The text of this article (with minor corrections) is from the minutes of the May 23, 2023 Columbia Borough Council meeting, which were approved at the June 13, 2023 meeting.
Jeff Seibert
Jeff Seibert, Associate Broker with Keller Williams Elite Realty, introduced himself and the two candidates presenting proposals to purchase 400 Locust Street.
Don Murphy
Don Murphy of Cimarron Investments provided the Council with a handout detailing their proposed project for the 400 Locust Street Property. The proposal included commercial space on the first floor and rental units on the second and third floor. Pictures and information on previous projects they completed in the Borough were provided.
Councilperson Lintner asked if a condominium style unit that would offer homeownership has been considered in place of rental units. Mr. Murphy responded that home ownership is not the type of business his company is in; they are in the business of providing rental space.
Councilperson Lintner discussed recent comments made at the Planning Commission Ad Hoc Committee meeting concerning the desire for homeownership. Councilperson Lintner also asked if parking for the project has been considered. Mr. Murphy explained parking for the project is still in the discussion stage but would go before Zoning & Planning at the appropriate time.
Council President Zink asked if a Zoning Variance would be requested for parking. Mr. Murphy stated those details have not yet been fully discussed.
Councilperson Stahl asked if there was a time frame for the project. Mr. Murphy estimated 12 months, depending on construction prices, inflation, and design. As President of the Merchants Association of Columbia, Mr. Murphy stated that prior to the start of construction the property would continue to be available for events such as 4th Fridays.
Councilperson Fisher discussed the need to revitalize other areas of the Borough, not just the downtown area. Mr. Murphy noted they would be available to settle next Thursday.
Andrew Szalay
Andrew Szalay, President & CEO of Lancaster Lebanon Habitat for Humanity, reviewed their plan for developing the property with first floor commercial space and a second and third story owner occupied living space. A letter from a current Habitat for Humanity homeowner was read into record detailing the first-time homeownership opportunity offered by Habitat for Humanity projects. He detailed previous and current projects Habitat has completed in Columbia Borough
Councilperson Lintner asked for clarification on the square footage of the two living spaces proposed. Mr. Szalay responded that typically they aim for 1,200 square feet.
Council President Zink asked if the Zoning Ordinance was reviewed when preparing their proposal. Mr. Szalay responded they have, and they are aware there will be challenges and are prepared to address them as the project moves forward.
Councilperson Stahl asked how many stories are proposed in the project. Mr. Szalay responded they are proposing a 3-story building.
Frank Doutrich
Frank Doutrich asked if Council understands what the Borough ordinance requires to sell Borough property. Solicitor Gable provided a detailed explanation of what the Borough Code requires of Council to sell Borough property and the steps that have been taken in the process of selling this property. Mr. Doutrich asked if the Habitat for Humanity project offers reduced taxes on the property. Mr. Szalay responded that is not an option his organization has experimented with.
Broker Seibert reviewed for Council the basic terms of each offer (provided in the Council packet) referring to them as offer #1 and offer #2. He stated offer #1 is to purchase the property for $60,000 with no request for closing costs assistance from the Borough and no escalation clause. The deposit funds in this offer are $5,000 with a request for acceptance by tomorrow to settle June 1st, 2023. This offer is an “as is” cash offer.
Offer #2 is $58,000 with no request for seller assistance. There is an escalation clause in this offer. Broker Seibert provided Council with an explanation of an escalation clause and reviewed the details of the clause in this offer. Based on the escalation clause, Habitat’s offer increases to $60,500. The deposit funds in this offer are $10,000. This offer requests an acceptance letter by tomorrow with a settlement date on or before June 24, 2023. This offer is also an “as is” cash offer. Broker Seibert noted his 5% commission will be subtracted from the offered price.
Mayor Lutz provided his view on the offers. He stated that he feels homeownership is not suited for the downtown business district. He discussed successful projects Habitat for Humanity has done in residential neighborhoods and commended the efforts of the merchants of revitalizing the downtown area.
Council President Zink offered her opinion on the proposals. She clarified that the Habitat proposal includes commercial space on the first floor and residential space on the 2nd and 3rd floor. She does not feel there is a difference if the residential space is owner occupied or rental units.
Mr. Szalay provided confirmation that the Habitat for Humanity plan provides for one commercial space on the first floor and owner-occupied residential units on the 2nd and 3rd floor. Mr. Murphy responded saying his proposal provides for two commercial spaces on the first floor and a combined total of 4-6 rental spaces on the 2nd and 3rd floor
Councilperson Fisher asked Mr. Szalay how Habitat would manage the retail space. He responded with options that would be considered.
Councilperson Burgard reviewed the current offers and how they compare to previous offers the Borough received. He provided his opinion of the current offers and stated that while Habitat for Humanity has done excellent work in residential areas of the Borough, he feels Cimarron’s offer is a better fit for this property in the downtown commercial area.
Several Council members asked for information matching the dollar amount to each proposal. It was noted that this information would be required in the motion. Borough Manager Stivers stated the $60,000 offer was from Cimarron Investments and the $58,000 offer with the escalation clause was from Habitat for Humanity.
Nathan Roach
Nathan Roach, a member of the Habitat from Humanity team, addressed the Council and provided additional information on other commercial projects Habitat has successfully participated in. He disagreed with the opinion that his organization and their proposal would not be a good fit for the location.
Councilperson Stahl provided his view on both proposals and stated he feels the multiple rental unit option would provide more tax base for the Borough.
Council President Zink referenced the Borough’s Comprehensive Plan and how it encourages combined use and home ownership in the downtown area. She feels owner occupied units would be more desirable than additional rental units.
Jeff Seibert addressed the Council as both a taxpayer and a realtor. He stated as a realtor his hope is to have the opportunity to work with Habitat for Humanity on future projects and recognized Mr. Szalay’s passion for providing communities with affordable housing. As a taxpayer, Mr. Seibert asked both buyers, for future taxation calculations, if they had a post project property value estimate. Mr. Murphy stated Cimarron’s project estimate was $1.5 Million. Mr. Szalay responded that Habitat’s project estimate is $1.2-$1.3 million.
Mike Flanery
Mike Flanery commented on the proposals for the purchase of the property. He stated he supports the Habitat for Humanity offer and discussed the possibility of section 8 and low to moderate income housing opportunities with the Cimarron offer.
Brad Chambers
Brad Chambers discussed his personal experience with buying property in Columbia Borough. He discussed homeownership vs rental units at this location. He also discussed the number of units proposed in the Cimarron proposal. Councilperson Burgard responded with his view on the statements made and reviewed previous Cimarron projects completed in the downtown commercial district.
Frank Doutrich asked how much money the Borough paid for the property. Council President Zink stated the Borough paid $75,000. He thanked Council and specifically Councilperson Lintner for taking extra steps to get additional/higher offers.
Austin Mountain
Austin Mountain discussed his view on the proposals and supported the Cimarron offer to grow the community.
