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Conneaut Lake Park mediation set

The future of Conneaut Lake Park will take another step toward a resolution.

Attorneys representing the Conneaut Lake Park Trustees will meet with legal counsel representing the various municipalities affected by the Chapter 11 bankruptcy case that has been filed by the amusement park’s non-profit corporation.

Attorneys from the Conneaut School District, Crawford County and Summit and Sadsbury Townships and the Conneaut Lake Area Joint Municipal Authority will meet with the Conneaut Lake Park Trustees representatives on Jan. 26 for a mediation session.

U.S. Bankruptcy Court Western District Chief Judge Jeffery Deller ordered the mediation session during a hearing on Nov. 30, 2015 in an effort to resolve the issues that exist with the amusement park and its creditors. The Conneaut Lake Park corporation owes more than $1.03 million in back real estate taxes to the taxing authorities as well as other creditors.

The taxing bodies have proposed the park and its assets be sold at an auction to help cover the debt while the Conneaut Lake Park Chapter 11 plan proposes keeping the park open and also using the insurance settlement from a fire at the Conneaut Lake Park Beach Club in 2013 for debt payments. The park also wants to sell adjacent property that is not needed for the operation of the facility.

Judge Deller ruled in December that $478,260 of the insurance money be paid to the taxing authorities and the balance of the $611,00 settlement given to Park Restoration, LLC, the Beach Club’s former operator.

Park Restoration LLC is appealing Judge Deller’s decision.

Judge Deller has scheduled a hearing for Feb. 29 to receive a status report from the mediation.

Conneaut Lake Park has announced on its website it plans to open May 28 for the season. Three volleyball tournaments are also scheduled throughout its summer schedule.

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