$13.9M judgment against company that owns Think Loud, York Daily Record Options

[dangum]

Kinsley gets $13.9M judgment against company that owns Think Loud Development building

The building is connected to members of the multi-platinum-selling rock band Live. It houses United Fiber & Data.
Dylan Segelbaum and Neil Strebig York Daily Record

Published Sep 18, 2020

Kinsley Construction has obtained a more than $13 million judgment against the company that owns the headquarters of Think Loud Development and United Fiber & Data, a building tied to members of the rock band Live to which the state has provided public money to help revitalize York.

In court documents filed late Thursday, Paul Minnich, Kinsley’s attorney, wrote that 120 York LLC executed a note and a mortgage on the property at 210 York St. in 2013 for $15.91 million. If the business failed to make payments, court documents state, the construction company could declare the entire principal balance and interest to be immediately due.

On July 13, Kinsley demanded the outstanding principal, $8.54 million, and interest, $4.64 million. 120 York LLC defaulted when it failed to pay within 30 days, according to court documents.

Now, Kinsley has judgment for a total of $13.94 million, court documents state.

“We take great pride in the work our team has performed for the Think Loud organization, including providing design and construction services to return the 210 York Street complex to active use, but we cannot comment on the pending litigation,” Kinsley said in a statement.

In an email, Chad Taylor, the lead guitarist for Live, said, "At this time, we are working to amicably resolve this matter and have no additional comment."

Gov. Tom Corbett’s administration awarded a total of $7 million from the Redevelopment Assistance Capital Program for what was called the 210 York St. project, which included the more than 53,000-square-foot building, a $40 million data center, parking and data support structures.

The state has paid more than $3.38 million in reimbursement for construction costs for the building, which used to house Bi-Comp, according to the Office of the Budget.

The York County Board of Commissioners approved a 10-year tax break for the property. York City Council later adopted an ordinance that closed off York Street to the public.

During a news conference in 2012, then-York Mayor Kim Bracey stated that the project would “reinvent this area of the city” and offer positions to people who lived within walking distance.

“Somehow, I get the sense that this is no one-hit wonder of development," Bracey said.

In 2011, Bill Hynes founded Think Loud Development, of which three of the majority owners are members of platinum-selling rock band Live: Taylor, Chad Gracey and Patrick Dahlheimer. In 2012, they launched United Fiber & Data, a telecommunications company that's built a 340-mile fiber optic line that runs from New York City to Ashburn, Virginia.

Corporate leaders said United Fiber & Data is a tenant in the building, which also includes a state-of-the-art recording studio and housed YRK Magazine. The telecommunications startup has stated that it would create more than 300 jobs and generate $2 billion in state tax revenue in 30 years in Pennsylvania.

“This is the first time we’re hearing about it,” said Andrew Paxton, president and general counsel of United Fiber & Data. “We will have to review the complaint, but we continue to be a tenant.”

Paxton said the company has no ownership in the building. He said he’s not sure how the case would affect its occupancy, “as this case is unrelated to UFD directly.”

CHECK OUT:Pa. Public Utility Commission moves to tentatively cancel United Fiber & Data certificate

Following delays in construction, United Fiber & Data finished the network in 2019.

Hynes, 48, of York, who served as CEO, later resigned citing personal reasons after he was arrested on charges including burglary, stalking, forgery and related offenses.

Plans for a data center in the old York County Prison are on hold with the COVID-19 pandemic.

The Pennsylvania Public Utility Commission moved 3-2 to tentatively cancel the telecommunication company's certificate to provide services in the state, a decision that’s pending before the Bureau of Investigation and Enforcement.

And the company has yet to post a profit, reporting a nationwide net operating loss of $11.76 million in 2019, according to an annual report filed with the New Jersey Board of Public Utilities.

ALSO OF INTEREST:United Fiber & Data in York lost at least $25 million between 2015 and 2018, reports show

Contact Dylan Segelbaum at 717-771-2102, and Neil Strebig at 717-825-6582.

https://www.ydr.com/story/news/watchdog/202...ufd/3488233001/

[Hoodstock]

I'd have to imagine that these large financial issues, although separate, are having some type of impact on the band.

