City: Lawsuit against Amerks owners doesn't change situation
This entry was posted on 7/6/2007 2:22 AM and is filed under Amerks.
A spokesman for the city of Rochester said the city’s position on Blue Cross Arena lease negotiations has not changed in light of the allegations of financial mismanagement against Amerks and Knighthawks co-owners Steve Donner and Walter Turek.
City Communications Director Gary Walker said Rochester officials are still waiting on the pending results of an independent audit of the teams’ finances before commenting on or reacting to the lawsuit filed in June by Amerks/Knighthawks co-owner Randall LaTona.
In the lawsuit, LaTona charges his partners, Donner and Turek, with severe financial mismanagement and asks that Donner be removed from control of the hockey and indoor lacrosse teams.
LaTona's lawsuit came three months after Donner demanded that the teams receive a more favorable lease agreement at Blue Cross Arena, claiming that the Amerks and Knighthawks are losing money, largely because the teams don’t receive a cut of the concession revenue at the arena.
In response, city officials demanded that Donner open the teams’ books to an audit before the teams are given a better lease deal and any further financial support from the city.
Walker said on Thursday that the city has no position on the fact that the businessman who asked the city for more money is now being sued for financial mismanagement.
“The lawsuit is company business,” Walker said. “We really don’t have any comment.
“We’re simply going to make our decision based on the findings of the audit,” he added.
Walker said the audit is currently underway, but he said there’s no timetable for its completion.
“We’re committed to the Amerks and Knighthawks,” he said. “We just want to make sure the citizens’ money is being spent wisely.”