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4-15-19 Minutes

Development Authority
4-15-19 Minutes



 REGULAR MEETING                                              APRIL 15, 2019


The following were in ATTENDANCE: 

AUTHORITY MEMBERS                                        TOWNSHIP PERSONNEL

Max Stoner, Chairman                                                 Steven Miner, Solicitor

Peddrick Young, Vice Chairman                                   Julie Echterling, Recording Secretary

John Eby, Secretary                                                     

Salvatore F. Marone, Treasurer

Edward Black



Tom Ritchey, Third Mountain Partners, LLC

Art Campbell of Campbell Commercial Real Estate, Inc.

Max Stoner, Chairman called the meeting of the Lower Allen Township Development Authority to order at 6:00pm and announced Proof of Publication was available for review.


Mr. Campbell informed the Board how the tax assessment office will handle things for the Bon-Ton and Borders properties.  These two buildings, without the land, is assessed at $8 million.  The conversation was since the Township taxes have already been paid for the entire year, there will not be a refund.  Mr. Campbell’s goal was to not have to pay the school tax bill.  He did explain the utilities have already been removed and the remediation has begun.  He stated the bottom line was they said what they will do is calculate $100,000 for each building, Bon-Ton and Borders giving you a savings of about $10,000 per month. The demolition should be started in June.


Mr. BLACK made a motion to approve the minutes of the March 18, 2019 meeting. Mr. EBY seconded the motion. Motion carried, 3-0 with Mr. Marone and Mr. Young abstaining since they were not present.


Mr. EBY made a motion to approve the minutes of the March 28, 2019 meeting with correction of address of Larry Kostelal which should state, Campbell Commercial Real Estate, Inc. Mr. MARONE seconded the motion. Motion carried, 5-0.

ACTION: Approval of Bon-Ton project March-April Expenses.  Mr. Eby reviewed the invoices presented to the Board for approval.  He further explained Mrs. Trone had held off paying the UGI and PA American Water invoices due to both charging the Authority thousands of dollars because we were a new customer even though we were disconnecting the services. Mr. EBY made a motion to approve the Bon-ton project expenses as listed for March and April. Mr. YOUNG seconded the motion. Motion carried, 5-0.

DISCUSSION AND POSSIBLE ACTION: Stormwater Bills. Mr. Eby reviewed these bills explaining because of the condominium arrangement of the property there are multiple bills; one for the overall common property, Burger King, one for pad site for Texas Roadhouse and the pad site for Bonefish Grill, the pad site that is undeveloped and vacant in front of the Bon-Ton building and one for the Border’s property. These were taken off the tax map and those are the unit property condominium parcels. Mrs. Trone has forwarded the invoices to Burger King, Texas Roadhouse and the Bonefish Grill with the expectation they will pay that invoice; however, it hasn’t all been sorted out as to the fair share of the parking areas/common spaces so there are some options.  The invoices are due by May 1st.  One option is to pay the invoices for the vacant undeveloped parcel and in front of the Bon-Ton building and also the invoice for the Border’s property.  Discussion ensued with Mr. Campbell explaining more to the Authority. Mr. EBY made a motion to approve paying the stormwater fees by May 1st, the discount period, excluding Burger King, Texas Roadhouse, and the Bonefish Grill parcels fees.  Mr. MARONE seconded the motion. Motion carried, 5-0.

DISCUSSION: Property Management Company. Mr. Eby explained to the Authority that Mr. Campbell has recommended using an experienced property management company to do some of the tasks that Mrs. Trone has been completing such as the Condominium meetings and minutes, recreating records, some of the calculations such as on the storm water situation discussed above, and there is some potential they could handle the expenses and billing with Mr. Campbell.  At Mr. Campbell’s request, they contacted PMI who has been in this business for decades. Mr. Campbell discussed the reasoning for hiring a Property Management Company; he stated he is sure Mrs. Trone realizes this has become fulltime for her and may end up less expensive; he would like to discuss the cost further in executive session.  Solicitor Miner stated he had a couple of things – concern that this is not listed for executive session on the agenda and the other thing is they claim they are licensed for this year; is this something that would be exempt from public bidding because this is a recognized profession? Mr. Campbell stated if they are licensed, they would be a recognized profession and it is not a very high financial amount.  When Solicitor Minor questioned why it would be necessary to discuss in executive session, Mr. Campbell stated to discuss their willingness to contribute to this expense. Mr. Eby suggested they move on to the next item on the agenda and discuss this one item in the executive session relative to this discussion.  See below.

ACTION: Authorize Further Requisitions for Bon-Ton Project. Mr. MARONE made a motion to authorize the Chairman and Secretary’s signature on the three (3) requisition forms for funding from Farmers and Merchants Trust Company.  Mr. EBY seconded the motion.  Motion carried, 5-0.

ACTION: Award Landscape Contract for the Bon-Ton Property for Spring/Summer/Fall 2019. Mr. Eby stated these proposals were coming in all day so some did not make it into your packets. Discussion ensued on the proposals received. Mr. Marone stated they did not have time to review these and that is not fair and if we are thinking about doing something with a third party like PMI how is this going to over-lap; Mr. Campbell agreed especially if you are going to engage with a company that includes snow removal in the fall.  Mr. Marone also asked if we know how quickly we need to take action on this; Mr. Eby explained the grass is growing. Mr. Miner suggested the Board instruct Erin not to get back to the potential bidders until you resolve the issue of the professional property maintenance company. The additional proposals received were discussed. Item was tabled until after executive session.   See below.

