HERSHA HOSPITALITY MANAGEMENT CONTRACT

They had the headlines. I had the receipts.

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The contract was flawed from day one. I read it. I warned them. They silenced me—until the lawsuit proved every word right.

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When the County signed its sweeping management agreement with Hersha Hospitality Management in December 2020, I read it cover to cover. Not as a soundbite. As a governing document. And what I saw wasn’t a policy—it was a liability.

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It gave Hersha control of The Hope Center, millions in County funding, and broad operational freedom—without meaningful oversight, reporting safeguards, or fiscal triggers. The contract wasn’t built to protect the County. It read more like a Wishlist from the vendor. I flagged it. I said, “This is going to blow up on us.”

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Instead of listening, they tried to silence me.

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I raised the alarm in Council meetings, budget hearings, debates, forums. Over and over again, I asked: Who’s monitoring outcomes? Who’s tracking reimbursements? Who’s holding the contractor accountable for training, health and safety, and building conditions? And over and over, I was told I was wrong—by the Administration, by the Council Finance Chair, and even by some who should have known better. I was ruled out of order. I was cut off. I was publicly attacked.

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But the numbers told a different story. And I followed them.

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By 2023, the cracks were visible: broken systems, unqualified staff, unanswered invoices, residents at risk. Still, the administration dismissed my warnings. Until the day before the 2024 Primary Election—when they filed a lawsuit alleging the exact failures I had outlined since the beginning: flooding, mold, untrained staff, unsafe conditions, and financial mismanagement.

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They called it mismanagement. I called it a betrayal of public trust.

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And it didn’t have to happen. The County could have restructured the contract in 2020, enforced performance metrics, or placed Hersha on notice earlier. But they chose politics. I chose facts. And now, the record speaks for itself.

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🗓️ Timeline: What They Promised. What I Proved. What Changed.

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• December 15, 2020 – New Castle County signs a management agreement with Hersha Hospitality Management. I raise immediate concerns about the contract’s structure, lack of oversight, and long-term risk.

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• 2020–2024 – I repeatedly speak out—at Council meetings, budget hearings, and public sessions—about financial red flags, deferred maintenance, and unqualified staffing at the Hope Center. I’m ruled out of order. I keep going.

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• May 10, 2023 – The County issues its first breach-of-contract notice to Hersha. My warnings begin to materialize.

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• April 2024 – County quietly takes back control of the Hope Center.

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• September 9, 2024 – One day before the County Executive Primary Election, New Castle County Government sues Hersha Hospitality Management. The suit mirrors exactly what I had spent four years trying to stop: unchecked spending, unsafe conditions, contract violations, and harm to the most vulnerable.

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They called it mismanagement.

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I called it in 2020.

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And I couldn’t have been more right. 

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– Karen Hartley-Nagle

President, New Castle County Council (2016-2024)