First National Bank of Pennsylvania has filed a commercial mortgage foreclosure action against Conneaut Lake Park Volunteer Fire Department to collect more than $400,000 in outstanding loan debt, interest and penalties.
The filing, made Friday afternoon in Crawford County Court of Common Pleas, follows a judgment the bank filed against the fire department June 17 for defaulting on three construction loans. Both actions were filed with the Crawford County Prothonotary's Office, which handles civil court proceedings.
According to court documents, Conneaut Lake Park Volunteer Fire Department took out three loans on Sept. 2, 2008 — a $198,000 loan with monthly payments through March 1, 2024; a $270,900 loan with monthly payments through March 1, 2024; and a $200,000 line of credit.
Those three loans then were converted to mortgages on Jan. 22, 2018, with Conneaut Lake Park Volunteer Fire Department's premises at 11965 Route 618 as collateral, according to court documents.
According to the foreclosure complaint, the fire department has failed to make payments on all three mortgages, making the $198,000 loan due in full Feb. 1 of this year and the $270,900 loan and $200,000 loan due in full on Jan. 1 of this year, according to court documents.
The bank is demanding foreclosure and sale of the property for $382,455.25 for outstanding balances and interest through May 17 of this year plus additional interest on the three loans from May 17. The bank wants additional interest of $15.67 per day on the $198,000 loan, $26.39 per day on $270,900 loan and $49.65 per day on the $200,000 loan.
The foreclosure action also seeks attorney fees, late charges and fees and costs of the suit.
Tribune calls Monday to Darrell Miller, president of Conneaut Lake Park VFD, for comment weren't returned.
Miller told the Tribune last week the fire department remains active answering calls and its social club with a restaurant and liquor license remains open.
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 Conneaut Lake Volunteer Fire Department, which has the southern and eastern portion of Sadsbury Township and the borough of Conneaut Lake.
Keith Gushard can be reached at 724-6370 or by email at firstname.lastname@example.org.