Herald - Lantern - Dispatch 30 April '86

3 Get Loans To Expand Business

By E.J. Dl'FFY ERMA — Three companies won unanimous approval from Lower Township Council last week, each for $40,000 loans to expand their businesses and hire more employes. Those loans came from a revolving fund created by payments to the township from Container Decorating Corp. here on its $300,000 federal Small Cities loan through Lower. Cold Spring Fish & Supply Co. (The Lobster House). Schellenger's Landing; nearby Harbour Town Resort Marina , and Leader Enterprises (Parker's Liquor Store). Villas, are required to hire one employe for each of their $10^000. Township Manager James R. Stump has told Council. Approval of the loans last week followed by an hour Council's 4-1 decision to release township liens against the personal assets of Jay Knox, former Container executive vice president. His Connecticut property and the North Wild wood home of Container's expresident William Beiseigel were partial collateral on the $300,000 loan through Lower for the glass decorating company at the county airport industrial complex ( ONT A I N ER SH A R E II O L I) K R S dismissed both executives this time last year Beiseigel wanted out of the lien, last fall and Council voted 2-1 to release him in late February. Councilmen Robert F. Conroy Jr. and David F. Brand Jr. were in favor and Deputy Mayor Peggie Bieber bach opposed Mayor Robert Fothergill abstained with Councilman Joseph Longergan. That vote followed Stump's Feb. 10 report to Council on his contact with a Joe Gates from the state Department of Community Affairs which administers the federal Small Cities loans. Mt i^ his opinion that our requirements are too strict and that the state is consider ing pulling our entire (loan) program." StumpjWrote. "If this occurs. Container Decorating would make all its payments to the state and we would lose $llo[o82. "In addition." he continued. "Mr. Gates informed me that the state ( has > approved the economic development loan of approximately $140,000 U> Lion Tours (The state' will not release this money until this ( Container' issue is cleared up". Failure to clear this up will result in the loss of this ' money for Lion Tours»." * AFTER COUNCIL RELEASED Beiseigel from township liens, the state approved Lion Tours-Paglione Enterprise's township-sponsored application to buy a building at the airport complex, purchase more vehicles and employ 15-20 more people Approval also creates another revolving loan fund like Container's. Referring to the proposed release of Knox from township liens on that loan, Stump told Council last week i really didn't want to bring this up again, but I'm told I have to." .'•It's quite simple." Township Solicitor Bruce Gorman advised council members "If you let Beiseigel out (of the lien), you let Knox out." I don't want just machines for collateral.' replied Bieberbach. repeating her objection from February while casting the only vote against release of Knox's assets. "The state says we should release them." Stump stressed. "AS YOU ARE AWARE." he wrote .Council in the Feb. 19 memo, the current outstanding balance on the (Container' loan is $224,613 and the appraisal states that the equipment is valued at $566,185 " That was in "distress value." the ap praiser told Council in February; the fairmarket value, he said, was $82,000 1 firmly believe that my figures are c^Rrvative." he added "The market f<^%is equipment is very, very up " "The state has first lien 09 all the equipment. anyway." township treasurer Wade Cooper said earlier That came as a surprise to Bieberbach who. as mayor of the former Township Committee, took part in the Container loan negotiations several years ago. But. Cooper said. "The state was first lien from the very beginning " Michael Marshal, and Steve Waszen of Waszen Container Services purchased Container in December, company controller Joseph Smith confirmed Friday, declining to reveal the sales price. "...I HAVE BEEN INFORMED by

