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Allegheny says net proceeds from sale were $10.8 million

June 17, 2005|by DANIEL J. SERNOVITZ

daniels@herald-mail.com

Allegheny Energy Inc. reported $10.8 million in net-cash proceeds in May from the combined sale of its 49-acre former Hagerstown corporate headquarters and its 320-acre Friendship Technology Park to a Hagerstown development company with ties to Hagerstown fuel distribution company A.C. & T.

Allegheny spokesman Allen Staggers said the company agreed not to divulge the exact sale price at the request of purchaser Oak Ridge XVIII LLC. As part of an amendment to its 10-Q quarterly report, filed with the Securities and Exchange Commission on May 10, Allegheny reported the anticipated net sale amount. Staggers confirmed that figure Thursday and said, factoring in expenses associated with the transaction, the actual sale price was more than $10.8 million. The sale has not yet been recorded with the Maryland Department of Assessments and Taxation nor has Allegheny reported the income to the SEC yet.

The utility company moved its corporate headquarters from Downsville Pike to Greensburg, Pa., last year and since April 2004 had been trying to sell the land. Allegheny opened the Friendship Technology Park in 1988 and had hoped to develop the site as an incubator for research, development and technology companies. Only one business, Mountainside Teleport Corp., bought land at the business park.

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Allegheny sold the Downsville Pike sites to Oak Ridge XVIII LLC, a company which formed April 7, according to information on the Maryland Department of Assessments and Taxation Web site. Bradley A. Fulton, vice president of A.C. & T., registered himself as the resident agent for Oak Ridge and listed 11535 Hopewell Road, also the mailing address for A.C. & T., as the company's initial principal mailing address.

Fulton has not returned several calls for comment since Allegheny Energy first announced the sale May 20. He was out of the office this week, according to A.C. & T. Adna B. Fulton, president of A.C. & T., previously said he was not associated with Oak Ridge but declined to speak for others within A.C. & T.

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