September 28, 2006
By Pat Litowitz
New Castle News
Three New Castle Area School Board members want to invite a semi-professional football team back to Taggart Stadium.
However, board President Fred Mozzocio must first approve the trio’s request for a special session.
Philip Conti, Donna Donati and Mark Kirkwood are asking the district to make the stadium available Oct. 7 for the New Castle Thunder’s playoff game against the Columbus Fire. A letter on the issue was presented to board members before the start of an expulsion hearing Tuesday.
“I see no legitimate reason not to honor the request,” Conti said.
Neither he nor his two colleagues had been asked by Thunder officials to act on the team’s behalf, he said.
Attempts to contact team owner Anthony Razzano for comment were unsuccessful.
Superintendent George Gabriel sought input from district solicitor Charles Sapienza to outline circumstances that permit a board president to call a special meeting.
In a response sent Tuesday, Sapienza said one of Mozzocio rights as president is to call for a special meeting. Three board members may seek a meeting by submitting a written correspondence to the president.
If Mozzocio refuses to act on or denies the request, then five board members are needed to initiate a special session.
“(Mozzocio’s) authority is absolute unless a majority of the board decides otherwise,” Sapienza wrote to Gabriel.
When contacted yesterday, Mozzocio said he responded to the letter. However, he would not disclose its contents.
“As a professional courtesy, I want the board members to see the letter first,” he said.
Donati said the team deserves the community’s support.
“Since they are in the national playoffs, it would be nice if we held that game,” she said.
The battle to use Taggart dates back to April when the defunct New Castle Knights asked the board for permission to use the field.
In one meeting, team owner David Gailbreath fought with the board, Gabriel and Sapienza. Gailbreath was tossed from the session. Hopes for any team other than the New Castle Red Hurricane to use the field appeared to be dead.
Citing differences with Gailbreath, the Knights players and staff left his control in May. Razzano, a New Castle accountant, announced the formation of the Thunder, a member of the North American Football League.
Gailbreath, a Smithfield Street resident, was charged in July with taking about $1,500 from the Knights for personal use. A trial date has not been set.
After approaching several Lawrence County school districts, the Thunder eventually reached an agreement with Slippery Rock University to play its home games there.
“We’ve had a great relationship ... with Anthony Razzano,” said Paul Lueken, SRU’s athletic director. “They’re more than welcome to come back next year.”
After negotiations with the district and receiving board approval, the Thunder played one game at Taggart on Sept. 16.
“I didn’t see any problems,” New Castle athletic director Sam Flora said. “Everything went well.”
If Taggart is not made available, the Thunder will be scurrying for other home-field options.
Lueken said SRU will not be available for the team’s playoff game. The Rock hosts Shippensburg Oct. 7.
“It’s not a matter that we don’t want them at The Rock.”
Sunday, January 20, 2008
Felasco’s bankruptcy case dismissed
September 26, 2006
By Pat Litowitz
New Castle News
Gary F. Felasco’s latest legal action prevents further public scrutiny of his financial dealings.
The former Lawrence County treasurer, convicted of theft charges, had his Chapter 13 bankruptcy case dismissed at his request on Sept. 13 in U.S. bankruptcy court in Pittsburgh.
In August, the New Castle News asked the court’s bankruptcy trustee, attorney Ronda J. Winnecour, for information regarding Felasco’s filing. The initial request dealt specifically with Felasco’s criminal trial and the payment of services for his defense attorney, James Ross of Beaver County.
The state filed criminal charges against Felasco on Sept. 7, 2005. A month later, the former Cunningham Avenue resident sought bankruptcy relief in the form of a Chapter 13 filing.
The cost of Ross’ services was not among Felasco’s debts provided to the court. Nor were Ross’ charges listed in updates with the court.
The News asked the court if financial details involving Ross should have been included.
“The Trustee is interested in matters such as you have raised in your inquiry,” court representative Richard J. Bedford wrote to The News in an e-mail. “The Trustee will ask debtor’s counsel to provide additional information in this case.”
A conciliation conference between Felasco’s bankruptcy attorney, Jason J. Mazzei, and the court took place Aug. 10 in Pittsburgh. During the conference, Mazzei agreed that Felasco would pay $1,655 a month on his debt plan.
A letter dated Aug. 17 to the county’s payroll administrator confirmed that amount.
A News representative, who attended the conference, asked Mazzei how Felasco would be able to repay his debt, because he is in prison.
Mazzei said it was Felasco’s intention to honor his financial obligations.
At that point, Mazzei was asked if he is required to divulge the identity of any person who would make payments in Felasco’s stead. Mazzei responded that the bankruptcy court would be interested in that information.
The News sent a follow-up e-mail to the bankruptcy court seeking clarification on how it would deal with issues raised by The News.
“(The Trustee) cannot answer your specific questions concerning any actions she might take in this case as these actions are not of public record,” David J. Schrempf wrote to The News in an e-mail.
Schrempf is the trustee office’s director of operations.
“This office can only provide that which are of public record.”
A representative of Mazzei’s office would not comment on why Felasco pursued a dismissal.
“We can’t comment because of the attorney-client privilege.”
By Pat Litowitz
New Castle News
Gary F. Felasco’s latest legal action prevents further public scrutiny of his financial dealings.
The former Lawrence County treasurer, convicted of theft charges, had his Chapter 13 bankruptcy case dismissed at his request on Sept. 13 in U.S. bankruptcy court in Pittsburgh.
In August, the New Castle News asked the court’s bankruptcy trustee, attorney Ronda J. Winnecour, for information regarding Felasco’s filing. The initial request dealt specifically with Felasco’s criminal trial and the payment of services for his defense attorney, James Ross of Beaver County.
The state filed criminal charges against Felasco on Sept. 7, 2005. A month later, the former Cunningham Avenue resident sought bankruptcy relief in the form of a Chapter 13 filing.
