What the public trust means to Conneaut Lake Park
by Jane Smith
MEADVILLE TRIBUNE
As work continues toward opening Conneaut Lake Park for the 2007 season, questions of what is a "public trust" or "charitable trust" and who specifically controls the decisions affecting the park, continue to be asked by some observers.
A public trust simply is something reserved and protected for the benefit of the public, according to the Pennsylvania Attorney General's Office. It could be a bank account, a piece of land, a house or any other type of asset.
Under non-profit trusts, a named trustee has the decision-making power for what can be done with items in that trust. But with a public trust, decisions regarding control of assets or borrowing money require court approval.
So, despite the name, the public has no say about what can happen at the park. Only the AG's office can speak on behalf of the public in petitioning the court for a specific action.
In the case of Conneaut Lake Park, all the former trustees resigned in the fall of 2005 and the court custodian appointed LeRoy Stearns as overseer.
He has the power to make decisions regarding the park except in two area - borrowing money, or leasing or selling any asset, be it a ride or a facility (such as Camperland or Hotel Conneaut). He must take his recommendation to the court for approval in those two instances.
The park was left to the Trustees of Conneaut Lake Park by former owner and operator Gary Harris in 1997 to operate it for the benefit of the citizens of northwestern Pennsylvania.
At that time, the board had the power to do whatever it wanted with the assets with out court approval.
However, in 1998 former trustee member Dana Watson asked for a court-appointed overseer when all but one of the original trustees board members, who had been appointed in 1997, resigned.
The overseer was approved, and the park came under court supervision.
Since that time, the park's status also changed when Crawford County Court of Common Pleas Presiden Judge Gordon Miller declared it a public trust or charitable trust after a long civil trial.
That means any changes in control of of the assets and any borrowing must have court approval - even if a new board of trustees is appointed.
In the case of the park, assets include not only the land, but buildings, rides and leases on homes as well as the park's water system.
The AG's office said since the park is under court supervision, the court has the final say about what happens there, 7regarding who is named overseer and if any assets can be sold or leased to others.
"A public trust or charitable trust (which the park sometimes is called) are essentially synonymous and are used interchangeably. At the end of the day, it means the same thing," said Mark Pacella, chief deput attorney general of the charitable trust and organizations division of the AG's office.
"(A public trust) is similar to a private trst in some respects," he added. "If your fther set up a private trust for you, it would be protected by a trustee."
He siad a public trust "could be a sum of money or a tract of land or other asset, set aside for the benefit of the public."
"In the case of Conneaut Lake Park, (the entire park) was determined by the court as a public trust for the benefit of the public. ... The AG's office is an intercessor pary, represents the public's interest and assists with charitable programs," he said.
"We may make recommendations to the court, but the court untimately decides what will happen. we are an advisory to the judge only. we can make arguments or recommendations, but the judge is responsible to untimately decide the issue."
While the court is the final authority for use of the assets, it doesn't get involved in day-to-day operations, such as hiring or firing, or making purchases, such as a motor repair for the Blue Streak roller coaster (after it was damaged by a lightening strike last summer).
Court approval is needed only when assets are affected.
As overseer, Stearns has control ofer any other changes at the park, but his responsibilities involve oversight, not day-to-day management. The responsibility is that of the general manager, George Deshner.
Current plans are to sell 3.3 acres of park land to help reduce the approximate $2.3 million debt. Park officials are negotiating with a buyer. If the sale is approved by the court, proceeds of the same will be used to pay a majority of the debt and have money to open the park this year.
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