6/7/03: Mayor nixes brother's airport deal Street cites 'potential' of impropriety By Dave Davies daviesd@phillynews.com
Mayor Street yesterday pulled the plug on brother Milton's $1 million-plus contract to maintain baggage equipment at the Philadelphia airport .
"I don't like the fact that this was a contract Milton entered into with no bidding," the mayor said at a press conference. "It has the potential to be looked at as a kind of insiders' deal."
Street said he asked his brother to withdraw from the contract, and he did. The mayor said he first heard about the contract when reporters began calling his press office this week.
Milton Street 's company, Notlim Service Management was to take over supervision of about 14 employees who now work for Philadelphia Airport Services, which manages maintenance for the entire airport .
Notlim's contract would be worth about $1.2 million according to one business plan. Airport officials approved the plan, but insisted that PAS retain the administration, liability, and financial responsibility for the services.
"The rules were followed," Street said yesterday. "However, I don't like the appearance of an impropriety, whether or not one exists."
It was unclear yesterday how Milton Street 's company could have been approved as a minority contractor by the city's Minority Business Enterprise Council while he appears to owe the city more than $8,000 in unpaid business taxes. MBEC director James Roundtree was away yesterday and unavailable for comment.
Milton Street said in a prepared statement that his firm won the contract "fairly, and without influence," but would honor his brother's request to withdraw.
Milton Street was a paid consultant to PAS when it won the airport maintenance contract in 2001. He said in an interview Thursday that since then he's been building a company he hopes can provide technical services to airports in other cities.
"We can pursue opportunities in a number of cities where the media won't pay any attention, because my brother isn't the mayor," he said.
Mayor Street said he won't ask his brother not to seek city business in the future.
"I believe that Milton has to be very careful, but I don't know that it's lawful or fair for me to ban Milton from any contract in the government," Mayor Street said. "If I hear of a situation that I think poses a questions of propriety, then I will get in it."
The embarrassing episode is certain to play a role Mayor Street's re-election campaign.
Republican mayoral candidate Sam Katz said yesterday "cronyism, nepotism, and secrecy are alive and well in the Street administration."
Katz said it "strains credulity" to think that a company owned by the mayor's brother with no employees, no capital, and no experience in the field could get such a contract without high level administration officials knowing about it.
"We don't need any moralizing from Sam Katz on cronyism," said Street's campaign spokesman Mark Nevins. "Time and time again, we've seen him enrich himself with insider contacts and political connections." *