The cost of Ross’ services was not among Felasco’s debts provided to the court. Nor were Ross’ charges listed in updates with the court.
The News asked the court if financial details involving Ross should have been included.
“The Trustee is interested in matters such as you have raised in your inquiry,” court representative Richard J. Bedford wrote to The News in an e-mail. “The Trustee will ask debtor’s counsel to provide additional information in this case.”
A conciliation conference between Felasco’s bankruptcy attorney, Jason J. Mazzei, and the court took place Aug. 10 in Pittsburgh. During the conference, Mazzei agreed that Felasco would pay $1,655 a month on his debt plan.
A letter dated Aug. 17 to the county’s payroll administrator confirmed that amount.
A News representative, who attended the conference, asked Mazzei how Felasco would be able to repay his debt, because he is in prison.
Mazzei said it was Felasco’s intention to honor his financial obligations.
At that point, Mazzei was asked if he is required to divulge the identity of any person who would make payments in Felasco’s stead. Mazzei responded that the bankruptcy court would be interested in that information.
The News sent a follow-up e-mail to the bankruptcy court seeking clarification on how it would deal with issues raised by The News.
“(The Trustee) cannot answer your specific questions concerning any actions she might take in this case as these actions are not of public record,” David J. Schrempf wrote to The News in an e-mail.
Schrempf is the trustee office’s director of operations.
“This office can only provide that which are of public record.”
A representative of Mazzei’s office would not comment on why Felasco pursued a dismissal.
“We can’t comment because of the attorney-client privilege.”
He Said/She Said tackle Thunder football practice
September 23, 2006
By Pat Litowitz and Lisa Micco
New Castle News
You aren't going to believe this one. Please try not to laugh too hard.
But first, a quick quiz.
What do Terry Bradshaw, Joe Namath, Bob Griese and Lisa Micco have in common?
Three were famous quarterbacks who donned the No. 12 in their storied NFL careers. The last one? No so much.
What the heck is Lisa doing wearing that fabled jersey?
Apparently one half of the not-so-relevant He Said/She Said duo thought it would be fun to "play with the boys." So she asked New Castle Thunder owner Anthony Razzano if she and her sidekick, the New Castle News' Pat Litowitz, for permission to practice with the players as they prepare for their playoff drive.
Much to Pat's credit -- and the advice of several physicians, The News' human resources department and an unnamed psychiatrist -- he turned down the offer. Instead, he "practiced" being team owner.
This can't be good. You know that Vince Lombardi is turning over in his grave.
*
We interrupt this column for a statement from The News.
"The New Castle News recognizes and upholds the importance of football in western Pennsylvania, particularly Lawrence County.
"While we encourage the practice of participatory journalism, we feel that the reporters participating should actually be capable of taking part. Neither Lisa Micco nor Pat Litowitz have shown any athletic skills whatsoever.
"Lastly, we disavow any knowledge of Micco or Litowitz actually being employed by The New Castle News or any of its subsidiaries."
We return you to our regularly scheduled column.
*
Please join Lisa and Pat as they head to the gridiron and discuss, "No, the Center Does Not Punt the Football" or "Are You Ready for Some Really Bad Football?"
LITOWITZ: To Mr. Razzano, the coaches, staff and players, I have only one thing to say: "I'm so, so sorry."
I tried talking Lisa out of it.
"They're going to hurt you," I said.
"You have no clue what football is about," I told her.
"You can't throw," I chided her.
Does she listen? No.
We interrupted valuable practice time so Lisa could "quarterback" the team. Thankfully, everyone involved with the Thunder were gentlemanly and kind. Especially, coaches Frank Makarevich and Bob Razzano.
Get this. She actually asked Coach Makarevich if it was proper procedure to put her hands under center. I wanted to die. I thought the man was going to pop a vein.
I, on the other hand, learned invaluable team ownership skills from Anthony Razzano.
I didn't "chicken out" as Lisa will try to claim. The Thunder players are big, mean and serious about football. That's the way it should be.
I chose not to die that day.
MICCO: Ah, you chose to be a wimp. Simple as that.
You would have fell to your knees if Jim Kuhn, one of the equipment managers, put the shoulder pads on you.
I, on the other hand, took it like a man.
A-hem.
Anyway ... Yes, the Thunder players are big, tough and all football. But they were great sports letting me run through a few plays with them. (OK, so the coach rolled his eyes when I asked if I could use crib notes.) To me, that says a lot. They know when to be serious, and yet have a sense of humor to let a girl crash their practice.
Don't hate the playa just because you chose to ride the sidelines, Litowitz.
As an aside, a special thanks to Jonathon "Kirby" Warren, No. 64, who volunteered as center, for not eating beans before practice.
LITOWITZ: Or you, I might add.
I played football way back when. OK, perhaps the word "play" is a misnomer. I was the official tackling dummy. And that was fine.
Couldn't run. Couldn't catch. Occasionally blocked.
(Although I did have one spectacular backyard game where I jumped high into the air (2 inches), pulled in a pass with one hand and avoided the concrete-encased, metal clothesline pole. Good times. Good times.)
I know my role in the world. I love football. Love the history of the game, the characters and the strategy. But I harbor no illusions. A Michael Strahan I am not. Sure, we might weigh the same, but that's about it.
Except for the reward of winning, the Thunder players receive no pay and risk their bodies because they love the sport. I respect that.
They just didn't need to have me there interrupting practice.
If you enjoyed yourself, great. It's a good thing the playoffs are three weeks away instead of today, because Coach Makarevich -- a mountain of a man -- would have chewed you up and spit you out.
OK, that would have been fun to watch.
By the way, do you even know who Michael Strahan is?
MICCO: Would that be the New York Giants' defensive end Michael Straham, former hot shot at Texas Southern?
