Township puts Star City sale on hold
Law requires advertising site
South Fayette will remain the owner of the former Star City Cinemas site on Route 50 for a bit longer.
Hopes for divesting itself soon from the former site of a multi-screen movie complex suffered a setback April 15 when solicitor Jonathan Kamin told commissioners the township must advertise the site before it can sell it.
He told commissioners that the Pennsylvania First Class Township Code requires advertising as a condition for the sale.
Commissioners voted Sept. 10 to advertise a request for proposals with a Nov. 26 deadline for development responses for the site, which the township acquired in 2009. Another RFP was issued in February.
The township borrowed approximately $8 million on a five-year bond to purchase Star City. The bond could not be refinanced without penalty.
“It was most advantageous for the township to wait until after that call date in late 2014,” manager Ryan Eggleston said later.
The township used about $5 million to acquire the Star City site. Money from the bond also was used to fund other capital projects, including road paving, said Mr. Kamin.
He pointed out that it is an ideal time to refinance the bond, as rates are lower.
After a 30-minute discussion over the pros and cons of selling or leasing the property, commissioners approved a motion 4-1 to advertise for bids starting at a minimum $5 million. Commissioner Deron Gabriel dissented.
Mr. Kamin assured the board that they do not have to accept what comes in.
Most recently, two developers, Burns & Scalo Real Estate Services Inc. and Horizon Properties Group LLC, responded.
Horizon proposed a mix of office space, retail and a hotel. They provided two options for purchase. One option included an offer for $5 million. Burns and Scalo visualize two office buildings on the site. They offered one option for purchase at $2,125,000 and another to lease the property.
The approximately 8.5acre site is adjacent to the Bridgeville Interstate 79 exit and is across Route 50 from the Newbury residential and retail development.
Manager Ryan Eggleston said May 7 is the deadline for proposals.