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September 12 2011 14:38

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Sports Centre must pay MCC, answer subpoena about political gifts
Andreatta, David. Rochester Democrat and Chronicle [Rochester, N.Y] 15 June 2011.

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Abstract
[...] in an unrelated matter, an executive of the organization, Monroe Community Sports Centre Corp., acknowledged Tuesday that it had received a subpoena from the state attorney general for documentation related to checks it cut to political campaigns -- a move that could breach federal tax laws barring some nonprofits from engaging in political activity.

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A state judge has ordered the nonprofit organization that oversees The Sports Centre at Monroe Community College to pay nearly $745,000 in overdue lease payments and interest to the college. Meanwhile, in an unrelated matter, an executive of the organization, Monroe Community Sports Centre Corp., acknowledged Tuesday that it had received a subpoena from the state attorney general for documentation related to checks it cut to political campaigns -- a move that could breach federal tax laws barring some nonprofits from engaging in political activity. The judgment against the Sports Centre Corp. late last week came two months after the college filed suit in state Supreme Court for the money. The problem stems from a 2004 agreement between the two sides to settle delinquent lease payments that were in arrears at the time. Financial records show the organization is supposed to pay the college about $18,800 a month to lease the land on the Brighton campus and for maintenance. MCC spokeswoman Cynthia Cooper called the judgment a "positive step." "Our interest has been and remains in doing what is necessary and prudent to recover funds that are owed to the college," Cooper said. "The (Sports Centre Corp.) has offered to meet with the college to discuss next steps and we look forward to that meeting." The organization had argued that the overdue lease payments were subordinate to the millions of dollars owed to holders of bonds issued to construct the Sports Centre in the late 1990s. The organization has been attempting to restructure its bond debt for years. But the judgment effectively puts the overdue lease payments ahead of bondholders.

Roger Rassman, acting president of the Sports Centre Corp., said the judgment would not jeopardize any future restructuring because repaying the college was an obligation the organization had always planned to meet. He added that the organization was working with the college to develop a payment plan. On the other matter, Rassman said in an e-mail that the organization had been subpoenaed but declined further comment. A spokeswoman for Attorney General Eric Schneiderman would neither confirm nor deny that a subpoena had been issued. The Sports Centre Corp. has acknowledged writing seven checks totaling $12,650 to the campaigns of Assemblyman Bill Reilich, state Sen. Jim Alesi and former Assemblyman Joseph Errigo between 2004 and 2008. But center officials dispute that the checks could be classified as political gifts because, they said, the payments were made at the behest of the private company that manages the Sports Centre facility in lieu of a portion of its management fee. Federal tax law bars nonprofits like the Sports Centre Corp. from making political contributions. Violations may result in revocation of a nonprofit's tax-exempt status. There is nothing illegal about the campaigns accepting such payments. DANDREAT@DemocratandChronicle.com ID_Code: A2201110106140017

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Indexing (details)
Subjects Nonprofit organizations, Politics, Community colleges, Attorneys general Monroe Community College (NAICS: 611210) Sports Centre must pay MCC, answer subpoena about political gifts Andreatta, David Rochester Democrat and Chronicle 2011 Jun 15, 2011 2011 NEWS Gannett Co., Inc. Rochester, N.Y. United States

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Newspapers English News Nonprofit organizations, Politics, Community colleges, Attorneys general 871904429 http://ezproxy.drake.brockport.edu:2048/login?url=http://search.proqu est.com/docview/871904429?accountid=26985 Copyright 2011 - Rochester Democrat and Chronicle NY - All Rights Reserved 2011-06-15 Rochester Democrat and Chronicle << Link to document in ProQuest

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