Yeah, that's right. I know how to use Google.
I'm not going to lie. Coach Makarevich intimidated the poo of out me. As soon as the coach gave me the play, I immediately forgot it. There were numbers mixed with words, complicated by field directions. I was lost from the moment I stepped out onto the field.
I admit it, I couldn't even get the "hut" right.
Makarevich told me the cadence was "Red (pause), Set, Go!"
I was so befuddled that I actually said, "Red, Pause, Set, Go!"
The horror. The horror.
But in all fairness to the coaches and team -- with a playoff looming on the horizon -- they took time out to indulge me. Yet all was not lost. While I've always enjoyed the game, I have a newfound respect for the guys making it happen on the field and behind the scenes. They work hard, play hard and love the sport. On top of that, they have to memorize plays, know their position and think quick on their feet. I couldn't do it.
I was impressed. The term "dumb jock" should be banned from the English lexicon.
By the way, that athletic cup I gave you was not a nose guard.
LITOWITZ: That may have been a problem for you. I am quite familiar with the function of the cup.
Just a final thought. Football players, generally speaking, don't get overly excited over the prospect of a "good job" butt slap.
Hold back -- just a bit.
MICCO: No way. That was the best part of playing. Besides, if linebacker Jack Callahan didn't mind, I sure didn't.
OK, so I won't make the cut as a Thunder quarterback. Maybe there's an opening on the Thunder danceline for a 40-year-old former cheerleader?
(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Interested in advertising in this space? Contact The News advertising department at (724) 654-6651. Ask for Bryan Zeigler.)
By Pat Litowitz and Lisa Micco
New Castle News
You aren't going to believe this one. Please try not to laugh too hard.
But first, a quick quiz.
What do Terry Bradshaw, Joe Namath, Bob Griese and Lisa Micco have in common?
Three were famous quarterbacks who donned the No. 12 in their storied NFL careers. The last one? No so much.
What the heck is Lisa doing wearing that fabled jersey?
Apparently one half of the not-so-relevant He Said/She Said duo thought it would be fun to "play with the boys." So she asked New Castle Thunder owner Anthony Razzano if she and her sidekick, the New Castle News' Pat Litowitz, for permission to practice with the players as they prepare for their playoff drive.
Much to Pat's credit -- and the advice of several physicians, The News' human resources department and an unnamed psychiatrist -- he turned down the offer. Instead, he "practiced" being team owner.
This can't be good. You know that Vince Lombardi is turning over in his grave.
*
We interrupt this column for a statement from The News.
"The New Castle News recognizes and upholds the importance of football in western Pennsylvania, particularly Lawrence County.
"While we encourage the practice of participatory journalism, we feel that the reporters participating should actually be capable of taking part. Neither Lisa Micco nor Pat Litowitz have shown any athletic skills whatsoever.
"Lastly, we disavow any knowledge of Micco or Litowitz actually being employed by The New Castle News or any of its subsidiaries."
We return you to our regularly scheduled column.
*
Please join Lisa and Pat as they head to the gridiron and discuss, "No, the Center Does Not Punt the Football" or "Are You Ready for Some Really Bad Football?"
LITOWITZ: To Mr. Razzano, the coaches, staff and players, I have only one thing to say: "I'm so, so sorry."
I tried talking Lisa out of it.
"They're going to hurt you," I said.
"You have no clue what football is about," I told her.
"You can't throw," I chided her.
Does she listen? No.
We interrupted valuable practice time so Lisa could "quarterback" the team. Thankfully, everyone involved with the Thunder were gentlemanly and kind. Especially, coaches Frank Makarevich and Bob Razzano.
Get this. She actually asked Coach Makarevich if it was proper procedure to put her hands under center. I wanted to die. I thought the man was going to pop a vein.
I, on the other hand, learned invaluable team ownership skills from Anthony Razzano.
I didn't "chicken out" as Lisa will try to claim. The Thunder players are big, mean and serious about football. That's the way it should be.
I chose not to die that day.
MICCO: Ah, you chose to be a wimp. Simple as that.
You would have fell to your knees if Jim Kuhn, one of the equipment managers, put the shoulder pads on you.
I, on the other hand, took it like a man.
A-hem.
Anyway ... Yes, the Thunder players are big, tough and all football. But they were great sports letting me run through a few plays with them. (OK, so the coach rolled his eyes when I asked if I could use crib notes.) To me, that says a lot. They know when to be serious, and yet have a sense of humor to let a girl crash their practice.
Don't hate the playa just because you chose to ride the sidelines, Litowitz.
As an aside, a special thanks to Jonathon "Kirby" Warren, No. 64, who volunteered as center, for not eating beans before practice.
LITOWITZ: Or you, I might add.
I played football way back when. OK, perhaps the word "play" is a misnomer. I was the official tackling dummy. And that was fine.
Couldn't run. Couldn't catch. Occasionally blocked.
(Although I did have one spectacular backyard game where I jumped high into the air (2 inches), pulled in a pass with one hand and avoided the concrete-encased, metal clothesline pole. Good times. Good times.)
I know my role in the world. I love football. Love the history of the game, the characters and the strategy. But I harbor no illusions. A Michael Strahan I am not. Sure, we might weigh the same, but that's about it.
Except for the reward of winning, the Thunder players receive no pay and risk their bodies because they love the sport. I respect that.
They just didn't need to have me there interrupting practice.
If you enjoyed yourself, great. It's a good thing the playoffs are three weeks away instead of today, because Coach Makarevich -- a mountain of a man -- would have chewed you up and spit you out.
OK, that would have been fun to watch.
By the way, do you even know who Michael Strahan is?
MICCO: Would that be the New York Giants' defensive end Michael Straham, former hot shot at Texas Southern?
Yeah, that's right. I know how to use Google.
