Coatesville approves borrowing $8.5 million

Coatesville council last night gave final approval to borrowing $8.5 million to prepare for major land acquisitions and to reimburse itself for legal and design fees related to the the regional recreation center.

In a series of ordinances, council first approved using the city's tax base as a guarantee for a $7 million line of credit the Redevelopment Authority will borrow for land acquisition. Council then approved a second ordinance allowing it to borrow an additional $1.48 million to replace money taken from city reserves after spending a $5 million bond loan.

City Manager Paul Janssen said the city has already spent close to $7.2 million on the regional recreation center that has been fraught with five years of legal battles over taking the Saha farm in Valley Township for a golf course.

Last night council members Ed Simpson and Marty Eggleston voted against the borrowings. Simpson said he wanted the Saha issue resolved first. "I'm not against revitalization. I just want to see the Sahas taken care of first," he said following the meeting.

Janssen said the $7 million will allow the Redevelopment Authority to move forward on land acquisition. The city is negotiating with the owners of G.O. Carlson In. and ISG for property for property along both sides of Lincoln Highway from First Avenue west to Church Street. Janssen said there are other properties the city has under agreement of sale which he refused to identify.

Janssen said the plan now is for the city to acquire the ISG and G. O. Carlson properties, clean it up using Brownfield Grants, and resell it back to developers. He said the Redevelopment Authority will draw down the money necessary and pay it back immediately after the property is resold.

Bart Blatstein of Tower Investments has said he wants to build a series of condominium towers on land now owned by ISG and G.O. Carlson's. He also wants to build a series of restaurants along a riverwalk the city will construct along the Brandywine Creek. Don Pulver plans to build a series of high-rise office buildings on city-owned property along Route 82. The first building is to be built on the site of the Lincoln Center at North First Avenue and East Lincoln Highway.

Pat Sellers, of Madison Street, used the public comment section to chide council for borrowing more money to build a golf course the majority of city residents are against.

You can write to Allen Davis at allen@chestercountyreporter.com