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I-Team Investigation: Hazleton Real Estate Deal Questioned

I-Team Investigation: Hazleton Real Estate Deal Questioned - Wednesday, April 29, 2009 at 5:53PM EST

Reported by: Joe Holden
Wednesday, Apr 29, 2009 @ 05:53pm EST
HAZLETON, LUZERNE COUNTY- A Hazleton real estate deal settled three years ago is under the microscope again. The climate of corruption has led to the federal review of some cases brought before the Luzerne County courts.

This case deals with the school district's track and field complex. Did Hazleton area overpay for land? Some board members said they were hosed after the case came before ex-judge Mark Ciavarella.

The sale of this track and field complex is still stirring controversy, three years after it was settled in Ciavarella's courtroom.

Some school board members were bowled over by the judge's decision. Now their concerns have been turned over to federal authorities. Bob Childs of the Hazleton Area School Board said, “We've contacted the line out there, the telephone line, that says if you want a case reviewed, we say yeah this is one we want to have reviewed. That was a nuts verdict.”

Childs couldn't understand how the property was worth more than $700,000. Before the land became a place for kids and athletes, records show it was a dump.

601 Corporation and the D'Amato family owned it. Hazleton Area had seized it under eminent domain. The value of the property fluctuated over the years, anywhere from $76,000 to $150,000. But $700,000?

Hazleton Area Board member Steve Hahn said, “The number seemed way out of the ballpark as far as anything ever tossed around in terms of a verdict or number they would come up with.”

Two appraisers working for the property owner said the land was worth around $700,000. But when the price war came before a neutral party, the land value came in at $200,000.

The issue dragged into court. An appraiser hired by the district says during the two-day trial, Ciavarella was hostile. The judge sided with 601 Corporation and the D'Amatos. “We all just left with our jaws wide open because what can you say when you get a verdict like that, absolutely incredible,” said Childs.

“He was presiding over that case and it's certainly cause to take another look at that whole case and see how he came up with that kind of a number,” added Hahn.

We contacted Ciavarella who's awaiting sentencing on federal corruption charges. Speaking through his lawyer, we were cautioned to read the entire court record. The feeling on everybody's part on the board was they were outraged and we shouldn't have to pay that. Let's appeal this because this doesn't seem right,” added Hahn.

But no appeal was filed and the matter was dropped. Board members say they were told by their attorney, Ed McNelis, the process would've been too costly.

McNelis declined to speak with us on camera. An attorney for the D'Amato family never got back to us. One appraiser said he's contemplated going to the FBI about the difference in value and opinion.

Steve Hahn said, “Maybe they'll be somebody looking at these and be willing to look back over five years, eight years ago and really investigate some things and put some people in jail.”

We paid a visit to the D'Amato family. They referred us to attorney, who again, never got back to us about our request for an on-camera interview.

And an appraiser who worked on behalf of the school district said he's had the FBI's number handy for a long time. The FBI had no comment on our investigation.

 


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