The Pressbox Powertrip

Reluctant and bad news

2008-05-15T14:13:00.000-07:00

Hi folks,

I've been putting this post off for a few days because I do it with much reluctance and a heavy heart. I'm not sure how to say this gently, so I'll just say it -- I'm shutting down The Pressbox Powertrip.

I've thought long and hard about this decision, and while I love doing this blog, the time I put into it is starting to negatively affect my performance of my other, paying pursuits. I have commitments to other publications -- ones that pay me and allow me to pay my rent -- and this blog is starting to prevent me from adequately fulfilling those commitments.

It was my hope this this blog could become a revenue-producing venture, but it hasn't, and at this point I just don't have the time it would take to aggressively and adequately pursue that goal.

I'm leaving the blog up until the end of next week so people can read this post, and them I'm going to delete the blog. So, unless something happens over the next nine days that would help this blog become a money-maker, I'm afraid this will be the end of the Powertrip.

Like I said, I do this with a heavy heart. I have enjoyed running this blog, and I remain extremely grateful for all of my readers and all of the people who have posted comments and e-mailed or called me with tips and information. Thank you all for your support and readership.

I want to extend a special thank-you to my friend and mentor Bruno Sniders, whose support and assistance has been absolutely crucial to the success of this blog.

So, I suppose, I must say farewell. Thank you all again.

PAETEC almost DID drop naming rights

2008-05-13T09:56:00.000-07:00

A source tells me that, for what it's worth, PAETEC Communications WAS actually considering withdrawing from its naming-rights agreement for the soccer stadium during the height of the Rhinos' recent financial crisis.

The company even took steps to notify the team that it was preparing to drop its name from the stadium. That could explain why the company's PR rep was a little surly with me when I talked to him a few weeks ago.

Rhinos: Slow start won't affect attendance

2008-05-13T09:39:00.000-07:00

Will the Rhinos' winless, and scoreless, start to the season hurt the team in the stands when the home opener comes around this Saturday?

The team's front office doesn't think so.

"I don't think it will affect the opener," team VP Sam Fantauzzo told me this morning. "I think a lot of our fans understand that this team was put together late. Other teams had several games under their belts before we even started training camp."

Fantauzzo said ticket sales "are through the roof right now. It's fantastic." He said the team has sold roughly 4,000 season tickets so far.

He also said the team's 0-3-1 start hasn't scared away sponsors and advertisers.

"Advertising and sponsors are amazing," he said. "The phone is ringing off the hook here. We're feeling the buzz that's going around town. The whole town is buzzing."

Management is now focused on the home opener this Saturday against Charleston, an event that will include a concert by American Idol star Bo Bice.

"Bo Bice is bigger than we ever thought he would be," Fantauzzo said. "This guy is huge. It's amazing how many people are into him."

Fantauzzo also said the team is excited about its new broadcasting agreement with Clear Channel, which gives the Rhinos exposure on several local stations. For example, he said, Bice will appear on multiple channels this week leading up to the game and concert Saturday.

"(Clear Channel's) affiliation is amazing," Fantauzzo said. "We'll be doing a lot with them."

Donner and the Walk of Fame?

2008-05-11T21:13:00.000-07:00

I've been meaning to get your thoughts about Bob Matthews' column last week in which he argued for Steve Donner receiving a spot in the Frontier Walk of Fame.

Bob's arguments are very good ones, and certainly very legitimate. Donner has indeed done a lot for the Rochester sports scene over the years. But does all the recent nastiness overshadow all that?

A trio of tax warrants

2008-05-11T20:58:00.000-07:00

On Friday, the state Department of Taxation and Finance issued a trio of tax warrants totaling nearly $72,000 in unpaid taxes against current and former Rochester Sports Group companies.

Empire Professional Soccer LLC — the company DDE used to operate the Rhinos team — got whacked the hardest, with a warrant for $40,036.75.

Rochester Amerks Inc. owes $31,787.71.

Last but not least, Rochester Rhinos Stadium LLC — the company that supposedly was used to own and build PAETEC Park (but which, as we've found, might have been a mere shell corporation) — owes a measly $105.68. (Why even bother with an amount that small?)

These three new warrants are in addition to several other ones issued to various RSG teams over the last year or so.

Perhaps the question to ask now is whether the government — by virtue of being, you know, the government — jumps to the head of the line when it comes to unpaid RSG creditors lining up.

Local company in discussions to run arena

2008-05-09T22:36:00.000-07:00

According to a very dependable source, the city of Rochester has had discussions with a local entertainment company about operating Blue Cross Arena.

The city's contract with the company that currently runs the arena, Philadelphia-based SMG, expires next month, as does the Amerks' and Knighthawks' lease at BCA. The city is paying a New Jersey-based consulting firm, Stafford Sports, $50,000 to help the city with both deals — the teams' lease and the arena-management contract.

While much of the media's focus has been on the squabbles between the city and Steve Donner over the teams' lease, the question of who will manage the arena has largely been ignored.

Which is too bad, because the teams' lease will actually be with whomever lands the BCA management contract, NOT the city (unless, of course, the city decides to run the arena itself, which is about as likely as "American Idol" producing a winner with actual talent).