I'm not going to lie. Coach Makarevich intimidated the poo of out me. As soon as the coach gave me the play, I immediately forgot it. There were numbers mixed with words, complicated by field directions. I was lost from the moment I stepped out onto the field.
I admit it, I couldn't even get the "hut" right.
Makarevich told me the cadence was "Red (pause), Set, Go!"
I was so befuddled that I actually said, "Red, Pause, Set, Go!"
The horror. The horror.
But in all fairness to the coaches and team -- with a playoff looming on the horizon -- they took time out to indulge me. Yet all was not lost. While I've always enjoyed the game, I have a newfound respect for the guys making it happen on the field and behind the scenes. They work hard, play hard and love the sport. On top of that, they have to memorize plays, know their position and think quick on their feet. I couldn't do it.
I was impressed. The term "dumb jock" should be banned from the English lexicon.
By the way, that athletic cup I gave you was not a nose guard.
LITOWITZ: That may have been a problem for you. I am quite familiar with the function of the cup.
Just a final thought. Football players, generally speaking, don't get overly excited over the prospect of a "good job" butt slap.
Hold back -- just a bit.
MICCO: No way. That was the best part of playing. Besides, if linebacker Jack Callahan didn't mind, I sure didn't.
OK, so I won't make the cut as a Thunder quarterback. Maybe there's an opening on the Thunder danceline for a 40-year-old former cheerleader?
(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Interested in advertising in this space? Contact The News advertising department at (724) 654-6651. Ask for Bryan Zeigler.)
Group thwarts agency's effort
September 23, 2006
By PAT LITOWITZ
plitowitz@ncnewsonline.com
Six Lawrence County businessmen played an unexpected role in derailing a housing agency's effort in common pleas court.
Joseph Mazzant, Joseph DeRosa, James A. Mims Jr., Louis Suisi and Carl Rossi purchased seven properties during an auction Sept. 9 at the Shenango Township fire hall. Affordable Housing of Lawrence County, which placed the structures up for sale, earned $56,200 at event's end.
The Lawrence County Housing Authority, which created Affordable Housing in 2003, sought an injunction following the auction. In filing its complaint, the authority named the five men, auctioneer Raymond Mazzanti and Affordable Housing as defendants.
Attorney Louis Perrotta, representing the authority, asked the court to consider several actions. Among them were to block the sale, return the sales proceeds to the defendants and have a real estate agent sell the properties.
During the second day of hearings on Tuesday, the authority withdrew its complaint.
"This is frivolous," Mazzant told Judge J. Craig Cox as the hearing opened Monday.
Twice, Cox asked the defendants if they wanted to retain legal counsel. In each case, the men said they would represent themselves.
At first, the move appeared to be questionable.
"When do I make an objection? Anytime I want?" Mazzanti asked Perrotta.
Perrotta did not answer.
Later, Mazzanti asked to be dropped from the complaint.
"I'll wait for the judge's motion to dismiss," he said.
"I've already denied your motion to dismiss," the judge responded.
On several occasions Cox had to keep Mazzant on task.
"Mr. Mazzant, you have to ask questions and not make speeches."
Despite stumbling early, the collective group of novice attorneys rebounded. Robert Evanick, the housing authority's executive director, was the target of their ire.
Of particular interest was the amount Affordable Housing paid for eight properties in 2005 and the zoning violations assessed against each. Evanick had served as Affordable Housing's president when the houses were bought. He resigned a day after loan papers were signed with First Commonwealth Bank.
"Do you think you paid too much?" Mazzant asked Evanick. "You have a big shortfall here.
"If the money came out of your own pocket, would you spend it?"
Evanick responded that he relied on consultant Robert Ratkovich's recommendation in approving the purchases, which totaled $340,000. Ratkovich, who serves as New Castle City Council president, is employed as the authority's maintenance superintendent.
"I think you spent way too much money to buy it."
Suisi jumped into the fray asking if Evanick had ever visited the properties.
When Evanick answered "no," Suisi expressed disbelief considering that the sites were within a 15-minute driving distance of the housing authority.
Perrotta cited Evanick's testimony as one reason for withdrawing the authority's complaint.
"I think they did a great job," said Affordable Housing attorney Timothy McNickle.
Considering the nuances and complexity of law, First Commonwealth attorney Michael Flaherty said he generally recommends against defendants representing themselves. He lauded Cox for showing patience with the defendants and allowing them to participate.
By PAT LITOWITZ
plitowitz@ncnewsonline.com
Six Lawrence County businessmen played an unexpected role in derailing a housing agency's effort in common pleas court.
Joseph Mazzant, Joseph DeRosa, James A. Mims Jr., Louis Suisi and Carl Rossi purchased seven properties during an auction Sept. 9 at the Shenango Township fire hall. Affordable Housing of Lawrence County, which placed the structures up for sale, earned $56,200 at event's end.
The Lawrence County Housing Authority, which created Affordable Housing in 2003, sought an injunction following the auction. In filing its complaint, the authority named the five men, auctioneer Raymond Mazzanti and Affordable Housing as defendants.
Attorney Louis Perrotta, representing the authority, asked the court to consider several actions. Among them were to block the sale, return the sales proceeds to the defendants and have a real estate agent sell the properties.
During the second day of hearings on Tuesday, the authority withdrew its complaint.
"This is frivolous," Mazzant told Judge J. Craig Cox as the hearing opened Monday.
Twice, Cox asked the defendants if they wanted to retain legal counsel. In each case, the men said they would represent themselves.
At first, the move appeared to be questionable.
"When do I make an objection? Anytime I want?" Mazzanti asked Perrotta.
Perrotta did not answer.
Later, Mazzanti asked to be dropped from the complaint.
"I'll wait for the judge's motion to dismiss," he said.
"I've already denied your motion to dismiss," the judge responded.
