How Does A “Deed In Lieu Of Foreclosure” Work?

By Dave Dinkel

A “Deed in Lieu of Foreclosure” is when a lender accepts a deed to the homeowner’s property in foreclosure instead of continuing the foreclosure process and incurring more expenses to get the deed anyway. However, this does not mean the homeowner is no longer responsible for a loan deficit if the lender sells the home for less money than is owed.

This legal transaction starts after the homeowner has fallen behind on his loan payments and is in foreclosure. Even if the foreclosure has not started yet, the lender can be approached and asked if they will accept a “deed in lieu of” continuing into the foreclosure process. Sometimes the lenders regulations require the homeowner to be behind on his payments before they will consider accepting the deed, usually 90 days in judicial foreclosure states and 30 days in non-judicial states.

Unfortunately the homeowner is, or shortly will be inundated by people trying to help with his foreclosure because he has become part of the public record and usually he is getting information from well-meaning but uninformed people. However, he will be set upon by professionals looking to sell him foreclosure services or take the equity from his home by buying his home very inexpensively.

[youtube]http://www.youtube.com/watch?v=MopkxDZNHMY[/youtube]

As soon as the homeowner notifies the lender of his impending problem or when he is 30 days late on his mortgage payment, the lender orders a BPO (Broker’s Price Opinion) to determine its market value. With this information the lender can immediately determine if he wants to take the home at the foreclosure auction, take a “deed in lieu of” or work with a loan modification or forbearance agreement to stop the pending foreclosure. The lender will make a purely financial determination about what is best for the lender, not the homeowner. By taking the home back though the foreclosure sale, there are higher legal costs, extended loss of interest on the loan, real estate market risk, carrying and closing costs, and increased reserve requirements for the Federal Reserve. However, if there are other open liens on the property, the lender will have to get the junior liens to assign them to the primary lender or extinguish them so they don’t become the burden of the first mortgage lender. In many cases it is simpler to go through the foreclosure process to extinguish these junior liens.

The lender determines if it is quicker to accept the “deed in lieu of” or continue with the foreclosure and sale. The lender may take the deed from the homeowner and continue the foreclosure anyway for the reasons mentioned above. In this case there is no advantage for the homeowner to give the lender the deed, especially if the lender requires the homeowner to sign a personal note for the potential deficit that the lender may incur when he sells the property. It is not entirely uncommon for a homeowner to have junior liens that are larger than the first mortgage and in these cases, the primary lender must continue the foreclosure so the junior liens either buy him out or have their interest in the property extinguished at the auction.

If the lender agrees to accept a deed in lieu of foreclosure, the responsibility for the mortgage deficit is not finished. The lender generally has the homeowner sign an Acceptance Agreement as well as a new deed. This agreement will stipulate that if the lender sells or transfers the property for less than what is owed on the loan (including all penalties, interest, and attorneys’ fees), the guarantor of the loan (usually the homeowner) will owe any deficiency. This deficiency amount can then be pursued in the courts as a deficiency judgment or the lender can issue the homeowner an IRS Form 1099. In this latter case the deficit becomes “Phantom Income” to the homeowner. Federal legislation enacted in December 2007 now allows the homeowner to avoid income taxes on this phantom income under certain strict circumstances.

So is a “deed in lieu of” an ideal solution for a homeowner in foreclosure? The answer is clearly “no” since very little is accomplished by the deed transfer because the homeowner or guarantor, is still responsible for any loan deficiency after the sale. If the homeowner does nothing, he will not have to sign the Acceptance Agreement. By not signing this agreement, the homeowner will not be opening himself to even further liability. The terms of the Acceptance Agreement should release the homeowner (guarantor) from future liability (i.e. deficiency amount). The bottom line is that if the “deed in lieu of” isn’t a better solution for the lender, the lender has no motivation to take back the deed. If the lender readily takes back the deed, the homeowner should be concerned there may be substantial equity in the property that the lender will receive “free and clear”. If there are additional liens on the home, the lender does not need the deed since he has to complete the foreclosure action to extinguish them.

In summary, it is a best questionable whether it makes economic sense to give back a “deed in lieu of” unless the Acceptance Agreement clearly stipulates that the homeowner does not have an obligation for the deficiency amount. You should not sign any documents from the lender or anyone else without having an attorney review and approve your signing.

