The Herald, Sharon, PA Published Saturday, August 3, 2002

SHARON


Suit against Winner moving along

By Michael Roknick
Herald Business Editor

A suit brought by Mercer County Industrial Development Authority against Winner Development LLC is proceeding and arguments in the case could be heard as early as September, a solicitor for the authority said Friday.

In giving a progress report on the case at MCIDA's regular monthly board meeting at the Hickory VFW, Tom Kuster, an MCIDA solicitor, said Winner Development filed objections to the suit, saying it should be sent to arbitration. But MCIDA contends the matter should be decided in court as the maximum limit for arbitration cases in Mercer County is $20,000, he said.

MCIDA is suing Sharon-based Winner Development for more than $31,000, which it said the company owes for back fees involving development efforts for the former Westinghouse Electric Corp. plant in Sharon.

However, Kuster noted the court could send the case to arbitration under its jurisdiction.

James E. Winner, chairman of Winner Development, was not immediately available for comment, a company spokesman said Friday.

The dispute over back fees arose in February when Winner said he was dropping plans to secure a $7 million state grant through MCIDA to develop the mostly abandoned plant. MCIDA took on the role of overseeing a state application for the grant.

Prior to February, MCIDA continually said that despite repeated requests needed to complete the application, such as detailed cost estimates and proof that other financing was in place to complete the project, Winner Development never provided the information. MCIDA said it racked up $31,000 in unpaid expenses, mostly attorney fees, in attempting to complete the grant application.

At the time Winner said he paid about $13,000 in fees to the non-profit organization and said the bill was paid in full. After talks broke down between the two sides on terms of sending the dispute to arbitration, MCIDA filed the suit in June in Mercer County Common Pleas Court.

Winner is now seeking to secure the grant through the city of Sharon.

In other matters, MCIDA approved paying $2,500 to the Pennsylvania Economy League for updating the Mercer County Strategic Plan. Updating the plan is expected to cost $7,500 and MCIDA said it would seek the remaining costs from Mercer County commissioners.

Created in 1991, the strategic plan outlines goals and objectives to improve the quality of life in the county, ranging from education to development. The plan was updated in 1996, 1998 and 2000.



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