On several occasions Cox had to keep Mazzant on task.
"Mr. Mazzant, you have to ask questions and not make speeches."
Despite stumbling early, the collective group of novice attorneys rebounded. Robert Evanick, the housing authority's executive director, was the target of their ire.
Of particular interest was the amount Affordable Housing paid for eight properties in 2005 and the zoning violations assessed against each. Evanick had served as Affordable Housing's president when the houses were bought. He resigned a day after loan papers were signed with First Commonwealth Bank.
"Do you think you paid too much?" Mazzant asked Evanick. "You have a big shortfall here.
"If the money came out of your own pocket, would you spend it?"
Evanick responded that he relied on consultant Robert Ratkovich's recommendation in approving the purchases, which totaled $340,000. Ratkovich, who serves as New Castle City Council president, is employed as the authority's maintenance superintendent.
"I think you spent way too much money to buy it."
Suisi jumped into the fray asking if Evanick had ever visited the properties.
When Evanick answered "no," Suisi expressed disbelief considering that the sites were within a 15-minute driving distance of the housing authority.
Perrotta cited Evanick's testimony as one reason for withdrawing the authority's complaint.
"I think they did a great job," said Affordable Housing attorney Timothy McNickle.
Considering the nuances and complexity of law, First Commonwealth attorney Michael Flaherty said he generally recommends against defendants representing themselves. He lauded Cox for showing patience with the defendants and allowing them to participate.
Housing authority drops court action
September 20, 2006
By Pat Litowitz
New Castle News
The Lawrence County Housing Authority yesterday withdrew its request for the courts to overturn the sale of properties.
Attorney Louis Perrotta advised Common Pleas Judge J. Craig Cox of the authority’s decision to end litigation against Affordable Housing of Lawrence County, its nonprofit spin-off agency.
The announcement came as the hearing reconvened following the lunch recess.
Perrotta cited Robert Evanick’s testimony and the limited potential for financial recovery as reasons behind the decision.
“I looked at the testimony,” Perrotta said last night. “My main (witness) didn’t testify as well as I thought.”
Evanick is the authority’s executive director, who had helped to create Affordable Housing and once served as its president.
On Sept. 9, Affordable Housing conducted a public auction, selling seven of its properties for $56,200.
A sales agreement involving the eighth property, a Dewey Avenue duplex, was entered into prior to the auction.
During testimony yesterday, Affordable Housing board member Deno DeLorenzo told Perrotta the purchase price for the remaining rental property was $15,000.
Almerinda Feola, a tenant at the Dewey Avenue site, made the offer, with DeLorenzo drawing up the sales agreement. She is seeking financing, DeLorenzo said.
The $71,200 that the eight sites garnered is far short of the $290,000 Affordable Housing owes to First Commonwealth Bank. The bank agreed to the auction and has released the mortgages to the new owners.
The agency also has a $200,500 promissory note due to the housing authority.
“Zero from zero is zero,” Perrotta said in reference to what the authority would see from the proceeds.
Although Affordable Housing offered to pay the authority $500 per structure, no funds have been transferred.
A settlement sheet presented during the hearing showed the disbursement of proceeds from the auction. The housing authority was not among those listed.
“They had no intention of paying us,” Perrotta said. “We wouldn’t have uncovered it without the hearing.”
Attorney Timothy McNickle, representing Affordable Housing, said he had planned to request a dismissal of the authority’s complaint if Perrotta hadn’t.
“We thought from the very beginning of the process the injunction would be dismissed (by the court),” he said.
The day’s proceedings began with Perrotta calling DeLorenzo to testify.
Under examination, DeLorenzo stated he had provided documentation at Affordable Housing’s request that was used to secure a $250,000 loan from First Commonwealth.
DeLorenzo, an accountant, said Affordable Housing consultant Robert Ratkovich sought his assistance. He provided DeLorenzo with financial data and information on the structures.
DeLorenzo said he was not given the location of the properties or the owners’ identities.
“It was not necessary for me to ask who the seller was,” he said.
Ratkovich is New Castle City Council president and the authority’s maintenance superintendent. At the time of the purchase, Ratkovich was not an authority employee.
Although he projected an initial shortfall, DeLorenzo said, Affordable Housing required an 80 percent occupancy of its properties to meet income objectives.
Those objectives were never met, DeLorenzo said.
By Pat Litowitz
New Castle News
The Lawrence County Housing Authority yesterday withdrew its request for the courts to overturn the sale of properties.
Attorney Louis Perrotta advised Common Pleas Judge J. Craig Cox of the authority’s decision to end litigation against Affordable Housing of Lawrence County, its nonprofit spin-off agency.
The announcement came as the hearing reconvened following the lunch recess.
Perrotta cited Robert Evanick’s testimony and the limited potential for financial recovery as reasons behind the decision.
“I looked at the testimony,” Perrotta said last night. “My main (witness) didn’t testify as well as I thought.”
Evanick is the authority’s executive director, who had helped to create Affordable Housing and once served as its president.
On Sept. 9, Affordable Housing conducted a public auction, selling seven of its properties for $56,200.
A sales agreement involving the eighth property, a Dewey Avenue duplex, was entered into prior to the auction.
During testimony yesterday, Affordable Housing board member Deno DeLorenzo told Perrotta the purchase price for the remaining rental property was $15,000.
Almerinda Feola, a tenant at the Dewey Avenue site, made the offer, with DeLorenzo drawing up the sales agreement. She is seeking financing, DeLorenzo said.
The $71,200 that the eight sites garnered is far short of the $290,000 Affordable Housing owes to First Commonwealth Bank. The bank agreed to the auction and has released the mortgages to the new owners.
The agency also has a $200,500 promissory note due to the housing authority.
“Zero from zero is zero,” Perrotta said in reference to what the authority would see from the proceeds.
