by Steve10 on Fri Nov 27, 2009 12:58 am
Chuck,
I'm no attorney, but this is what I see;
A non-profit corporation by the name of Lewis County Opportunities, Inc. (LCO), secured a $500,000 grant from Lewis County (not New York State) to fund development of the Almost Mile Track at AIS (not Paul Lyndaker.) The New York State Attorney General's Office felt $382,725 of the grant was inappropriately dispersed to Paul. In a legal settlement, Paul agreed to pay back $40,000, and have Lewis County hold a mortgage on AIS for the $342,725 balance. There's no interest, and it is and will always be subordinate to any other liens. In fact, the only time the mortgage is due and payable is if the facility is no longer used as a race track! Even if the track is sold, the new buyer could assume an interest free loan automatically if it continues to be a race track. Sweet deal!
In another attachment, that same non-profit corporation received a USDA Rural Development Grant for the purchase and installation of bleacher seating for 1400. Then it entered into a Partnership Agreement with AIS agreeing to a long term lease with AIS for the bleachers. AIS didn't own the bleachers at the time of the legal settlement, but there was an arrangement to continue the lease after the settlement. Whether AIS currently owns the bleachers is unknown. According to the ruling LCO and AIS were to cut all ties to one another.
Hope this clears up the "Grant became a Loan" mystery.
Cleveland - Thanks for the link.
Steve Burton, TA SS #10
Steve Burton, TA SS #10