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Middletown ICDA approves agreement to buy the Elks Building

The Middletown Industrial and Commercial Development Authority tonight approved an agreement of sale to acquire the Elks Building from the Greater Middletown Economic Development Corporation.

As described by authority Solicitor Salvatore Bauccio, the acquisition is to be a cashless transaction in which the authority takes title to the historic building, and assumes responsibility for the $500,000 mortgage on the property.

However, much more needs to take place before the deal is final. Bauccio said approval of the agreement of sale begins a 90-day "due diligence" period. What that basically means is that the authority has up to 90 days to assess the physical condition of the building, analyze the building's existing lease obligations, and uncover anything else that could increase or impact the overall cost of owning the property.

If, for example, the physical issues with the building are much more expensive than what the authority believes to be the case, the 90-day period gives the authority a way out of the deal. At the same time, Bauccio said the authority could be ready to close on the sale before expiration of the 90 days.

Besides the physical issues - which Bauccio said include needed repairs to portions of both the ceiling and roof - at least another $50,000 is needed to buy digital conversion equipment for the Elks Theatre. 

Even if the authority decides to move forward, the agreement still needs final approval from Middletown Borough Council, and from the Pennsylvania Department of Community and Economic Development.

DCED is the source of the $500,000 mortgage. Bauccio said the $500,000 is to be repaid to DCED in five annual installments of $500,000, the first one due in 2015. Bauccio said that the authority wants to refinance terms of the mortgage with DCED, in such a way as to allow the authority to move quickly toward fixing the building and improving it, while also meeting its repayment obligations.

The hope is that these improvements will eventually increase the building's cash flow so the property can be more self-sustaining, he said.

The authority in the same meeting gave tentative approval to obtaining a $3 million line of credit from PNC Bank. Bauccio said the line of credit would give the authority funds while awaiting release of government grant money. He said that the authority is in the process of applying for a $500,000 state grant. The PNC line of credit also requires borough council approval, besides final approval from the authority.

Bauccio would not release a copy of the sales agreement until after he can review the agreement with the borough solicitor, which could occur Thursday. He said the agreement provides for the Elks Theatre to be operated not by GMEDC but by a yet-to-be-formed local nonprofit organization. 

Borough Council President Chris McNamara, an authority member, said the new organization is to be put together by two Middletown businesswomen; Robin Pellegrini and Dana Ward. Pellegrini is also on the authority and serves as its community liaison, McNamara said.

McNamara said authority ownership of the building is essential to preservation of the historic structure and the Elks Theatre itself. 

"The theater is not closing as a result of this. Just the opposite" is the case, McNamara said.

The GMEDC board had already approved the sales agreement with the authority. GMEDC board Vice Chairman Gordon Einhorn was at the meeting at the start, but left while the authority was holding a closed-door executive session on real estate and personnel matters, before the authority reconvened to vote on the sales agreement.

 

Last Updated on Thursday, 10 July 2014 01:14

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School Delays, Closings and Alerts: 02/18/14

Here is a list of school cancellations, closings and delays for Tuesday, Feb. 18. 

LOCAL SCHOOLS

Middletown Area: 2-hr delay
Lower Dauphin:  2 hour delay
Steel-High: 2-hr delay; modified kindergarten
Elizabethtown: 2-hr delay; modified kindergarten
Seven Sorrows BVM: 2-hr delay
Capital Area School for the Arts: 2-hr delay
Bishop McDevitt: 2-hr delay

OTHER AREA SCHOOLS

Susquehanna Twp.: 2-hr delay
Harrisburg City Schools: 2 hour delay
Central Dauphin: 2 hour delay; modified kindergarten
Halifax Area: 2-hr delay
Upper Dauphin Schools: 2-hr delay


LOCAL COLLEGES

Penn State Harrisburg: Opening at 10 a.m.

 

 

 

 

 

Last Updated on Tuesday, 18 February 2014 10:41

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Weather Alerts

With several forecasts predicting eight to 12 inches of snow for Thursday, Feb. 13, many municipalities have already declared snow emergencies. Check back to this page for updates from municipalities, school districts and other weather related alerts to help you get through the storm.


Municipality Alerts: Several boroughs and townships have declared snow emergencies beginning on Wednesday, Feb. 12. Click the link to find parking, driving and other restrictions for each municipality.

School Delays and Closings: Follow the link for closings, delays, and event cancellations for your local school district.

PennDOT Alerts: PennDOT has reduced speeds in some areas, as well as implemented restrictions for some vehicles. Click the link for more info.

Capital Area Transit (CAT) AlertsCAT has cancelled ALL services for Thursday, Feb. 13.

Amtrak Information and Alerts

Pennsylvania Turnpike Weather Alert



Last Updated on Friday, 14 February 2014 02:24

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Christmas to return to Hoffer Park

There will be Christmas lights in Hoffer Park after all.

 

Middletown Borough and the the union that represents the borough's non-uniform employees have settled a grievance that borough officials said had forced them to suspend the decoration of Hoffer Park, an annual holiday tradition.

 

The settlement, announced on Thursday, Nov. 21, allows for volunteers to decorate the park and Middletown's square, the borough said.

 

The borough now is seeking volunteers to help decorate the park. Volunteers may gather in the Borough Hall parking lot at 11 a.m. on Saturday, Nov. 23 and Sunday, Nov. 24.

 

Hundreds of people visit the park to see the Christmas display each year, and Santa Claus holds court amid the lights and bulbs.

 

Councilor Barbara Arnold announced earlier this year that the borough would not decorate the park because of a grievance filed by the union, Teamsters Local 776, that sought compensation for work that volunteers did last year. The borough solicitor advised against using volunteers to decorate the park until the matter was resolved.

 

According to the settlement agreement, Teamsters Local 776 recognizes the borough's right to use volunteers so long as volunteer work does not result in layoffs of borough employees, the borough said.

 

"We appreciate the union leadership's efforts to resolve this matter in time for Christmas,'' said Tim Konek, borough manager, who is a member of the borough's contract negotiating team. "In the end, we were able to find common ground and put aside our differences for the good of Middletown.''

 

Trees already have been ordered for the Hoffer Park display, said Chris Courogen, borough secretary and director of communications.

 

News that the tradition would be suspended had resulted in a citizens' committee, under the auspices of the Middletown Area Historical Society, to erect a decorated tree at South Union and Ann streets, on property owned by the Society.

Last Updated on Friday, 22 November 2013 20:43

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Election Coverage

Election Results LocalRaces Polling Places logo findyourwardprecinct Voter ID 

Last Updated on Friday, 01 November 2013 17:56

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