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Washington building collapse site sold to crane operator who demolished remnants

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The owners of the building in Washington that collapsed last July, trapping a woman beneath the rubble for hours, have sold the property to the crane operator hired to demolish the remnants in a settlement that could release them from some future liabilities surrounding the incident.

Mark Russo and his sister, Melissa, in March sold 15 N. Main St. to Appalachian Basin Energy Logistics LLC of Pittsburgh for $5,000, according to Washington County property records.

The Pittsburgh-based company is owned by Kyrk Pyros, who also operates Allegheny Crane Rental, which partially demolished the three-story Montgomery Building following the July 12 collapse. Pyros said while he owns both companies, they are not affiliated with each other.

During a hearing Thursday before District Judge Robert Redlinger, Washington officials withdrew six building code citations filed against Mark and Melissa Russo in the Montgomery Building case because they had sold the property. They were found guilty in absentia for one citation related to that building for failing to get a permit to perform work. City solicitor Steve Toprani said city officials plan to refile the six citations against the owner of Appalachian Basin Energy Logistics because violations transfer with the sale of the property.

Pyros was unaware his company would be cited until contacted by a reporter following the hearing. He declined to comment on the sale.

An emergency demolition order was secured in Washington County Court the day of the collapse in which Megan Angelone was rescued after being trapped inside for nearly 10 hours. The city later hired Allegheny Crane Rental to perform the demolition work.

City officials initially estimated the demolition would cost between $300,000 and $750,000, but the bill soon ballooned into the millions, pitting Allegheny Crane against the city. Pryos and his attorney, Kelton Burgess, threatened in December to sue the city for payment, although the two sides continue to negotiate the price of the demolition.

An invoice dated Feb. 22 shows the cost for demolitions was more than $900,000, but the company filed a $1.65 million mechanic’s lien the following month to recoup additional legal fees, overhead and financing.

Toprani suspected the sale of the building to Pyros was a way to recoup some of the demolition money. However, he was unsure how the sale might impact negotiations between the city and Allegheny Crane for the demolition payment.

“We have a few issues to work through,” Toprani said.

In an April 26 letter, the attorney for the Russo siblings, Elizabeth Tarasi, asked the district court to withdraw the seven citations against him for the North Main Street property because the deed had been “transferred to Allegheny Crane Rental Inc. pursuant to a Settlement Agreement dated March 26, 2018.”

Tarasi said the agreement releases the siblings from future liabilities with the building and helps the contractor to recoup some of the demolition costs. Insurance will pay for Angelone’s medical expenses, Tarasi said, and some additional money might be available to pay for the demolition.

“They gave him the building and there was a lot exchanged there,” Tarasi said. “The (crane) contractor is responsible for the negotiations with the city. He’s holding all the cards now.”

The Russo siblings originally faced dozens of code violations for the Montgomery Building and four other rental properties in the city.

Neither they nor their lawyer attended Thursday’s hearing on the other cases for their rental properties at 149 Hall Ave., 286 N. Franklin St. and 450 Third St., which was the site of Monday’s Washington County Drug Task Force raid. Redlinger found them guilty in absentia of eight building code violations for those three structures. Citations filed for alleged violations at a Duncan Avenue property were withdrawn because the siblings had sold that building.

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