Although Affordable Housing offered to pay the authority $500 per structure, no funds have been transferred.
A settlement sheet presented during the hearing showed the disbursement of proceeds from the auction. The housing authority was not among those listed.
“They had no intention of paying us,” Perrotta said. “We wouldn’t have uncovered it without the hearing.”
Attorney Timothy McNickle, representing Affordable Housing, said he had planned to request a dismissal of the authority’s complaint if Perrotta hadn’t.
“We thought from the very beginning of the process the injunction would be dismissed (by the court),” he said.
The day’s proceedings began with Perrotta calling DeLorenzo to testify.
Under examination, DeLorenzo stated he had provided documentation at Affordable Housing’s request that was used to secure a $250,000 loan from First Commonwealth.
DeLorenzo, an accountant, said Affordable Housing consultant Robert Ratkovich sought his assistance. He provided DeLorenzo with financial data and information on the structures.
DeLorenzo said he was not given the location of the properties or the owners’ identities.
“It was not necessary for me to ask who the seller was,” he said.
Ratkovich is New Castle City Council president and the authority’s maintenance superintendent. At the time of the purchase, Ratkovich was not an authority employee.
Although he projected an initial shortfall, DeLorenzo said, Affordable Housing required an 80 percent occupancy of its properties to meet income objectives.
Those objectives were never met, DeLorenzo said.
Hearing focuses on Affordable Housing
September 19, 2006
By Pat Litowitz
New Castle News
A preliminary hearing on a disputed auction transformed into a heated examination of a failed housing agency.
The Lawrence County Housing Authority is seeking an injunction against Affordable Housing of Lawrence County. The authority wants the court to void the auction of seven Affordable Housing properties and the pending sale of an eighth.
Judge J. Craig Cox granted the housing authority’s request for a temporary restraining order last week. Cox is presiding over the hearing, which resumed today at 9 a.m.
Former property owner John A. Orlando and housing authority executive director Robert Evanick provided the majority of the day’s testimony.
Orlando and Nick DeRosa sold two duplexes and a fourplex to Affordable Housing in December 2005 for $165,000. DeRosa, who was not present, recently retired as the New Castle Area School District’s assistant superintendent.
Seeking to illustrate the properties’ income potential, authority solicitor Louis Perrotta asked Orlando to provide rent information.
From 1998 through November 2005, the Orlando-DeRosa partnership collected approximately $200,000. However, from 2003 until the sale, the rental income dropped from $30,395 to $13,775.
“Owning real estate property is very time-consuming,” Orlando said.
Prior to the Affordable Housing sale, Orlando said, an unsuccessful effort was made to market the properties for $172,000 in 2003.
Under examination from Affordable Housing’s attorney Timothy McNickle, Orlando said he learned in May or June about a pending sale with the nonprofit group.
“I’m not aware of any negotiations,” he said. “(DeRosa) and I agreed whatever the appraiser appraised it at was what we sell.”
Castle Realty appraised the properties on behalf of First Commonwealth Bank.
Orlando continued that the pending sale had an effect on finding tenants for the properties.
“We really weren’t very active in seeking tenants,” said Orlando, a retired Pennsylvania American Water Co. manager.
Orlando’s relationship with Affordable Housing consultant Robert Ratkovich was also addressed.
Attorney Michael Flaherty, representing First Commonwealth, asked if Ratkovich talked about the sale with him.
Orlando said the pair had a business dealing 12 years ago and belonged to the same club, whose identity was not disclosed.
“He was an acquaintance,” he said. “I never discussed the deal with him.”
Evanick, who started Affordable Housing and once served as its president, also faced scrutiny.
Although he had signed loan papers that concluded the sale, Evanick said it was Ratkovich who selected the properties for Affordable Housing.
“The finances were negotiated by Mr. Ratkovich,” he said. “We left it up to him.
“From what I understand, the appraisals justified buying the properties.”
Evanick then testified that he had resigned from Affordable Housing a day after signing the loan papers because he disagreed with the direction the agency was taking.
In disputing the auction of the seven properties, Evanick said a real estate agent would bring in more money than an absolute auction.
While not opposing an auction in principle, he was against an auction where there was no minimum purchase price.
After being repeatedly asked how much the properties should have attracted, Evanick said $75,000 on top of the $56,200 that the auction had collected.
By Pat Litowitz
New Castle News
A preliminary hearing on a disputed auction transformed into a heated examination of a failed housing agency.
The Lawrence County Housing Authority is seeking an injunction against Affordable Housing of Lawrence County. The authority wants the court to void the auction of seven Affordable Housing properties and the pending sale of an eighth.
Judge J. Craig Cox granted the housing authority’s request for a temporary restraining order last week. Cox is presiding over the hearing, which resumed today at 9 a.m.
Former property owner John A. Orlando and housing authority executive director Robert Evanick provided the majority of the day’s testimony.
Orlando and Nick DeRosa sold two duplexes and a fourplex to Affordable Housing in December 2005 for $165,000. DeRosa, who was not present, recently retired as the New Castle Area School District’s assistant superintendent.
Seeking to illustrate the properties’ income potential, authority solicitor Louis Perrotta asked Orlando to provide rent information.
From 1998 through November 2005, the Orlando-DeRosa partnership collected approximately $200,000. However, from 2003 until the sale, the rental income dropped from $30,395 to $13,775.
“Owning real estate property is very time-consuming,” Orlando said.
Prior to the Affordable Housing sale, Orlando said, an unsuccessful effort was made to market the properties for $172,000 in 2003.
Under examination from Affordable Housing’s attorney Timothy McNickle, Orlando said he learned in May or June about a pending sale with the nonprofit group.
“I’m not aware of any negotiations,” he said. “(DeRosa) and I agreed whatever the appraiser appraised it at was what we sell.”
