Columbia Borough Council takes out $5 million mortgage on former McGinness property

The former McGinness property at 1020 Manor Street [File photo]

JOE LINTNER | COLUMBIA SPY 

Columbia Borough Council voted unanimously to take out a $5 million mortgage on the former McGinness property at 1020 Manor Street at its September 23 meeting. Council hopes to pay back the loan by selling the property, although no potential buyers have been announced.

The details
Council voted to approve two key ordinances at the meeting to finalize a loan package worth over $5 million from the Commonwealth Financing Authority.

Council passed Ordinance No. 963 of 2025, granting the Commonwealth Financing Authority a mortgage on the former McGinness property at 1020 Manor Street as collateral for a $5,028,030 loan through the state's Business in Our Sites (BIOS) Program. The mortgage will serve as security for the funding.

Council also approved Ordinance No. 964 of 2025, which amends Ordinance No. 962 from July 15, 2025 that had authorized the issuance of a general obligation note for the same $5,028,030 amount. The amendment removes language that referenced the anticipated sale of $1 million worth of the subject property by December 31, 2025.

The loan carries a 3% annual interest rate, with a penalty rate of 12.5% per annum on overdue amounts. The borough retains the right to make early payments on the loan without penalty.

It's unclear whether council plans to sell the property as one tract or as individual lots when a $2.2 million soil stabilization project is completed in November.