Coatesville RDA forthright about $7 million

Paul Givler is not bashful about explaining how the Coatesville Redevelopment Authority spent its $7 million line of credit. At a recent Coatesville council meeting, he provided a lengthy power-point presentation, largely unreported, that detailed where the money went and what properties were purchased.

Nine properties were bought for $4.1 million and another $2.9 million was spend for engineering studies, demolitions, appraisals, relocation costs, legal fees, and administrative costs, according to Givler's presentation.

Most, if not all, of the properties were purchased during the time Paul Janssen served both as city manager and executive director of the RDA. Most of the properties were purchased with the idea of a quick resale: demolish the buildings, prepare the ground for development, and then sell it to developers. It was all part of the city's $700 million revitalization dream.

A audit released this week by the RDA paints a worrisome financial future for the authority. Prepared by Barbacane Thornton and Co., the auditors concluded that whether the RDA can survive depends on its ability to sell the properties now being held for resale.

Coatesville Council Member Ed Simpson says it is time for city council and City Manager Harry Walker to begin showing support for the RDA. He is doubtful that will happen, however.

"I think it's obvious that if the RDA goes under we lose TIF financing and once that is goes two of the largest projects are in question," said Simpson, referring to both Carl Chetty's plan to build as many as eight, high-rise condominium towers in the city's downtown business district and Don Pulver's plans to build a hotel and series of office buildings along the Route 82 corridor between East Lincoln Highway and Route 340.

"My fear is that there is an element working to destroy the RDA so that council can take over the Flats and work out a deal for affordable housing. And in this day's political environment that means subsidized housing," said Simpson.

So far council has not expressed any intention to see subsidized housing on the site of the former G.O. Carlson plant. During one council meeting, Walker has said that what happens to the Flats could have dire consequences for the city if the wrong project was constructed there. He has also said the city has more than its fair share of Section 8 housing.

The properties purchased by or transferred to the RDA, according to Givler's public presentation to council, include:

The land for the Penn Crossing Development was secured shortly after the RDA was formed in 1999 and sold to the development's developer, Tammy Cansler, in 2002;

The property at 701 and 731 ­ the old East End Hardware site and the Crystal Bar site ­ were purchased by the city, turned over to the RDA, and sold to Paul Chambers and Ken Youngblood who have submitted plans to build two condominium units on the two sites;

736 E. Lincoln Hwy. and 20 Chester Ave. were purchased by the city in January 2001 and transferred to the RDA which in turn transferred it to the Brandywine Health Foundation. Construction of a four-story health center is expected to begin on the site next month that will encompass the entire block from Chester Avenue to Palmer Avenue and from East Lincoln Highway to Harmony Street;

In June 2004 the RDA secured a $7 million line of credit from Fist Financial Bank and immediately began purchasing the so-called Cohen properties on the north side of Chestnut Street, 107, 117, 119, 123, and 125. The RDA acquired the properties on Nov. 5, 204 for $131,484;

On March 3, 2005, the RDA bought two properties on the south side of Chestnut Street, 112 and 114, for $169,485;

On Sept. 21, 2004, the RDA took over the agreement of sale from Don Pulver of the Lincoln Center at 101 E. Lincoln Highway for $414,041. The property is currently rented;

On Jan. 5, 2005, the RDA purchased 129-133 E. Lincoln Highway for $108,839. The buildings were demolished by the RDA. The now empty lots are west side of the Cultural Society;

The RDA also purchased four properties on Fleetwood Street and North Third Avenue and are referred to as the Train Station Properties. They include: 301 Fleetwood St, $280,477; 312 Fleetwood Street, $280,395; 115 N. Third Ave., $97, 783; and 117 N. Third Ave, $97,509;

What the RDA considers its most important properties, the 27-acre Flats site that abuts against the Brandywine Creek was bought at a price of $1.6 million for the G.O. Carlson site and $193,349 for a smaller tract from ISG now Mittal Steel;

The last piece of land owned by the RDA is the office building at the southwest corner of Church Street and West Lincoln Highway. It's purchase price was included in the G. O. Carlson purchase.

Meanwhile, the RDA is operating with almost no staff. The authority's project manager, James Franciscus, resigned shortly after the new council was sworn in. Then Jean Krack was forced to resign as city manager. Recently disclosed documents reveal that efforts were underway to force Krack out shortly after the new council was sworn in. He resigned in March. Elizabeth McQuisten, who doubled as both the city finance director and head of finance for the RDA, was forced to resign last month. The only staff member remaining is Ruthann Russell, an administrative assistant.