Clairton townhome residents still in limbo after deal fails

Residents of a cluster of deteriorating row houses in Clairton were once again left without answers Thursday about who will buy the properties and undertake much-needed renovations.

After learning a deal to sell the Century Townhomes to a local attorney fell through, U.S. Bankruptcy Judge Gregory Taddonio said mortgage creditors, city and school authorities and others owed money by the bankrupt owner could attempt another round of mediation to resolve who should take over the complex.

The current owner, Century Arms Townhomes, filed for Chapter 11 bankruptcy last year after its principal, Upper St. Clair businessman David Geisler, defaulted on more than $2 million in mortgage debt and racked up more than $500,000 in unpaid city and school taxes and utility bills for 165 residences he owns.

On Thursday, Jeffrey Sikirica, trustee in the case that has since been converted to a Chapter 7 liquidation, said a deal to sell the properties and surrounding common areas for $1.2 million had been scrapped.

The proposed buyer, Mark Haak, was unable to close the deal because of an unexpected family matter, said Mr. Sikirica.

With little to no interest from other investors, “I’ve exhausted all my options,” said Mr. Sikirica.

Scott Hare, an attorney for Equity Indexed Managed Fund, one of the California-based lenders from which Mr. Geisler secured a total $2 million in financing to buy the townhomes in 2012, requested approval for further mediation because, “I have in mind a pathway to get everyone to a positive result.”

Among the possibilities is converting the case back to a Chapter 11 bankruptcy and “getting the property back into shape,” he said, though he did not specify details of his plan.

“With no prospect of a sale, it will continue to decay,” he said.

Judge Taddonio directed attorneys and other parties to convene a mediation session in the next two weeks.

Mr. Geisler’s attorney, Michael Kaminski, agreed to

participate in the mediation but called the case “the most unresolvable situation I’ve encountered.”

Clairton officials have investigated overgrown grass and weeds, garbage violations, frayed electrical wiring and other maintenance problems at the site and cited Mr. Geisler for some issues.

One of the biggest concerns among residents and creditors is whether a buyer would be able to finance installation of individual water meters for the units.

For decades, the complex has been serviced by one meter and after Mr. Geisler fell behind in paying the water bills, residents faced repeated water shut-off notices by Pennsylvania American Water.

Besides Mr. Geisler’s 165 townhomes, there are several hundred units at the complex owned by other individuals and which share the same water meter.

Among those who rent units from Mr. Geisler is Sisters Place, a Clairton nonprofit that assists struggling, single parents with housing and educational programs. Sisters Place also owns 18 units in the complex.

“We are the collateral damage,” from Mr.

“We are the collateral damage. We’re in the homelessness prevention business and our 32 families could end up homeless.” Sister Mary Parks, executive director of Sisters Place and secretary of the homeowners association

Geisler’s bankruptcy and neglect of the properties, said Sister Mary Parks, executive director of Sisters Place and secretary of the homeowners association.

“We’re in the homelessness prevention business and our 32 families could end up homeless.”

Despite code violations and unpaid taxes, the city of Clairton continues to provide services to the complex, including garbage collection and emergency medical services, said Deron Gabriel, city solicitor.

Until the bankruptcy court approves a resolution, “We’re all in limbo,” said Lee Lasich, a Clairton councilwoman.