It's been rumored for a while that the city had soured on SMG and was actively looking for a new management firm. (That might be why the arena's current manager, Jeff Calkins of SMG, hasn't returned phone calls for, like, three months.)

Now we know that's true, according to my source. However, the source wouldn't name the local company that's been in discussions with the city, other than to say that it was an "entertainment" company. Oooh, wouldn't it be just JUICY if Jim LeBeau ended up running Blue Cross Arena?

Official: City always owned stadium

2008-05-09T22:01:00.000-07:00

Sorry it's taken me a couple days to write a follow-up to my Thursday post about PAETEC Park. Thank you, by the way, for all your comments and all your thoughts. Keep them coming. This is your blog as much as it is mine.

Anyway ... we found the deed! Actually, we found many deeds. My research associate talked with Mark Carden of the city of Rochester's Maps and Surveys Division, who located more than a dozen deeds for the property listed as 524 Oak St., which includes the soccer stadium. All of the deeds are owned by the city.

And here's the key part: Carden says that according to the deeds, that property on Oak Street has never been owned by anybody except the city of Rochester, at least not since PAETEC Park even bagan to come into the picture. That includes PAETEC Park itself.

The city owned everything, then leased the property — the land AND the stadium — to DDE's corporation Rochester Rhinos Stadium LLC. When the previously Rhinos ownership went belly up, the city simply pulled the lease to everything.

So when we were all told several years ago that PAETEC Park would be a private venture (albeit largely publicly funded) owned by DDE, that simply wasn't true. The soccer stadium has been a city-owned project all along.

In addition, this confirms that NBT Bank never had any claim to the stadium through the mortgages they gave to DDE because DDE never owned the stadium anyway. That's why the bank didn't put up a fight when the city "seized" the stadium from DDE. That's why NBT was able to foreclose on the corporation (Rhinos Stadium LLC) but NOT the asset (the stadium) — because the corporation never HAD the asset to begin with.

This all raises a few key questions, including the big one: Where exactly did all that $32 million go? What path did it take, and where did it end up?

DDE received $10.6 million in loans from NBT (and Adirondack Bank). But if DDE never owned the stadium, where did that $10.6 million go? The same question can be asked about the $19 million in state funding for the project.

Did all that money simply go to the city directly, which would mean that Rochester Rhinos Stadium LLC might have been just a shell corporation designed to give the appearance that the stadium was a privately-owned project?

You also have to wonder how much NBT Bank knew. Did they dish out all that loan money in the belief — the now mistaken belief — that it would go to DDE to allow them to build the soccer stadium? If that was the case, does it mean that, essentially, the bank was duped? Is the president of the bank walking around with a big, "Kick Me" sign on his (or her) back?

I should note, by the way, that I e-mailed Frank DuRoss on Wednesday to see if he wanted to comment on the fact that his company apparently never owned the stadium, but I haven't heard back.

I also asked him his thoughts on how a soccer stadium that was built for $32 million has an assessed value of $12 million.

The truth about soccer stadium ownership?

2008-05-07T17:44:00.000-07:00

No one but the city of Rochester ever owned, possessed or sold PAETEC Park. Not DuRoss/Donner/Economides (DDE), not their company (Rochester Rhinos Stadium LLC), not NBT Bank, no one.

At least, not according to the city’s own Tax Assessor’s office.

Know what the Assessor’s office also says? That PAETEC Park, which allegedly took $32 million to build, is only worth just over $12 million. That’s nearly a $20 million difference. So why the difference?

But wait, there’s even more: the city Assessor’s office can’t even find an actual deed for the stadium. Either one has never existed, or someone is hiding it.

E-mails and phone calls by my research associate to city officials regarding the stadium situation have not been returned.

But back to the first point. Remember how several players in the whole Rhinos/PAETEC Park fiasco, including the city and DDE, said it was DDE – or their company, Rochester Rhinos Stadium – that owned the stadium when it was first built?

They also said that the city only owned the land the stadium sits on and that DDE’s corporation – which included its biggest asset, the stadium – leased just the land from the city and operated the stadium themselves.

These players said the city didn’t assume control of the stadium until DDE defaulted on their lease agreement with the city, which had the legal right to seize property as a result.

All not true, at least from what we have learned from our extensive research.

Either that, or the people in the Assessor’s office have been kept out of the loop.

Because, as my research associate discovered, the Assessor’s office has absolutely NO RECORD of a sale or transfer of the deed to the stadium property. But even that’s moot, because the Assessor’s people CAN’T EVEN FIND EVIDENCE OF A DEED to begin with.

That’s why there was never any formal foreclosure, sale or transfer of property. There was nothing to transfer because the city had the stadium all along.

Hey, maybe the city folks who dealt with the stadium just forgot to file a deed and a record of transfer. Oops! We all make mistakes.

But I doubt that was the case. It it’s NOT the case, then I challenge city officials to produce a deed and an official, legal notice of sale or transfer.

OK, you might ask, what does it matter now? Even if the city didn’t own the stadium to begin with, it would have owned it by now anyway because of the seizure clause in the lease agreement. So either way the city would have ended up owning the stadium at this point in time.

