Editorial: A sorry situation at mausoleum

Business-wise, American Mausoleum's recent bankruptcy filing was not surprising. Owner Bob Wilton had been struggling to keep up the building and grounds at 7911 N. Allen Road, even borrowing $1 million from his other business, Wilton Mortuary. The 30-year-old mausoleum's repair needs - including a leaking roof - appear to have overwhelmed him.

But this is not just any business. The nature of the facility involved makes this a highly sensitive matter for the customers: the thousands of people who've purchased plots at American or who have loved ones entombed there. These folks face a great deal of uncertainty and unease. The mausoleum's doors are locked, for now.

Whatever happens, it's paramount that the courts and the office of Illinois Comptroller Dan Hynes, which oversees the state's cemeteries, make families' interests the top priority as they sort through the mess. And, frustrating though it may be, families should try to be patient. This is an unusual and complicated matter.

Indeed, though American's predicament may sound similar to what unfolded at Peoria's Springdale Cemetery, the two are very different. Springdale's owner faced criminal allegations of fraud and turned over the property as part of a plea agreement. Wilton, however, has not been accused of wrongdoing. The business is simply failing. There's no provision for the state to take over. And it's beyond premature to suggest that city and county taxpayers step in, as they ultimately did with Springdale.

Meanwhile, were the mausoleum's one big creditor - the mortgage holder - to take title, state foreclosure law would at least allow for a receiver to keep the mausoleum's doors open. But the mortgage holder, a private party, does not plan to foreclose. A representative for the mortgage holder did not want to comment.

Near term, then, the best apparent course of action would play out as follows:

First, the federal bankruptcy judge may dismiss the mausoleum's filing, as there appears to be no relief for families in bankruptcy court. That might happen as soon as April 15.

Separately, the comptroller's office could seek to have Wilton's licenses revoked through an administrative hearing process, citing insolvency. Wilton would lose the ability to sell tombs and niches.

Next, the comptroller could ask a Peoria County Circuit Court judge to appoint a receiver to watch over the mausoleum's pre-need sales and cemetery care trust funds. Those funds contain about $30,000 and $550,000, respectively. It would be up to the receiver to recommend what action would best serve customers.

The money in the cemetery care fund could stay put in hopes of attracting a buyer, be tapped for facility repairs or possibly be cracked open for the customers. Those who have pre-need contracts for merchandise and services - such as memorials and markers - might see some of their money refunded. They should be receiving notices.

Long term, the best option would be for an angel investor to rescue this place from ruin. Wilton remains convinced a buyer can be found. We don't share that optimism. Alternatively, a nonprofit group could step in and try to build an endowment. The vast expertise, if not direct involvement, of the Susan G. Komen Foundation board could help in this regard. American served as the resting place for Peoria native Komen, for whom the breast cancer research organization is named.

This is a sad situation. Wilton says he bought the mausoleum after being approached by the former owner, Dr. Robert Hart, who brought him into the world. It was fitting, then, to oversee the place where Hart was laid to rest. "This wasn't what I wished would have happened," he concedes.

It's certainly not what families expected. They and their deceased relatives deserve far better than this leaking, sagging monument. If there's any consolation to offer them, it's that they'll have a competent ally in Comptroller Hynes' office.

Peoria Journal Star