Wade (Cooper), representatives of Container Decorating, the state ...and Bruce Gorman that the agreement of sale... contained a clause whereas the new owners assumed all responsibility of the former corporation." Stump wrote Council on Feb. 19. "These responsibilities include the personal guarantees. Therefore, the original objection of Council has been eliminated." He was referring to Council's earlier tabling of the request to release Beiseigel unless the township liens were assumed by the new owners. "They assume the personal responsibilities." Cooper told Council Feb. 24. citing, like Stump, the sales agreement. "That's not exactly what. ..it says." said Gorman. "We might have a way to hold these fellows, but it's not ironclad." There's not enough evidence that the new owners are "on the hook" for township liens against their personal assets, he said, but apparently enough Container collateral to cover the loan and release Beiseigel. Bieberbach wanted to table the matter again on Feb. 24. but Mayor Fothergill said "I've got to put the ball in Bruce's court and ask for his expertise. "Bruce, are you satisfied?" the mayor asked the solicitor. "I would be completely satisfied." he replied, if the new ow ners' personal assets were covered by township liens. Ousted as president last spring. Beiseigel blamed Lower for failing to lease liens against his assets so he could use them toward purchasing Container from Cape Equity Investment. ^ "I had a workable plan that required both public and private financing." Beiseigel said last April, "but. without that release, we were unable to do it." "WE AGREED TO RELEASE the accounts receivable." Fothergill said then, "but it would have been kind of irresponsible for us to release the principals if the corporation was in trouble " In a secret March 5 meeting last year, freeholders told county Solicitor Louis Hornstine to close Container at 5 p.m. March 8 That threat brought a payment scheduled with personal guarantees from company investors. Four years ago. Beiseigel envisioned a company with 100 employes, but 65 of Hs 75-worker peak were laid off in March 1985. Financing ha»been Container's problem all along. Beiseigel was scurring for funds in the fall of 1982 when former county Economic Development Executive Director Donald M. Kelly helped gather investors willing to put up $250,000 to get the company rolling. THOSE INVESTORS INCLUDED lawyer Louis C. Dwyer Jr.. A. Keith Rasmussen. township auditor Harry M. Scott. "Pete" Barnes. Roy Gillian. Charles Guhr and Louis J Mazzarella. To get theic money. Beiseigel and Knox had to give them 52 percent of Container. Knox. Beiseigel and three other members of itsananagement team — Ray Avis. P Dale Sapello and controller Smith — were to share 48 percent after five years with the company. Despite BeLeigel's and Knox's attempt to huy out Cape Equity last April. Dwver said then investors felt Container "was losing too much money." . "It should be evident we felt the Msiness was not being managed to its capacity." he added. "There were substantial loss^ that couldn't continue or we would have none bankrupt" Container ii.vestors hired Suvisla Management Systems Inc. of Kenilworth. Union County, to run the companv after Beiseigel and Knox left with "additional capital" from "additional loans to the corporation by the shareholders." Dwyer had said. Meanwhile. Beiseigel traced his troubles to Kelly's involvement with Container. Kelly quit his county job in June 1983 after the freeholders suspended him in the wake of his financial arrangements with "M.B. Friend Co.." Kelly's friend Lois Goodpaster of New Holland. Pa. Beiseigel said last year that the publicityhurt Container's image and its ability to raise money. "We should have had three times the amount we had to start out with." he complained. "The Don Kelly thing was the biggest problem; it prevented us from doing proper financing."

^Ig^NEWS ^fas?/ DIGEST ) H j The Week's // // // Top Stories (From page 1) and under agreement of sale to H.P.H. Limited, a local partnership that wants to ' sell the lots as undeveloped land. Johnson, Dunn OCEAN CITY — Donald Johnson, who held the post three times before, was elected president during the city school board's annual reorganization meeting April 22 by a 5-4 vote. Joe Iudica, Gerard Walker. Dr. Ernest Dunn and Jean Serber supported him; Maryann Lanchoney, Jane Glenn and Patricia Harris backed outgoing president Jeanne Gorman. Dunn was elected vice president unanimously. Full-Time EMT Hired RIO GRANDE - Fred Baker, a veteran volunteer of the Rio Grande rescue station, has been hired as a fulltime emergency medical technician and will earn $13,500. Baker will work from 8 a.m. to 4 p.m. daily and will be on standby for two hours before and after each shift. Middle Township Mayor Michael J. Voll said the hiring may signal the end of volunteer rescue squads here. Voll also said one more EMT will be hired before the summer season. Suspicious Salesmen S Police are warning county merchants to beware of men selling advertisements for Armed Forces News, a publication that may not exist. There are no records of any solicitation permits for the men. who claim to be working with U.S. Coast Guard officials in Cape May. The Coast Guard has no knowledge of the men. Anyone asked to take out an advertisement in the magazine should contact police. 3rd Boardwalk Murder WILDWOOD — Barbara L. "Bonnie" Marks. 27. of E. Spicer Avenue, became the third woman murder victim since 1970 to be found under the Boardwalk here when her partially nude corpse was discovered by a carpenter under Hunt's Pier off Juniper Street last Wednesday morning. Patricia A. Thompson. 21. of Moorestown, was found under Fun Pier, nude and strangled June 1. 1982. And Carol Hill. 20. of Philadelphia, was found strangled and raped under Hunt's Pier June 8. 1970. None of the murders were solved. 9 Years for Pallotto COURT HOUSE - Regis Pallotto. 32. who became a fugitive in January 1985 and was returned to the county jail Dec 3. was sentenced to nine years in state prison for various forgery charges totaling around $2,900. The offenses took place between November and December 1984 and January 1985. Superior Court Judge James A. O'Neill ruled that Pallotto must spr£& two years before being eligible for parole. Robbed at Knifejtoint DIAS CREEK — Thomas K. Dunne of Delsea Drive told police that two masked men entered his home last Wednesday, forced him to the floor and took his wallet, which contained $15 or $20. One of the men had a knife. His assailants were described as white males of average height and slender builds. Middle Township Police are continuing to investigate. Remains Discovered DENNISVILLE — A teenager walking his dog-near Route 47 found skeletal remains that may be those of Keith leadbeater, who disappeared May 14. 1984. Henry P. Leadbeater Sr. said his 19-year-old son showed signs of depression before his disappearance. The remains were found about 400 feet from the Leadbeater house.

