A Beaver County arts center intends to buy the Pennsylvania Academy of Music's assets and use them to open a school here for music, theater and dance.

PAM disclosed in a U.S. Bankruptcy Court filing that the Lincoln Park Performing Arts Center has agreed to buy the defunct academy's assets for $300,000.

As part of the transaction, PAM also would transfer its $873,000 endowment to Lincoln Park, in the Ohio River borough of Midland, northwest of Pittsburgh.

Stephen Catanzarite, Lincoln Park managing director, said his organization hopes to begin operations here this fall in Liberty Place, where PAM spent its final months.

Whether the local school uses the PAM name remains to be determined, he said.

"We love the area, we love the spirit, we love the community," Catanzarite said on Thursday. "We think this is an opportunity we should pursue, to further our mission."

Although Lincoln Park is on the opposite side of Pennsylvania — five miles from the Ohio line — Catanzarite said the arts center "has always looked beyond its borders."

It has collaborated with Berklee College of Music in Boston, the Yamaha Music & Wellness Institute in Meadville, the Pittsburgh Symphony and New York-based piano maker Steinway & Sons.

"The idea of doing something in Lancaster is not far-fetched at all," Catanzarite said.

Its venture here is likely to include some of the former PAM faculty and staff, he indicated.

"I'd be surprised if we didn't use some of them — hopefully, as many as possible.

"We're interested in the great local talent that's there," said Catanzarite, who learned of PAM last year while staying at the downtown Marriott for a conference.

Though details about the Lancaster operation have yet to be finalized, Catanzarite envisions a program that will serve students K through 12.

Initially it will consist of classical music instruction, but will be enlarged "fairly quickly" to jazz, contemporary music, theater, musical theater and dance, he said.

However, Catanzarite said that as Lincoln Park shapes its program it wants "to be sensitive to the community and what's already there."

To help guide those decisions, Lincoln Park will rely on PAM board members as advisers, he said.

Catanzarite said he's been impressed by the board's commitment to "keeping alive" the mission of the academy.

"So maybe there's a way to pursue the mission of PAM with a different model," he said.

The deal between PAM and Lincoln Park is subject to numerous contingencies, including whether a better offer surfaces.

The transaction also needs the approval of the court, the U.S. Trustee and PAM's creditors.

A hearing on the agreement has been set for Aug. 3 at 10:30 a.m. in the Philadelphia courtroom of U.S. Bankruptcy Judge Jean K. FitzSimon.

PAM stopped operating March 31, ending 22 years of music education and performance, because it was unable to raise enough money to pay its upcoming expenses.

The closing of the school idled 26 faculty and staff.

It also turned PAM's 215 students and their parents into creditors, since they'd paid for a full semester of lessons.

Initially, PAM envisioned repaying its debts by selling its assets piecemeal.

Then Lincoln Park, having read news accounts of PAM's demise, contacted PAM and proposed another option.

"We feel this is a much better alternative than liquidation. It's nice to see something preserved out of this," said Roger Sandt, PAM's managing director.

PAM Chairman Dr. Tom Godfrey said the academy's board members "feel an obligation to look out for not only the interests of PAM, but the interests of Lancaster.

"We want something that enriches the community."

In its court filing, PAM states that the Lincoln Park offer for the assets is higher than what would have been generated by selling them at "public auction or otherwise."

PAM said its conclusion is based on the opinions of an auctioneer, a used office-equipment retailer and a piano retailer/wholesaler.

Although it has an agreement with Lincoln Park, PAM said it will keep seeking better offers "to ensure that (PAM) is obtaining the highest and best price" for its assets.

Any new bids would have to be at least $325,000 and must be submitted by 5 p.m. on July 26, according to PAM.

The assets include musical instruments, office furniture, sheet music, musical recordings, the academy's name and names of donors and students.

If PAM ends up selling the assets to a new bidder, PAM will pay Lincoln Park a $15,000 breakup fee, the sales agreement says.

PAM officials said the Lincoln Park proposal is the only one made to the academy to date.

Assuming the deal goes through, Lincoln Park would promise to use the PAM endowment only to fund the performing arts "within Lancaster County and the surrounding geographic area."

PAM officials filed for bankruptcy in May 2010, believing they would reorganize and the school would emerge as a leaner entity with a bright future.

About that time, it left its landmark $32 million building at 42 N. Prince St. for cheaper, smaller facilities at Liberty Place.

But the community donations it anticipated did not materialize, and efforts to collect overdue pledges proved futile.

Meanwhile, Catanzarite read online news accounts about PAM's demise and intentions to sell its assets.

His took special note because when he had been downtown the prior spring, he took "a walking tour of the city on my own."

"I really like the city. I was very surprised to find it's very cosmopolitan, with great arts and cultural organizations," he said.

On his walk, he saw signs for PAM's Prince Street building. He stopped by. Although the building was dark, Catanzarite later looked at PAM's website.

"I thought they had a lot of great things going on. So they were in the back of my mind" this spring, when he was saddened to read of its shutdown.

That led Lincoln Park to call PAM about acquiring the assets, a call that PAM officials never saw coming, but were delighted when it did.

Subsequent visits by PAM officials to Lincoln Park, and by Lincoln Park officials to Lancaster, resulted in the tentative deal.

Lincoln Park, founded in 2003, developed a $23.5 million performing arts center that opened in 2006.

The 122,000-square-foot building includes a 750-seat main-stage theater, a 180-seat studio theater, video production suite, recording studio, band and choral rooms, practice rooms and dance studios.

It's home to the Lincoln Park Performing Arts Charter School, Liberty Theatre, Henry Mancini Arts Academy (named after the late Aliquippa native) and other organizations.

tmekeel@lnpnews.com