About the Author: Dave Dinkel is the author of

StopMyForeclosureMess.com

“32 Ways to Quickly Stop Foreclosure and has helped thousands of foreclosure victims for nearly 33 years. If you are facing foreclosure, visit

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Mayor of Camden, London, arrested in benefit fraud inquiry

Tuesday, January 26, 2010

The mayor of the London Borough of Camden, England, was arrested yesterday on suspicion of benefit fraud. Omar Faruque Ansari was taken from Camden Town Hall by police to Holborn police station over allegations that he was wrongfully claiming disability benefits. After four hours of questioning, he was released on bail to return in March.

Today, Ansar said that he was sure that he would be cleared of any wrongdoing. “It is a very political thing. When you are mayor of Camden, you are a very trusting figure. Someone is trying to smear me”, he added. He is reported to receive £474 (about US$765) per month in disability benefits, after complications following a neck operation in 1995 – this was needed for injuries he received fighting for Bangladesh against Pakistan in the 1970s, he explained. “I’ve never even had a parking ticket in my life, so this is very distressing”, he commented.

The allegations appear to be unrelated to the mayor’s council work, a spokesman for Camden said. He refused to comment further on “allegations relating to the personal lives of [the council’s] members”.

Ansari, 55, moved to the UK in 1960 and has been mayor of Camden since May 2009, after joining the Liberal Democrats in 2006. He has been suspended as mayor and from the Liberal Democrat group while the investigation is ongoing.

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Toronto’s Anime North 2019 brings thousands of fans together

Friday, May 31, 2019

Many thousands of anime and manga fans descended on the Toronto Congress Centre for Anime North, a fan-run convention launched in 1997. Spread between four venues over three days, May 24 to 26, the event featured J-pop maid idols, voice actors, writers, and more. Wikinews attended.

Despite the ample indoor spaces, the parking lot of the Centre is also a hub of activity, with cosplayers posing for photos. Attendees were sent running for cover on Saturday, as heavy rains and a severe thunderstorm warning put a damper on festivities.

The event is organized by a massive team of volunteers, and known for its specialized programming for fans, by fans. On the night of May 25, for example, attendees could catch “Pokemon Biology”, “Kimono Obi Tying”, and “Underappreciated Sports Anime/Manga.”

US voice actor Alexis Tipton marveled at the growth of the anime industry in the last decade. “Back when I was going as a fan, there wasn’t as much anime, so it was easier to know about everything,” Tipton observed during a question and answer session. “I’m so overwhelmed by how much there is.”

Tipton held a panel on her career, dubbing anime for US distribution company Funimation Entertainment. While many anime voice actors weren’t fans going into the industry, Tipton recalled going to anime conventions with her friends during middle school and high school. Once she was an invited guest, Tipton recalls realizing “oh, I’m not here to just have fun, I’m here to work; I have a set schedule and I can’t just, like, you know, go do what I want.”

Early in her career, Tipton was cast as a voice for My Bride is a Mermaid, a role that required singing. Then just 19 years old, she looked at the role as a “chance to face my demons,” having questioned her abilities for years. “I was in an extremely competitive [singing musical theatre] program in high school. I had started working at Funimation when I was 19, so I was just barely in college. And so those scars were still like, really fresh. I had a lot of competition and people would find what your perceived weakness was, or what your actual weakness was in the program, and they would take advantage of it. And so I had people trying to make me feel like I couldn’t sing my way out of a paper bag, and then I would get so nervous when I would sing that I couldn’t support my notes, and so it would just prove them right.”

Tipton was devastated when she got a sinus infection, the week of the audition. “This director doesn’t know me, I haven’t worked with him, he’s going to think that this is what I sound like,” she recalls thinking. “I don’t know if I had a shot to begin with, but now I really don’t have a shot.” She was thrilled when she was cast.

Another voice actor, Lauren Landa, would list Sailor Neptune and Sailor Uranus as dream roles, when asked at conventions. She was given a chance to audition for the characters years later, when Vizmedia dubbed the first two seasons of Sailor Moon. When she was cast, “I swear to you, I was speechless,” she told an audience at her Q&A session.

Cosplay model and professional singer Jillea attended the Saturday of the convention dressed as Pokemon species Charizard. Wikinews spoke with her by email, after the event:

((WN)) What got you into cosplay modelling?