But it DOES matter. Because DDE secured $10.6 million in loans from NBT Bank on the premise that DDE would be building and owning the stadium. On top of that, DDE secured $19 million in state grants to help construct the facility.

In addition, the fact that the city has always owned the stadium means that the much-ballyhooed ground lease between the city and Rochester Rhinos Stadium LLC was meaningless, just for show.

Again, maybe this has all been a misunderstanding. Maybe the very accommodating staff in Assessor’s office is not fully informed, or maybe city officials never got around to filing the deed and proof of the transfer. Or heck, maybe the stadium doesn’t even HAVE a deed because it’s an item, not actual land. Maybe it doesn’t need a deed. Any of those explanations might be the case.

But if there’s a real-estate assessment, then there HAS to be a deed.

And again, you might say, what’s the big deal? So there’s a few pieces of paper missing, it’s all just technicalities.

But technicalities matter. The devil, as they say, is in the details.

OK, now for the second point — that PAETEC Park is only worth $12 million but cost $32 million to build. According to the official city assessment, the 4.75-acre property at 524 Oak St., including the stadium, is worth $12 million.

How do we know that includes the stadium? Because the assessment sheet – which is publicly available on the Internet — states, “Property Class: Stadium.”

Of course, that’s just the value of the stadium itself. When you throw in the two other addresses associated with the property, 480 Smith St. ($80,000) and 900 W. Broad St. ($400,000), the grand total assessment is $12,480,00.

That’s still A LOT less than $32 million. That’s a lot of depreciation in two years. Or is it something else?

Styres' timing is perfect

2008-05-07T10:43:00.000-07:00

The American Hockey League's approval of Curt Styres' purchase of 60 percent of the Amerks (and Knighthawks) was impeccably timed, because on Monday the Amerks' credit rating continued to plummet.

According to Dun & Bradstreet, the financial stress score of Rochester Amerks, Inc. increased from 3 to 4. A company's financial stress score measures its risk of failure, with a score of 5 being the highest risk and 1 being the lowest.

According to D&B, only 3 percent of the country's companies have a higher financial stress score, which means that only 3 percent of those firms have a higher likelihood of collapse than the Amerks.

D&B also says that Rochester Amerks, Inc. carries an extremely high risk of late payments. In addition, the company rates a 15 on D&B's Paydex scale, which measures a firm's payment performance, with 100 being the best and 1 being the worst.

It will be very interesting to now see if the Amerks' credit rating improves with the sale to Styres.

Big stuff on the way

2008-05-06T15:58:00.000-07:00

Good evening, folks. I probably won't have anything new tonight or tomorrow (Wednesday) morning, but I'm working on something big for Thursday morning. And I mean BIG.

In the meantime, send some positive vibes to both the Red Wings and the Rhinos. They each need all the extra mojo they can get.

Don't gloat, Wings fans

2008-05-06T04:10:00.000-07:00

Hey, I'm as optimistic as the next guy, but ...

OK, I can't finish that sentence with a straight face. We all know I'm a pessimist, almost to an unhealthy extreme.

That's why I'm not surprised at all that the Rhinos have started the 2008 season 0-2. I'm not really even surprised that they haven't even scored a goal yet.

What could you expect? This year's squad was almost literally thrown together and shoved on the field at the last minute. With just a few weeks to go before their 2008 season-opener, most of the players weren't even sure there would BE a 2008 a season-opener.

When they FINALLY got the OK to practice, they had only that said few weeks to prepare, while most other USL First Division teams had the chance to start getting ready, both physically and mentally, long before the Rhinos did.

Then, on top of worrying about the future of the franchise and having precious little time to prepare, the players are now being tossed out on a five-game road trip to start the season.

Frankly, I think a lot of people got a little too excited about the Rhinos' undefeated preseason record. The Charleston Battery and the Minnesota Thunder are just a WEE bit better than St. Bonaventure or whatever else other scrub teams the Rhinos beat up on in the preseason.

This is all not to say, however, that the rest of the 2008 campaign will go as poorly as the first two games did. The Rhinos are a talented bunch with a very able and talented coach, so their fortunes are bound to turn around just a little bit. Give them some time.

And yes, I can hear you Red Wings fans snickering in the background. Admit it: a lot of you baseball people are loving that the Rhinos have laid an egg — actually, TWO eggs — so far. Do NOT try to deny that there's more than a little Schadenfreude going on at 1 Morrie Silver Way.

But before you Wings fans start to do a Mr. Burns impression — "Excellent!" — keep in mind that, umm, YOUR team is also stinking up the joint right now. The Wings have dropped five of their last six games, including last night's disaster, in which they blew a 6-1 lead in a loss to Columbus. The Wings are now a depressing four games under .500. Weren't these guys supposed to challenge for a league title?

In fact, when you toss in the fact that the Knighthawks just missed the playoffs for the first time in franchise history, the last couple weeks have been downright rotten for the Flour City's sports teams.

So to ALL of you, I say, "Welcome to the world of pessimism. You'll find it's nice and comfy in this little corner of existence. Sit down, grab a beer (although it's probably stale) and revel in the negativity. After a while, it'll just come naturally."

