4-25-16 Special Meeting Minutes
DEVELOPMENT AUTHORITY LOWER ALLEN TOWNSHIP
SPECIAL MEETING April 25, 2016
The following were in ATTENDANCE:
AUTHORITY MEMBERS TOWNSHIP PERSONNEL
Max Stoner, Chairman Erin Trone, Township Assistant Manager
John Eby, Secretary Mary Ellen Banks, Recording Secretary
Salvatore F. Marone, Treasurer Steven Miner, Solicitor
PUBLIC IN ATTENDANCE
Art Campbell and Jessica Gasper of Campbell Commercial Real Estate, Inc.
Max Stoner, Chairman called the special meeting of the Lower Allen Township Development Authority to order at 6:06pm and announced Proof of Publication was available for review.
DISCUSSION & ACTION: ACCEPT OR REJECT OFFER ON 1993 HUMMEL AVENUE
Art Campbell explained to the board the offer is from F. B. Enterprises, LLC (to be formed). Kenneth S. Bolinger partnering with Matthew and Dawson Flinchbaugh to purchase 1993 Hummel Avenue. They have made the offer on only four (4) parcels since they did not want to purchase the fifth parcel with the pond. Discussion ensued.
The estimate on the taxes are approximately $10,750, with the County portion being $1,675, and the municipal portion would be $1,755 and the school would be $7,320. The current assessed amount is $716,600. The sale will not change the assessed value. In addition, since they did not check in agreement anything longer than a thirty (30) day due-diligence it becomes that. Discussion ensued concerning the building and the 5th parcel.
They have made an offer of $600,000; with a $10,000 deposit. At closing, they will put 10% down, $60,000 asking the Development Authority to finance $540,000 on a twenty year amortization for five (5) years then paying the balance. The payment for this would be @ 4%, $3,272/month. At 4.5% the monthly payment would be $3,416/month.
The Authority then discussed the history of the property, the leases/income and expenses for 2013, 2014 and 2015 for the property and also the pluses and minuses/pros and cons for the sale.
Mr. EBY made a motion to counter offer to F.B. Enterprises, LLC (to be formed) at $625,000 with the expectation the Authority will be provided with personal financials and personal guarantees or other acceptable method of guarantee of payment of the named partners. This counter offer is to include the addition of the fifth parcel (007). The Authority will commit to enclosing the fencing around the pond or provide F.B. Enterprises with a credit of $5,000. In addition, we are agreeing to finance the balance @ 4% with a minimum of 10% down. Mr. BLACK seconded the motion. Motion carried, 4-0.
Mr. EBY made a motion to authorize the Economic Development Director to sign the contract if it meets the expectations of the motion above. Mr. MARONE seconded the motion. Motion carried, 4-0.
Mr. MARONE made a motion to increase the Edge Church monthly rent by $50.00. Mr. EBY seconded the motion. Motion carried, 4-0.
NEXT MEETING OF THE DEVELOPMENT AUTHORITY
The next meeting of the Development Authority is scheduled for Monday, May 16, 2016 at 6:00pm.
Mr. EBY made a motion to adjourn the meeting. Mr. MARONE seconded the motion. Motion carried,
4-0. Meeting adjourned at 7:15pm.