The attorney representing Robert McNeil in his efforts to buy the Flats for $2.3 million has warned the city Redevelopment Authority that putting a power plant on the site would be a death blow to the Coatesville's redevelopment.

"If you go with industrial use it will be a death blow to the redevelopment of the city," said Joseph Riper, told the RDA at it's Tuesday night meeting.

McNeil's opposition to the power plant echoes the concerns of two of the city's largest developers, Don Pulver and Carl Chetty. Pulver is to begin construction of a four-story office building and hotel near the Route 30 bypass exchange this spring. Meanwhile, Chetty's plans for Pennock Place, a seven-story condominium at North Third Avenue and East Lincoln Highway have stalled.

The RDA voted in December to sell the 26-acre Flats site to McNeil; however, city council refused to sign off on the deal until it had formerly heard proposals from the two utility companies interested in the cite. Also, council was concerned that McNeil failed to provide a detailed development plan.

"We're in a Catch 22 situation, said RDA Member Regina Horton. "We own the land but can't sell it without council approval and council can't recommend and use without our approval."

LS Power Development (LSP) of Missouri and Florida Power and Light Company both want to purchase the 26-acre Flats site to build a gas-to-electricity generating plant. Both promise hundreds of construction jobs during the two to three years it will take to built the plant. However, both companies have been vague about how many of the jobs would go to Coatesville residents. However, both companies agree that when completed the plant would require only 25-30 employees to operate.

LSP has said it will pay $10 million for the site, substantially more than the $2.3 million offered by McNeil. And City Manager Harry Walker, who doubles as executive director of the RDA, said LSP and Florida Power and Light are willing to make upwards to $3 million in annual payments to the city, if allowed to operate a power plant in the city. Walker said such payments are not unusual, pointing out that Lukens Steel Co. once paid the city $1 million annually

Riper told the RDA it must question how definite is the $10 million offer. "How definite is that payment. We understand it is essentially a three-year option; it could dry up and go away. We don't believe the $10 million will com to volition." Riper also told the RDA it must consider the likelihood of outside approval. "People outside (of Coatesville) could end up fighting your proposal from going forward," he said.

Riper said the $2.3 million offer by McNeil is not contingent on grants or other public funds. He said the only thing slowing up a definite development plan would be the length of time it takes to cleanup the site.

According to terms of the agreement released Tuesday night, McNeil is seeking a 45-day window to determine the contamination level of the site, once used by both G.O. Carlson Inc. and Lukens Steel Co. and how much cleanup EPA would require for commercial-retail use. "We will go to EPA to determine the highest level of cleanup," he said.

Should there be a delay, the deal calls for a second 45-day period. At the most, the city would only have to wait 90 days for the $2.3 million payment.

McNeil has also pledged to sign a legal document that would prevent his using the site for industrial use. "It will not be industrial and an eyesore," McNeil said.

Riper said once it is determined how much cleanup is required, within a year it will present the RDA with a development plan.