Former CFO enjoyed his time with RSG

2008-05-06T03:53:00.000-07:00

Good morning, folks. I'm writing this a little before 7 a.m., which is mind-blowing to me, because usually at 7 a.m. I'm either unconscious or functionally brain dead. I actually didn't believe people when they told me there's part of a day that exists before, like, 9 a.m. But I stand corrected.

Anyway ... yesterday afternoon, I spoke with Ronald Steinmiller, the most recent chief financial officer to leave the Rochester Sports Group. He's now working as the vice president of finance and administration for the Rochester Philharmonic Orchestra, and he says he parted ways with the RSG on good terms.

"I left on my own," he told me. "I enjoyed my time at the Rochester Sports Group."

He said he didn't so much leave the RSG as he did join the RPO. He said his family has always been involved in music, and the position with the orchestra gave him a chance to pursue that passion again.

"This was a great opportunity to get back into music and give back to the community," he said.

I quickly then asked him the question I've been waiting to ask him (and all the other CFOs who have left the Rochester Sports Group): Was he aware of any financial mismanagement at the RSG?

He respectfully declined to comment.

"With any company I work for, I don't discuss the finances with anybody because it's a privately-held company," he said. "I don't feel it's prudent on any person's part (to comment). It's a confidentiality I have with any company I work for."

And that was that. We shouldn't read anything into his comments (although it's really, REALLY tempting to do so) ...

Lots of stuff to react to

2008-05-05T16:34:00.001-07:00

Unfortunately, it looks like it's going to be a long night here at the Webster Herald — I might even miss all of tonight's Adult Swim, and I need my Harvey Birdman fix — which is bad because there's a lot of stuff to talk about.

First and foremost is Chenango County Supreme Court Justice Elizabeth A. Garry's ruling this afternoon that yes, in fact, the three former Rhinos owners are liable for all those PAETEC Park loans. That's not unexpected, of course — despite all the other possible scenarios I raised, that was still the most likely outcome.

I will do my best to absorb and react to Garry's ruling over the next 24 hours or so. In the meantime, I'd love to get your thoughts. The big question, of course, is whether the Amerks and Knighthawks are in jeopardy.

Secondly, there was D&C reporter Jill Terreri's big story on Sunday about Frontier Field's murky finances. I have to admit that I haven't had a chance to read the article in depth (I hope to tonight), but at first glance it looks really good and thorough.

I would like to note, however, that I've been writing about the situation at Frontier Field — Jim LeBeau's role, the Sports Authority and GROSFC, the annual debt, the taxpayer money subsidizing the stadium's operation — for many months now.

I've always maintained that the situation at Frontier Field isn't squeaky clean, that there's definitely some political wheels being greased, and that the Red Wings have a pretty sweet deal going at the stadium.

The D&C article, of course, diverts attention away from PAETEC Park, and the paper might have done that deliberately to "balance off" all the negative coverage of the Rhinos and make it seem like the paper is being "fair."

However, even if that WAS the paper's motivation, the fact that the D&C is finally scrutinizing the Frontier Field situation is a welcome development, and Terreri should be applauded for her efforts.

Finally, I WILL have something new tonight, but it'll probably be later, after midnight — I talked to former Rochester Sports Group CFO Ronald Steinmiller today, and I'll discuss our conversation in a few hours (although, unfortunately, there's not much to discuss).

Working on stuff

2008-05-04T18:53:00.000-07:00

Howdy all,

I don't have anything for Monday morning, but I'll be working diligently during the day Monday and will hopefully have some good stuff up Monday night and Tuesday morning.

As usual, feel free to contact me anytime at rwhirty218@yahoo.com or (315) 690-6551.

Minarik's fingers in the ESL Centre pie

2008-05-03T20:11:00.000-07:00

Documents recently obtained through Freedom of Information requests show that the ESL Centre has always had Monroe County Republican overlord Steve Minarik's fingerprints all over it.

Ever since I began covering the financial troubles at the ESL Centre in November, centre officials have frequently rebuffed my inquiries about attending meetings of the board of directors of the Monroe Community Sports Centre Corporation (MCSCC), the publicly appointed entity created to operate the centre.

I have been told that such meetings are NOT open to the public and that minutes from the meetings are NOT public record. After receiving those negative reactions, I never even bothered to ask about the corporation's certificate of incorporation, by-laws or any other related document.

However, thanks to the efforts of a dedicated reader — who was forced to file a Freedom of Information request with the state Attorney General's office to get the stuff — I've obtained those founding documents, and they're confirmed what I've suspected all along — the ESL Centre began as and always has been an unofficial arm of Monroe County's Republican Party.

The Monroe Community Sports Centre Corporation is one of several local development corporations (LDCs) formed in recent years by the County of Monroe Industrial Development Agency (COMIDA). COMIDA has long been criticized as a tool of the Republican-led county administration designed to benefit political patrons.

For public officials who want to keep government business under wraps, LDCs are the perfect vehicle. Even though the members of LDC boards of directors are appointed by elected officials, they are technically private, not-for-profit entities, which makes the issue of whether or not LDCs are subject to sunshine laws and other public-right-to-know regulations very slippery and clouded.

