Morrisville files court paper to dissolve pool group
Posted: Thursday, February 7, 2013 4:55 pm
Posted on February 7, 2013
Morrisville Borough Council has filed a motion in Bucks County Court to take ownership of the former community pool's property inside the borough's 40-acre Williamson Park.
The petition is to legally dissolve the group that had managed and still owns the property.
It managed the property until 2009. Although the board of directors has since dissolved, Morrisville Community Swimming Pool Inc. is still legally an organization.
Under the petition, the borough is seeking the “distribution of the corporation’s assets to the borough as the sole creditor,” according to the petition.
Morrisville has paid the group’s state and federal liens and outstanding mortgages in the amount of $29,565 -- an amount that was negotiated after the pool's closing.
In the recent court filings, the government's lawyer said it needs the help of the one remaining corporation official and its treasurer until early January. That's Joni Cappuccio.
As treasurer, Cappuccio refused to sign the documents that would turn ownership over to the borough, Kilkenny's law office said Thursday.
"Despite the cooperation of Ms. Cappuccio," reads the petition. "Ms. Cappuccio refused to cooperate in the documentation required for conveyance of the property to the borough, including an agreement of sale, settlement documents and a deed."
Cappuccio said she has no authority to do such a thing.
"I have been more than cooperative. I've done everything they have asked me to do," she said. "They wanted me to sign the pool over, but I don't have the authority to do that because there is no board of directors and in accordance to the bylaws of the corporation I have no power or authority to do that, sign the pool over."
She added that she's puzzled as to why the borough would need her since the 1955 deed, according to Cappuccio, has a clause stating that if the pool is abandoned, ownership of the property would revert to the borough.
But that's not automatic, according to Kilkenny's law firm. Some sort of process needs to happen for the borough to obtain the title, the firm said Thursday.
Morrisville Community Swimming Pool has been dormant since 2009, when the board of directors was disbanded.
Cappuccio has continued overseeing the group’s bank account, which still has the approximately $600 left when the group ceased operations, according to the court filing.
“However, Cappuccio did not participate in, nor was she responsible for, any mismanagement of the corporation,” according to the court papers.
She submitted to the borough her letter of resignation from the group Jan. 2.
Morrisville Community Swimming Pool Inc. acquired two properties from the borough on Sept. 28, 1955, and May 8, 1963. The deeds had restrictions: The property could only be used for a nonprofit community swimming pool unless the borough permitted other usage; and the property would always remain a park, playground and swimming pool area, according to the filed petition.
The group constructed a swimming pool in 1955, then a second swimming pool in 1963. The latter was destroyed by flooding and removed from the property.
In 1999, the pool group obtained additional funding through two mortgages in the amounts of $30,000 and $10,000 held by Atlantic National Trust. What the money was used for has not been disclosed.
From about 2004 to 2006, the nonprofit group didn't pay its federal and state unemployment taxes. As a result, the Internal Revenue Service, the Pennsylvania Department of Revenue, and Pennsylvania Department of Labor and Industry filed liens against the property for the unpaid taxes for those who worked at the pool, according to the court papers.
In 2007, Atlantic National Trust initiated foreclosure proceedings because of the group’s failure to pay on the two 1999 mortgages.
In December 2010, borough council expressed concern with the deteriorating condition of the property and initiated a takeover plan. The council, by increasing real estate taxes throughout the borough by 4.25 mills, raised $58,898 to acquire the property.
Cappuccio granted a power of attorney to the borough’s lawyer, Kilkenny, who negotiated the group’s debt with Atlantic National Trust, and federal and state agencies.
On Nov. 21, 2011, the borough agreed to pay Atlantic National Trust $18,500 for the two outstanding mortgages. The mortgage foreclosure action brought by the company was terminated by Bucks County Court last Dec. 13.
Meanwhile, the IRS compromised, agreeing to $2,500 as payment for the outstanding federal lien.
The state revenue department agreed to waive its actions against the pool group in return for $3,473. Labor and industry agreed to do the same for $5,092, according to the court filings.
The court papers do not mention the initial amount owed, and borough officials didn’t have the exact totals.
“The borough discharged all outstanding debts of the corporation, with the cooperation and acknowledgement of the corporation’s sole remaining officer. Accordingly, the borough’s status as a creditor of the corporation is clear, the corporation has admitted the borough’s status as creditor, and the borough is entitled … to seek issuance of articles of dissolution of the corporation and distribution of the corporation’s assets,” Kilkenny stated in the petition.
The borough is planning to involve the community in deciding what is to become of the property if the court approves the petition, council President Nancy Sherlock said.
The petition is to legally dissolve the group that had managed and still owns the property.
