EBENSBURG — Cambria County Controller Ed Cernic Jr. said Friday that he will look into whether $50,000 in county funds intended to promote the Johnstown Chiefs hockey team ended up being used for that purpose.
But President Commissioner P.J. Stevens said the money did go for the intended use of marketing the hockey team and associated personnel costs.
“The intent was to pay the money up front. The money went to the Chiefs, not Roustan (Roustan United, which then managed the Chiefs),” Stevens said. “The goal was to keep the Chiefs in Johnstown. Roustan did not own the Chiefs. Roustan was the legal representative of the owners.”
Cernic said he has received questions from citizens concerned about the issue after Arena Solutions, formerly know as Roustan United, was ousted as the Chiefs’ business manager by team owners Neil Smith and Ned Nakles this week.
The $50,000 was part of a deal brokered by the county commissioners with Roustan that extended the Chiefs’ lease on the county-owned War Memorial Arena for one year.
The commissioners agreed to pay the $50,000 – long a part of the annual lease
– in a one-time, up-front payment, rather than in periodic payments as had been done by the War Memorial Authority in the past.
The money was routed through the Cambria County Industrial Development Corp. after Cernic questioned whether county tax dollars could go to a “for-profit” company and after the authority refused to cut the check.
Cernic said he continues to believe the payment is improper and perhaps illegal, although the county solicitors have said it is legal.
Cernic said he wants to be sure the money “didn’t go into the pockets of some executives” or was used for unpaid personnel costs dating back before May 1, when the payment was made.
“I want to determine whether it was spent properly, and if it was not, to seek reimbursement,” Cernic said.
He said he hadn’t questioned the prior payments by the War Memorial Authority because “the authority gave the money to the Chiefs (or previous teams) as a business investment to keep the Chiefs there.
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Cernic Tribune-Democrat File Photo
Discussion
Cambria controller resurrects debate over payment to Chiefs
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