By Jane Smith
5/2/06
May 01, 2006 11:38 pm
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CONNEAUT LAKE — Conneaut Lake Park will not open this year unless somebody comes forward by Friday with a $250,000 loan.
An expected bank loan fell through and the park has no money, said the park’s court-appointed overseer, LeRoy Stearns.
It was a shocking reversal from the confidence Stearns displayed Friday. That was when a judge gave the park approval to make plans to sell off three acres of land, a move Stearns said would practically guarantee the park could secure the loan it needs to open this year.
The scene was grim Monday as the park laid off all 30 of its employees. Only general manager George Deshner remains working. “We are waiting until Friday to see if anything breaks on the loan or somebody comes forward to make a loan,” Stearns said.
If that doesn’t happen, the park doesn’t have the money to open for the 2006 season. Employees will remain furloughed and the park will stay closed.
In prior years, area businessmen or banks loaned the park money to open each season.
Any private loan would have to be approved by the court.
Crawford County Court of Common Pleas Judge Anthony Vardaro, who handles all park-related court hearings, has been informed, said Stearns. The judge declined comment.
The last time the park didn’t open was in 1995 after its owners declared bankruptcy. It was reopened in 1996 under the
ownership and operation of Gary Harris. In 1997, Harris gave the park to the people of northwestern
Pennsylvania and it was declared a charitable trust in 2004.
However, the park hasn’t been able to get out of debt, which now stands at about $1.9 million, and it has needed to borrow money to open every year.
Stearns said by the end of May, the park needs to pay $10,128 for workers’ compensation insurance and $50,000 for the rest of the insurance package. Another $8,900 is needed to open the hotel and restaurant. Payroll for the next four weeks totals $51,000 and for opening weekend, $37,000, for a total of $88,000. It also needs to order food and other items.
On Monday, Stearns said the confidence he voiced Friday was because he had been assured by officials of the lending institution of a “65 percent” chance of approval with the court’s ruling.
He said despite the fact Vardaro gave the park approval for planning a sale, the lending institution wanted more assurance that a sale would actually take place and it would recoup its $250,000.
“The lending institution said Monday that the loan was subject to having a known buyer for the property,” Stearns said.
Stearns couldn’t give that assurance despite the fact he has at least seven developers who have expressed an interest in purchasing the property.
Stearns said the court couldn’t give approval for an immediate sale, noting the property must be sold at a public sale and a public hearing must be held.
If the park does shut down, Hotel Conneaut and Elizabeth’s Restaurant will close with it. The hotel has some food on hand, which will be put into a freezer pending further developments.
The park fell under court oversight several years ago when its original board of trustees dwindled to a single member due to controversies and disagreements.
Jane Smith can be reached at 724-6370 or by e-mail at jsmith@meadvilletribune.com
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