Ballpark obligations unclear
The city redevelopment authority seeks to clear up confusion surrounding some of its debt obligations — and hopes to rid itself of its largest liability.
The authority board Thursday said it will review financial documents and agreements with hopes to clarify debts with the city Parks, Recreation Grounds and Facilities Authority — commonly called the stadium authority — and the Housing Authority of Butler County.
The stadium authority, which manages Kelly Automotive Park, previously had a listed debt of about $137,000 owed to the redevelopment authority for cost overruns associated with the construction of the park in 2007.
However, the stadium authority earlier this year said there is no documentation specifying the debt or why it is up to the stadium authority to pay it.
“They said they won’t pay it,” said Art Cordwell, director of the redevelopment authority.
The redevelopment authority hopes to review past agreements to see which authority should be responsible for the costs.
Nick Ban, chairman of the stadium authority, said the redevelopment authority owns the ballpark and is responsible for paying for it. But the redevelopment authority said it believed the stadium authority took on that debt during the construction of the park.
Cordwell said if the stadium authority will not pay the debt, then the redevelopment authority will have to write it off as bad debt.
The stadium authority this year sold its share of the Butler BlueSox baseball team for $40,000 and used that money to pay off other debts.
Redevelopment authority Chairman Fred Reese questioned whether some of that money should have gone to the redevelopment authority.
“They sold their shares of the BlueSox, and we didn’t get any of that,” he said.
In the past, the stadium authority used its revenue to make payments on the ballpark.
In another financial issue, the mortgage on the ballpark is in default. Ban said the stadium authority is looking to work out an agreement with Dollar Bank to take over ownership of the park from the redevelopment authority.
Dollar Bank leads a group of banks as the mortgage holder on the park.
“This needs to be resolved,” Ban said. “We’re waiting to have a meeting with the bank to discuss what options are available to retain this city asset.”
The redevelopment authority said it would be in favor of such a move. Board member Joe Gray said it may be worth forgetting about the previously listed debt if the stadium authority can take over the park.
“It’d be like we are paying them to take the park,” he said.
In total, the redevelopment authority still owes Dollar Bank about $1.6 million.
The redevelopment authority also is looking to sort out past agreements with the county’s housing authority. The redevelopment authority owes that authority about $82,000 but board members are not certain what the money was spent on.
The redevelopment authority previously had paid management fees to the county housing authority under a previous agreement between the two authorities.
Reese said he believes all those fees were paid.
Housing Authority solicitor Andrew Menchyk said he is not familiar with the debt and decline to comment.
The redevelopment authority board voted Thursday to return the deed of what is now the parking lot in front of Kelly Automotive Park to the housing authority to rectify a debt to that board.
The redevelopment authority owed the housing authority $237,000 for the lot, which the housing authority bought during the construction of the ballpark. At that time the land had four houses.
“It’s like we sold it for that much,” Grey said of the debt.
Cordwell said the redevelopment authority at the time bought the lot when the housing authority needed money to finish building the ballpark.
Menchyk said the housing authority has no plans to use the lot for anything other than a parking lot.
“It will remain a parking lot,” he said.
