August Wilson Center's financial woes leave little guys in a lurch
Richard Harkins wants the $1,227 paycheck he earned in October.
The 35-year-old stagehand knows his claim amounts to pocket change against the $10 million in debts plaguing the August Wilson Center for African American Culture.
But for Harkins, getting stiffed for 103 hours of work on three back-to-back Pittsburgh Cultural Trust events at the August Wilson Center meant nearly missing a mortgage payment, borrowing from extended family to cover bills and struggling to buy Christmas presents for his wife and three children.
“It was like a kick in the head,” said Harkins, 35, of Brookline. “We were guaranteed we were going to have our money; I just wanted to know where that money went.”
He's among 59 stagehands and a slew of small vendors owed money for work completed last year amid the August Wilson Center's dire financial straits and subsequent fall into conservatorship in late November. As the broader battle for control of the Downtown building plays out in court, Harkins and others like him are stuck wondering whether they'll ever be paid.
“These are people who went to work in good faith, expecting to get paid, and they're still waiting,” said Ernest Orsatti, the Downtown attorney representing the stagehands union employees in a set of lawsuits against the August Wilson Center.
The center owes about $33,000 in compensation to employees with the International Alliance of Theatrical Stage Employees Local 3, according to court documents Orsatti filed. That includes about $22,200 in wages, $6,000 in deductions from employee paychecks and $5,000 in promised benefits. The total would be $10,000 higher, but an anonymous donor pitched in $10,000 toward the bill this year.
The bulk of the wages owed goes to five employees each owed between $1,200 and $3,000. Most of their work went into a two-week build-out preparing the center's 486-seat theater for “Zimmermann & de Perrot,” a three-day show The Pittsburgh Cultural Trust put on Oct. 16-18.
The Cultural Trust paid the center for the labor — but the money didn't make it to the workers, Orsatti said. The union contends the center deducted union dues and vacation benefits from employee paychecks, but spent the money elsewhere.
Oliver Byrd, interim CEO of the August Wilson Center from April 2013 to mid-November, said during his tenure he contacted vendors daily to ensure they knew about the center's financial situation.
“We would never have entered into an agreement to do anything or put on any event without knowing the (funds) would be there to pay for it,” Byrd said. “When the court gave the key to the conservator, they took over the assets.”
Christopher Barker, 28, of Dormont is the stagehand employee owed the most — $2,895 plus benefits for 201 hours of work.
“Everybody keeps asking me about when they're going to get paid,” Barker said, “and all I can tell them is there's a legal battle above our heads right now.”
Court-appointed receiver Judith K. Fitzgerald is trying to stave off an Oct. 6 sheriff's sale of the August Wilson Center by closing a $9.5 million sale on the Downtown building and its air rights to hotel developer 980 Liberty Partners — a plan that has drawn staunch opposition from top civic leaders, local foundations, the Pittsburgh Urban Redevelopment Authority and state Attorney General's Office.
The stagehand employees and other unsecured creditors could be repaid from proceeds of a sale, but they're last on the priority list. Fitzgerald, who racked up $691,000 in fees for herself, her lawyers and her consultants as of June, would be paid first, followed by Dollar Bank, which is owed more than $8 million and rising.
“It's a moving target with the ongoing court case, but our intention when we made the offer certainly was the unsecured creditors should be addressed,” said Matthew Shollar, of 980 Liberty Partners.
A $7.2 million back-up bid from a foundation coalition would not cover the full amount owed Dollar Bank, making it unclear whether under that outcome smaller creditors would be paid anything. It's up to the court to determine who gets paid and in which order, said The Heinz Endowments President Grant Oliphant, who represents the foundation coalition.
“We would love to see everybody repaid,” Oliphant said, “but what we're focusing on is buying this building to save it for the community.”
Natasha Lindstrom is a staff writer for Trib Total Media. She can be reached at 412-380-8514 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- 12-year-old’s donated heart joins families, lets her memory live
- Pittsburgh police officers start wearing video cameras
- Proposal to limit access divides Penn Hills, Homewood neighborhoods
- Former Rollier’s store to become art gallery, cafe
- Foundation donates $350K to revitalize facades in Downtown Pittsburgh
- Executive order tightens security to combat identity fraud
- City suspending trash collection Tuesday to honor slain worker
- Allegheny County Council members outspend expense accounts
- Rules hamper Franklin Regional attack victim scholarships
- Pittsburgh Trails Advocacy Group volunteers cut trail in South Park
- Newsmaker: Thomas J. Usher