Quite simply, their private status allows LDC officials to claim that the corporation's meetings and documents are not open to the public, thereby blocking governmental business from public oversight and accountability.

(I've also written about the Greater Rochester Outdoor Sports Facility Corporation, the LDC formed by the county to operate Frontier Field. GROSFC officials have told me that while the corporation's meeting and minutes are open to the public, documents like its by-laws are not.)

This is what's been happening in my attempts to learn more about the board that oversees the ESL Centre. But, against thanks to a reader, we're able to shine a little more light on the origins and existence of the MCSCC.

And its origins trace directly back to Minarik, the long-time head of the county GOP that has taken political patronage and political influence to a whole new level.

I mean, it LITERALLY traces back to him — in the MCSCC's registration submitted to the state Attorney General's Charities Bureau dated June 30, 2000, Minarik is listed as the corporation's first secretary.

Listed as president is Daniel Doyle, a former general counsel to the county's GOP-led administration and current Supreme Court justice. The general manager is listed as former Amerk, Ray Maluta, who still works for the centre, while the corporation's counsel is listed as Michael Townsend, another high-profile county attorney.

In addition, in the MCSCC's certificate of incorporation dated November 1997, the initial directors of the corporation are Doyle; Joe Rulison, former COMIDA chairman and current board member of the scandal-plagued Monroe County Water Authority; and long-time Republican operative Bill Nojay, former chairman of the Rochester Genesee Regional Transportation Authority and current radio talk-show host. Townsend is listed as the corporation's incorporator.

It's no surprise, then, that the ESL Centre was constructed by Christa Construction, a MAJOR donor to local Republican candidates, including the county executive campaigns of Jack Doyle and Maggie Brooks. On top of that, Christa was heavily involved in the initial management of the facility, and he currently co-owns the facility with Illinois businessman Leon Lekai.

Finally, a look at the MCSCC by-laws shows WHY the corporation is so GOP-dominated. The members of the seven-member corporation board are appointed thusly: one by Monroe Community College (on whose campus the centre sits); four by the Monroe County executive (formerly Jack Doyle, currently Maggie Brooks, both Republicans); one by the County Legislature's majority party (which has been the GOP for many years now); and one by the County Lej's minority party, currently the lowly Democrats.

So what about the MCSCC's board meeting? The by-laws say that "(r)egular meetings of the Board of Directors may be held without notice at such times as may be fixed from time to time by resoultion of the Board of Directors." The by-laws do not address whether or not the meetings are open to the public.

Businessmen in process of buying out ESL Centre

2008-05-03T19:25:00.000-07:00

Should a community asset like the ESL Centre be completely owned by two businessmen whose long-term goal is profit?

Like it or not, hat's precisely what's in the process of happening to the ice rink and recreation centre located on the MCC campus.

Jack Driscoll, who serves as president of the board that oversees the operation of the centre, confirmed recently that local contractor David Christa and Illinois businessman Leon Lekai are currently buying up all the bank bonds that were floated to construct the ESL Centre.

Because of severe financial difficulties caused by poor management in the years after the centre's construction, the entity that oversees the ESL Centre — officially called the Monroe Community Sports Centre Corporation — has not been able to start paying back any of those bonds. Even though the centre's fiscal outlook has become brighter in recent years, the MCSCC board has still been unable to make payments.

Along the way, Christa and Lekai formed a corporation called Empire Ice LLC to start purchasing the bonds. As of January, Empire Ice owned about 70 percent of them.

But Driscoll says that in recent months, the trustee of the bank that floated the bonds has been pressuring the MCSCC board about the non-payment issue.

As a result, he says, Christa and Lekai are in the process of buying up the remaining 30 percent of the bonds. That allows the bonds' original investors to recoup some of their investment and gets the bank off the centre's back.

So, very soon, the ESL Centre will be completely owned by Christa and Lekai.

However, remember that both Christa and Lekai are connected to the centre in other ways. Christa's construction firm built the facility, and Christa himself was initially involved in the centre's management.

Meanwhile, one of Lekai's Illinois-based companies, Advanced Arenas, currently contracts with the MCSCC board to manage the centre.

(Driscoll has previously asserted that the two businessmen's multiple interests in the ESL Centre are not conflicts of interests but instead are logical, routine business arrangements.)

So, as they buy up the rest of the bonds, what's Christa and Lekai's motivation for doing so, especially given that the MCSCC board is still unable to make payments on the bonds? Indeed, Driscoll acknowledges that at least for the time being, Christa and Lekai "are taking a hit, a big hit."

Driscoll says, however, that buying the bonds is a good long-term investment because the bonds carry a tax-exempt interest rate of 6 percent. On top of that, Driscoll says, Christa and Lekai simply believe in the centre's future.

"Dave and Leon are buying the bonds because they believe that eventually the sports centre will generate enough income to pay the bonds," Driscoll told me via e-mail. "It is a risk they are willing to take that most current bond holders aren't."

But how does this all benefit the community and the public that uses the ESL Centre on a daily basis? Is it a good thing that the centre will be controlled by two private businessmen?

