DEVELOPMENT AUTHORITY LOWER ALLEN TOWNSHIP
REGULAR MEETING June 20, 2016
The following were in ATTENDANCE:
AUTHORITY MEMBERS TOWNSHIP PERSONNEL
Peddrick Young, Vice Chairman Erin Trone, Township Assistant Manager
Salvatore F. Marone, Treasurer Mary Ellen Banks, Recording Secretary
John Eby, Secretary Daniel Flint, Community Development
Edward Black Steven Miner, Solicitor
PUBLIC IN ATTENDANCE
There was no public in attendance.
Peddrick Young, Vice Chairman called the meeting of the Lower Allen Township Development Authority to order at 6:03pm and announced Proof of Publication was available for review.
APPROVAL OF MINUTES OF MAY 16, 2016
Mr. EBY made a motion to approve the minutes of the May 16, 2016 meeting with the following changes 1) Executive Session Recessed @ 6:05pm and 2) Executive Session Reconvened @ $6:28pm and 3) on page 2 under the approval of temporary construction easement on Yetter Court Property section (Two areas) should read, “license agreement” rather than “construction easement license”. Mr. BLACK seconded the motion. Motion carried 3-0.
There were no comments from the public.
Mr. Marone joined the meeting @ 6:10.
ACTION: APPROVAL OF TEMPORARY CONSTRUCTION LICENSE AGREEMENT ON YETTER COURT PROPERTY
Mr. Flint explained to the Board the reasoning for issuing a temporary license agreement on Yetter Court Property rather than issuing a construction easement license. Discussion ensued.
Mr. EBY made a motion to authorize the Development Authority signatures on this temporary construction license agreement on Yetter Court Property. Mr. BLACK seconded the motion. Motion carried, 4-0.
DISCUSSION AND POSSIBLE ACTION: APPROVAL OF #1A LIFESAFER DISTRIBUTION, INC. LEASE
Mrs. Trone explained this is the actual lease to begin September 1, 2016 and expire on August 31, 2019. (2 year lease). They will be occupying where Respect Ambulance is currently. The lease is very similar to all the other leases for the building. In addition, if the building remains property of the Development Authority, this area must be painted and new carpet will have to be installed. Mr. EBY made a motion to authorize execution of the lease for #1A Lifesafer Distribution, Inc. Mr. BLACK seconded the motion. Motion carried, 4-0.
ACTION: APPROVAL TO SIGN REPRESENTATION LETTER FOR AUDIT
Mrs. Trone explained to the Board this is the letter for the audit for the financial review which is completed every year. Mr. EBY made a motion for the Board to authorize and sign the representation letter for the audit. Mr. MARONE seconded the motion. Motion carried 4-0.
RECESS TO EXECUTIVE SESSION
The Regular Meeting of the Development recessed into Executive Session to discuss real estate transaction @ 6:22PM.
RECONVENE REGULAR MEETING
The Regular Meeting of the Development Authority reconvened @ 6:56PM.
Mr. EBY made a motion to authorize Mrs. Trone to communicate either directly or via Campbell Real Estate to the prospective buyers of the 1993 Hummel Avenue property in response to the change in the terms of agreement under their due diligence response; the three points would be, 1) question why they require the removal of the oil tank, 2) point out unless there is a contamination problem and if DEP (Department of Environmental Protection) orders remediation there will be no ability to get a tank closure letter, and 3) the Authority might or might not consider participating in the roof repair pending outcome of our independent review of the Township’s roofer. Mr. BLACK seconded the motion. Motion carried, 4-0.
ACTION: APPROVE DALEY ZUCKER MEILTON & MINER, LLC TO COMPLETE THE FINANCIAL REVIEW OF THE POTENTIAL BUYERS OF 1993 HUMMEL AVENUE
Mr. Marone explained he communicated information via email to the Board regarding the review he was asked to perform on the financials on the parties that are going to be involved in the potential sale. In general he found that there is active cash flow by all the participants to pay for the debt. All participants are local business folks that have a variety of different financial interests; from real estate to business partnerships. Given the way the building flows with the rentals and the personal capabilities of these individuals, it would seem to be highly unlikely that any of these folks would have any difficulty providing us with repayment. If he has any concern at it, it would be what happens down the road when the balloon payment comes due when they have to transition to either another financial institution for the mortgage or give us the principal balance, which is a modest risk in his opinion. If this happens, the building will revert back to the Development Authority. The participants do not have equal capacity to pay the lump sum, but there is adequate collateral among the three of them to cover this. He is comfortable this is a deal that can be done and should be done. He did suggest a more formal, but still fairly light review by the solicitor’s firm and that review should include a credit history and more detailed checking of some of the numbers they provided. However, he feels very comfortable that this is not something that should be done with a fine toothed comb. Mr. MARONE made a motion to accept his review of the financial statements provided by the expected participants in the purchase of 1993 Hummel and to forward the information to the solicitor’s firm for a slightly more methodical review of the financials. Mr. BLACK seconded the motion. Motion carried, 4-0. Mr. Eby at this time, stressed his appreciation to Mr. Marone for doing this preliminary review.
NEXT MEETING OF THE DEVELOPMENT AUTHORITY
The next meeting of the Development Authority is scheduled for Monday, July 18, 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 7:09m.