Death by Auto Charge WHITESBORO — Lucille Farley, 55. of the 100 block of E. Main Street, was charged wiUvtterth by auto, driving under the influence of alcohol and driving with a revoked driver's license in connection with a April 20 car crash that killed her husband Charles. 87. Farley struck a utility pole at the southwest corner of Garfield Avenue and Park Boulevard here. She was released on her own recognizance. Charged in Robbery NORTH WILDWOOD - James C. Roy. 24. of the 400 block of West Poplar Avenue. Wildwood. was charged by police here on Thursday with the armed robbery of the Wawa store at Fourth and New Jersey avenues around 11:45 last Wednesday. He was also charged with unlawful use of handgun and escape Superior Court Judge James A. O'Neill set bail for Roy at $50,000 cash, then revoked it when it was learned Roy allegedly violated probation' requirements from an earlier crime. Crash Injures 2 OCEAN CITY - Keith' Brown, 22. of the 100 block of Martin Terrace. Pleasantville. was thrown from his car and a passenger. Michelle Henry. i9, of North Second Street, Pleasantville. banged her head on its interior after it skidded on a wet metal bridge grate and hit a guardrail on Beach Thoroughfare Bridge Neither was wearing a seatbelt. police said. Brown and Henry were treated and released from Shore Memorial Hospital in Somers Point. Guilty of Conspiracy BELLEPLAIN — Randolph Mason. 24. was sentenced in Bridgeton Friday to 10 years in state prison with no parole for at least five years for conspiracy in the July 23. 1984 robbery-murder of Alice Riendeau, 65. of Millville. Superior Court Judge Isaac Serata gave him the maximum sentence allowed by law. Conceptual Mall NORTH CAPE MAY — R.M Singer Associations Inc. is expected to present preliminary plans in July for a 250,000 square-foot Holly Beach Mall on 37 acres at Bayshore Road between Ferry and Town Bank roads here. Lower Township Planning Director Harry W McVey confirmed Monday. Municipal planners and the Maryland developers discussed conceptual plans for the $14 million project Thursday. The enclosed complex is supposed to include a Super Fresh, discount and fashion department stores. Facing CAFRA NORTH CAPE MAY - Oxford Development won minor and preliminary site plan approvals, plus hardship variances from parking ahd setback requirements. from Lower Township planners last week for a 120-bed nursing home and 243-unit retirement care complex on 25.66 acres at Bayshore and Town Bank roads here, township Planning Director Harry W. McVey reported Monday. Final approval is pending a state CAFRA (Coastal Area Facilities Review Act) permit and McVey acknowedged "some problems" with it regarding water recharge areas. Budget Adopted VILLAS — Lower Township Council unanimously adopted a $6,757,414 municipal budget Monday that projects no increase in the tax rate that soared last year from 36-53 cents on each $100 of assessed property value. Scheduled for adoption last week, the vote was delayed by last minute changes Present last week, when she said she would support adoption. Deputy Mayor Pecgie Bieberbach was on vacation Monday.