Drip, Drip, Drip
Short Summary:
The "Regional Recreation Center" project, in which East Cocalico Township (along with three other municipalities) purchased the former Four Seasons Produce facility on Route 272 cost almost $4 Million is now dead. There is evidence that serious damage to the building due to a leaking roof that hasn't been fixed may have resulted in a very significant loss in value of the property (the building may have originally been worth as much as $2 Million). East Cocalico Township Supervisor Noelle Fortna, in response to requests to lease out part of the building said "This building has deteriorated" and "No, I'd rather take a bulldozer to it..." Now that the project has been scrapped, are the taxpayers going to have to foot the bill for the loss in value of the property due to the Township's failure to maintain it?
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Back in 2006, East Cocalico Township, along with West Cocalico Township, Adamstown Borough, and Denver Borough entered into a agreement regarding plans for a "Regional Recreation Center." The plan involved East Cocalico Township purchasing the former Four Seasons Produce facility at 1975 North Reading Road (PA Route 272), with the other municipalities to contribute to the project in proportion to their populations. The plans for the recreation center were scrapped this year after West Cocalico Township voted to declare the project not feasible. The municipalities agreed that the property should be sold, but that they should wait for better economic conditions before selling it, as in the current market the sale of the property could result in a significant loss.
The purchase price of the property was $3,740,000. on June 2, 2006. A "General Obligation Note, Series 2006" in the amount of $3,904,842.35 was issued to purchase the property (the difference in the amounts is due to other costs involved with the purchase and fees.
An appraisal of the entire property with the buildings dated February 8, 2006, prepared by Smart Appraisal Services of Lancaster, PA, gave a market value of the property of $3,760,000. Because of a proposal to subdivide off two undeveloped parcels from the site, a more recent appraisal of those two undeveloped sections of the site was prepared by the same company (Lot 1, Lot 2). That report is dated March 12, 2008. The total estimated market value of those two parcels (a total of 14.5 acres) was $1,236,000. The third portion of the property, 6.5 acres which includes the main building, therefore must comprise the majority of the value of the property. With the note taken out for $3,904,842.35, subtracting the market value of the undeveloped "parcels" give us a remainder of nearly $2.7 Million for the 6.5 acre section. If the land for the 6.5 acre section was valued at somewhere near the value of the land in the other sections, using the higher value per acre from the other two parcels, gives only about $600,000. for the land, meaning that the building could potentially account for more than $2 Million of the total value.
A "Structural Condition Report" on the building dated February 8, 2006 was prepared by Eugene J. Aufiero & Associates, Inc. of New Cumberland, PA stated that "...the subject building is generally in sound condition..." however it was noted that repairs are needed on the roof.
Part of the roof (the section over the part leased by B. C. Natural Chicken) was repaired in 2008. The remainder has not been repaired and is still leaking. At the supervisors workshop meetings I have heard on more than one occasion that the building is in bad condition. At a workshop meeting held on February 19, 2009 (see page 4, 2nd item under secretary), East Cocalico Township Supervisor Noelle Fortna, in response to a request to lease out part of the building commented on the condition of the building, saying in part that "This building has deteriorated" and "No, I'd rather take a bulldozer to it..."
The property is to be sold now that the Rec. Center project has been killed. I fear that the taxpayers of all four municipalities may end up paying for a very significant loss when the property is sold, due to East Cocalico's failure to maintain the building properly.
© Ken McCrea 2009