Oh boy, a non-profit going bankrupt. But wait, there is more. The former ESL Centre, now Monroe County Sports Centre is going bankrupt and its largest share holder, who bought his stake really cheap, is looking to make out like a bandit. Oh, I like the way there was a $10,000 campaign contribution in 2007 to a County Legislature Race. I also like the way we will create another non-profit to replace the failed one. We are talking about a non-profit, so I’m sure their tax contribution was low.
Via the D&C
Monroe County Sports Centre Corp., the county-created nonprofit corporation that oversees the financially troubled Sports Centre at MCC, is contemplating a “structured bankruptcy” to resolve mounting debt that tops $10 million, corporation and facility management officials have acknowledged.
In the process, the officials said, another nonprofit corporation would be created to replace the Sports Centre Corp., the majority of whose seven board members are appointed by county government.
The acknowledgment comes after corporation President Jack Driscoll suggested in November that the corporation would be able to avoid bankruptcy, even as auditors expressed “substantial doubt” about the corporation’s ability to continue operations. In two recent interviews, however, Driscoll said that bankruptcy was a possibility.
Yes that is the same Jack Driscoll who retired from the County Legislature. So, The Centre is $10 million behind in payments which grows at almost a million per year and per the article defaulted “years ago.” How long is “years?” The thing was built in 1998 (12 years ago).
Here is the kicker,
Despite having an estimated 1.3 million patrons a year, the facility remains operational at the mercy of the majority bondholder, Empire Ice LLC, which bought its stake for less than half the original value of the bonds. The company also happens to have a $200,000-a-year contract to manage the facility for the corporation.
Empire Ice is owned by local developer David Christa, who built the 170,000-square-foot facility, and Illinois businessman Leon Lekai, who is chairman of a company that runs a series of popular youth hockey tournaments out of the Sports Centre and whose subsidiaries gave $10,000 to Driscoll’s campaign committee within a span of two weeks in 2007.
Questions remain -
It was unclear whether the new nonprofit would comprise the same board members as Sports Centre Corp. and what affiliation, if any, it would have with county government.
Because I’m sure they have done a spectacular job of avoiding bankruptcy
The corporation’s lawyer, Michael Townsend, did not return phone messages seeking comment.
Ah, Michael Townsend - of COMIDA fame, I believe something to do with Navitech. I also think he was setting up a corporation to purchase tax liens from Monroe County.
Have at it in the comments.