a letter to the CWA expressing interest in exploring ways to monetize the CWA for the City’s sole benefit. The CWA responded that the City does not have the legal authority to unilaterally terminate and sell-off the CWA. The DCED and City of Chester have nevertheless continued to try to force a sale of the CWA.

Read more about the DCED and Chester’s efforts to force a takeover in the links below: