RESOLUTION NUMBER
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1 RESOLUTION NUMBER Approving The Agreement Among Taxing Bodies For Parcel Numbers And Located In Millcreek Township, Erie County, Pennsylvania WHEREAS, Rick Griffith and his business enterprises are a significant force in redevelopment and development of business and commercial properties in Erie County, including Millcreek Township, with the benefit ofcreating and maintaining jobs within Erie County; and WHEREAS, property located in Millcreek Township and bearing tax identification numbers and , is owned by Erie Drive-In Theatre Corporation, which has paid no taxes on the property since 1993 and delinquent taxes through 2011 were extinguished in the December 2011 judicial sale and the property is currently in the Erie County Tax Repository; and WHEREAS, said property is heavily contaminated and has been the subject matter of many environmental investigations, leading the Pennsylvania Department of Environmental Protection to determine to spend several million dollars in the remediation of the environmental conditions on the property; and WHEREAS, Rick Griffith has created an entity named Moxie Nein, LLC, which has as its purpose the purchase of the property from the Repository, participation in the remediation as an owner of the property and, along with funding from the Pennsylvania Department of Environmental Protection, develop an approximate 4-acre Commercial Parcel and an approximate 19-acre Recreation Parcel and subsequently develop the Commercial Parcel on the property for business and job development and donate the Recreation Parcel to Millcreek Township for use as recreational property, a stated need in Millcreek Township; and WHEREAS, to date Rick Griffith has expended in excess of $64,200 in direct costs in his efforts to acquire and participate in the cleanup of the property, many of which costs that may have otherwise been borne by the public and will spend approximately another $58,500 in acquiring the parcels; and WHEREAS, Moxie Nein, LLC, will purchase the property from the Repository for $45,000, and the net amount shall be distributed on a pro rata basis among the taxing bodies Millcreek Township, Millcreek Township School District and the County of Erie; and WHEREAS, the said purchase price will set the fair market value for future real estate tax purposes, unless otherwise changed pursuant to applicable law; and WHEREAS, the Commercial Parcel would be expected to be placed on the tax rolls in or about 2013 or 2014 and has a viable owner for purposes of the payment of real estate taxes; and WHEREAS, the assessed value for real estate tax purposes during 2012 will be approximately $216,600, but since the property is contaminated, its value is, at best, $1.00 until remediation is completed; and
2 RESOLUTION NUMBER WHEREAS, the current unpaid balance of taxes for 2012 is $1, for the County of Erie; and WHEREAS, the County of Erie believes it is in the best interest of the public for the property to be remediated and placed back on the tax rolls for the commercial property and not taxed at the assessed value for 2012 but rather based upon the purchase price from the Repository; and WHEREAS, the Erie County Bureau of Assessment has no objection to the limitation of taxes based upon the purchase price pursuant to 72 P.S and will accept the other taxing bodies' similar decision. NOW, THEREFORE, BE IT RESOLVED by the County Council of the County of Erie upon consideration of the request of Moxie Nein, LLC, and based upon the premises set forth above, it is hereby resolved that: 1. The County of Erie agrees to the limitation of all real estate taxes and any penalty and interest that may accrue on parcels and for 2012 to the extent that said taxes are based upon an assessed value greater than the purchase price of $45,000 and rather agrees that the fair market value of $45,000 to be paid for the parcels from the Repository be used to determine the assessed value for real estate taxes for 2012 after application of the common level ratio and Moxie Nein LLC shall only be responsible for the pro rata portion of taxes assessed on the purchase price for the period of time in 2012 that Moxie Nein, LLC owns the parcels. 2. After 2012, the assessed value shall be as determined by applicable Pennsylvania law. On the motion of Mr. Leone, seconded by Dr. Foust, this resolution was passed on this 3rd day of_-=a=p:...:r=-=i=l=-- -', 2012 by a vote of_6_ - _0_. APPROVED BY: Phil Fatica, Chairman Erie County Council Date: 4-= !...--.l_l
3 Paul F. Burroughs pburroughs quinnfirm.com 2222 W. Grandview Blvd. Erie, PA / Phone 814/ Fax March 23,2012 VIA FACSIMILE Gary J. Shapira, Esq. 305 West Sixth Street Erie, PA Thomas S. Talarico, Esq. 558 West Sixth Street Erie, PA RE: Property of Erie Drive-In Theater Corporation, Millcreek Township Gentlemen: This follows up on our telephone conversation of March 9, 2012, and your good suggestion that I follow up with you in writing about the matter we discussed. As I discussed with you, I represent an entity known as Moxie Nein, LLC, whose Manager is Rick Griffith, wellknovvn in the Erie community for his business and civic involvement. Moxie Nein, LLC is the prospective purchaser of two parcels of property from the County Repository following the unsuccessful sales of these two parcels in the December 2011 judicial lien free sale. These parcels are currently titled in Erie Drive-In Theater Corporation and have been the subject matter of comprehensive environmental investigations for many years. The investigations resulted in the determination by the Pennsylvania Department of Environmental Protection that funding was needed to conduct remediation of the property for a number of reasons, including discharges of contaminants into Cascade Creek. Indeed, DEP is preparing to begin the remediation project this month with a projected completion date in the summer of The judicial lien free sale with the subsequent deposit of these parcels into the County Repository leaves the property lien free for liens and assessments, including taxes, through However, it did not include 2012 taxes. The current assessed value for these two parcels is $216,600. The purchase price for the parcels from the Repository is $45,000, the net amount of which will be divided amongst the taxing bodies. It is clear going forward
4 Gary J. Shapira, Esq. Thomas S. Talarico, Esq. March 23, 2012 Page 2 that, pursuant to 72 P.S , the fair market value of the property will be the purchase price out of the Repository. However, that will only be effective upon the filing of an appeal by the purchaser and will only be effective for 2013 and thereafter. I possess real estate appraisals prepared by Sammartino and Stout that set the current value of each parcel, as currently contaminated, at $1.00 each. However, Moxie Nein, LLC would not contest the setting of 2012 taxes based upon the purchase price of $45,000 with the appropriate common level ratio applied before determining the taxes. (I would also note that these appraisals set the fair market value for the parcels upon completion of remediation at significantly higher values.) I am asking that each of the taxing bodies enact resolutions that will call for the exoneration of 2012 taxes based upon the current assessed value and reduce any tax burden for 2012 to the purchase price of $45,000. It is anticipated that each of the taxing bodies will takes this matter up at their pending meetings; that is, the School District on March 26, Millcreek Township on March 27, and the County on April 4. It is my understanding that currently before each of these bodies will be the offer to purchase the property at $45,000 out of the Repository, which I understand to be a condition precedent to the sale. After the receipt of the resolutions, I would propose that, if deemed necessary, the petition for exoneration be presented to one of the judges of the Court of Common Pleas, and I believe this can be accomplished in motion court if the petitioners are indeed the taxing bodies. I would also give notice to the Erie County Tax Assessment Bureau. I would note that Tom Talarico had a suggestion that the petition for exoneration might not be necessary. Any comments would be greatly appreciated. I can have the resolutions to the taxing bodies' solicitors early this week. Very truly yours, QUINN, BUSECK, LEEMHUIS, TOOHEY & KROTO, INC. Paul F. Burroughs PFBjkldj c: Mr. Rick Griffith
5 Mll.LCREEK TOWNSHIP SCHOOL DISTRICT ERIE COUNTY r PENNSYLVANIA Resolution No The MiUcreek Township School District resolves as follows: WHEREAS, Rick Griffith and his business enterprises are a significant force in redevelopment and development of business and commercial properties in Erie County, induding Millcreek Township, with the benefit of creating and maintaining jobs within Erie Countyi and WHEREAS, property located in Millcreek Township and bearing tax identification numbers 33-m and , is owned by Erie Drive-In Theatre Corporation, which has paid no taxes on the property since 1993 and delinquent taxes through 2011 were extinguished in the December 2011 judicial sale and the property is currently in the Erie County Tax Repository; and WHEREAS, said property is heavily contaminated and has been the subject matter of many environmental investigations, leading the PelUlSylvania Department of Environmental Protection to determine to spend several million dollars in the remediation of the environmental conditions on the property; and WHEREAS, Rick Griffith has created an entity named Moxie Neill, LLC, which has as its purpose the purchase of the property from the Repository, participation in the remediation as an owner of the property and, along with funding from the
6 Pennsylvania Department of Environmental Protection, develop an approximate 4-acre Commercial Parcel and an approximate 19-acre Recreation Parcel and subsequently develop the Commercial Parcel on the property for business and job development and donate the Recreation Parcel to Millcreek Township for use as recreational property, a stated need in Millcreek Township; and WHEREAS I to date Rick Griffith has expended in excess of $64/200 in direct costs in his efforts to acquire and participate in the cleanup of the property, many of which costs that may have otherwise been borne by the public and will spend approximately another $58,500 in acquiring the parcels; and WHEREAS, Moxie Nein, LLC, will purchase the property from the Repository for $45,000, and the net amount shall be distributed on a pro rata basis among the taxing bodies - Millcreek Township, Millcreek Township School District and the County of Erie; and WHEREAS, the said purchase price will set the fair market value for future real estate tax purposes, unless otherwise changed pursuant to applicable law; and WHEREAS the Commercial Parcel would be expected to be placed on the tax rolls in or about 2013 or 2014 and has a viable owner for purposes of the payment of real estate'taxes; and WHEREAS, the assessed value for real estate tax purposes during 2012 will be approximately $216,600, but since the property is contaminated, its value is, at best, $1,00 until remediation:is completed; and 2
7 WHEREAS, the current unpaid balance of taxes for 2012 is approximately $3, to the Millcreek Township School District; and WHEREAS, the Millcreek Township School District believes it is in the best interest of the public for the property to be remediated and placed back on the tax rolls for the commercial property and not taxed at the assessed value for 2012 but rather based upon the purchase price from the Repository. NOWI THEREFORE, upon consideration of the request of Moxie Nein, LLC, and based upon the premises set forth above, it is hereby resolved that: Subject to and conditioned upon execution by and for Moxie Nein, LLC of the Consent Order and Agreement (the "COAII) with the Department of Environmental Protection, its tender of a price not less than $45,000 for purchase of the parcels bearing Erie County Assessment Nos. (33) and (33) Q45.00 and its performance of all obligations imposed on it in the COA, 1. Millcreek Township approved the sale of the subject parcels by the Tax Oaim Bureau from its repository to Moxie Nein for a price not less than $45,000, said proceeds to be distributed in accordance with prior agreements of the taxing districts; and 2. The Millcreek Township School District agrees to the forgiveness of all taxes and any penalty and interest that may accrue on parcels and for 2012 to the extent that said taxes are based upon an assessed 3
8 value greater than the purchase price of $45,000 and rather agrees that the fair market value of $45,000 to be paid for the parcels from the Repository be used to determine the assessed value for real estate taxes for 2012 after application of the conunon level ratio and Moxie Nein LLC shall only be responsible for the pro rata portion of taxes assessed on the purchase price for the period of time in 2012 that Moxie Nein, LLC owns the parcels. 3. After 2012, the assessed value shall be as determined by applicable Pennsylvania law. NOW, THEREFORE, BE IT RESOLVED this 26 th day of March, by the Millcreek Township School District. Attest: MILLCREEK TOWNSHIP SCHOOL DISTRICT #1m090S.v1 4
9 LAW OFFICES WILLIAMS AND ADAIR INDIVIDUAL ATTORNEYS NOT A PARTNERSHlP 332 EAST SIXTH STREET ERIE. PENNSYLVANIA EVAN E. ADAIR (814) R. GORDON KENNEDY (193~1974) DENNIS V.WIlliAMS, P.C. C. HARRISON LUND ( ) KEVIN M. KAllENBACH TELEFAX (814) March 20, 2012 Ronald A. DiNicola, Esquire Erie County Solicitor 1001 State Street, Suite 1400 Erie, PA Re: County of Erie Currie Site Parcels Assessment Nos. (33) and Dear Attorney DiNicola: I would congratulate you on your appointment as Solicitor except that I spent many years as assistant and understand the demands you've agreed to undertake. Best of luck. What follows is essentially identical to the letter I am sending to Attorney Tim Sennett for the Millcreek Township District. 'This involves the Currie Site, a recognized contaminated area south of Yorktown Centre in Millcreek. For nearly 10 years, the Department of Environmental Protection, Millcreek and Rick Griffith have worked to arrive at an agreement that would result in work to address the contamination, restoring the northerly 4 acres to future beneficial use for industrial purposes and leave a residue of about 19 acres which would be donated to Millcreek. The Township would then maintain the soil cap and other facilities constructed as part of the remedial action, part of these lands capable of being developed for public recreation use. Attorney Jay Alberstadt has been involved as we all had expected that the SUbject parcels would be purchased at last year's judicial tax sale. Jim Sparber has also been involved, and suggested I write to you and copy Steve Letzelter. I know that Attorney Joseph is typically involved in repository sale matters. Mr. Griffith and his entity for this matter, Moxie Nein, are represented by Attorney Paul Burroughs of the Quinn Firm. I write to advise that Millcreek Township's Board of Supervisors today adopted two resolutions to approve a proposed Consent Order and Agreement (COA) with the PaDEP and Moxie Nein, LLC and addressing two real property tax issues pertaining to the above parcels. The COA provides for actions to remediate contamination of the Currie Site, located south of Yorktown Centre by contractors acting on behalf of PaDEP; acquisition of the two parcels by Moxie Nein from the County Tax Claim Bureau's repository for a total price not to be less than $45,000 and the ultimate subdivision of the parcels so as to create a northern "Commercial" parcel of approximately four acres to be owned by Moxie Nein and a rear "Recreational" parcel of about 19 acres to be donated to Millcreek, which will then be responsible for maintaining the soil cap, the stormwater detention facility being constructed and other features of the remedial response activities. PaDEP is committed to signing the COA once it receives confinnation that Millcreek and Moxie Nein have done so.
10 Ronald A. DiNicola, Esquire March 20,2012 Re: Currie Site Parcels (2) I am enclosing a copy of Millcreek's Resolution No. 20l2-R-13 as adopted today. This resolution addresses two tax issues that require assent by all three taxing districts: (I) assent to sale of the two parcels from the County's repository for that price of not less than $45,000; and (2) assent to adjustments (by way of reduction in the value for tax assessment purposes retroactive to January 1, 2012 or by way ofpartial exoneration) so that all taxes imposed during this calendar year will be based on the price paid for purchase from the repository. PaDEP will oversee all remedial response activities. It has awarded contracts for the work and is anxious for work to begin. We understand that all response activities should be completed by the end of the 2013 construction season. During that time, neither of the parcels will be available for any use other than the remedial response activities. In these circumstances, a reduction in the tax assessment value until response activities are completed and the Commercial parcel can be used was viewed by the Supervisors as reasonable. Please note that Millcreek's approvals are conditioned on Moxie Nein's approval of the COA, its tender of a bid to the County of not less than $45,000 and its otherwise doing what is required of it. I believe all the taxing districts were disappointed that Moxie Nein did not purchase the parcels at the judicial or lien-free sale in late 2011, particularly as its own failure to provide required information was what was delaying execution of a COA. While it is not unreasonable for Moxie Nein to be concerned that it not make these commitments only to fmd that these matters are not resolved, the Township at least does not believe these approvals should be effective absent requisite actions by and on behalf of Moxie Nein. We understand that the School Board will consider these matters at its March 26 meeting and that Erie County Council will consider them at its April 3 meeting. IfI can help in addressing any questions, please let me know. I will appreciate your consideration inproviding me with a copy ofany resolution adopted by your client and in advising me ofthe action taken as soon as you can. I will be out of town the first week of April, so an confirmation regarding the County's action will be greatly appreciated. The PaDEP is anxious to begin response activities. Thank you. Very truly yours, Evan E. Adair '\ EEAlbb cc: Timothy M. Sennett, Esquire J. W. Alberstadt, Esquire Steven Letzelter Supervisors
11 RESOLUTION 2012-R-13 A Resolution to approve and authorize sale by the Erie County Tax Clabn Bureau from its repository of those parcels bearing Assessment Nos. (33) and (33) and to exonerate taxes or authorize adjustment of the value of said parcels for tax assessment purposes to that price paid for the repository sale, subject to provisions of a Consent Order and Agreement, complete execution thereof by all of its parties and the simdar approvals of the Millcreek Township School District and the Couuty of Erie. WHEREAS, pursuant to Resolution No R-12 adopted this date, the Millcreek Township Board of Supervisors has approved a Consent Order and Agreement ("COA") with the Pennsylvania Department of Environmental Protection ("PaDEP") and Moxie Nein, LLC which pertains to the performance by and on behalf of PaDEP of remedial response activities to address environmental contamination of parcels of land in Millcreek Township known as the Currie Landfill Site, including those two parcels currently owned by Erie Drive-In Theatre Corporation bearing Erie County Tax Index Nos. (33) and (33) ; and WHEREAS, said COA in material part (i) obligates Moxie Nein to acquire good and marketable title to said parcels of land from the County of Erie pursuant to judicial sale or equivalent and its payment therefor of a price not less than $45,000.00; (ii) provides for performance by PaDEP and its contractors of the remedial response activities; (iii) requires subdivision by Moxie Nein of said two so as to create a Commercial Parcel comprising approximately four acres at the north of the Site and a Recreation Parcel comprising the remainder as provided in the COA; (iv) requires donation by Moxie Nein of said Recreation Parcel to Millcreek Township; (v) contemplates use or marketing ofthe Commercial Parcel by Moxie Nein for industrial purposes; and (vi) obligates the Township to be responsible after completion of remedial response activities for maintaining the soil cap and the flood detention basin to be constructed on the Recreation Parcel; and WHEREAS, despite the parcels' being a recognized site of environmental contamination. real property taxes have been imposed based on assessed valuations of $ for (33) and $31,400 for (33) , such that unpaid real property taxes as ofthis date are approximately $126,052 as to (33) and $85,446 as to (33) ; and WHEREAS, said parcels are within the repository Of the Erie County Tax Claim Bureau, baving been exposed to upset tax sales and a judicial tax sale with no bids having been made thereon; and WHEREAS, the parcels during the period of remedial response activity will not be available for full or proper use; and WHEREAS. the practice of the Erie County Bureau of Assessment upon a sale of parcels for a price of $45,000 is to fix those parcels' value for real property tax purposes at the purchase price paid. such adjustment in this case to be prospective in effect; and
12 f' WHEREAS, in view of the commitments being made under the COA, the Board of Supervisors believes that adjustment of the two parcels' value for purposes of all real property taxes imposed on and after January 1, 2012 through the termination of remedial response activities to the price to be paid for the repository sale would be fair and appropriate in the circumstances; and WHEREAS, approval of the Millcreek Township School District and the County of Erie is required to authorize sale of the parcels from the repository and any partial exoneration and/or adjustment of the parcels' value effective January 1, 2012 for tax assessment purposes; and WHEREAS, the Board of Supervisors also believes that all actions on its part, and on the part of the other taxing districts, must be expressly conditioned upon the prior execution on behalfof Moxie Nein of the COA in the form approved by Resolution No R-12 and on Moxie Nein's compjiancewith all terms of said COA. IT IS HEREBY RESOLVED by the Board of Supervisors of Millcreek Township, Erie County, Pennsylvania as follows: Subject to and conditioned upon execution by and for Moxie Nein, LLC of the COA in its form as approved by Resolution No R-12. its tender of a price not less than $45,000 for purchase of the parcels bearing Erie County Assessment Nos. (33) and (33) and its performance of all obligations imposed on it in the COA, (i) Millcreek Township approves the sale ofthe subject parcels by the Tax Claim Bureau from its repository to Moxie Nein for a price not less than $45,000, said proceeds to be distributed in accordance with prior agreements of the taxing districts; and (ii) Millcreek Township approves partial exoneration of real property taxes or, if possible, establishment effective as to all real property taxes imposed on and after January 1, 2012 of total values of both parcels for real property taxation purposes equal to that purchase price paid for the parcels in the repository sale. ADOPTED this day of March, MILLCREEK TOWNSIDP SUPERVISORS 2012R-131MLKlRES Brian P. McGrath 2
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