Tuesday, February 12, 2013

City Plans to Sell Alpha Building, Move City Hall

By Christina Georgiou

Easton Mayor Sal Panto speaks with members of the press on
Monday afternoon, accompanied by a number
of city administrators and city council members.
  
The City of Easton plans to move City Hall in favor of the new intermodal complex being built just down the street and sell the Alpha building to a developer, Mayor Sal Panto announced Monday afternoon at a press conference .

Preparations for the new site, which is to include a new LANTA bus terminal, are going forward, Panto said, estimating that work will begin again this spring in April and May. The concrete slabs for both the building and the new parking deck are to be cast and laid in June and July, he added.

"The parking garage itself is on target," Panto said.

This isn't the final plan, but the new intermodal
complex on South Third Street is envisioned
to look similar to these preliminary sketches.
While the final design of the facade and interior of the new structure is not yet complete, the bus terminal is set to encompass 3,000 square feet of the structure's total 45,000 square feet, with easy access to parking, he said.

Panto said the decision to move, subject to city council approval, was precipitated by "at least three" developers approaching the city with inquiries about purchasing the Alpha Building.

"It's not that I want a new office," the mayor said, adding that he believes the move is a financially smart decision for the city.

The Alpha is aging and will need significant costly repairs, including a new roof, elevator upgrades, and parapet maintenance in the next few years, Panto noted.

Additionally, since the city will be footing about half the cost of the new intermodal complex, about $10 million of a roughly estimated $22 million project (including state and federal contributions), floating that bond loan to sell the property to a developer later makes little sense.
"It's okay to subsidize and incentivize developers, but when you've got a $14 million project, and the developer puts in $4 million, (local government) putting in $10 million is just not fair to the taxpayers," he said.

By moving city hall, the city will see the money from the Alpha Building's sale in the meantime, the mayor said.

The rest of the intermodal project will follow essentially the same plan as it has, Panto said, though a number of details are still yet to be determined, such as which floor the planned High School Sports Hall of Fame museum will occupy, and where in the structure the new city hall would be placed. A ground floor location for city offices is possible, he speculated.

But, Panto said, the new city offices will occupy less space than the current ones, and the new space will also provide the city with a savings on  cost overhead too, from maintenance to office supplies like printers and copiers.

"So we'll have less space, more efficiency," Panto said. "Downtown is definitely the place for City Hall. It does not have to be the most prominent building though. I know we will get more and better use out of this building."

Besides the reduced maintenance costs of occupying a new space, the intermodal complex will be built following LEED guidelines, and LEED certification may also be in the works. The advantages of energy, water and resource efficiency will also help keep future city costs down, he said.

The Keystone Opportunity Zone designation the site was granted will not be affected by city ownership of the property, but it's largely a moot point, since as a city property, it will be tax exempt anyway, said Easton's Economic Redevelopment Director Gretchen Longenbach. However, as the city will have some commercial tenants, school and county property taxes will still be paid on some of the space, she added.

J.G. Petrucci, who was to develop the property, will still manage the construction aspect of the new construction, Panto added.

"His team is still important. They've already saved us money," the mayor said.

As for the Alpha Building sale, Panto refused to divulge projected figures or what offers the city has received on the site, saying that an official appraisal of what it's worth is in the works.



"One thing we want to do is make sure we get the best price with the best use," he said. "We won't sell it for less than the appraised value."

The city police department, currently housed under the Third Street parking garage, however, will not be making the move to the intermodal complex, despite the need for a new police station. The current location is too small and suffers from water leakage.

"There's no way to get a private entrance and exit at this location," Panto said. "I don't think you want...guys coming out in shackles (there). It's not the best impression for the city. It doesn't work financially or physically."

City offices have occupied the Alpha Building since 1996. Originally, Easton rented the building, which was vacant at the time, and bought it three years into a five-year lease, Panto said, adding that he believes it was a good decision for the time and circumstances.

In the last few years, the city has diminished the floor space it uses, from six floors to five. In 2011, it spent more than $100,000 to refurbish the sixth floor to move city council chambers and offices there.

The remaining floors of the nine-story building are leased. With the Crayola store moving next door and other spaces vacant, it's is a good time to consider selling the building, Panto said.

While the move isn't likely to happen until late 2014 or early 2015, the city seems to be on a fast track to make it happen.

Historic District Commission grants preliminary approval


At Monday evening's Historic District Commission (HDC), preliminary approval was granted for the concrete work to begin for the parking deck and laying the foundation for the new complex.

Easton Mayor Sal Panto talks about moving City Hall to the
new intermodal complex at Monday evening's Historic
District Commission meeting.
There, Panto made the case for the project and moving City Hall again.

The mayor also hinted at a possible future for the Alpha Building, saying that the first floor would likely be retail/commercial space, the second through fifth floors could be offices, and the sixth to ninth floors might be "high-end" apartments.

He noted that the city will be largely free of the multi-million dollar debts awarded in the Cuvo and Sollman lawsuits by the time the project is complete too.

"If it weren't for those two things, this city would be wealthy," Panto said.

The new complex is needed for its parking anyway, he added, noting that the Crayola expansion is projected to bring in an additional 150,000 visitors to the city annually, with a total of 450,000 coming to the city to see that attraction.

HDC board member William Dohe wondered what would happen if the retail and office space part of the project plan was found to be economically infeasible and wasn't build.

The mayor said funding for the new complex, to be paid for with a $10 million bond, will eventually be paid back through parking revenue.

"Everything we're doing here will be coming from parking money, not general fund revenue" Panto told HDC members. "We believe we do have an economically feasible plan.

"This will be the first new construction (Downtown) since the Larry Holmes buildings. And it will be built," Panto added.

HDC member Gary Ringhoff wanted to see more details of the plan before making a decision.

"I think we need something more solid," he said. "I need solid information of what that final building is going to look like. Because we could be stuck with a parking deck that's as lovely as the one we're looking at (across the street) right now."

Randy Galiotto, project architect from Spillman Farmer, said final details of the building's design will be presented to the HDC next month.

HDC members unanimously approved the preliminary stages of construction.

More of the plan, especially the financial aspect of it, is expected to be presented to city council, which will also need to give its approval, and the public at the regular city council meeting on Wednesday, Feb. 13 at 6 p.m.

A resolution in support of City Hall's move will be presented at city council's Feb. 27 meeting, and its passage in March is expected, though no city council members have yet commented on the plan, the mayor said.

"This will be the first new contruction Downtown...in several decades," Panto said.

1 comment:

  1. I really like the idea of them considering cost of repair versus cost of relocation and the fact that they don’t insist on a grandeur building. The idea of cost-cutting is also laudable, particularly since they started it from their offices. Hopefully the transfer will not entail much downtime on their part.

    Clayton Steadham

    ReplyDelete