Yes, Driscoll says, because with their investment, Christa and Lekai are, quite simply, guaranteeing the present and future viability of the facility.

"These two guys literally saved the ESL Centre," Driscoll told me by phone. "There's nothing sinister about it. They're really heroes in this case. We had two guys come in and save the place, and for that, they should be applauded."

If they are heroes, then they're ones who don't like being in the public spotlight. About a month ago, I asked Driscoll if it would be possible for me to interview Christa and Lekai themselves about their plans for the centre.

Driscoll proceeded to ask the pair if that would be possible, but they responded that they don't want to talk to the media. As a result, Driscoll remains the sole spokesperson for the centre.

Wilmot wins, Rhinos lose and DDE receive a draw

2008-05-02T18:59:00.001-07:00

Over the last few days, the world of the Rochester Rhinos, both past and present, saw three different outcomes — a win, a loss and a draw (more or less).

Let's start with the loss — the Rhinos' on-field defeat tonight at the hands of the Charleston Battery in Rochester's season opener. The Rhinos, therefore, start their series of five straight road games with a 2-0 loss. A single defeat doesn't mean anything, of course, especially won that comes on the road.

Then there's the win — Chris Wilmot's win. On Wednesday, a judge ordered Rochester Rhinos Stadium LLC — the corporation used by DuRoss/Donner Economides (DDE) to fund and build PAETEC Park — to pay Wilmot's company, Endless Wave Productions LLC, $17,709.06 in overdue bills, interest and court fees. Endless Wave had sued DDE for $15,000 in March.

With the judicial order, Endless Wave becomes at least the second local company to receive such a judgment against Rhinos Stadium LLC. On March 24, Justice Kenneth Fisher ordered DDE to pay LeChase Construction more than $633,000 in unpaid bills and interest.

Wilmot previously told this blog that the chances of him actually collecting his money from DDE is slim. LeChase attorney Richard Bell offered similar comments to this blog about his client's judgment.

Now for the draw. OK, it really isn't a draw per se, but it's the equivalent of "let's wait and see."

I reported Thursday night that there wasn't going to be a hearing today (Friday) regarding NBT Bank's motion for summary judgment against DDE/Rhinos Stadium LLC because no one was going to show up to make arguments and the judge was going to issue her ruling at a later time.

Today, Devo picked up the ball and ran with it, reporting on his blog that Steve Donner's attorney requested an adjournment in the case, which essentially means the whole thing was put off for, well, sometime later. So we'll have to wait and see what happens next week.

That will make for a long, edgy weekend, at least for me. I like closure, gosh durn it. It's a good thing I just bought "American Dad, Volume 3" on DVD, which will soothe my anxiety and help me through my impatient weekend.

Behind closed doors after all

2008-05-01T19:09:00.000-07:00

I'm not going to Norwich Friday. I'm not going to the Chenango County Courthouse to cover the motion hearing between NBT Bank and Frank DuRoss, Steve Donner and Chris Economides.

Why not?

Because, apparently, the deal has already been done and the decision is being made behind closed doors. I'm not going to Norwich because there's not going to be a hearing Friday.

This afternoon, I called the Chenango County Courthouse to find out if the hearing was still slated for tomorrow (Friday) and what time it would take place.

"Do you mean NBT Bank versus Rhinos?" the clerk asked me, as if she knew ahead of time what I was talking about.

After I answered in the affirmative, she told me that "there won't be any appearances tomorrow." That means none of the involved parties would be showing up to make arguments or state their cases.

Instead, the clerk said, Justice Elizabeth A. Garry will produce a written decision "at a later time" based on information the various parties have already submitted.

So, in essence, the clerk said, there won't be a hearing Friday, and Garry's decision — in which she'll supposedly rule whether DDE must pay back millions of dollars in loans from NBT that they used to build PAETEC Park — will be issued quietly and not in open court.

That's, of course, how I understand it. Maybe I misinterpreted. I'm certainly not Perry Mason or Jack McCoy.

But if this IS what's going to happen Friday — or, rather, what's NOT going to happen — then, quite frankly, the whole thing stinks.

This means that all the parties involved — DDE, NBT and the city of Rochester — are trying their absolute best to keep the public out of the loop on this. They don't want us to know what's happening, so they're trying to sweep everything under the rug. It's behind-closed-doors collusion at its worst.

I know, I know, that sounds REALLY paranoid. I'll acknowledge that.

But I've seen and experienced enough as both a sports writer and a political reporter to justify a little bit of paranoia.

I'm not saying we should all start checking our phones for bugs or wearing hats made of tin foil. (Well, you can if you want. It would be a bold fashion statement.)

But we need to be open to the very real possibility that something's amiss or askew. Even if Justice Garry rules as expected — that DDE are, in fact, liable — then the public should know that, and know that immediately, because there's still a chance, no matter how slim, that the city and its taxpayers could be charged with paying at least some of those loans back.

We should also be informed immediately because we're talking about a stadium that was built with $19 million in taxpayer dollars already. In addition, the decision could very well affect the future of the Amerks and Knighthawks, which are among Donner's personal assets and could be targeted by NBT if Garry rules in the bank's favor and against DDE.

