City redevelopment authority buys lot for office building

The Coatesville Redevelopment Authority last night agreed to purchase the Lincoln Center at at the intersection of Route 82 and East Lincoln Highway to make room for the first-high rise office building to be built in the city in its 300-year history.

City Manager Paul Janssen said the redevelopment authority is assuming the agreement of sale for the property from Don Pulver for $395,000. Janssen said once the one-story building is demolished and the lot made suitable for construction, the property will be sold back to Pulver. Demolition and site improvements, he said, will be funded through state and federal grants.

Last month the redevelopment authority approved a $7 million line of credit from First Financial to provide it with the money necessary to move forward on the city's revitalization plans. The city is using its tax base as collateral for the loan.

Pulver is planning to build 12, high-rise office buildings along the stretch of the city that extends along Route 82 up to Route 340. Earlier this month his plans got a financial boost from the county when the commissioners signed off on $5 million in loans and grants for the developer.

The county isn't providing Pulver with any dollars, but rather is simply signing off on his application to HUD for a $4 million, low-interest Section 108 loan and for a $1 million Brownfield Economic Development Initiative (BEDI) grant. However, should Pulver default on the loan, the city is promising to make the loan good by pledging future Community Development Block Grant (CDBG) funds. Jean Krack, assistant city manager, said such a scenario was "extremely unlikely."

Last night Janssen said Pulver most likely won't begin building on the Lincoln site until after construction begins on the riverwalk to be built on the banks of the Brandywine Creek.

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