Four municipalities to discuss low bid on sale of jointly owned property
Four municipalities must decide whether to cut its losses and sell a jointly owned, troublesome property at 1975 N. Reading Road.
Before an audience of eight people Friday afternoon, East Cocalico Township manager Mark Hiester unsealed the lone bid made for the 20.5-acre site; jointly owned by Denver and Adamstown boroughs and East Cocalico and West Cocalico townships.
The $1.7 million bid by DenTech Inc. of Brownstown is about half of what the municipalities paid for the property in 2006.
Accompanying the bid was a deposit check for $50,000, which will be applied to the sale price if the municipal leaders decide to sell or returned should the bid be rejected.
Leaders from the four municipalities will meet Tues., June 24 at 7 p.m. at East Cocalico to discuss whether to accept or reject the bid. The property was appraised at $2.49 million by High Associates as reported at the February East Cocalico board meeting.
DenTech is a mechanical contracting firm specializing in industrial air filtration systems.
The 20.5-acre property, which has a 45,000-square-foot refrigerated building, was purchased eight years ago at the height of the real estate market by the four municipalities as a possible site for a regional community center.
West Cocalico owns 32 percent of the property, while East Cocalico owns 46 percent, Denver 16 percent and Adamstown 6 percent. It had been the home of Four Seasons Produce and most recently to BC Natural Chicken which rented a portion of the property.
If the property isn’t sold the four municipalities will need to start contributing to the building mantinance fund by the end of the year.
Since 2006, the amount of principal paid on the mortgage has been small. The municipalities still owe $3.04 million of the original $3.74 million purchase price.
DenTech ; whose footprint crosses nine states from Massachusetts to South Carolina ; employs about 70 people. It moved to Brownstown in 1994 after operating Manheim Township since it opened in 1976.
Owners Marty Berndt and Steve Rapp say they’ve got plans to revitalize the 24-year-old property and building which had additions built on in 1990 and 1991.
“We’d be looking forward to moving into the township and have a lot to offer in property updates and landscaping,” said Berndt.