[Voodoo Lady]

Recently in another thread I had questioned Think Loud (as its social media pages are also silent). I wondered if it is still even in operation, and/or what it’s Covid operations for other artists have been like. Reason being, the silence from Līve during quarantine, when 3/4 of the band have a studio is strange, and now this comes to light. I agree that this has to have an impact on the band.

This post has been edited by Voodoo Lady: Sep 20 2020, 8:54 am

[kingparamecium]

I have no knowledge whatsoever about matters like this, and no idea what a band earns from shows like they've been doing the last few years, but just out of simple curiosity, I wonder if this has anything to do with them auctioning off royalties of past albums?

I'd like to think that if they have to pay that money that the band members could still support their families and live comfortably.

[Bremang]

I have no knowledge whatsoever about matters like this, and no idea what a band earns from shows like they've been doing the last few years, but just out of simple curiosity, I wonder if this has anything to do with them auctioning off royalties of past albums?

I'd like to think that if they have to pay that money that the band members could still support their families and live comfortably.

Chad G has some other business. I'm guessing they have their hands in other ventures.

[World Dreamer]

Safe to say this band is known for making awful decisions.

[dangum]

Kinsley awarded nearly $14M judgment against Think Loud-related business in York
Liz Evans Scolforo - York Dispatch

Kinsley Construction has obtained a nearly $14 million judgment against the company that owns the York City building housing Think Loud Development and United Fiber and Data.

All three companies are affiliated with the band Live and housed at 210 York St.

The judgment, issued in York County civil court on Sept. 17 against 120 York LLC, awards Kinsley about $8.5 million in principal, about $4.7 million in interest and more than $657,000 in late fees, according to court records.

In a statement, Live band member Chad Taylor said:

"Our legal counsel was made aware of the procedural filing, and view this as a necessary step towards resolving outstanding third-party tenant issues. We are working towards an amicable resolution with Kinsley, and will have no further comment."

The Kinsley Organization also released a statement in response to a request for comment:

"We take great pride in the work our team has performed for the Think Loud organization, including providing design and construction services to return the 210 York Street complex to active use, but we cannot comment on the pending litigation."

According to a complaint for confession of judgment filed Sept. 17 by Kinsley Construction Inc., 120 York LLC on Aug. 14, 2013, executed a promissory note for $15,912,000 to Kinsley in connection with a construction loan.

About the note: The note required payment in full, including interest and late charges, to be paid on the maturity date, which was defined as 30 days after Kinsley demanded payment, the complaint states.

The note was secured with an open-ended mortgage and security agreement, entered into on the same day as the promissory note, according to the complaint.

"Pursuant to the Note, if Defendant fails to make payments required under the Note, Kinsey may, and hereby does, declare the entire balance of principal and interest under the Note to be due and payable immediately," the complaint states.

Kinsley demanded payment of the principal and interest on July 13, and 120 York LLC defaulted under the note by failing to repay the loan within 30 days, according to the complaint.

Also on Sept. 17, 120 York LLC filed a confession of judgment in York County civil court, which acknowledged it owes Kinsley Construction $13,942,747, plus continuing interest at 8.25% per diem, as well as continuing late charges, attorney fees and court costs.

A judgment was entered the same day for that amount, according to court records.

Other Think Loud LLCs: There are a number of limited-liability companies registered with the Pennsylvania Department of State at the 210 York St. address.

They include Think Loud Advisors, Think Loud Allentown, Think Loud Capital, Think Loud Entertainment, Think Loud Investments, Think Loud Holdings, Think Loud Music, Think Loud Touring, Think Loud Studios and Think Loud Recording.

Think Loud Telco Fund LLC and Think Loud Telco Fund II LLC share an address of 135 N. George St. in York City, according to state records. Think Loud Dissolution Inc. had been registered with the state, but that registration was canceled, records state.

No individuals are named as officers of those businesses in public records.

$5M state grant: In 2014, then-Gov. Tom Corbett gave Think Loud Development $5 million in grant money from the Redevelopment Assistance Capital Program not knowing then-CEO Bill Hynes is felon. Hynes said he's no longer CEO at Think Loud Development.

After being told of Hynes' felony record a spokeswoman for Corbett said it wouldn't affect the grant, which had already been issued, The York Dispatch reported in 2014.

At the time, Hynes said the $5 million would be used to finish construction at 210 York St., which began in 2012 and was estimated to be a $16.8 million project.

https://www.yorkdispatch.com/story/news/loc...ork/5864598002/