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Document 1 of 1Sports Centre must pay MCC, answer subpoena about politicalgiftsAndreatta, David. Rochester Democrat and Chronicle [Rochester, N.Y] 15 June 2011.

_______________________________________________________________Find a copy_______________________________________________________________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.

_______________________________________________________________Full TextA 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 CommunitySports 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 amonth 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.

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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

_______________________________________________________________Indexing (details)Subjects Nonprofit organizations, Politics, Community colleges, Attorneys

general

Company/Org Monroe Community College (NAICS: 611210)

Title Sports Centre must pay MCC, answer subpoena about political gifts

Authors Andreatta, David

Publication title Rochester Democrat and Chronicle

Publication year 2011

Publication Date Jun 15, 2011

Year 2011

Section NEWS

Publisher Gannett Co., Inc.

Place of Publication Rochester, N.Y.

Country of publication United States

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Source type Newspapers

Language of Publication English

Document type News

Subfile Nonprofit organizations, Politics, Community colleges, Attorneys

general

ProQuest Document ID 871904429

Document URL http://ezproxy.drake.brockport.edu:2048/login?url=http://search.proqu

est.com/docview/871904429?accountid=26985

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Last updated 2011-06-15

Database Rochester Democrat and Chronicle