Slight Detour At The Mountain

A Philadelphia-based developer has asked for an extension in a bid to buy land near Pennsylvania’s Mountain Laurel Center for the Performing Arts — a deal that would help the cash-strapped PAC stay open.

Facility CEO Richard Bryant said the up-to-six-month delay in closing the deal isn’t a setback. Developer John Wolfington of Greystone Capital Partners asked for more time to work out details of creating the Mountain Laurel Development Group with fellow Philadelphia developer J. Brian O’Neill of O’Neill Properties.

“It’s a business transaction between the current bond holders and this new Mountain Laurel Development Group. That’s what drives the whole thing,” Bryant told Pollstar. “Once these bonds get purchased, they’re going to be forgiven. That’s the key.

“All in all, we’ll reduce our debt by 80 percent which will put us in a stable situation financially.”

Earlier this year, Greystone Capital proposed to subdivide the 675-acre property where the arts center is located and build a residential retirement community and another attraction to complement the PAC. In return, the company will pick up nearly all of Mountain Laurel’s $23 million debt and lease the performance space back to the not-for-profit organization that is to run the venue for 50 years.

Bryant said the new development group has already given the PAC $250,000 and paid about $600,000 to bondholders in September.

“They’re just marching ahead and getting it done,” he said. “There are still details to be worked out but, in my opinion, there are too many good things that have already happened for this deal to not go through.

“The $250,000 gift, which helps us to cover operations through the winter months, also enables us to plan next season, which is key.”

The $35 million performing arts facility, which includes the 10,000-capacity Tom Ridge Pavilion, opened in 2003 but developed cash-flow problems shortly after. Bryant was brought in as CEO last year to work with the board and turn things around.

The Greystone project has received state approval, Bryant said, which was required as a condition of the $15 million grant that helped pay for Mountain Laurel. The grant states that the property can’t be sold or subdivided.

— Tina Amendola