by Dale Hannah
Koehler Fiasco
18Apr2008 Filed under: Erie, Government, Grant Money, Koehler Brewery Square, People Power, Uncategorized, contractors, politics, random thoughts Author: Dale HannahThe headlines in the ETN and at GoErie were glaringly clear–”Public May Lose $850,000″. Having defaulted on their loans, the group of Erieites who are already into the National City Bank for $825,000, are not going to fight the sheriff’s sale of the “worthless” property.
Since the property has so little value, it is unlikely that the bank will recover any significant amount of the debt owed to them. We, the taxpayers who funded the $850,000 loans made by the city, probably will not see any repayment at all from the foreclosure. The only option I can see is for the city to file suit against the individuals who make up the Koehler Brewery Square LLC, who, according to the report, signed personal guarantees for the loans.
It behooves the City of Erie and Hizzoner Joe to take every legal step possible to recover these taxpayer funds. It also is most important for the citizens to make a lot of noise until the money is back where it belongs.
- Tags: , Erie Redevelopment
5 Responses to “Koehler Fiasco”
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About 'What If?'
I am a life-long resident of Erie County, twenty years of which were spent living in the City of Erie. I retired from the tool-and-die trade two years ago, and now have time to enjoy the opportunity to observe city and county goings-on in more depth.
I hope to create a venue to suggest new ideas and solutions to exisiting problems with my blog, 'What If?'.
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Danny Lucas
April 19th, 2008 at 10:01 am
I missed this chapter of Erie history while living across state, or out of state.
Dale, you rely on the Erie Times-News and GoErie to give you facts, but MY experience reading from Florida, Oregon, and elsewhere, of hometown happenings is different when I am out of Erie, than Inside Erie.
The Times-News controls what is said, and to a degree IS the news. Obama came to town; page 4A on the day he came.
This is the ONLY visit by the guy likely to be Prez nominee; 4A.
4A was a classification for deferment from military service in prior wars; you already served or were too old. Looks like the war on reporting the news still defers, in Erie!
(Obama coverage on Saturday as a followup has him on page one.)
BUT, Chelsey Climton was color picture page one AND headline story of greater importance as she spoke to 300 Edinboro students in a dorm……than GE Quarterly taking a dive or even the Times becoming 120 years old. This 28 year old held top spot and again two more times inside—full color on one, and black and white with mom and dad on another. I really doubt that Chelsey is any more significant than Amy Carter (say, how is that gal doing, Kevin?)…..(and can you get her DAD to go to Plains, GA and be quiet like a good ex-Prez?).
So Dale, I would NOT rely too much on the credibility of news derived at GoErie and Erie Times-News UNTIL they begin to report it…..instead of creating it as they see it.
(One week they posted figures on letters to the editor.
It was about 121 total and 54 printed and 10 on Trautman and Mercyhurst/Clinton visit. I am using a “recall” here and not looking it up; but, the figures are close.
ALL 10 Trautman letters were posted THAT day. NOTHING else. Welcome to ETN reports the news.)
Viewers out of town would be better served to tune in at Global Erie and Erie Blogs (glean out the “Dennis-isms”, but chew on the links he provides) to understand Erie anymore.
That said, I have no clue on the Koehler Collar story, but it seems to be wringing the taxpayer’s neck anew.
I doubt National City wants to sit on a foreclosed property and they can sell it under different rules than a finance of a property — that’s why bankruptcy is such a popular pastime lately.
As deed holder, National City gets to pay property tax (if we are in a real world here).
Make a trade-off.
The city can forego taxes on the Koehler Collar, in lieu of taxes due on the property from National City……until they get a buyer under the new, relaxed provisions. It is a different ballgame when a bank is financing a loan, or selling an asset….and financing that sale.
True the taxpayer is hit either way, but less painfully.
The Collar was more fun when it poured and foamed, than when it choked us.
ps. Your GoErie link in this post does not work.
That was the best part of the post–not linking—
and Sarah would do the world a favor to leave it as is.
Dale Hannah
April 19th, 2008 at 12:17 pm
Danny-My e-mail to you won’t go through-pls contact me.
julio reyes
April 19th, 2008 at 7:05 pm
Dale,
The damage had been already done. The money is gone by now. In another post I already made the recommendation to create a public park to improve the way the town looks.
You said:
“It also is most important for the citizens to make a lot of noise until the money is back where it belongs.”
I think it is far more important to demand from our public official and government true financial reports that show where the current projects and current money is being spent.
We always heard about millions and millions for this and that project and at the end nobody knows how to count and how the money was truly spent.
Let’s the death rest but what if we could stop future fiascos from happening.
Ian
April 20th, 2008 at 5:56 pm
This is why the government should not be in the business of funding private projects, even partially.
Jim
April 21st, 2008 at 6:38 am
The Koehler property should have been torn down immediately after Koehler closed, and put back on the market. Buying into a faulty argument that a historical building should be saved for something unknown was a huge mistake that the city should have resisted. Remember they recruited the current group of developers, when the previous ones ran into the same roadblocks.