Kinsley awarded nearly $14M judgment against Think Loud-related business in York
Kinsley Construction has obtained a nearly $14 million judgment against the company that owns the York City building housing Think Loud Development and United Fiber and Data.
All three companies are affiliated with the band Live and housed at 210 York St.
The judgment, issued in York County civil court on Sept. 17 against 120 York LLC, awards Kinsley about $8.5 million in principal, about $4.7 million in interest and more than $657,000 in late fees, according to court records.
In a statement, Live band member Chad Taylor said:
"Our legal counsel was made aware of the procedural filing, and view this as a necessary step towards resolving outstanding third-party tenant issues. We are working towards an amicable resolution with Kinsley, and will have no further comment."
The Kinsley Organization also released a statement in response to a request for comment:
"We take great pride in the work our team has performed for the Think Loud organization, including providing design and construction services to return the 210 York Street complex to active use, but we cannot comment on the pending litigation."
According to a complaint for confession of judgment filed Sept. 17 by Kinsley Construction Inc., 120 York LLC on Aug. 14, 2013, executed a promissory note for $15,912,000 to Kinsley in connection with a construction loan.
About the note: The note required payment in full, including interest and late charges, to be paid on the maturity date, which was defined as 30 days after Kinsley demanded payment, the complaint states.
The note was secured with an open-ended mortgage and security agreement, entered into on the same day as the promissory note, according to the complaint.
"Pursuant to the Note, if Defendant fails to make payments required under the Note, Kinsey may, and hereby does, declare the entire balance of principal and interest under the Note to be due and payable immediately," the complaint states.
Kinsley demanded payment of the principal and interest on July 13, and 120 York LLC defaulted under the note by failing to repay the loan within 30 days, according to the complaint.
Also on Sept. 17, 120 York LLC filed a confession of judgment in York County civil court, which acknowledged it owes Kinsley Construction $13,942,747, plus continuing interest at 8.25% per diem, as well as continuing late charges, attorney fees and court costs.
A judgment was entered the same day for that amount, according to court records.
Other Think Loud LLCs: There are a number of limited liability companies registered with the Pennsylvania Department of State at the 210 York St. address.
They include Think Loud Advisors, Think Loud Allentown, Think Loud Capital, Think Loud Entertainment, Think Loud Investments, Think Loud Holdings, Think Loud Music, Think Loud Touring, Think Loud Studios and Think Loud Recording.
Think Loud Telco Fund LLC and Think Loud Telco Fund II LLC share an address of 135 N. George St. in York City, according to state records. Think Loud Dissolution Inc. had been registered with the state, but that registration was canceled, records state.
No individuals are named as officers of those businesses in public records.
$5M state grant: In 2014, then-Gov. Tom Corbett gave Think Loud Development $5 million in grant money from the Redevelopment Assistance Capital Program not knowing then-CEO Bill Hynes is a felon. Hynes said he's no longer CEO at Think Loud Development.
After being told of Hynes' felony record, a spokeswoman for Corbett said it wouldn't affect the grant, which had already been issued, The York Dispatch reported in 2014.
At the time, Hynes said the $5 million would be used to finish construction at 210 York St., which began in 2012 and was estimated to be a $16.8 million project.
Hynes, 48, who is also former CEO of United Fiber & Data, remains free on bail and awaiting trial in York County Court on criminal charges that include stalking, burglary, forgery and tampering with public records.
He made news when York County Sheriff Rich Keuerleber allowed him to park in the secure garage under the York County Judicial Center to attend a protection from abuse hearing in which Hynes was the defendant. Hynes and Think Loud Development had previously donated money to the sheriff's office to buy a K-9 dog.
The garage is where judges and other elected county officials park, including the judge who presided over Hynes' PFA case.
The listed victim in the PFA case is Hynes' ex-girlfriend, who also is his former employee.
Criminal case: According to those documents, state police investigators began looking into Hynes in July, after speaking with the woman about allegations she had made in her petition for a PFA against Hynes.
The woman told police she began working at United Fiber & Data in August 2014 and that she and Hynes became intimately involved around November 2014, documents state.
In June 2017, the woman bought a house in Spring Garden Township for $205,000 and was given a $55,000 gift from Hynes — through a third company Hynes is involved with at 210 York St., Think Loud Investments LLC — for a down payment and closing costs, according to state police.
Charging documents indicate the money was documented as a gift that did not need to be repaid and that Hynes and the woman signed a note stating as much.
"The letter states that the company has previously done this for other employees," documents state.
But in May 2019, when the woman tried to rent out the house, she received a notice that in June 2017 Hynes had taken a second mortgage on the house for $60,000, according to police. Read more about the criminal allegations against Hynes here:
Hynes was found guilty of the third-degree felony of theft by deception in Northampton County on Sept. 15, 2010, according to court records.
— Reach senior crime reporter Liz Evans Scolforo at email@example.com or on Twitter at @LizScolforoYD.