SUPERVISOR HUGHES REPORT TO THE BOS 3/25/24 OPPOSITION TO THE SALE TO BCRDA

​SUPERVISORS REPORT
 
 
As you're aware, my concerns about the township's management are fairly clear and well documented, however, my current focus is on the confusing and illogical manner surrounding the so-called “sale” of the Promenade to the Berks County Redevelopment Agency (BCRDA) introduced in the March 11th BoS meeting by Mr. Schnee.
 
I was just as shocked as everyone else when the township solicitor suddenly announced this sale to BCRDA. Not only was I kept in the dark, not being informed or involved in any discussions about this matter, but you, the public, were also completely unaware. This sale involves a property that has already cost taxpayers a staggering $3 plus million, and yet, it was never brought up in any public meeting for discussion to option it BCRDA.
 
Currently, the only detail we have is that the BCRDA approached us with a proposal.
 
The Board as I understood it directed Schnee to gather more information. However, it seems that no one explicitly asked Schnee to obtain an offer or propose an offer, yet here it is.
 
This raises the question: why do we have an offer on the table? Whose idea was this in the first place?
 
Let's delve into this matter. There are so many discrepancies and falsehoods present that it's crucial to illuminate each one. Following this examination, we'll propose a theory regarding Schnee's motivations. The way this solicitor has acted, including how this matter was introduced to both the board and the public, is alarmingly & troubling.

1. It appears that I may have been the only one not aware of this deal and the vague terms. I did not participate in any discussions that led to this decision, so who did?

 

1. I have not been provided with any documents nor have my questions been answered such as but not limited to:
   1. Where is the Offer to buy.
   2. Who developed these Specific terms.
   3. How was the minimum selling price arrived at?
   4. Explanation as to why sell now.
   5. Why tie this up with the BCRDA?
   6. Why not a commercial broker?
   7.  Consider the current state of the commercial market.
   8. The possible inflation effects. Potential Hyper-inflation
2. New conditions subsequent to these behind the door negotiations
   1. Is it really a sale? The sec. 1503 requires that a sale occur in this instance and the motion and discission recorded in the minutes appear to make this sound like an option sold to BCRDA to market our property, not buy it. The township sets the selling price at $3 million with a $100k down payment. The remaining at time of settlement. Here is where the devil is in the details and these details are missing. When is settlement? Until a deed conveying the property to BCRDA is executed and recorded, no sale takes place and we do not receive the remaining $2.9 million. I heard rumors settlement may not occur until Feb. of 2026. This is not a sale. Waiting for BCRDA to find buyer?
   2. If the BCRDA sells the property for more than $3.3 million we will split the excess proceeds with BCRDA. Again, this does not spear to be a sale. Why would we do that? It sounds at this point more like an option to market our property, not a sale as required under this sec. 1503 (c)(15) 
   3. Request for zoning change in this motion includes a request to change Township Commons Zoning District to a right as opposed to obtaining permission to a controlling ordinance, the specific issue not clearly defined. This in my estimation would require the township to put this out to bid again as possible interested parties may like the new change and enter the bidding process. Requires advertising to change the existing zoning.
   4. Finally, this past week, legislation has been proposed and passed by a Pa. House Panel to provide resources to municipalities and provide incentives to developers to make properties like the promenade productive again. This proposed legislation is to contend with struggling main streets and “zombie” suburban shopping centers. 

i.This legislation also would require the DCED to establish an advisory board to provide guidance for municipalities on redeveloping shopping malls into affordable housing and other mixed-use space.
ii.More than a dozen malls across Pennsylvania fit the description of a dead mall.
iii.Another house bill introduced would create a two-year grant program administered by the DCED to assist with renovation and redevelopment of historic buildings that do not conform to modern building codes. This program will provide up to $500,000 to bring mechanical, electrical, plumbing, and fire protection systems up to code. The grants can also be used to make buildings more accessible to people with disabilities. 

1. To apply you must be listed on the National Register of Historic Places…. guess what? Our RCC is on the Register.

 
 
 
Considering all of these points should lead everyone to question the wisdom of selling any properties at this time. I propose that we halt Mr. Schnee's forceful attempts to sell off our assets, which serve as an effective defense against the current wave of inflation. With potentially new funding sources now accessible to enhance these properties, we have the opportunity to significantly increase their value for our community. Most critically, we must ask why Schnee is behaving as if he were a commercial real estate broker. Could this be the reason for the absence of a contract or any documentation? Our goal is maximum return for our residents and a use consistent with what our resident wish to see on this land.