Sean Kilkenny, the borough’s former solicitor working on the case, filed the petition last week for involuntary dissolution of the Morrisville Community Swimming Pool Inc. -- the nonprofit group created in 1955 to take over ownership and oversee the management of the pool property at 300 N. Delmorr Ave.
Under the petition, the borough is seeking the “distribution of the corporation’s assets to the borough as the sole creditor,” according to the petition.
Morrisville has paid the group’s state and federal liens and outstanding mortgages in the amount of $29,565 -- an amount that was negotiated after the pool's closing.
In the recent court filings, the government's lawyer said it needs the help of the one remaining corporation official and its treasurer until early January. That's Joni Cappuccio.
As treasurer, Cappuccio refused to sign the documents that would turn ownership over to the borough, Kilkenny's law office said Thursday.
"Despite the cooperation of Ms. Cappuccio," reads the petition. "Ms. Cappuccio refused to cooperate in the documentation required for conveyance of the property to the borough, including an agreement of sale, settlement documents and a deed."
Cappuccio said she has no authority to do such a thing.
"I have been more than cooperative. I've done everything they have asked me to do," she said. "They wanted me to sign the pool over, but I don't have the authority to do that because there is no board of directors and in accordance to the bylaws of the corporation I have no power or authority to do that, sign the pool over."
She added that she's puzzled as to why the borough would need her since the 1955 deed, according to Cappuccio, has a clause stating that if the pool is abandoned, ownership of the property would revert to the borough.
But that's not automatic, according to Kilkenny's law firm. Some sort of process needs to happen for the borough to obtain the title, the firm said Thursday.
Morrisville Community Swimming Pool has been dormant since 2009, when the board of directors was disbanded.
Cappuccio has continued overseeing the group’s bank account, which still has the approximately $600 left when the group ceased operations, according to the court filing.
“However, Cappuccio did not participate in, nor was she responsible for, any mismanagement of the corporation,” according to the court papers.
She submitted to the borough her letter of resignation from the group Jan. 2.
Morrisville Community Swimming Pool Inc. acquired two properties from the borough on Sept. 28, 1955, and May 8, 1963. The deeds had restrictions: The property could only be used for a nonprofit community swimming pool unless the borough permitted other usage; and the property would always remain a park, playground and swimming pool area, according to the filed petition.
The group constructed a swimming pool in 1955, then a second swimming pool in 1963. The latter was destroyed by flooding and removed from the property.
In 1999, the pool group obtained additional funding through two mortgages in the amounts of $30,000 and $10,000 held by Atlantic National Trust. What the money was used for has not been disclosed.
From about 2004 to 2006, the nonprofit group didn't pay its federal and state unemployment taxes. As a result, the Internal Revenue Service, the Pennsylvania Department of Revenue, and Pennsylvania Department of Labor and Industry filed liens against the property for the unpaid taxes for those who worked at the pool, according to the court papers.
In 2007, Atlantic National Trust initiated foreclosure proceedings because of the group’s failure to pay on the two 1999 mortgages.
In December 2010, borough council expressed concern with the deteriorating condition of the property and initiated a takeover plan. The council, by increasing real estate taxes throughout the borough by 4.25 mills, raised $58,898 to acquire the property.
Cappuccio granted a power of attorney to the borough’s lawyer, Kilkenny, who negotiated the group’s debt with Atlantic National Trust, and federal and state agencies.
On Nov. 21, 2011, the borough agreed to pay Atlantic National Trust $18,500 for the two outstanding mortgages. The mortgage foreclosure action brought by the company was terminated by Bucks County Court last Dec. 13.
Meanwhile, the IRS compromised, agreeing to $2,500 as payment for the outstanding federal lien.
The state revenue department agreed to waive its actions against the pool group in return for $3,473. Labor and industry agreed to do the same for $5,092, according to the court filings.
The court papers do not mention the initial amount owed, and borough officials didn’t have the exact totals.
“The borough discharged all outstanding debts of the corporation, with the cooperation and acknowledgement of the corporation’s sole remaining officer. Accordingly, the borough’s status as a creditor of the corporation is clear, the corporation has admitted the borough’s status as creditor, and the borough is entitled … to seek issuance of articles of dissolution of the corporation and distribution of the corporation’s assets,” Kilkenny stated in the petition.
The borough is planning to involve the community in deciding what is to become of the property if the court approves the petition, council President Nancy Sherlock said.
3 comments:
Ledger and Dreisbach were wrong when they said there were no liens on the pool?
That would be a Yes. Surprised? I'm not.
"Ledger and Dreisbach were wrong"
Your question included extra words at the end. I've fixed that for you.
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