ACTION: Award Lighting Separation Contract for the Bon-Ton/Bone Fish properties. Mr. Eby explained the electrical power feeds for Bone Fish property needs to be separated from the Bon-Ton system. Quotes received and discussed. This work needs to be completed before demolition.  Mr. BLACK made a motion that the contract for this work be awarded to Heim Electric for $13,185.                     Mr. EBY seconded the motion.  Motion carried, 5-0.

DISCUSSION: Volunteer Fire Companies to train at the Bon-Ton and Borders facilities. Mr. Eby explained this was worked out with the insurance company on what would be required, which is that they would require a license agreement and all firefighting entities would sign this license agreement and provide certificates of insurance. Mr. Tom Ritchey stated this training needs to have an actual time line on this so you don’t lose control of the premises; Mr. Eby stated there will be a time line.  Mr. MARONE made a motion to authorize the use of the buildings after solicitor review of license agreements for the volunteer Fire Companies for training.  Mr. BLACK seconded the motion. Motion carried, 5-0.

DISCUSSION: Contract with GHD for Gravity Sewer Line design. Mr. Eby explained there was a meeting today between the Township Engineer, Sewer Authority Engineer and the GHD representatives. This was the initial kick-off meeting. The first step is to get the project surveyed so GHD is in the process of hiring a surveyor to locate certain features of the existing proposed system and that work should be done before the end of the month.

DISCUSSION: Bon-Ton Roundabout Entrance. Mr. Eby stated in the packet there was a plan view and then a plan view superimposed on a aerial photograph; earlier in this meeting we approved a percentage of McMahon invoice for the traffic study. They reviewed all the scenarios for this site including office use. They are proposing tentatively to build a round-about. Mr. Ritchey explained tonight is the first time they heard about this and his concern is right now there is not enough room for all the tenants that are interested in being there so this makes the real estate very valuable.  He cautions the Board because round-abouts take up a lot of parking and comes with a high cost.  Mr. Campbell explained that when he had talked with Mrs. Trone this week, she was planning on taking these two items (# 14 and 15) off the agenda for tonight. Discussion ensued and no action was to be taken.

DISCUSSION: Bon-Ton Project Name.  Mr. Eby explained this was on the agenda to plant the seed that the name of the existing condominium is Capital City Commons on all of our present documents. So if there was a time to give this project a different name, sometime between now and next meeting, maybe should consider that as an action item.

DISCUSSION: By-Law Changes.  Solicitor Miner discussed this item explaining he has been doing updates and corrections. These changes are important because there are some legal things that need to be corrected.  He would like the Board to review the changes/corrections that were given to the Authority and forward questions to him before next meeting so action can be taken then.


Mr. EBY made a motion to recess the Regular Meeting of the Development Authority into Executive Session to discuss the following @ 6:57pm. Mr. BLACK seconded the motion.  Motion carried, 5-0.

  • Presentation: High Properties
  • Discussion and Possible Action: Letter of Intent for Burger King Parcel
  • Discussion contract negotiations for retail parcel
  • Discussion and Possible Action: Letter of Interest for hotel parcel


The Regular Meeting of the Development Authority reconvened @ 8:12pm.

  • Letter of Intent for Burger King Parcel. Mr. EBY made a motion to authorize Campbell Real Estate, Inc. to give positive response regarding the offer to purchase the Burger King parcel for $850,000 based on their letter of intent of April 5, 2019.

Mr. YOUNG seconded the motion.  Motion carried, 5-0.

  • Contract negotiations for retail parcel.  Mr. MARONE made a motion to accept a revision of the leasing commission agreement submitted by Campbell Real Estate, Inc. for a retail tenant dated April 1, 2019.  Mr. BLACK seconded.  Motion carried, 5-0.
  • Letter of Interest for hotel parcel.  Mr. MARONE made a motion to authorize a counter offer increasing the purchase price from $2.7M to $2.8 for the hotel site. As part of this function, we are asking Mr. Campbell to submit the counter offer seven (7) to ten (10) days from today to allow further discussion of the site with other interested parties.  Mr. EBY seconded the motion.  Motion carried, 5-0.

FURTHER DISCUSSION AND ACTION: Property Management Company. Mr. EBY made a motion to authorize the staff liaison to accept the proposal from PMI to manage our Bon Ton site contingent upon solicitor confirming that this is professional services and also with the understanding that Campbell Real Estate, Inc. will pay ½ of these future costs. Mr. YOUNG seconded the motion. Motion carried, 5-0.

FURTHER DISCUSSION:  Award Landscape Contract for the Bon-Ton Property for Spring/Summer/Fall 2019. Discussion ensued as to the steps to take regarding awarding this contract according to the proposals received.  Mr. EBY made a motion to authorize Mrs. Trone to negotiate temporary arrangement with the low bidder, Kimball Landscaping to get to the next meeting with further action.  Mr. MARONE seconded the motion. Motion carried, 5-0.                                                                                                                


The next meeting of the Development Authority is scheduled for Tuesday, May 20, 2019 at 6:00pm.


Mr. EBY made a motion to adjourn the meeting. Mr. MARONE seconded the motion. Motion carried, 5-0. Meeting adjourned at 8:28pm.