OK, Just so I get the sequence of events and facts clearly.
Larry Salone agrees to purchase the LAND ONLY from the Kovalchick family . He takes a one year mortgage on the land only for $600,000, with the entire principal due at the loan anniversary.
The conveyance does NOT include anything located on the surface, including the gob pile, buildings or ANY RR track or equipment, and also does NOT include any mineral rights. It also reserves to the Kovalchick family exclusive right to remove or use anything that also exists on the surface or under the surface.
Where does the state money come in to this? Somewhere I remember that the state approved a $2 million grant to the Salone's EBT preservation association. How much did he actually pay for this piece of property?
Is the $600K the amount that Salone may have been required to put up to get the $2 million? Or did he use the $2 million to buy the property, then mortgage it for $600K?
I knew a fellow years ago that had a construction company that built power lines. Every time he had a contract, he went to the bank and borrowed 50% of the money from the bank, paying it back when he was paid for the job. Over the years he got bigger jobs, and borrowed a higher and higher percentage, until one time he walked into the bank with a $20 million job and borrowed 75% ($15 million). Two weeks later, he had not been seen at the office, and no one had seen him or his family. No one ever has since, but the money is gone and so are they.
I am not saying that this is the case, nor making any accusations, but if it happens, it is all legal and the only losers are us fans and the state of Pennsylvania.