05/12/06 — A judge has ensured Conneaut Lake Park will open on schedule this year by clearing the way for it to close on a $250,000 loan.

During a hearing Thursday, Crawford County Court of Common Pleas Judge Anthony Vardaro gave his verbal approval. He is expected to issue a written order today.

Although the loan is being granted by First National Bank of Pennsylvania as an advance on money the park expects to generate by selling some land, court testimony was that Erie businessman Joe Prishak and his wife, Isabel, have guaranteed the loan. Under the terms of the loan, Prishak is to be guaranteed he will receive payment for not only this loan, but other outstanding debts the park owes him.

Other outstanding loans from Prishak to the park total $375,000. In addition, he is owed $80,000 in payments on rides he is leasing the park.

That means Prishak is to be paid $705,000 in total at the time the park completes a proposed sale of 3.3 acres of land.

His debt is to be paid only after all the real estate tax owed to the Crawford County Tax Claim Bureau is paid, however.

Had the loan not been approved, it was doubtful the park would have opened this season as there was no money for start-up operations.

“This is good for the park, good for the community, good for the jobs. I could not have done this without the bank and Mr. Prishak, who really care about the community,” said the park’s court-appointed overseer, LeRoy Stearns.

Stearns got court approval recently to begin planning the sale of land around and including the former Flynn House site.

With funds from the sale, he plans to pay off the park’s $1.9 million debt as well as the new loan.

Vardaro previously told park officials they could no longer get court approval to borrow money to open.

He gave two reasons why he changed his mind to allow this loan.

“It would appear this year management is as sound as it has ever been,” he said, referring to park manager George Deshner, who was appointed last fall.

Second, Deshner and Stearns have discovered the park “doesn’t owe as much as you thought you had.” He said the pair has a “better handle” on the financial picture. Last year, it was believed the debt was $2.9 million, but a review of the books showed numerous posting errors. The debt now stands at $1.9 million.

At the same time, Vardaro said he wouldn’t approve any sale of property unless it was part of a “comprehensive development plan” for the park. He noted the park now is working with the Economic Progress Alliance to begin preparation for such a plan.

A court ruling Wednesday also was good news for the park as the judge denied a recent motion filed by former park owner and operator Gary Harris. He wanted more time to respond to the proposed sale, saying there were remaining issues that require consideration before any liquidation of property.

Vardaro said Harris isn’t an attorney and also had no standing to challenge plans for a sale.

The park is under court oversight because the board of directors put in place after Harris’ ownership eventually dwindled to one as controversy over how to handle Harris split the members.

In 2004, the court declared the park a charitable trust.



Jane Smith can be reached at 724-6370 or by e-mail at jsmith@meadvilletribune.com



side 1:

A job fair will be conducted Saturday to accept interviews for summer positions at the 114-year-old amusement park.

Interviews will be done at Conneaut Lake Park’s personnel office between 10 a.m. and 2 p.m.

Approximately 200 positions are available in many areas of the park. Workers will enjoy perks such as free Ride-a-Rama passes, picnics and ride nights.

Park manager George Deshner said unlike other years in the past, all summer employees were paid in full for 2005 and will be paid in full again this year.



side 2:

Conneaut Lake Park manager George Deshner said Thursday final reports from 2005 operations showed the park lost $83,000, which includes unpaid debts for real estate taxes and other utility costs.

Deshner and court-appointed overseer LeRoy Stearns weren’t in charge of operations last summer, Deshner having been appointed in mid-September.

Several changes they have made for this year’s operation include the park taking back control of the midway games, Camperland and the gift shop — all of which were leased to others last year, for which the park received a flat leasing fee.

They believe taking those operations back in-house will help generate more revenue for the park and show a profit instead of a loss.