Jillea: My love for cosplay started with the community, what started as a fun hobby I would do periodically quickly became a huge part of my life, and the reason for that being how amazing the cosplay community embraced me and my work. I’ve always been a creative person, so getting to make my costumes and have people say ‘oh my gosh, I love that character!!’ got me hooked right away. They’re just my people, what can I say, they really make me feel welcomed and I love them for it.

((WN)) How did you choose Charizard?

J: I’m a 90’s baby so you could say I’m a bit of a Pokémon OG! I had a Game Boy as a kid and my very first purchase was Pokémon Red, solely based on how cool Charizard looked on the cover. Charizard has always been my favourite Pokémon and I can’t resist a challenging cosplay… and the nostalgia!

((WN)) What was your favourite part of Anime North?

J: This was my very first time attending Anime North and I was blown away! The booths were incredible and unique, every time I turned around I was seeing something different I’ve never seen at a convention before. Everything was easy to access and I even made use of the Cosplay Recharge station that literally saved the day with their hot glue! Extremely friendly environment it will not be my last time back for sure.

Wikinews?’ Nick Moreau photographed the event.

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Dreams For Going Heaven Like Area Contact Kullu Manali Tour Packages}

Submitted by: Annya Kumar

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A pleasant nature distance of superb Deodar trees is positioned on the banks of River Beas that begins as of Rohtang pass to decant towards the Sutlej River in Punjab. River Beas is recognized to be single among the five rivers with the intention of offer Punjab its forename. The river appears as of a grotto at the Rohtang pass in addition to suppose diverse identities as the seasons go by from a clear blue easy flowing mountain river to an awesome torrent throughout the downpours. The magnetism of the river has been as a result immense that whoever came here waited to continue. The immense sagacious Narad, Vishwamitra, Vashisht, Prashar, Vyas, Vyas, Kanav along with Parshuram came here on diverse occurrences in addition to contemplated on the banks of this river. Till nowadays their temples continue living in this valley of Vyas.

[youtube]http://www.youtube.com/watch?v=XX5G5AmGmh0[/youtube]

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A must appointment in Manali is the Buddhist monasteries or gompas. Directed with the funds contributed by the restricted neighbourhood, an appointment to these tranquil monasteries will provide you a new-fangled rush of a ‘spiritual high’. The confined folks of Manali are warm, shy and gracious chiefly searching out of their skylight panes to tourists roaming the avenues. Appointment Old Manali to distinguish the old stilted dwellings to understand how one subsisted by way of nature and surroundings from ancient days. Manaligarh Fort is as well worth an excursion.

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Conflicting reports, mounting fear, over Japanese nuclear disaster

Friday, March 18, 2011

The odds are pretty good that no one has good information.

U.S Nuclear Regulatory Secretary Steven Chu reported to Congress Wednesday that the incidents at the Fukushima I Nuclear Power Plant may end up as a larger disaster than the Three Mile Island meltdown faced by the U.S. in 1979. However, he said reports from Japan officials are contradictory, and concluded that “[w]e don’t really know in detail what’s happening. We hear conflicting reports.”

International frustration is focusing on the slow pace and lack of detail characterizing the updates from Japan. The director general of the International Atomic Energy Agency, Yukiya Amano, said Japan needs to provide more frequent and detailed information on the crisis to the world.

Currently, the lack of information is particularly important regarding the threat posed by reactor number four. The building housing the reactor is no longer on fire, but smoke or steam is visible on television pictures. Yoshitaka Nagayama, a spokesman for Japan’s Nuclear and Industrial Safety Agency, admitted that “[b]ecause we have been unable to go the scene, we cannot confirm whether there is water left or not in the spent fuel pool at Reactor No. 4.”

Thomas Neff, a reactor safety expert with the Massachusetts Institute of Technology, said: “The problem is that nobody knows. If you don’t know and you’re TEPCO, you probably underplay it. If you’re the regulator, you probably see it in a worse light.”

“The odds are pretty good that no one has good information,” said a former Nuclear Regulatory Commissioner, Peter Bradford, who was on the commission at the time of the Three Mile Island disaster.

