Mortgage on ballpark in default
The city redevelopment authority has defaulted on its mortgage on Kelly Automotive Park again.
The city Parks, Recreation Grounds and Facilities Authority, which manages the ballpark, at its meeting Thursday said Dollar Bank is owed more than $45,000 in outstanding payments.
“They haven’t been paid since November,” said Nick Ban, chairman of the facilities board.
Ban said Dollar Bank, which leads a group of lenders holding the mortgage on the stadium, sent him an e-mail Wednesday that included a copy of a letter originally sent to the redevelopment authority notifying it of the default.
That letter was dated Jan. 27.
“This was the first it was brought to my attention,” Ban said.
Ban said he would be meeting with representatives of Dollar Bank in the near future to discuss the default.
“We’re looking to straighten this out,” he said. “They want their money.”
Ban said the bank seemed willing to work with the authority to figure out the structure’s financing options.
“They seem very receptive,” Ban said. “They appreciated the renewed interest from this board and are willing to work this out.”
The redevelopment authority also defaulted on the loan in January 2014. In total, the redevelopment authority still owes Dollar Bank about $1.6 million, according to the facilities board.
Ban said he contacted the redevelopment authority via e-mail about the withheld default letter sent this year, but did not receive a response. The letter from Dollar Bank was addressed to Art Cordwell, executive director of the redevelopment authority.
Mayor Tom Donaldson, who was in attendance at the meeting, said he would be asking the redevelopment authority why it withheld the letter from the city and the facilities authority.
While the status of the ballpark’s mortgage is up in the air, the facilities board reported its other finances are falling in line.
Last year the board reported it had more than $260,000 in outstanding payables that included the redevelopment authority’s debt with Dollar Bank.
Authority treasurer Jeff Smith said that number is near even.
Smith said that about $140,000 in payments previously listed as being owed to the redevelopment authority consisted of overruns on the construction of the stadium, and therefore are the responsibility of the redevelopment authority.
Smith also eliminated $27,000 in debt to the Housing and Redevelopment Authority of Butler County due to a lack of documentation on why the money was owed.
“We do not have any record of any loan made to the (facilities) authority by the housing authority,” he said. “And they never came forward with any documentation.”
Smith said he contacted the housing authority’s interim executive director, and the authority could not find any information about where the bill originated.
“It just showed up one day,” said solicitor Leo Stepanian II.
The authority has been able to pay off many of its smaller debts from the money collected in the sale of its share of the Butler BlueSox.
The authority last month sold its 40 percent share of the team to Perfect Game LLC, the club’s majority ownership group.
The largest debt the authority has now is about $20,000 to Stepanian for his legal services. The authority authorized to pay Stepanian $5,000 this month then $1,000 per month to chip away at those costs.
“Everything is being caught up,” said Ban. “That was a goal coming into the year.”
The board has seen a number of changes during the past 12 months, with Smith, Don Paul, Bill Criley and Diane Downs being appointed to the board during that time. Ban also was named chairman of the board in January.
Donaldson said he likes the direction the board is headed.
“I have great confidence in this board,” he said. “I feel that it has gone around the corner instead of over the cliff.”
Ban also noted a change in the board’s mentality.
“There’s a renewed interest,” he said. “There’s a 180-degree difference in attitude.”
The board previously discussed the possibility of disbanding and handing over management of the ballpark to the redevelopment authority or another board.
However, that idea did not progress and the facilities authority is moving forward with management responsibilities.
