Local Studio Owner Gets Millions From State, Despite Owing Thousands
PITTSBURGH (KDKA) -- It's being heralded as a big as a big boost to the local film industry, the ground breaking of a $10 million sound stage in McKees Rocks.
And last week Gov. Tom Corbett was happy to commit $2.5 million in tax money to a group headed by Fox Chapel businessman Michael Dolan.
"Any investment that allows people to experience what we experience and attract more people here," he said. "I think it a smart one."
But not everyone's applauding.
"Corbett and everybody else at the ground breaking all proud getting this money and here we are," said Chuck Bauer.
Chuck and Sarah Bauer who owned Bauer Excavation Company in Butler say that four years ago they excavated and built a parking lot for Dolan of across for the existing Island Studios in The Rocks and he still owes them $54,000.
"That hurts bad," said Bauer. "We had to get a loan against the property to. Keep going which were still paying on."
They're not alone. There are some 244 tax liens and judgments against Island Studios, LLC -- a corporation formed by Dolan and his partners in 2009. Those debts in include some $100,000 in delinquent real estate taxes to the Pittsburgh Public School District on properties the corporation owns throughout the South Side.
It's all part of $295,000 Island Studios owes to contractors and other taxing bodies including the Sto-Rox School District, the Borough of McKees Rocks, the City of Pittsburgh and Allegheny County.
KDKA's Andy Sheehan reached Dolan on his cellphone.
"People who've done work for you at Island Studios got in touch with me and I look at the prothonotary records and it appears you have a lot of debts to people," Sheehan said.
Dolan says the new project is being undertaken by a new corporation he heads called Island Studios EXP, but concedes that his other corporation owes the money and promises to make good. The Bauers say they've heard all of that before.
"Who are the people working on this next project," Sarah Bauer said. "Are they gong to get paid or are they like we are, waiting."
And what about the state? the question is with all of this debt and delinquent taxes, why would the state be giving this new venture $2.5 million more.
The governor's office say they committed the money on the potential of the project to create jobs and that no money will be reimbursed until all taxes, liens and judgments are satisfied.
But the Pittsburgh Public Schools says the state should have done their own due diligence selecting island studios.
"I'd say they need to do some more investigation before they start giving grants out," Pittsburhg Public Schools' Janet Burkhardt said. "I mean, Halloween is coming, but it's not here yet."
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