The Allegheny County controller is giving money to VisitPittsburgh — and she didn't even have to go undercover.
On Friday, Chelsa Wagner said she’ll release the more than $681,000 in hotel tax revenue she withheld from the nonprofit tourism agency after what both she and VisitPittsburgh’s CEO described as a “productive” meeting about its contribution to Mayor Bill Peduto’s appearance on the TV show “Undercover Boss.”
Mr. Peduto went undercover on the CBS show as a public works employee and at the end of the show gave out $155,000 to four needy city workers featured on the show. VisitPittsburgh donated $25,000 and another $25,000 is pending board action. The agency’s initial donation came from its general fund, a mix of public and private dollars.
Ms. Wagner questioned money from a public agency for the payments.
Mr. Peduto, who last week released a statement in the voice of his alter-ego on the show, spoke on the matter Friday, as himself this time.
“Some people want to use this as an opportunity as a battering ram,” he said. “I think it’s the first time that any politician has ever been accused for lining someone else’s pockets.”
Mr. Peduto said he was happy that Ms. Wagner had backed off her threat to withhold money from VisitPittsburgh but insisted that the group’s donations were made in compliance with all laws. Ms. Wagner said she’s hopeful the board will not approve the second set of funds.
“If that’s not the decision, we’ll be back,” she said, adding that she would not rule out the possibility of withholding another disbursement.
The tourism agency receives more than a quarter of the county’s 7 percent hotel tax collection and has an $11 million budget, Ms. Wagner has said. In 2014, $8.4 million of that money came from taxpayers, not including the $681,744.
Both the mayor’s office and VisitPittsburgh have challenged Ms Wagner’s authority to withhold the funds.
VisitPittsburgh’s CEO Craig T. Davis said he doesn’t plan to withdraw the initial $25,000 contribution and intends to “present both sides and talk it out” when the board meets Feb. 18 for a vote on the second donation the mayor requested.
On another front, a spokesman for Allegheny County District Attorney Stephen A. Zappala Jr. said his office is not involved in an investigation of the mayor’s distribution of money to the workers featured on the show.
“District Attorney Zappala believes that the county controller and the unions who represent city workers both have standing to try and determine whether payments made to workers as part of the ‘Undercover Boss’ program represented illegal bonuses,” spokesman Mike Manko said in a prepared statement.
“Although we have made certain inquiries concerning the payments … our office has no active investigation involving the city’s participation in the program.”
Mr. Manko said one of those inquiries was to the state Ethics Commission, but he couldn’t be more specific. The commission’s executive director has said he cannot confirm or deny any investigation.
The mayor also said neither the district attorney’s office nor the state ethics commission is investigating the matter at this time. He said his office had talked to both to determine whether there was any truth to reports that they were investigating.
“There is a sublime ridiculousness to politics sometimes. Many times daggers come out. I don't think the DA is pushing this but I do think that there’s those from a political standpoint that want to turn something good into something bad,” Mr. Peduto said.
First Published: January 30, 2015, 6:23 p.m.
Updated: January 31, 2015, 4:18 a.m.
