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New plan for Allentown State Hospital: Tear it down first, then find a buyer

Who gets to redevelop the Allentown State Hospital property soon may become an open question, while demolition of its century-old buildings looks increasingly imminent.A bill introduced in the state Legislature on Monday by Sen. Pat Browne, R-Lehigh, authorizes the state Department of General Services to create a competitive bidding process for the sale of the 195-acre property in east Allentown.Before that, however, General Services is “authorized and directed” in the bill to demolish all buildings and structures on the property except for an air monitoring station.A developer then would be chosen based upon best value and return on investment, which in addition to price may include “the proposed use of the property, job creation, return to the property tax rolls and other criteria specified in the solicitation documents,” the bill states.The bill also would establish a “competitive solicitation committee” to review proposals and recommend a buyer. The committee will consist of Browne, state Rep. Mike Schlossberg, D-Allentown, a representative of the city of Allentown and Secretary of General Services Curt Topper. All four can designate someone else to sit on the committee in their place.The state hospital, which closed in 2010, is in Browne’s and Schlossberg’s districts.The demolition of the buildings and structures on the property would be authorized regardless of local zoning ordinances, land use ordinances, building codes or other city regulations, the bill states. It would also prohibit a seller from using any portion of the property for a casino or other gambling facility. 10 DAYS AGO: Demolition, sale of Allentown State Hospital still sought, Wolf administration saysThe bill also would terminate exclusive negotiations with TCA Properties LP of Doylestown. A previous bill Browne introduced in October 2017 had authorized the Department of General Services to negotiate a sale with TCA Properties at fair market value.The state appraised the property at $2.57 million in 2016. According to Lehigh County records, the property (1600 Hanover Ave.) has an assessed value exceeding $33 million.A General Services spokesman did not respond Monday to questions on why negotiations with TCA have stalled. David J. Ali, owner of TCA Properties, also did not respond to a request for comment.Browne said TCA’s bid fell through because of “material issues that could not be resolved,” but declined to elaborate.The bill was referred Monday to the Senate’s State Government Committee, which meets at 10 a.m. Tuesday. Browne said he expected the bill to be adopted by the end of the month, and for General Services to post demolition bids “as soon as the bill gets done.”General Services would pay a demolition contractor by tapping a $200 million fund included the 2017-18 capital budget “for demolition of existing structures and remediation of environmentally hazardous materials to various Commonwealth surplus properties,” per the bill.Under a 1929 state law, General Services cannot sell or buy property without the approval of state lawmakers. That approval can be in the form of a bill that requires a public bidding process to get the best price on the open market or a direct sale, or conveyance, to a specific entity.The hospital, which features a main building constructed in 1904, has cost taxpayers $2.2 million annually in maintenance since its closure in 2010.Browne said the appraised value of the property will increase considerably after demolition, and insisted adaptive reuse of the buildings is “not economically feasible.” He characterized the proposed plan as a “pilot” for the state’s longer-term objective to convert many other old, single-use properties that are costly to maintain into more productive uses.Preservationists point to what they see as historic value and architectural beauty in their effort to save the property from demolition. More than 5,300 people have signed an online petition to preserve the buildings.General Services notified contractors in November of a coming demolition job exceeding $15 million. In January, Allentown developer Nat Hyman offered to buy the property and preserve all of the buildings. Then, in April, he sued General Services to block demolition.On May 23, he withdrew his demand for an immediate court order, and in return, state authorities agreed to notify him ahead of any decision to proceed. Hyman said he would “go right back to the judge” as soon as authorities proceeded with demolition plans.He wasn’t immediately available to comment Monday.Schlossberg reiterated Monday that he believes demolition is necessary to attract a redevelopment project that will complement the East Side neighborhood, create jobs, add tax revenue and take a minimal toll on public services and the Allentown School District.Paul Muschick on Allentown State Hospital: It’s not about the buildings but the landRoger MacLean, president of Allentown City Council, said he appreciated the inclusion of a city official on the solicitation committee, even if the committee isn’t formed until after demolition is complete.“Nothing against the Department of General Services, but it’s good to involve those who have a better understanding of what kind of redevelopment the people of Allentown would like,” he said.Morning Call reporter Andrew Wagaman can be reached at 610-820-6764 or awagaman@mcall.com
Source: Morningcall

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