SCHNEE: SELL THE PROMENADE TO BCRDA?

Sale of Promenade:
 
I don’t understand why we are rushing to sell the property. There is no urgent reason to do so. The Berks County Redevelopment Authority wants to build low-income housing there, which is a big decision for our board and our area. The commercial real estate market is about to meltdown which means anybody who acquires this property will transform it into low-cost residential rentals, this is the only growth sector in real estate today. Also, I found out that their lawyer is Joan London from Kozlov Stoudt, who is suing us with the township’s money. This is a clear conflict of interest. Moreover, Schnee is pushing for this sale because he wants to make more money and charge more hours to the township. This is unacceptable and must be stopped. The motion says that our township manager can go ahead with the sale, but he doesn’t have much experience with complex real estate deals. Schnee says he will supervise and approve the deal, but we know he is not a good negotiator or contract writer. He made a bad deal with RHM that we are still suffering from. He is also trying to maximize his billable hours because his law firm is failing. He is using the township as his main source of income. We should not let him do that. We should wait until we hire a new and qualified township manager who can handle this deal better. We are in a time of high inflation, so waiting will benefit us more. The inflation rate is north of 6% suggesting that every month we wait this commercial property increases in value. For example, say if the selling price was $4 million. In three months, the property value could increase over $65,000 and in a year possibly over $260,000 increase in value. Let’s bring the permanent and experienced Township manager on board so that Larry Piersol can go back to his full-time job as the Executive Director of Public Works. Once our experienced manager has had the chance to review and work out a favorable disposition of this property, he will bring this before the board for approval. Please table or reject this motion until further developments occur. IN MY OPINION THIS IS WHAT WE SHOULD DO.

Since composing the above information additional information became available at the Monday March 11th BoS meeting and news from Harrisburg. Schnee, Piho and Bell seem to be the holders of the information and the details. I have been unable to obtain any documents where the BCRDA has committed an offer on paper and I have not seen any solid terms. I do know that I believe that the three named above are misleading our community. This is not a sale, at best it is an option to market our property: the Promenade. Read the minutes of this meeting:

SCHNEE EXPLAINS THE PROMENADE "SALE" ?
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Mr. Schnee explained the Second Class Township Code Section 1503 requires the sale of township
properties be placed for bid. This property went to bid last year and was unsuccessful at receiving an acceptable minimum bid amount. Under Section 1503, subsection C15 a township may sell a property directly to a nonprofit organization providing development activities without placing for bid.
The agreement is for $3 million with a $100,000 down payment due within 45 days and remaining to be paid at time of settlement. If the Redevelopment Authority sells the property for more than $3.3 million the Redevelopment Authority and the Township would equally split the excess proceeds.

Requested is a change with respect to Zoning Ordinance in particular to make permitted as a right as opposed to as by permission in the Township Commons Zoning District. The Township is requesting an easement from
East Neversink Road to East 40th Street.

END OF SCHNEE EXPLANATION

FINAL WORDS:
This is clearly an option to market our property and if they can sell it for more than $3.3 million we would split the proceeds with the BCRDA. Even a novice knows this is not a sale. Schnee and Piho and Bell are lying to this community. All three of them appear to be ethically challenged! What would their certifying agencies perspective would be with regards to their actions?

It doesn't stop at the misleading presentation, the deal is questionable as well. The scuttlebutt is the deal will not close possible until February of 2026! Again, this is not a sale. Finally, changing the zoning of this property may make it more appealing to a potential buyer now! They are changing the Zoning and therefore this property should go out for bid once again when the zoning changes are implemented. 

Property was recently appraised at more or less $1.9 million dollars. This begs the question as to where did Solicitor Schnee come up with the selling price of $3 million?

How about simply listing this with a commercial broker who would charge 4 to 6% depending on the selling price? 

One last thing, you hear Piho discussing costs in the meeting. Suggesting that this sale would eliminate our carrying costs. No way, not at all. Why? Because it's not a sale until the deed is transferred. The cost to carry in 2023 was $45,000, for 2024 its budgeted at $35,000 (perhaps considering an early sale) that equals $83,000 for the $100,000 down would be consumed.

What is it that we should want to accomplish by selling this property? I  am supportive of the sale. I want the best outcome possible for the taxpayers of Exeter Township. The largest amount we can obtain. We have or should have on the books at lease $3 million book value. That is what we invested. We must wait until we can receive at least what we invested into the property.

I don't think a deal with BCRDA is appropriate under the circumstances. Chad Schnee worked for the county of Berks, I don't exactly know what involvement he had with BCRDA, if any at all, I still remain concerned about conflict of interest. We know that the BCRDA solicitor is Joan London and she has been hired by the Township to prosecute me in the court of common pleas. Can she represent the township and the BCRDA at the same time? 

Lastly, this is best resolved when all five supervisors agree on the final outcome of this property!