Castle Realty appraised the properties on behalf of First Commonwealth Bank.
Orlando continued that the pending sale had an effect on finding tenants for the properties.
“We really weren’t very active in seeking tenants,” said Orlando, a retired Pennsylvania American Water Co. manager.
Orlando’s relationship with Affordable Housing consultant Robert Ratkovich was also addressed.
Attorney Michael Flaherty, representing First Commonwealth, asked if Ratkovich talked about the sale with him.
Orlando said the pair had a business dealing 12 years ago and belonged to the same club, whose identity was not disclosed.
“He was an acquaintance,” he said. “I never discussed the deal with him.”
Evanick, who started Affordable Housing and once served as its president, also faced scrutiny.
Although he had signed loan papers that concluded the sale, Evanick said it was Ratkovich who selected the properties for Affordable Housing.
“The finances were negotiated by Mr. Ratkovich,” he said. “We left it up to him.
“From what I understand, the appraisals justified buying the properties.”
Evanick then testified that he had resigned from Affordable Housing a day after signing the loan papers because he disagreed with the direction the agency was taking.
In disputing the auction of the seven properties, Evanick said a real estate agent would bring in more money than an absolute auction.
While not opposing an auction in principle, he was against an auction where there was no minimum purchase price.
After being repeatedly asked how much the properties should have attracted, Evanick said $75,000 on top of the $56,200 that the auction had collected.
He said /she said: Hollywood
September 15, 2006
By Pat Litowitz and Lisa Micco
New Castle News
Quiet on the set.
"That Old Elks Building: The Musical."
Act one. Scene one.
Cue the lights. Actors, on your marks.
Orchestra, remember this a peppy little number.
In three, two, one. Action.
*
THE MAYOR: I have a building.
CITY COUNCIL CHORUS: A pretty little building.
MAYOR: It's made of brick.
CHORUS: He wants to sell it quick ...
MAYOR: Before it falls apart.
CHORUS: Part. Part. Part. Part.
MAYOR: Oh, it's a fixer-upper.
CHORUS: A real fixer-upper.
MAYOR: I'd like to let you in ...
CHORUS: But the roof's caved in.
MAYOR: Can't let you sue the city.
CHORUS: No. No. No. No.
MAYOR: For a dollar down.
CHORUS: Just a dollar down.
MAYOR: You'll own a piece of the city ...
CHORUS: That used to be pretty.
MAYOR: And that'll be great.
CHORUS: Great. Great. Great. Great.
(The big finish)
MAYOR AND CHORUS: We don't want to hassle, but will ya move to New Castle? And if you do ...
SOLICITOR: (in baritone voice) We ... promise ... not ... to ... sue.
*
What happened? Well, that's just embarrassing.
If you haven't heard by now, a California company wants to purchase the former Elks Club. Tri-Cinema Inc. wants to renovate the site and use it for its home studio. Stop laughing. It's true.
A once grand, old structure, the building is in disrepair. Dating back to the early 1900s, the building has switched ownership several times. There are those who would consider the condition of the building a disgrace.
Speaking of disgraces, let's introduce you to the New Castle News' Pat Litowitz and Lisa Micco. Join our shameful duo as they discuss "When the Walls Come Tumbling Down" or "Didn't They Sell This Property at the Affordable Housing Auction?"
LITOWITZ: Here's the problem -- the city has a number of great, old buildings. But it takes money to keep them up to par. Look at the cost involved in renovating the original Warner Bros. theater.
We're talking millions and millions of dollars.
Then there's the New Castle Area School District and the former Ben Franklin Junior High School. Great building but a financial burden on the taxpayers. The district is looking to unload it, but a few board members have other ideas.
Every day that building sits unoccupied you invite more problems.
Don't forget the brouhaha over the homes that were demolished to create the new junior-senior high school.
Antiques are great when you can afford them. But when you're strapped for cash, that's a difficult expense to justify.
I hope Tri-Cinema, which wants to purchase the former Elks building, delivers on its promises. But if it doesn't happen, then it's time to get rid of the building.
MICCO: You know, you're an expense to The News that's hard to justify. Can we get rid of you?
Here's the real problem -- everyone is always in a big hurry to tear down something historic in this town.
The Kurtz mansion. Gone. Made into a parking lot. Soon to be the downtown bus transfer station.
The former Lt. Gov. William M. Brown's monstrosity of a home near East Street. Destroyed. It's now a practice field.
The Phillips mansion. Fell into disrepair and demolished. A church now occupies its former site.
(I'm surprised the Scottish Rite Cathedral has lasted this long.)
So I was happy to see that a business outside the confines of Lawrence County is interested in the old Elks building. It's a grand structure, but what an eyesore. And it smells.
Will Tri-Cinema proceed with plans to refurbish the building or will it be used as the set for "Apocalypse Now, Part Deux"?
Did I mention the building smells?
LITOWITZ: Yes, but so do you.
Setting olfactory issues aside, I also do not like the thought of demolishing historical buildings.
But you failed to address the problem. How are you going to raise money to refurbish the structures?
There's no one coming in to save New Castle.
By the way, who's rushing to tear them down? They sit and sit and sit. Before you know it, someone sets them on fire. That's the New Castle way.
MICCO: Have "A Night at the Races" like everyone else does to raise money.
Besides, I'm not saying the city should fund the renovations. I'm talking about selling the old Elks building to Tri-Cinema -- or whomever else for that matter -- without creating a bureaucratic dog-and-pony show.
Why does the city have to complicate things? I mean, we politely asked to tour the former Elks building, and, after a meeting at Camp David, a dozen consultations with lawyers and a reading of tea leaves, the city says NO.
I don't like being told no. I was very put out.
LITOWITZ: Could it be that you are a spoiled child?
The building isn't the safest place to be. I respect the fact that city officials were looking out for our safety.
