This was in Friday's paper:
http://www.stargazette.com/article/...ant-take-over-management-Elmira-s-First-Arena
The company that holds the mortgage for First Arena said Wednesday that it wants to take possession of the downtown Elmira arena from the company that manages the building, saying the managers haven’t honored their obligation to maintain it.
David Rasmussen, an attorney for Elm Arena LLC, which owns the mortgage and has a deal to become arena owner, sent a notice of default Wednesday to an attorney for Elmira Downtown Arena LLC, which manages the arena where the Elmira Jackals play hockey games.
That letter came after a lawyer for Elmira Downtown Arena said he didn’t think the company needed to respond immediately to a Tuesday letter from Elm Arena demanding information about potential repairs, including who will do them, if and when repair firms were hired and what will be fixed.
“EDA remains in default,” Rasmussen shot back Wednesday. “It is clear from EDA’s latest response that it has neither exercised best efforts to address the maintenance defaults, nor has it provided any information to demonstrate or given assurances of its best efforts.”
Elm Arena will try to take over the arena under the agreement because of the default, Rasmussen wrote, adding that if the problems aren’t fixed by Oct. 30, Elm Arena will raise the issue with U.S. Bankruptcy Court Judge Paul Warren.
Copies of both letters were sent to Mostafa Afr, who controls Elmira Downtown Arena and operates the Jackals as a separate entity, and to Assistant U.S. Trustee Kathleen Schmitt.
The Jackals have a deal with Elmira Downtown Arena that lets them play ECHL games in the arena; if Elm Arena takes over the facility, company owner Tom Freeman has said the Jackals can play in the arena for the 2012-13 season without paying rent.
EDA's response
Though Elm Arena asked that a broken compressor in the arena’s ice plant be fixed, saying that another equipment failure could cause ice to melt, Elmira Downtown Arena thinks the repair is unnecessary, EDA attorney Ryan Heilman said in the response. Nevertheless, EDA arranged for a repair to be done within two weeks, he said The fire alarm passed a city inspection, and parts for the ice resurfacing machines were ordered with repairs expected to be finished within two weeks, Heilman said.
Elmira Downtown Arena had cleaned the outside of the arena, repaired hot and cold water valves in the locker room, fixed bucking floor tiles and fixed doors that Elm Arena said wouldn’t lock properly, Heilman said.
There were two requested repairs that Heilman said Elmira Downtown Arena couldn’t confirm were necessary: a reportedly cracked sewer pipe under the locker rooms, which the company said worked fine, and a leaking valve reported in the ice pit, which the company said it asked a contractor to inspect.
Elm Arena's response
Rasmussen wrote back Tuesday and said Heilman’s response for Elmira Downtown Arena wasn’t good enough, and that the arena management company had to make repairs even if it didn’t think they are necessary.
Elmira Downtown Arena’s contractor hadn’t even inspected the ice pit by Oct. 14, 10 days after its receipt of the notice, Rasmussen wrote, saying it was proof that the company was not using its best efforts to maintain the facility under the agreement.
Elm Arena disagrees with Elmira Downtown Arena over the sewer line; because the pipe is cracked, it often fills with dirt and must be frequently unclogged by a contractor, Rasmussen wrote.
Elm Arena also doesn’t consider the outside of First Arena clean after its recent washing; stains remain on the building and some awnings need repair or replacement, he said.
Elmira Downtown Arena also didn’t provide enough information about repairs for the compressor or the ice resurfacing machines, Rasmussen said, demanding a response within 24 hours.
Elm Arena demanded to inspect the Arena on Oct. 30, which is two days before the court is scheduled to hear arguments in the bankruptcy case. In the inspection, it wants to see the ice resurfacing machines, compressor, ice pit, sewer line and fire alarm system repaired and the stains removed from the outside of the arena.
A failure to respond to the requests for information in the letter, to make the requested repairs or to permit an inspection would be considered a “further default,” Rasmussen wrote.
Heilman, the Elmira Downtown Arena attorney, wrote back Wednesday and said he would not immediately respond.
“I did not see any issue that could possibly constitute an emergency requiring an immediate response,” Heilman wrote.
Afr could not be reached for this report.
Matt Hufnagel, general manager of Elmira Downtown Arena, told the Star-Gazette on Thursday that Heilman has asked him for information about maintenance, which he is providing.
What's next
More court proceedings are set for 1 p.m. Nov. 1 in U.S. Bankruptcy Court in Rochester.
Schmitt, of the U.S. Trustee’s Office, may ask Judge Warren to dismiss the Chapter 11 bankruptcy or convert it to a Chapter 13 bankruptcy.
Elm Arena said it will defer to the Trustee rather than make its own arguments about that, as part of the Sept. 27 agreement.