In re Pittsburgh-Duquesne Development Co.

327 F. Supp. 1194, 1971 U.S. Dist. LEXIS 12908
CourtDistrict Court, W.D. Pennsylvania
DecidedJune 11, 1971
DocketNo. 69-183
StatusPublished

This text of 327 F. Supp. 1194 (In re Pittsburgh-Duquesne Development Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Pittsburgh-Duquesne Development Co., 327 F. Supp. 1194, 1971 U.S. Dist. LEXIS 12908 (W.D. Pa. 1971).

Opinion

OPINION

ROSENBERG, District Judge.

Presently before me for consideration is the “Application of Trustee for Authority to Borrow Money” in a sum not to exceed $30,000.00 for the purpose of making certain repairs and improvements on the remaining asset of the debtor’s estate, in order to prepare that asset in accordance with a sub-lease agreement with the United States General Services Administration (“GSA”).

This action was commenced as a Real Property Arrangement under § 422 of Chapter XII of the Bankruptcy Act, 11 U.S.C. § 822. On May 29,1969 the debtor was authorized to remain in possession and all persons were enjoined from interfering with that possession. On August 14, 1969, the Trustee was appointed.

The property to which the Trustee came into possession consisted of an apartment building known as the Cricklewood Hill Apartments, and an older brick building estimated to be about 75 years old, known as the Pepsi-Cola Building, and sometimes known as the Geyer Building. The more valuable of the two was the apartment building. The apartment building was encumbered by two mortgages. The first as security for a sum of money owing to Prudential Insurance Company of America (“Prudential”), and the second as security for a sum of money owing to Equitable Gas Company.

The Urban Redevelopment Authority of Pittsburgh (“Urban”) had entered into a lease with the debtor and the lease related to certain improvements to be made in combination with both the apartment building and the Pepsi-Cola Building, such as landscaping and street improvements.

In particular Sections 601 and 602 of the lease, in essence provided that no later than three (3) months from the date of the lease the redeveloper was to commence landscaping of the property, the construction of an open air-parking lot, the renovation of the Pepsi-Cola Building, and certain street improvements, to be completed within thirty (30) months of commencement of the construction.

While no evidence was presented at the last hearing, I am aware of the circumstances regarding the plans that the landscaping and street improvements were appurtenant to the Cricklewood apartment building rather than to the Pepsi-Cola Building, and that these actually do not relate to the Pepsi-Cola Building. The Trustee at the last hearing testified that he was informed by Urban’s Executive Director that the only requirement for fulfilling the original plan as it related to the Pepsi-Cola Building was to bring in electricity and water, and that the use of the facility as a garage was most appropriate. The electricity and water repairs, the Trustee testified, were being included in the present repairs now being made to the Pepsi-Cola Building.

After a series of unsuccessful attempts to present arrangements, on April 1, 1971 upon petition of Prudential as holder of the first mortgage on the apartment building, Prudential was allowed to foreclose on its mortgage against the apartment building real estate of the debtor. There remained as assets of the debtor only the so-called Pepsi-Cola Building which is here now for consideration.

Over a long period of time the Trustee attempted to lease the Pepsi-Cola Building for any reasonable commercial or parking purpose, and only recently succeeded in procuring such a lease from GSA. The lease requires that the Trustee put the building in a useable condition. Pursuant to the terms of the sublease, the Trustee has already commenced and has made provisions for removing substantial amounts of debris; removing and replacing defective and obsolete pipes and electrical conduits; replacing damaged and missing doors; replacing bro[1196]*1196ken windows; spray painting the entire two floors involved in the sub-lease with a basic coat of white paint; replacing the fittings in an old office; replacing damaged or missing washroom and toilet facilities ; and correcting walls which were buckling due to earth pressure. These repairs were considered necessary to render the 75 year old structure which had previously been used as a commercial building and garage in a condition suitable for such occupancy.

Because certain funds now in the hands of the Trustee are being claimed by Prudential for tenants in the apartment building as deposits on the payment of rents, Prudential asserts it is entitled to such funds, or at least a part of them. Accordingly, the Trustee has no funds for the payment of the repairs and petitioned this Court for the allowance to borrow a sum of money up to $30,000.00 for the payment of repairs being made to the Pepsi-Cola Building.

Urban has objected to allowance of this petition on the grounds that the Trustee is in default on the original lease between Urban and the debtor and for this reason Urban has informed the Trustee that it has terminated the lease. The lease in question was for a term of ninety-nine years commencing on November 25, 1966. It provides for a monthly rental of $461.50 with an option to the lessee to purchase the leased premises for a price of $92,300.00 plus certain adjustments.

It would seem that Urban claims that the lease has been terminated for reasons which are not exactly explicit, but which include in its contention that the Trustee has not complied with the requirement for the renovation of the Pepsi-Cola Building, and that the expenditure of funds for improvements amounts to a renovation

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mosser v. Darrow
341 U.S. 267 (Supreme Court, 1951)
In re Imperial "400" National, Inc.
429 F.2d 671 (Third Circuit, 1970)
In re Imperial "400" National, Inc.
429 F.2d 680 (Third Circuit, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
327 F. Supp. 1194, 1971 U.S. Dist. LEXIS 12908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-pittsburgh-duquesne-development-co-pawd-1971.