Todd, gaming commission reach settlement

April 03, 1998|By MARLO BARNHART

The Todd Education Foundation of Hagerstown has agreed to pay $150,000 to the Washington County Gaming Commission after two years of legal wranging over control of tip jar proceeds.

Both sides said they were happy with the settlement, which was announced on Thursday morning in Washington County Circuit Court.

The gaming commission, which distributes tip jar gambling profits to local charities, will get the money it has always claimed the nonprofit Todd Educational Foundation owed from its tip jar proceeds two years ago.

Settlement terms are:

* Within 10 days of the written agreement, the foundation will pay $25,000 cash to the gaming fund.

* Todd will pay $125,000, in 10 equal semiannual installments beginning in June 1999. There is a discount provision for early payment.

* The $125,000 note is to be personally guaranteed by Robert and Roberta Lauver, B&B Games.

* Indemnity mortgages will be placed on 1249 Ravenwood Heights, the Lauver's primary residence; a rental property at 119-120 N. Conococheague St., Williamsport, and conditional assignments of future rents on that property.


* The gaming commission is to get a security interest on B&B Games, R&R Partnership, TCR Limited, Playland and all equipment until the installments are paid off.

* B&B Games will provide a list of all that equipment owned by Todd Educational and Todd Amusements.

* All recording costs for this settlement will be paid by Todd Educational.

* Within 10 days of the filing of the written settlement, a dismissal of the legal action will be filed in Washington County Circuit Court.

Bobby Lauver, owner of Todd Amusements/Todd Educational Fund, said he now will be able to begin creating a recreational area for area youth.

"We are going to take the $110,000 left in the fund and put up the family recreation area I've been planning," Lauver said. "This is for the county and for the kids."

His attorney, Kent Crabbe, said the settlement allows Lauver to put up the nonprofit facility with the proceeds to go to charity.

Gaming commission attorney Bill Schildt said the actual cash amount is probably more like $43,000 plus the $52,000 investment Todd Educational made on batting cages.

The issue arose in 1996 over who had the right to administer $262,000 in tip jar funds collected by Todd Education between July 1, 1995, and June 30, 1996. That money had been in escrow until August 1996 when it was distributed by court order.

At that time, $103,000 of the $262,000 went to fire and rescue organizations and $32,000 went to recognized charities.

Of the disputed $127,000, $52,000 went to batting cages and $19,000 was used to pay Lauver's legal expenses, Schildt said. That is the money that is being directed into the gaming fund.

Over the life of the agreement, Schildt said, the county will recoup about $150,000, which will go to the gaming fund for distribution to local charities.

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