Developer's absence delays Hempfield hearing
By Richard Gazarik
TRIBUNE-REVIEW
Tuesday, May 12, 2009
The president of a redevelopment company that operates out of a North Huntingdon motel failed to appear at a special meeting Monday to defend his company against charges by Hempfield supervisors that the former Westmoreland Glass site in Grapeville is a public hazard and should be torn down.
Adam Marek was represented by attorney Jay Kober, who said he never met Marek but was hired by Marek's lawyer to represent Beacon Pennsylvania Holdings, Marek's company. Beacon owns the industrial site that could contain asbestos and other heavy metals left over from glassmaking techniques.
Hempfield Solicitor Les Mlakar continued the hearing for another month to give Marek time to appear. Mlakar said he would issue a subpoena for Marek if need be.
Hempfield wants to force Marek to raze the site, but Marek claims he wants to salvage steel and brick from the plant. He hired Renaissance Renovation and Redevelopment as the contractor.
"Does your client intend to appear?" Mlakar asked Kober.
"I just know he was unavailable for this evening," Kober said. "I did not get to speak to him personally. I just spoke to his attorney."
Beacon needs to obtain permits from the state Department of Environmental Protection, the U.S. Environmental Protection Agency and the Superfund before any salvage work can take place.
Rick Blackburn, a representative of Renaissance, which was hired by Marek, didn't know how long it would take to obtain the paperwork. Blackburn said his company has committed $6.3 million to Beacon to do the work but would have to withdraw the offer if the required permits can't be obtained.
Lee Domasky, the attorney hired to represent the township, asked Blackburn who Beacon's investors are.
"I can't tell you who the investors are," he said.
Blackburn said he too had never actually met Marek.
"Have you met with representatives of Beacon?" Domasky asked Blackburn.
"No."
"Have you talked with them on the phone?"
"Yes, a gentleman by the name of Adam Marek."
"Does Adam go by any other names?"
"I don't know," Blackburn replied.
Hempfield cited the company April 14 and scheduled yesterday's hearing. In a letter to Hempfield, Marek asked for the hearing but warned any violations could cost him financing, which would "immediately stop funding the project.
"This would place us in a position where we are unable to financially move forward with the demolitions of the facility and could in turn, delay the project for a prolonged period of time," Marek wrote.
Supervisors are concerned about the validity of Beacon because its stock is sold "over the counter" -- commonly known as the Pink Sheet Market -- and its price has been as low as .0001 cent.
Pink sheet stocks are not strong enough financially to meet SEC listing requirements to be sold on the NASDAQ or New York Stock Exchange. The companies do not file audited financial reports, and it's difficult for investors to obtain unbiased, reliable financial information about them.
Broker-dealers known as "market makers" can control the price of these stocks by making public statements to increase the price of a company's stock.
The former Westmoreland Glass plant closed in the 1980s after a century of glass production. The site is littered with debris, rusted equipment, deteriorating brick walls, several large smokestacks, auto parts, vegetation and glass.
Parts of the facility were set ablaze twice in the 1990s, and a skeleton of the steel structure is rusting.
Richard Gazarik can be reached at rgazarik@tribweb.com or 724-830-6292.
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