Fuming mad: Two Macungie fire groups in feud over money, building

Nov. 29--Like a married couple with irreconcilable differences, the two organizations that share Macungie's fire hall can't seem to get along.

And they appear to be headed for an ugly divorce.

Members of the Macungie Volunteer Fire Department, which in 2008 took over firefighting services from the century-old Macungie</location> Fire Company No. 1, are trying to dissolve the company, now strictly a social club.

They've taken their beef to court, accusing the social organization of wasting money, failing to pay bills and allowing their property on South Walnut Street to fall into disrepair.

Members of the social club, meanwhile, have asked Borough Council to intervene in hopes of saving an organization that was created in 1907.

They've questioned the motives of the fire department and its leaders, claiming they are seeking to put them out of business and take over a valuable 7-acre property that has an assessment of nearly $1 million. The social club owns the building that is shared by both organizations

"There are two entities down there that hate each other's guts," council Vice President Greg Hutchison said recently. "You can feel the animosity."

The feud has turned into a full-fledged legal battle that appears to be taking a toll on the social club, a nonprofit that has faced its share of financial challenges over the years.

The social club already is facing the prospect of paying nearly $17,000 to the fire department for various bills and repairs due to a court judgment stemming from a January lawsuit.

A Lehigh County judge recently ordered the social club to pay members of the fire department a little more than $11,000, a sanction imposed as part of the dissolution lawsuit, which was filed in March.

Meanwhile, attorney James Heidecker, who became the social club's new attorney in October, more than six months after the dispute went to court, is hoping to settle the case. But he acknowledged there's "a lot of distrust" between the two sides.

"It really troubles me," he said.

The dispute became public in February when the fire department filed the first of two lawsuits in Lehigh County Court. The suit indicates that the fire company in 2008 encouraged members to create the fire department because of concerns about liability and potential loss of its nonprofit status.

Once there were two entities under the same roof, according to court records, the fire company would serve as the social group, maintain the building and foster goodwill with the community. The fire department agreed to be the entity that would fight fires.

The initial suit sought $16,967 that the department said the social club owed for various bills paid, for such things as insurance, Internet service and gas and electric bills, as well as repairs made between 2008 and 2012.

A judgment has since been entered against the social club in that case, according to James Kratz, the department's attorney.

In March, the department leaders, led by Fire Chief Michael Natysyn, took a more drastic step by filing court papers to have the social club dissolved.

Natysyn is among four leaders of the fire department to file the suit. The others: his wife, Terry Ann Natysyn, the secretary; Frederick Reimer, the vice president and chief administrator; and his wife, Nancy Reimer, the treasurer. They claim the social club has abandoned its mission and support.

They've asked that all of the social club's assets be liquidated and given to the department and that the social club's right, title and interest in the building be transferred to the department.

Facing a January court hearing in the court case, some social club members are pressing Borough Council to take inventory of how the department is spending its $40,000-per-year contribution from the borough and what financial accounts Michael Natysyn controls.

Tim Romig, a business owner and member of the social club, describes the situation as "dire." He told council this month that the board should find out if the fire department has used any tax dollars to fund either of the two lawsuits. He's questioned the motives of the fire department and its plans for the fire hall property.

The property is in the "single and multiple family residential" zoning district. A proposed zoning map change would change it to "town center," which would allow for a mix of housing and business uses and likely increase its value.

"I think we should all be alarmed about what's going on," Romig told council. "We feel there is less-than-honorable intent."

Michael Natysyn, through his attorney, declined to comment while the legal case is ongoing.

Council President Chris Becker said the board does have to ensure that tax dollars are spent appropriately.

"The rest of it ... I don't know where our place would be in that," he said.

The Natysyns and Reimers believe that the social club misapplies and wastes its assets, most notably its building, which "has a significant amount of deferred maintenance," according to the suit.

For example, they believe that the company wasted about $25,000 because lack of oversight allowed for the misappropriation of money, according to the lawsuit. The fire department also says the building needs roof repairs, has an inadequate heating system and that the social club is operating without insurance for the property.

This month, Lehigh County Judge J. Brian Johnson ordered the social club to pay the Natysyns and Reimers $11,397 for attorneys fees as part of sanctions he levied in the case. Heidecker has appealed those sanctions. In court papers, he described the fees as "excessive" and "exorbitant."

Johnson, in a previous ruling, said the social club "willfully disobeyed" a court order to produce documents that the fire department requested in court papers. The social club was without an attorney for some time after its original lawyer, Charles Osinski, withdrew from the case in September.

It's not clear whether the social club can afford to pay the legal fees and the previous judgment.

A review of each organization's finances, outlined in documents filed with the Internal Revenue Service, show both have dealt with deficits in recent years.

The social club spent $124,128 more than it brought in between 2008 and 2011. (Records for 2012 were not available.) Its net assets decreased from $608,562 in 2008 to $453,972 in 2011. It reported having $13,022 in cash at the end of 2011.

The fire department has also dealt with its share of financial deficits. Between 2009 and 2012, it spent $333,212 more than it generated in donations and grants, according to IRS documents. During the same period, the organization's net assets decreased from $574,316 to $353,661, a drop of a little more than $220,000.

The department's IRS filings show it had $351,904 in cash at the end of 2012 and had outstanding loans totaling $169,247.

Heidecker said the two sides have had some "meaningful" settlement discussions, but that he doesn't know if they can overcome the underlying distrust.

"I wish there was more trust on both sides," he said. "It should be resolvable. The department has a specific purpose, but so does the fire company. They do a lot of public good. It's good for fellowship. I'd hate to see it dissolved.

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FIRE BATTLE

The issue: Members of the Macungie Volunteer Fire Department are seeking to dissolve the Macungie Fire Company, a social club and the borough's former firefighting organization.

What fire department members claim: That the social club has been wasting money and not properly maintaining the building the two organizations share.

What some social club members claim: That the fire department leaders are looking to shut them down and take over a valuable borough property.

What's next: A January hearing in Lehigh County Court.

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