Montgomery County Will Foot The Bill In Failed Movie Studio Project Lawsuit
By Kristen Johanson
NORRISTOWN, Pa., (CBS) -- Developer Charles Gallub asked Montgomery County officials to help fund a renovation project, turning an abandoned building at Johnson Street and Markley Street in Norristown, into a premiere movie studio.
At the time, the county administrators were Jim Matthews, Joe Hoeffle, III and Bruce Castor.
The county shelled more than $25 million in taxpayer, and state and federal loans.
In 2010, the movie studio plan failed, and was redesigned into an office-retail complex.
The building eventually went into foreclosure, and Gallub filed for bankruptcy.
The County filed lawsuits against Gallub, in efforts to regain the loss. After much back and forth, Montgomery County will settle next week in federal court, for about 3 percent of what was given.
"The county and Norristown will receive about $800,000 from the bankruptcy proceedings. And that money will divided, two-third's coming to the county and one-third going to Norristown," said Frank Custer, Montgomery County Director of Communications.
"This administration has to make sure to -- minimize the loses and make sure the county got as good a deal as it could out of the bankruptcy proceedings."
The settlement is planned to be finalized October 15th.