By DORIS COOK - Staff Writer
Star Beacon
August 06, 2008 02:45 am
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JEFFERSON — In what will obviously develop into a hotly contested race for two Ashtabula County commissioner seats in the Nov. 4 election, Republican candidates Charlie Frye and Pat O’Brien on Tuesday squared off on their Democrat opponents, incumbent commissioners Daniel Claypool and Peggy Carlo, respectively, during a press conference Tuesday.
The two candidates targeted the county commissioners; recent plan to refinance part of the debt owed on the $21.7 million Geneva State Park Lodge and Conference Center. Frye and O’Brien referred to the plan as “cloak and dagger politics,” with the commissioners losing credibility with taxpayers.
Frye, a Denmark Township trustee, is opposing Claypool, who was appointed a year ago to replace former commissioner Robert Boggs.
O’Brien is running against Carlo, appointed several months ago to replace Deborah Newcomb, another Democrat.
Newcomb moved up to the 99th District state representative position, formerly held by George Distel, who became Ohio Turnpike Commission director. Newcomb is running against Republican challenger, Tom Nizen of Jefferson for the legislative seat on Nov. 4.
At the press conference, Frye and O’Brien questioned the $191,000 savings to county taxpayers claimed by Claypool by refinancing $7.1 million owed on the lodge’s secondary-loan debt. The loan, with Huntington Bank, is now at a lower rate on a one-year promissory note.
“The truth is this refinancing costs the taxpayers of Ashtabula County money, a lot of money. When Pat and I looked at the actual refinancing resolution that these commissioners passed in May, we recognized it was nothing more than a last-ditch attempt to keep the county afloat during an election year,” Frye said.
Under the refinancing plan, the county will be able to skip its debt payments this year.
“By doing this, they are adding over $340,000 in interest to the total amount owed on this loan. We will now be paying interest on top of interest,” Frye said.
He explained the commissioners paid $1.4 million on this same loan in 2006 and 2007 and are not saving money but costing taxpayers more. The lodge debt and how to erase it remain core issues in the Republican candidates’ race against their Democratic opponents, according to Frye.
O’Brien and Frye are committed, if elected, to requesting a construction audit of the lodge project. The hotel opened in 2004. O’Brien said since the 50 months the lodge has been open, it has lost money for 48 months. Frye and O’Brien seek to close the lodge to gain leverage with Ohio Department of Natural Resources officials and Gov. Ted Strickland to remedy the lodge debt issues.
The candidates also question the contract county commissioners have with lodge operator, Delaware North Companies Parks & Resorts Inc., a Buffalo, N.Y.-based firm. The lodge projects a $220,000 operating profit for 2008.
Frye and O’Brien doubt the lodge operator will attain its profit projection based on the six-month losses so far in 2008. Even county budget analyst Jim Hardin and Republican Commissioner Joseph Moroski, when contacted, each cast doubts on the Delaware North’s profit projection.
O’Brien said the losses at the lodge totaled over $365,000 in the first six months this year. In June, the lodge operator released a report showing a $128,294 profit. That does not include any debt service of the other $14.5 million mortgage.
“The latest ploy of the commissioners are to clam up and not talk about the lodge losses,” O’Brien said. “The lodge has lost $8 million since it opened. Where is the county’s partner, Ohio Department of Natural Resources, in this project?” he asked.
Frye said the lodge debt is taking revenue needed for other county services. While the lodge is an asset to the Geneva-on-the Lake area and is helping tourism, he added: “It is a detriment to the rest of the county. The outrageous part of this refinancing is that the commissioners presented this to the public as a financial savings to the taxpayers.”
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