On March 20th, the Sunday News observed “…The trustees voted to pay up to $14.5 million, quite a bit of depreciation from the estimated $32 million that [The Pennsylvania Academy of Music] spent to construct its palace on Prince… PAM founders Michael Jamanis and Frances Veri …seem to be in denial about the damage they’ve done to some of the biggest charitable foundations in the county – including the foundations associated with Lancaster Newspapers – and, by extension, to other nonprofits that won’t get the money they need because the foundations lost so much in the PAM debacle.”…
In fact, the $14.5 million price is approximately the amount needed to relieve the debt guarantees on behalf of PAM of Paul Ware, the board chair of PAM during the debacle, his Ferree Foundation, the Lancaster Newspapers, Inc. and the Steinman Foundation and to pay off the UNCB mortgage. Instead, generous other donors of around $5 million and the tax payer who contributed the balance are the ones being harmed.
In addition Ferree has insisted on acquiring the valuable musical instruments that other members of the community and supporters from throughout the country have donated, in one case to take a donated violin out of the hands of an accomplished student who needs it for recitals. Seems like an act of vengeance by the person who led PAM to its ruin!
Did the State conduct any MAI appraisals of the value of PAM? NewsLanc’s publisher, a prominent real estate developer and sole Advisor to PAM’s recent Business Committee, had opined the value of the single purpose building to be around $3 million, perhaps as much as $5 million.
We are thrilled that Millersville is likely to acquire the PAM building. We are furious that they may be overpaying by $11.5 million, the equivalent of in-state tuition scholarships for 1,480 students.
This ‘bail out’ of powerful members of the Lancaster elite would make Wall Street blush!
“In sum, the guarantees to be paid by Ferree, Steinman and LNP combined will range from $8 million to $12.5 million.” (from: http://articles.lancasteronline.com/local/4/249380 March 3, 2010).
“The state would spend up to $13.5 million to buy and renovate the building for MU. It will spend an additional $1 million for furniture and equipment. Most of that money would come from the Pennsylvania State System of Higher Education.” ( from:
http://articles.lancasteronline.com/local/4/259911 June 15, 2010).
If MU budgeted $1 million for renovations, the purchase price for the building would be $12.5 million, the upper limit of the loan guarantees for which the Ferree and Steinman foundations and LNP would have been liable.
Just a coincidence, perhaps. I don’t know what political party Mr. Ware and the Steinmans belong to, much less whether they have that much influence over PA government spending. But I’m certain many of our state officials wouldn’t hesitate to spend millions of taxpayer dollars to help out their friends, relatives, and/or financial supporters.