Mount Calvary seeks Chapter 11 bankruptcy protection from creditors
By JORDYN GRZELEWSKI
and JUSTIN WIER
news@vindy.com
YOUNGSTOWN
Mount Calvary Pentecostal Church of Youngstown, beset by financial difficulties for many years, has filed for Chapter 11 bankruptcy protection from creditors.
“We are in an ongoing, very aggressive process of restructuring and reorganizing with the intent and the endeavor of coming through this process stronger than we’ve ever been,” the Rev. C. Shawn Tyson told The Vindicator.
The church, based at 1812 Oak Hill Ave., filed a voluntary petition for bankruptcy, according to U.S. Bankruptcy Court documents. Chapter 11 bankruptcy allows entities to reorganize and pay creditors over a period of time.
In a news release announcing the unanimous decision by Calvary’s board of trustees, the church stated: “This process allows Mount Calvary to continue normal business operations while restructuring the [church’s] finances and contractual relationships.”
The filing lists the church’s creditors, the largest claim being a secured claim of $1.7 million by America’s Christian Credit Union. A secured claim is backed up by collateral. In this case, the church put up $175,000 collateral.
Also, the church indicated that it has between one and 49 creditors, and has estimated assets of between $100,001 and $500,000. The church’s debts exceed $1.8 million, according to the filing.
The Rev. Mr. Tyson declined to comment specifically on church finances, but when asked whether Mount Calvary planned to sell any of its properties, he said no.
Mount Calvary has a history of financial problems, according to Vindicator files. The church purchased the former Idora Park property in 1985 with plans of turning it into a “City of God” complex with a nursing home, counseling center, shopping plaza, retirement home and religious education and worship facilities.
By 1989, the Idora Park parcel went to sheriff’s auction. The church purchased the property again in 1994, but the City of God never materialized. The church obtained several loans over the years using the park as collateral, and faced foreclosure on the Idora property.
The proposed complex was dealt a blow when the park’s ballroom burned in 2001. Following that, the church removed all remaining rides and structures from the property.
Mount Calvary also started a charter school, the Legacy Academy for Leaders and the Arts, which closed in 2011 after yielding a $598,000 operating loss over 10 years of operation. The state auditor conducted a special audit of the school in 2011 and found $352,000 in unexplained expenditures. Auditor Dave Yost said he’d seen “better documentation at a lemonade stand.”
A previous education endeavor, Calvary Christian Academy, closed in 2001. Former Youngstown Mayor Jay Williams graduated from the school.
The church suffered another blow when the church building caught fire in 2013, although the church was able to have services the following week.
The church also operates the Norman L. Wagner Towers, 70 senior-living apartments at 1840 Market St. Initially the Calvary Towers, the complex was renamed after the church’s former bishop who died in 2010. Wagner Towers, which is owned by a holding company that is not included in the bankruptcy petition, is valued at $1.5 million by the Mahoning County auditor.
In addition to the park and Wagner Towers, the church owns the property at 1812 Oak Hill Ave. where the church is located.
Calvary offers a number of services, ranging from music and creative arts programs; men’s, women’s, youth, and children’s ministries; Sunday school classes; and health and wellness programming; according to Calvary Ministries International’s website. Mr. Tyson said the church has a congregation of approximately 500 people.
“The objective is that Mount Calvary can continue to provide the spiritual, the educational, and the social services that this church has always provided for this community, and that we will continue to provide. That’s where we’re at, and what has motivated this decision,” he said.
As for the time line of the restructuring, Mr. Tyson said: “There has been no specific time frame that has been rendered as of yet, but of course we’d like to get through it as expeditiously as possible.”
He added: “Mount Calvary is fully committed to continuing its service to this community, and certainly appreciates the support and the prayers of this community that has supported us down through the years.”
A meeting of creditors is scheduled for March 23 at the U.S. Bankruptcy Court in the federal courthouse downtown. The church’s attorney is Andrew Suhar of Suhar & Macejko, LLC, of Youngstown.