Borough examines options for sale
Theater, adjoining building may be sold separately
SOUDERTON » The borough’s plan to sell the Broad Theater may be cutting to a split screen.
Although both the theater and an adjoining building were part of plans to renovate and reopen the theater, the two are technically separate properties and could now be sold separately.
The borough acquired the site when no one bid on it at an April sheriff sale brought by the borough after previous owners Broad Entertainment LP failed to repay a $500,000 loan made to it by the borough using state grant money. The century-old theater has been closed since 2006.
At the June 12 Souderton Borough Council work session, Davide Sowhangar, owner of the neighboring Broad Street Pizzeria & Grille, asked about the possibility of the two buildings being sold separately and said if that happens, he’s interested
in buying the building beside the theater and moving his pizzeria there.
“Being there eight years now, it’s getting a little cramped,” Sowhangar said of his current location. The move would also allow him to own the building, rather than rent, as he currently does, he said.
There could also be another business with Broad Street Pizzeria on the first floor, he said.
“Upstairs, we could do offices and the third floor on that building has enough space for an apartment,” Sowhangar said.
Sowhangar said he and a developer initially planned to work together and have the developer do the theater part, with Sowhangar moving to the other building, but the developer currently has other projects and would not be able to do the theater at this time.
Council recently did a walk-through of the site, council President Brian Goshow said.
“I think the realization we came to is that the size of that, of both buildings together, is so big that it makes it a challenge for anybody to do the whole project together,” Goshow said. “My recommendation to borough council is that we do look to split the properties to be able to sell both halves individually.”
Under state law, though, the municipality cannot simply negotiate with a buyer, set a price and sell it, he said.
“It would have to go through sealed bids,” Borough Manager Mike Coll said.
“As borough council, we can’t say, ‘OK, we like your idea; we’re selling it to you,’” Goshow said.
The borough can put specifications on the purchaser but still has to go through sealed bids, Coll said.
“Somebody else would have the opportunity to also put a bid in and outbid you,” Goshow told Sowhangar.
Although the specifications could narrow down other potential bidders, such as to other restaurants, it couldn’t exclude all other bidders, council member Jeff Gross said.
“We can’t say it has to be a pizza shop that makes pizza just like the Broad Pizza,” Gross said.
“Though we might like to,” council member Richard Halbom added.
Goshow said he’d like to see the theater remain a theater and, if that happens, having the next door restaurant could be good for both businesses. Broad Entertainment’s plans for the site also included restaurants.
A survey has been done to check on the existing property line for possibly selling the two buildings separately, Coll said.
The borough will keep Sowhangar in the loop as it proceeds with the plans to sell the property, Goshow said.
If the two buildings are sold separately, the borough could put the building beside the theater up for sale first, probably this fall, then get bids on the theater part at a later time, Coll said.
One issue that is expected to arise if the plans move forward is parking, Sowhangar and borough officials said.
“I know you have a parking issue right now with just the pizza shop. Moving the pizza shop and potentially getting a little bit bigger creates a little bit more of a parking issue. Development of the second floor as office area creates an even bigger parking issue, but we’ve dealt with parking issues before here on numerous occasions,” Goshow said. “I’ve said this many times before and I have no problem saying it. I love parking problems because when we have parking problems, we have development and we have a thriving downtown.”
“There’s no parking problem that you can create in that property that we can’t help you solve,” Halbom said.