Ford City Residents File Suit to Stop Foreclosure of Heritage Park

by David Croyle

Several Ford City Borough residents have objected to the foreclosure on the Heritage Industrial and Technology Park by Farmers and Merchants Bank of Western Pennsylvania (F&M). They filed paperwork in the Armstrong County Court of Common Pleas on Monday, December 28, asking a judge to stop the foreclosure until their position can be heard.

Attorney Chuck Pascal said he was hired to represent Renee Zacour, her parents Richard and Alberta Zacour, neighbors Elizabeth Germy and Diana Walbert, Christa Walbert, and Kim Bish.

On July 30, 2004, the bank granted a Commercial Mortgage Loan to the Greater Ford City Community Development Corporation (CDC) for $1 million and a Line of Credit for $330,000. The CDC, at that time, was managing the borough-owned property. As collateral for the loan, the Borough agreed to secure the loan with the property, although it was not in control of the money from the loan. After the CDC defaulted in making payments to the bank, foreclosure action was filed on November 6, 2009 by Pittsburgh law firm Grenen and Birsic on behalf of the bank and the Kittanning Paper first announced the story on November 13.

In a letter to Borough Solicitor Frank Wolfe, F&M’s attorney James Grenen explained the bank’s position in a single statement. “The bank has elected to move forward with a foreclosure, as necessary, in order that this property may be ultimately transferred to an entity in a position to complete this project as contemplated,” he wrote.

The Borough had until mid-December to file a response if they intended to challenge the foreclosure. At a council meeting on December 7, Council, by a 4-2 vote, agreed to not defend the action. Therefore, a default judgment was granted to the bank.

Pascal said that he has filed a request for the judgment to be re-opened so a response by his clients can be filed.

“Opening the judgment means we can put a response to the foreclosure,” he said. “We contend the underlining mortgage is unlawful and beyond authority of council in 2004. If that is the case, the bank cannot foreclose on an unlawful mortgage.”

Council the only way a municipality can encumber debt is by pledging the taxing power of the municipality.

If Pascal succeeds, it means the bank cannot take property and Ford City will continue its ownership. “Whether Ford City is responsible for the loan is another thing. The loan is in name of CDC. In theory, the CDC remains responsible, but is in bankruptcy,” he said.

“Normally the loan would be in Borough’s name. This is more complicated because the loan not in Borough’s name. I do not know how it will end up because of this technicality. This is an issue for down the road.”

Councilman Tom Shaffer, who will be leaving his position in January, felt that Council did the appropriate thing. “The people of Ford City elected six members. Those members voted to not put the taxpayers on the line. The CDC had management mistakes and the foreclosure is the result of those mistakes.”

“The property and improvements were paid for by taxpayers,” Pascal maintains. “A lot of state money, loans, and grants from the State paid for it. The property has value. The Borough should sell it, not the bank. The value is a result of taxpayer money. The taxpayer should reap benefits of the sale of the property.”

Pascal criticized the bank for not following proper process for encumbering the property. “The bank is a Pennsylvania bank and knows the law. The bank should know that in order for a municipality to incur debt, they have to go through a process. This was not some bank out of Kansas that doesn’t know PA law!”

Pascal said he has not received a date for his day in court. “I haven’t got an order back from the court regarding intervening. I do not know what the court is deciding. It is up in the air.”

The park was originally an 8.791-acre piece of land between Second Avenue and the Allegheny River that housed the former Shop 1 and 2 buildings of the PPG complex.

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Sixth Avenue Residents Call for a Safer Community

by David Croyle

A group of Ford City citizens showed up at the municipal building last night to plead for safety on their street as the last council meeting convened for 2009. The citizens were concerned after learning that a person living near them that was a convicted sex offender.

According to the Megan’s Law website, 69-year-old Harry Walt McElroy was convicted in 1997 of indecent assault, a misdemeanor of the first degree or greater, with someone of less than 16 years old in Clarion County. He pleaded no contest, admitting no guilt, but served jail time for the incident.

Sixth Avenue Resident Jennifer Willyard said there is no protection from the state or Megan’s Law.

“I would like an ordinance concerning residency restrictions for sex offenders. Megan’s Law does not look out for small communities. The only thing they must do is let people know within 200 feet of daycare centers and schools that he lives there.”

To plead her case, Willyard brought several ordinances enacted by other municipalities that restrict sex offenders from living.