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Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

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More About The Fredericksburg Air Conditioning Installation

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Other craft workers at times repair or install heat ing and cooling systems. For instance, on a huge Fredericksburg Air Conditioning Installation job, particularly where professionals are covered by union agreements, ductwork may be performed by duct installers and sheet metal workers; electrical task by the experienced electricians; and installation of condens ers, piping and other components by plumbers, pipe layers, steamfitters and pipefitters. Home electrical device repairers generally service household refrigerators and room air- conditioners. Professional air-conditioning, refrigeration and heating Fredericksburg Air Conditioning Installation companies work in homes, stores of all types, office buildings, factories and hospitals anywhere there is climate-control device. They might be assigned in order to precise jobsites at the starting of each day or if they are making service calls, they might be dispatched to jobs by telephone, radio mails or online. More and more, people are using cell phones in order to coordinate technicians\’ schedules. This is why one should always hire a professional and reputed air conditioning repair service company which provides services at reasonable rates.

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Wikinews interviews Joe Schriner, Independent U.S. presidential candidate

Saturday, April 17, 2010

Journalist, counselor, painter, and US 2012 Presidential candidate Joe Schriner of Cleveland, Ohio took some time to discuss his campaign with Wikinews in an interview.

Schriner previously ran for president in 2000, 2004, and 2008, but failed to gain much traction in the races. He announced his candidacy for the 2012 race immediately following the 2008 election. Schriner refers to himself as the “Average Joe” candidate, and advocates a pro-life and pro-environmentalist platform. He has been the subject of numerous newspaper articles, and has published public policy papers exploring solutions to American issues.

Wikinews reporter William Saturn? talks with Schriner and discusses his campaign.

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Venezuelan president Hugo Chávez cuts relations with Colombia

Sunday, July 25, 2010

President Hugo Chávez has temporarily suspended relations with the neighboring country of Colombia.

“I feel obliged for dignity’s sake to suspend relations with the government of Colombia. It is the least we can do, and we will remain alert, as [President Álvaro] Uribe is a sick man, filled with hate,” said Chávez during a ceremony at the Presidential Palace with the coach of the Argentinian national football team, Diego Maradona, whom he was meeting during Maradona’s visit to Venezuela.

The Venezuelan government has given Colombian diplomats 72 hours to leave the country.

“We have sent a message to the Colombian trade delegation in Caracas telling them to close their embassy and vacate the country,” Venezuela’s Foreign Minister, Nicolás Maduro, informed the media.

In an extraordinary session at the headquarters of the Organisation of American States (OAS) in Washington, DC, the Colombian ambassador, Luis Alfonso Hoyos, declared that Chávez’s government was “harbouring FARC guerrillas” on Venezuelan territory and requested the formation of an international committee of inquiry to verify FARC’s presence in Venezuela within 30 days.

Venezuela’s representative to the OAS, Roy Chaderton, advised the assembly to pay no attention to the Colombian “forgeries” and declared that there were thousands of Colombians living in Venezuela and that they were being treated with respect and equality.

“I warn the international community. We will brook no aggression, nor any violations of our national sovereignty,” said Chávez, and added that any war with Colombia would “have to be fought with tears, but it would have to be fought.”

For its part, the United States criticised Venezuela’s decision to cut diplomatic ties.

“I don’t believe that cutting relations is the right way to go [to resolve this problem],” said Philip Crowley, spokesperson for the US State Department.

The Secretary General of the OAS, José Miguel Insulza, also asked both sides to “calm their passions.”

“We have been able to resolve serious conflicts for many years. I hope that we will be able to do so again now, but both Venezuela and Colombia will have to concede ground,” said Insulza.

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NHL: Penguins to remain in Pittsburgh

Tuesday, March 13, 2007

Pennsylvania governor Ed Rendell announced Tuesday morning that a deal had been struck between state and local officials and the Pittsburgh Penguins hockey franchise. The Penguins organization will formally announce the deal tonight, prior to the Penguins game against the Buffalo Sabres at the Mellon Arena. The deal will ensure that the Penguins will remain in the city with a 30 year lease on a new arena to be built in downtown Pittsburgh. The framework of the deal was constructed in an emergency meeting last Thursday in Philadelphia, when both government and franchise officials indicated that progress had been made, with the details laid out over the weekend. With the new deal, the Penguins organization would be expected to pay $3.8 million per year, as well as $7.5 million per year from both Don Barden, owner of Majestic Star Casino, and the state economic development fund. The Penguins organization has also been given the option of building a parking garage on property of the Pittsburgh Sports Authority between Centre and Fifth avenues, by contributing $500,000 per year.

The new arena is expected to cost approximately $290 million, and should be completed and ready to host hockey games by 2009. The Penguins will sign a temporary lease to keep the team at Mellon Arena until the new building is finished.

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