Of course, Garry's decision will be public record and available to anyone who asks for it. But, I'm guessing, there's not going to be an announcement of the decision. It'll just be issued quietly, with no fanfare at all.

On top of that, none of this will happen in open court. It'll all be done behind the scenes, out of the public eye. And that should make us very, very uncomfortable.

Thoughts on the Amerks deal

2008-04-30T20:00:00.000-07:00

Just reacting to the D&C's article today about the imminent completion of Curt Styres' bid to buy the majority of the Amerks and Knighthawks ... actually, I have no reaction at this point, because there's not much to react to. However, if any of you have thoughts on the subject or any nifty angles to pursue, the floor is yours.

'Liars and thieves'

2008-04-30T19:51:00.000-07:00

I talked briefly with former Rhinos investor Chris Wilmot tonight because there was a motion filed today in his lawsuit against Rochester Rhinos Stadium LLC. A couple weeks ago, Wilmot's company, Endless Waves Productions, sued the company once used to build and own PAETEC Park for $15,000 in unpaid consulting services.

It looks like Wilmot's attorney, Peter Weishaar, filed a motion in the case today in Monroe County Supreme Court, so I called Wilmot to see what it was about. He said he really couldn't talk to me until he talked to Weishaar first, but we chatted a bit about the former Rhinos ownership of DuRoss/Donner/Economides.

During our conversation, I realized again how bitter Wilmot's falling out with DDE has been.

"They're liars and thieves," he told me tonight, "and they should be punished."

You can't get blunter than that.

Liriano blah blah blah

2008-04-30T16:22:00.000-07:00

Liriano. Liriano. Liriano. Every reporter at the Wings game today wanted to talk about Francisco Liriano's rehab start today. Here's the bottom line: He's never going to be the pitcher he used to be. He'll never be able to throw his fastball effectively again. Period. I actually feel kinda bad for the guy.

The only reason Wings fans should care about Liriano is that he's losing games for Rochester. He looked poopy today in the Wings' 4-2 loss to Pawtucket this afternoon. The defeat dropped the Wings under .500 again, to 12-13, and here's an actual quote from manager Stan Cliburn: "We're very fortunate to be only one game under .500."

I guess "fortunate" is a relative term. I suppose Rochester is fortunate compared to Lehigh Valley.

"This team is going to be fine," Cliburn also said.

I'm glad HE'S optimistic ...

Is Kleen Brite really out of the picture?

2008-04-30T16:01:00.000-07:00

A couple weeks ago, RNews reported that Rhinos new VP Sam Fantauzzo declared that Kleen Brite is completely out of the picture in terms of possible parking for PAETEC Park. However, I wouldn't count it out yet.

First of all, the owner of the property, A.J. Carafos, told me recently that he's actually since been in contact with team GM Matthew Ford, who still wanted to keep the Kleen Brite possibility open.

"I want to make a deal," Carafos told me. "I don't want to make (the team) look bad."

Carafos says Fantauzzo offered him $12,000 a year to open the lot up for game parking. He says that would be a HUGE drop from the $100,000 a year the old ownership was paying. He also says that the Rhinos still owe him about $100,000 for its share in the demolition costs. That's in addition to unpaid rent charges that could total another $100,000.

Carafos believes that although a deal might not happen right now, he says it might be inevitable that the Kleen Brite property will, in fact, be used by the Rhinos.

"It has to be for (the stadium) to be successful," he says.

On top of that, the city of Rochester might believe that as well. Carafos says that when he talked to a city official about using the Kleen Brite location for a construction debris transfer station, the official told him that the city would never allow the property to be used for that or any other purpose besides Rhinos parking.

Wiped out tonight

2008-04-29T20:57:00.001-07:00

Hi folks, I'm sorry I don't have anything new for Tuesday night or Wednesday morning — the first half of this week got strangely busy for some reason. However, I should have some new stuff throughout Wednesday evening and Thursday morning. Thanks, as always, for your readership. And remember, feel free to contact me anytime at rwhirty218@yahoo.com or (315) 690-6551.

NBT releases the mortgage

2008-04-28T23:37:00.000-07:00

One reader got ahead of me a little bit over the weekend (actually, I was probably a little behind them) when they mentioned that the three previous owners of the Rhinos — Frank DuRoss, Steve Donner and Chris Economides, collectively referred to hereafter as DDE — no longer have a connection to the mortgage NBT Bank has on PAETEC Park.

What the reader was referring to was the fact that last month, without anyone realizing it, NBT Bank actually released DDE's company, Rochester Rhinos Stadium LLC, from the $10.6 million in loans the company took out to build the soccer stadium.

That's right — as of March 19, Rochester Rhinos Stadium LLC no longer has to pay back all those loans to NBT Bank. The debt disappeared. Poof. Gone.

The release of mortgaged premises was filed with the Monroe County Clerk's office April 1. It was signed by NBT Vice President John Carpenter. (I'm assuming he's not the same guy as the legendary horror-film director. I love "Escape from New York." Isaac Hayes as the bad guy! How can you go wrong?)

