Beury, Ford, Murphy, Weisser, Barninger, Welsh present; Smith absent.
Mayor Leo Lutz, Interim Borough Manager Ron Miller, Finance Manager Georgianna Schreck, Solicitor Barry Handwerker present.
Council President Mike Beury: Anyone in the county can bid on this.
Councillor Barry Ford: We needed to do this asap. We need to put the bid in asap. It’s not a welfare office; it’s a call center.
Responses are due back June 12 – in order for developer to make the timeline. They need to have some decisions made so that they know how to put their proposal together.
Bids will be opened June 15.
Realtor Jeff Seibert made the presentation. IBS President Bill Roberts was not present.
Seibert: If Roberts doesn’t come to an agreement with the things he asking for from the borough, he most likely won’t bid on it
The project has to be up and running and complete by December 31
As part of the previous proposal:
– 300 parking spaces would be built on adjacent land to provide the needed parking for the facility.
– Seven proposals were submitted.
– The state pulled back and said they were going to withhold that and not issue anyone the contract.
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Of the seven proposals the one from Columbia was the highest by almost 2-1/2 times, according to Jeff Seibert; 2-1/2 times higher than the second highest proposal. (Columbia’s proposal was submitted thru IBS.)
Seibert: “Because of that we were able to investigate a little bit and find out where we fit in the proposal”
Seibert: “They did us a big favor by pulling that out because they’ve got to be stewards of some fiscal responsibility. We were just totally out of order.”
Part of it was due to the need for developing a lot of parking which doesn’t have to be done this time.
Taking down a house doesn’t have to be done this time. (Buy house and tear down)
Purchase price of bldg was part of noncompetitive aspect.
This time, the call center is much smaller.
IBS wants to submit another proposal for a call center at this site.
Seibert: “I’m not part of IBS development.”
IBS Development cannot afford to pay as much as they offered for the building the last time.
When you lease something to the state you lease it to them including taxes, maintenance, insurance. You’re paying the heating bill; you’re paying the electric bill. So they write you one check of everything.
It’s like the ultimate gross lease, gross meaning inclusive.
There will be 129 jobs at this call center, and the entry level will be just under $50,000.
129 people of some education at that level of affluence will be coming to our borough M-F 7am-7pm.
They will: eat in restaurants (probably), shop in stores (hopefully), go to the market house. The borough will get some economic development out of this; borough will collect taxes
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Promotes economic development in boro
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Allows fire companies to merge in a fashion where they’ll be financially strong and will be able to protect us in the future.
Someone else could use the building to store heavy equipment with only only 10 seasonal jobs.
Consolidation is not contingent on sale of bldg; was supposed to happen April 1; real estate subcommittee was put together to oversee sale of any properties left over after consolidation.
Scott Ryno: the facility has been professionally appraised; appraisal used to set price; the building has so far not been listed for sale outside this discussion.
Ryno: Current outstanding debt is $1,035,000. Borough paid for appraisal which is $850,000 for building not including the land; land is $104,000; fire company owns parcel of land between house and Union Street (two addresses).
Seibert: A lot of what’s in there [Columbia No. 1 building] is site-specific; IBS feels it can afford to pay $200,000.
First call center was 36,000 sq ft; total cost $51.28/sq ft including operating costs; competitive numbers were $17-19/sq ft – undocumented; we need to be between $18-20/sq ft to be competitive in operating costs and bldg rent.
At 200K it ends up not including operating expenses and ends up being $1.87 sq ft – that’s what you can charge them in rent for the acquisition of bldg. Before any engineering any improvements.
If this falls thru, fire co will not be forced to sell; company signed agreement with an “out” for them.
Seibert: “The intent is to get 129 quality jobs into Columbia Borough.”
Columbia Boro owns the land.
Seibert: “We just want to be able to get our proposal in by June 12.”
Has to be free and clear title for fire company to sell bldg
10-year lease; IBS will be sole owner. 10-year lease with option to renew, but IBS can opt out after 5 years.
Seibert: “They might form a partnership that umbrellas underneath them.”
Councillor Mary Barninger asked if Seibert has an agreement with No. 1 to sell the bldg; Seibert said, “Subject to certain conditions, yes. Conditions that would allow them not to move forward if they cant move forward.”
Seibert: “IBS Development is submitting two projects for this call center. One is going to be at this facility. One is going to be in another location in Columbia Borough [the Turkey Hill Experience].”
Seibert: “ There’s nothing in this agreement of sale that says if he [Roberts] doesn’t get the call center, he won’t go through and buy this bldg. This could be the end to that bldg being an albatross even if we don’t get the call center, but our plan is to get the call center. He would develop it in another fashion.”
Seibert said this is the best and easiest fit of the two projects.
2nd and Locust, Hotel Columbia considered, but cant be done in time, plus parking problems
Money comes from general fund (currently about $3 million)
It was suggested previously that the borough might enter into an agreement with the fire company for a 0% interest loan to repay that money over time.
It was asked if Bill Roberts could get it built between August 31 and December 31, the final deadline, after which the state will impose heavy fines.
Seibert: “We think we can … he’s done it before.”
Doolittles building 2nd and Locust couldn’t be done in time
There are other buildings it could fit in, but probably would not be ready in six months.
IBS might not be agreeable to those terms because it would be more on their back end
Seibert: Is that the kind of obligation you want to put on the newly merged fire company?
Barninger: If the borough footed the difference to clear the title, the borough could then enter into an arrangement with the newly consolidated fire department in a zero interest loan to repay money over time
Siebert: I really think of it as investment in the borough.
Seibert said employees might even buy houses and live here.
Seibert:“All our numbers are based on 10 years, but if that building stays in operation for 40 years . . .you have 130 people making 50 grand a year for 40 years.”
Columbia’s budget: 5.2– 5.3 million a year.
Seibert: If you have parking you’re going to be given more favorable consideration.
Seibert: as part of request letter to the borough:
– use of the 47 parking spaces at 106 Locust Street, on a non-fee permit parking basis for commonwealth employees M-F 6:30 am to 7:30 pm (hours of operation for the call center are M-F 7 am to 7 pm,
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plus 16 parking spaces in Avenue H (a Century Link)
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plus a fair game shot at the parking on Sadie Lane (21 spaces – municipal lot)
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24 at the fire company
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a couple could be gotten out of the vacant ground
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.21 acres on the two tracts next to Union Street, which could yield about a dozen spaces
Discussion of curb and sidewalk not need along Front Street – Seibert: would not add value to the project; asking for waiver.
According to Mayor Leo Lutz, if you don’t have a curb and sidewalk you don’t have to install them until the neighbors on either side install them.
Daisy Pagan of Perfect Settings voiced a concern about parking for her events on Friday afternoon.
Seibert: “It might get to the point where Columbia needs a small bus service, and Glatfelter’s becomes a parking lot.”
Seibert: “We have event parking issues, there’s no doubt about that.”
Barninger: Why would it not be in the borough’s interest to foot the whole bill and own the building?
Barninger: Why would we pay the debt on it and have no skin in the game on it?
If theres nothing the SFP which prohibits a sublet
Seibert: I’m just the messenger; will submit the idea to Roberts.
Lutz: The cost of the lease would offset the taxes.
Lutz: The use of the trail is going to put a burden on parking
Possible new business at Mifflin Press; parking concerns were expressed at previous consultants’ meeting held at Perfect Settings.
Seibert said he could end up being a partner with Roberts.
Solicitor: Borough can’t do this transaction without approval of CEDC.
Tax revenue from building would be $8,000/ year, based on 8 mils.
All six council members present approved the motion.
Columbia Spy 