PERRYSBURG, OH (CelebrityAccess MediaWire) — Perrysburg Township's efforts to recoup money they invested in the Rossford Arena Amphitheater Authority have suffered a major setback after The 6th District Court of Appeals' decided unanimously that the money was an investment and not a loan, the Toledo Blade reported.
The nature of the money the town invested has been a source of controversy since 2001. The money was initially loaned to the RAAA in 1999 to help them construct a new amphitheater and hockey arena in the town. The deal unraveled and in 2001 when the RAAA was unable to secure long-term financial support and the town of Perrysberg subsequently filed suit against the RAAA, alleging that the former Rossford Mayor and RAAA President Mark Zuchowski mislead them during the sales pitch.
Attorneys for the township argued that the if the deal was an investment, that it should have been registered as a security, but the judges presiding over the case did not agree, citing the fact that there was never a public offering.
"We find that both parties referred to the $5 million loan as an 'investment' and not a short-term, collateralized business loan," the judges wrote as part of a lengthy opinion. "The loan was clearly intended by all parties as 'seed money' that would ultimately generate business development and more tax revenue for Perrysburg Township."
The town has not indicated if they intend to appeal the ruling. "I've got to give some thought to that. I have to let the court of appeals decision sink in," John Donahue, one of the townships' attorneys told the Toledo Blade "I've got to sleep on it, then talk with my clients to decide, do we appeal it." – CelebrityAccess Staff Writers