Conneaut Lake Park Volunteer Fire Department has defaulted on three construction loans from First National Bank of Pennsylvania, and the bank is demanding payment of more than $400,000, according to court documents.
When contacted Wednesday, Darrell Miller, president of Conneaut Lake Park VFD, told the Tribune that the department remains active in answering calls.
Conneaut Lake Park Volunteer Fire Department's primary service area is the western portion of Sadsbury Township. On all structure fires, the department is dual dispatched with the Conneaut Lake Volunteer Fire Department, which has the southern and eastern portion of Sadsbury Township and the borough of Conneaut Lake.
The fire department also operates a social club equipped with a restaurant and liquor license adjacent to its fire station. The social club remains open, Miller said.
"We know about it and are dealing with it," said Miller, who became president of Conneaut Lake Park Volunteer Fire Department in January. "It's a problem I inherited. That's all I can say on it."
The three loans — taken out in September 2008 and totaling $668,000 — are construction mortgages, according to the complaint First National Bank filed Monday with the Crawford County Court of Common Pleas.
According to the complaint, the bank demands payment of a combined total of $419,307.76 for outstanding balances and interest through May 17 of this year; late charges and fees, attorney commissions, plus any additional interest and costs of suit.
The fire department is in default under the terms of the loans for "failing to make monthly installments of principal and interest when due," according to an April 1, 2019, letter from First National Bank to the fire department and filed with the complaint.
The letter also states the bank was exercising its rights under the terms of the loan documents to make the outstanding debt due and payable within 30 days.
Loan documents filed with the complaint show three loans were taken out by the department on Sept. 2, 2008 — a $198,000 loan with monthly payments through March 1, 2024; a $270,000 loan with monthly payments through March 1, 2024; and a $200,000 line of credit.
Keith Gushard can be reached at 724-6370 or by email at email@example.com.