s DAUPHIN COUNTY PENNSYLVANIA NEWS FOR IMMEDIATE RELEASE Contact: Scott. Wyland ‘Special counsel representing Dauphin County IDA (717) 234-6700 swyland@salemannhughes.com Dauphin County IDA seeks court ruling on distribution of $1.2 million in state money to Susquehanna Art Museum creditors HARRISBURG, PA (September 29, 2015) ~Folowing the Susquehanna Art Museum's falureto make a March loan payment and meet demands from its creditors, the Oauphin County Industral Development Authority (OCIDA) today ‘asked the court to decide how $1.2 milion in state grant funding should be cisbursed, {At ssue sa claim from Fulton Bank for payment ona $3 millon line of ereit and another from JEM Group/Carroton, LC for $1.12 milion in construction costs fr the museum's new location. In Januar, the museum celebrated its grand ‘pening in a renovated bank bulding at 401 N 3d St, Harrisburg. After the DCIDA arler this year received the next-to-last state grant payment of $1.2 milion Fulton and JEM/Carolton sent competing letters to the authority seeking payment. ial payment of a itl less than $600,000 remains from the rant. The release of those funde fe contingent on addtional spending by tha musaum, which wil thon be relmbureed ‘through the remaining grant dors. ‘Caught inthe middle the DCIDA — which is merely the administrator ofthe grants ~is asking the Commonwealth Court, ‘tostepin “The DCIDA respects that as this public proect comes toa clos, those Involved may have a genuine disagreement on ‘how grant funds are to be distributed” sald attorney Scot T. Wyland, who Is representing the authority in this mater “We are asking the court to act asa neutral decision-maker, which wil remove the DCIDA from the alspute” Ifthe DeIDA requests granted, the court would hold the grant money in escrow and consider the claims made by Fulton ‘and JEM/Carrolton, Wyland said. The authority is also asking the court to dismiss it from any further invalvement inthe |i 2012, DCIDA acted asthe condut forthe museum to recelve a $5 milion grant through the state's Redevelopment Assistance Capital Program. The museum als received a $3 milion construction line of ered rom Fulton, ‘Te museum filed to pay down the principal of the bank loan to $1.5 millon before March 8 as required, according toa letter sent by Fulton Bank to the DCIDA. ‘hand said the OCIDA initially wrote a check fr $.24 milion to the museum in August but then stopped payment \when authority officials learned that Fulton dank and JEM/Carrolton were asserting competing claims against the remaining grant money. 112Mahat Set, 7 Flor, Haneburg, Penney rans 17108-28574) 780-6250 «Fax (717 T20-6258“The DCIDA board voted to ask the court to intercede ater Informal talks ast week fale to resolve how ‘the grant dollars shouldbe distributed, he said. “itis unfortunate the parties involved cannot reach an agreement about how to distribute these state rant funds.” Wyland said "The DCIDA wants to ensure each party making a calm receive a ull and fair ‘portunity to present its case.”