This happened, then, while NBT Bank was still going full-steam ahead with its lawsuit against the stadium corporation as a whole and DDE individually. The bank has filed a motion for summary judgment against the defendants, with a hearing slated for this Friday in Chenango County Supreme Court.

This could throw a wrench in the works — if there's no longer a mortgage against the stadium corporation for NBT to pursue, then what's going to happen this Friday? At the very least, it means that someone else besides Rochester Rhinos Stadium LLC now MUST repay those millions. Or it now means that no one has to pay it back at all.

On the other hand, it could very well be nothing. After all, by March NBT Bank had actually seized Rhinos Stadium LLC because the corporation had defaulted on the loans. So, technically, the bank might simply just have released itself from the mortgage. That seems a bit weird — a bank forgiving itself — but it also might have just been a formality.

In addition, it's been reported that NBT plans to go after DDE individually for the money, a quest that might not be affected by the fate of the trio's corporation. The company might be dead, but perhaps its three previous owners are still on the hook.

However, the assertion that the bank intends to pursue DDE individually hasn't come directly from the bank itself, as far as I know. While the city and even DDE themselves have stated on the record that they're personally liable for the loans, the bank hasn't said anything publicly, at least from what I've seen. So we don't REALLY know what the bank is thinking. (The one time I tried contacting NBT's attorneys, I got a swift and certain "no comment.")

On top of that, I STILL haven't seen a document, filed in Monroe County, in which each of the three owners — DuRoss, Donner and Economides — explicitely put up their own personal assets as collateral, nor have I seen a document that's signed by each of the three individually (and I'm assuming each of them would have to sign for themselves if they put up their own personal assets). I'm not saying a document like that doesn't exist. I'm just can't find in the Monroe County Clerk's files.

Back-tracking a bit, the dates of the mortgage release — written March 19, filed April 1 — correspond exactly to the dates of the document releasing Rochester Rhinos Stadium LLC of its lease with the city of Rochester. That can't simply be a coincidence.

Such concurrent timing seems to indicate that three parties parties involved here — DDE, NBT Bank and the city — worked this out among themselves ahead of time. I'm not saying it's evidence of collusion, per se, but it definitely seems like these developments were a team effort.

Of course, that's probably not to be unexpected. All three parties have (or had) a great deal invested in the whole stadium deal, and it would make sense for them to commiserate before moving forward with such delicate legal matters.

So it's not unexpected. However, at least in my mind, it's a little unsettling that the powers that be apparently decided the fate of a largely publicly-funding soccer stadium behind closed doors.

And on a final note ... one thing that's bugged me about the entire stadium fiasco is NBT Bank's mindset. Their motivation has always mystified me a little. Specifically, I'm wondering why in the world the bank would accept DDE's personal guarantees on the loan (assuming that's what they did).

First off, is that standing operating procedure in a case like this, for a lender to accept — and a borrower to offer — personal assets as collateral? That seems needlessly risky for both sides of the equation.

Second, it's hard to believe that NBT Bank actually thought that DDE had a total of nearly $11 million in personal assets between them. It just seems like the bank was setting itself up for failure by doing so. When all this is said and done, I wouldn't be surprised if NBT, quite simply, ends up getting played.

Of course, if DDE included their stakes in the various Rochester Sports Group teams among their personal assets, that would make a little more sense. And let's look at what happened. NBT apparently ended up seizing Empire Professional Soccer LLC — the corporation with which DDE operated the Rhinos team itself — when DDE/Rochester Rhinos Stadium LLC defaulted on the loans.

The bank then seems to have dissolved Empire Soccer and proceeded to sell the rights to the Rhinos team to Rob Clark's Adirondack Sports Club LLC, which probably helped NBT recoup at least some of the loan money.

That also would mean that Donner would have — as many observers fear — collateralized his stake in the Amerks and Knighthawks as part of the PAETEC Park deal. Which, then, could mean NBT could seize the two indoor teams and sell them off, Curt Styres notwithstanding.

Naming-rights tango

2008-04-25T19:29:00.001-07:00

I had a, shall we say, less-than-pleasant conversation with PAETEC's corporate communications manager, David Mihalyov, today. You know what? It wasn't even really a conversation. It was more like an awkward exchange of (non) pleasantries.

I was just trying to find out if the giant communications corporation was still committed to providing the naming rights for the soccer stadium. In January, a very friendly PAETEC media-relations person very courteously told me that, yes indeed, her company was still on board.

So, now that both the Rhinos and the stadium have changed hands, I wanted to follow up to see if that was still the case. However, this time, the person I spoke with was decidedly less friendly.

"We're still committed," Mihalyov said somewhat grumpily. "It's business as usual with the Rhinos."

That was about it. He did add, however, that he wasn't sure if PAETEC CEO Arunis Chesonis has talked with any executives of the new Rhinos regime. However, I would have to assume, though, that PAETEC and the Rhinos would need to work out a new contract because the Rhinos are now owned by a different corporation.

Actually, wait a minute — PAETEC might actually need to negotiatie with the city of Rochester, which now owns the stadium. So if PAETEC does agree to a new naming-rights deal — and details of the previous deal aren't known precisely — would that mean the city would reap the benefit? That could be a decent windfall for the city administration.