Or it could be that the mayor and Councilman Chet Orelli are still mad at you over the Cascade Lake tongue-lashing?
MICCO: Oh wait, I didn't recognize you there for a minute with your face not pressed up against a city official's buttocks. "Respect the fact ... Looking out for our safety ..." Puh-leeze.
If the mayor and Orelli are still mad at me, then they would've given me the key and let me fall to my death.
LITOWITZ: Would that be considered a civic improvement?
(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Remember, Christmas is 14 weeks away. Gift certificates may be sent to Pat and Lisa in care of "A He Said/She Said Christmas," P.O. Box 60, 27 N. Mercer St., New Castle, Pa. 16103. Gifts are not tax deductible.)
By Pat Litowitz and Lisa Micco
New Castle News
Quiet on the set.
"That Old Elks Building: The Musical."
Act one. Scene one.
Cue the lights. Actors, on your marks.
Orchestra, remember this a peppy little number.
In three, two, one. Action.
*
THE MAYOR: I have a building.
CITY COUNCIL CHORUS: A pretty little building.
MAYOR: It's made of brick.
CHORUS: He wants to sell it quick ...
MAYOR: Before it falls apart.
CHORUS: Part. Part. Part. Part.
MAYOR: Oh, it's a fixer-upper.
CHORUS: A real fixer-upper.
MAYOR: I'd like to let you in ...
CHORUS: But the roof's caved in.
MAYOR: Can't let you sue the city.
CHORUS: No. No. No. No.
MAYOR: For a dollar down.
CHORUS: Just a dollar down.
MAYOR: You'll own a piece of the city ...
CHORUS: That used to be pretty.
MAYOR: And that'll be great.
CHORUS: Great. Great. Great. Great.
(The big finish)
MAYOR AND CHORUS: We don't want to hassle, but will ya move to New Castle? And if you do ...
SOLICITOR: (in baritone voice) We ... promise ... not ... to ... sue.
*
What happened? Well, that's just embarrassing.
If you haven't heard by now, a California company wants to purchase the former Elks Club. Tri-Cinema Inc. wants to renovate the site and use it for its home studio. Stop laughing. It's true.
A once grand, old structure, the building is in disrepair. Dating back to the early 1900s, the building has switched ownership several times. There are those who would consider the condition of the building a disgrace.
Speaking of disgraces, let's introduce you to the New Castle News' Pat Litowitz and Lisa Micco. Join our shameful duo as they discuss "When the Walls Come Tumbling Down" or "Didn't They Sell This Property at the Affordable Housing Auction?"
LITOWITZ: Here's the problem -- the city has a number of great, old buildings. But it takes money to keep them up to par. Look at the cost involved in renovating the original Warner Bros. theater.
We're talking millions and millions of dollars.
Then there's the New Castle Area School District and the former Ben Franklin Junior High School. Great building but a financial burden on the taxpayers. The district is looking to unload it, but a few board members have other ideas.
Every day that building sits unoccupied you invite more problems.
Don't forget the brouhaha over the homes that were demolished to create the new junior-senior high school.
Antiques are great when you can afford them. But when you're strapped for cash, that's a difficult expense to justify.
I hope Tri-Cinema, which wants to purchase the former Elks building, delivers on its promises. But if it doesn't happen, then it's time to get rid of the building.
MICCO: You know, you're an expense to The News that's hard to justify. Can we get rid of you?
Here's the real problem -- everyone is always in a big hurry to tear down something historic in this town.
The Kurtz mansion. Gone. Made into a parking lot. Soon to be the downtown bus transfer station.
The former Lt. Gov. William M. Brown's monstrosity of a home near East Street. Destroyed. It's now a practice field.
The Phillips mansion. Fell into disrepair and demolished. A church now occupies its former site.
(I'm surprised the Scottish Rite Cathedral has lasted this long.)
So I was happy to see that a business outside the confines of Lawrence County is interested in the old Elks building. It's a grand structure, but what an eyesore. And it smells.
Will Tri-Cinema proceed with plans to refurbish the building or will it be used as the set for "Apocalypse Now, Part Deux"?
Did I mention the building smells?
LITOWITZ: Yes, but so do you.
Setting olfactory issues aside, I also do not like the thought of demolishing historical buildings.
But you failed to address the problem. How are you going to raise money to refurbish the structures?
There's no one coming in to save New Castle.
By the way, who's rushing to tear them down? They sit and sit and sit. Before you know it, someone sets them on fire. That's the New Castle way.
MICCO: Have "A Night at the Races" like everyone else does to raise money.
Besides, I'm not saying the city should fund the renovations. I'm talking about selling the old Elks building to Tri-Cinema -- or whomever else for that matter -- without creating a bureaucratic dog-and-pony show.
Why does the city have to complicate things? I mean, we politely asked to tour the former Elks building, and, after a meeting at Camp David, a dozen consultations with lawyers and a reading of tea leaves, the city says NO.
I don't like being told no. I was very put out.
LITOWITZ: Could it be that you are a spoiled child?
The building isn't the safest place to be. I respect the fact that city officials were looking out for our safety.
Or it could be that the mayor and Councilman Chet Orelli are still mad at you over the Cascade Lake tongue-lashing?
MICCO: Oh wait, I didn't recognize you there for a minute with your face not pressed up against a city official's buttocks. "Respect the fact ... Looking out for our safety ..." Puh-leeze.
If the mayor and Orelli are still mad at me, then they would've given me the key and let me fall to my death.
LITOWITZ: Would that be considered a civic improvement?
(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Remember, Christmas is 14 weeks away. Gift certificates may be sent to Pat and Lisa in care of "A He Said/She Said Christmas," P.O. Box 60, 27 N. Mercer St., New Castle, Pa. 16103. Gifts are not tax deductible.)
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