“The ordinance in one thing, but we also need awareness and education,” Willyard continued. “Ford City needs to keep watchful eye. If they see something, call the police. Don’t be afraid. The Ford City Crime Watch needs to be more involved. Perhaps the police department can do a ‘Stranger Danger’ event several times a year.”

Willyard called for specific residency restrictions. “Ford City Borough should get out a map and map where 250 feet away is from playgrounds.”
Solicitor Frank Wolfe said he was aware of such ordinances. “I have seen ordinances like this,” he told WIllyard. “They make them so they have to be certain distance. The tension is ‘how far’. You can end up making it so far enough no one can live in your town. You cannot completely restrict someone from living in your town and moving around the country.” Wolfe said some of the ordinances have been challenged by the ACLU as being unconstitutional.

Another resident, Carrie Shaeffer, has a four-year-old daughter and six-year-old son. “It is a shame I found out by flier,” she told council members. “I can see his apartment from my yard. I don’t want to worry if my kids are out playing.”

Jennifer Eckman said her family lives just a few feet away from the person’s residence and near a playground. “The playground is behind our house. It is an area that should not have someone living near it with this history or record. I have people tell me that even if the ordinance is passed, we cannot do anything with this man. Perhaps the ordinance should be made retroactive. We were informed by state police to start with the borough. I spoke to them first.”

Elizabeth Mauk described the situation as “quite disconcerting.”

“I was not informed that he lives in my backyard. It is a shame I have to live with curtains drawn, can’t jump on our trampoline outside, and live in fear.

It is not the police’s fault. There is no ordinance in place. I hope we can do that. Not only does Community Action have events in the park, but so does the high school. His bedroom faces directly to the park. I have not spoken with his landlord yet. If he knew this when he rented to him, perhaps he can’t discriminate. We need to take charge and keep our children safe.”

“This is the first time we have heard about it,” Councilman Tom Shaffer said. “Council was not aware of this situation.”

“I only learned about it a week ago,” Council President John Lux said.

“How do you explain to your child he cannot go out and play in the snow?” Eckman said. “We bought our house because we had a playground nearby.”

“I realize there needs to be a place in town for these people to go,” Mauk said. “I didn’t realize it was my duty to check the Megan’s Law website. We need to come together as a community and work on this.”

Willyard said there is a representative in the state House that is looking for co-sponsorship of a bill for student safety and awareness. “I suggest we contact our representative, Jeff Pyle, and ask him to get on the co-sponsorship of this bill.”

Neighbor Christy Collins was also enraged. “I have three-year-old and a one-year old. I don’t want to be scared to take my kids outside. The daycares walk them up and down the streets. It is ridiculous. This is small town. I grew up here. You don’t want people running out of town because child molesters are living in town. I want my kids to grow up in a small town like I did — not going outside to play and worried someone doing something dirty to them.”

“I know the council members and mayor,” Wolfe responded. “They will do whatever they can to push the law to protect citizens. It will be on top of my stack to address immediately as solicitor.”

Councilman Terry Tokarek voiced concern. “I sympathize with our neighbors. I guarantee you these guys [council] are going to help you out.”
Councilman Ron Dillard agreed. “Thanks for bringing this to this council. Every member will work diligently to make it happen quickly. It is a good group and a hard-nosed group.”

Although no specific date was established, Lux told Wolfe to examine other ordinances and prepare a draft for the new Council to consider in 2010.

“This is a definite problem we are going to address,” Lux promised. “This council doesn’t sit back and discuss for years. This is serious and we will act.”

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Council Votes Mandatory Drug Testing

Councilman Tom Shaffer proposed a policy making drug testing mandatory for all employees of Ford City Borough – including council persons.

“If we make our firemen and employees be tested, why not council?” Shaffer said. “I think everyone with authority should also be drug tested.”

The test would be given at the expense of the Borough. When Mayor Marc Mantini inquired as to the cost for each test, Council President John Lux estimated it to be $100.

“Small amount to pay to be drug free,” Councilman Ron Dillard added.

“We just went through this at work,” Lux said. “They never did anything with supervisors. This past week, they did the same thing. Now everyone goes through it.”

Shaffer said everyone would be tested initially, including new incoming elected council members. Following the initial screening, tests would be continued on a random basis.

The policy was approved by all in attendance.

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