Chesco Commissioners Accept $4.5 Million Bid on Courthouse Properties

Though it certainly wasn’t a unanimous vote, the Chester County Commissioners voted Thursday morning to move forward on a $4.5 million bid on three county properties in the heart of West Chester Borough.

Chairman Terence Farrell and Commissioner Ryan Costello voted for a motion to end the negotiations process over three properties on the courthouse campus. The bid was awarded to Eli Kahn and his associate Jack Loew for $4.5 million. Developer Stan Zukin and his partners at Penguin Industries were also bidding on the properties. The three buildings up for sale are located in a courthouse complex located on the block bordered by Gay, Market, High and Church streets.

Vice Chairwoman Kathi Cozzone told the audience and her fellow commissioners that she believed the county was “leaving money on the table” and should have held off for more negotiations. Zukin put in what the trio of commissioners referred to as a “late bid” of $4.8 million for the property. The financial backing of that bid, however, as well as the timeline of the settlement, was not 100 percent certain, according to Ferrell. Khan, on the other hand, was offering cash and a settlement by the end of the year, Ferrell explained.

“A cash offer in this economy is a better offer,” Ferrell said.

Cozzone disputed Costello’s argument of carrying costs on the courthouse complex costing $60,000 per month, and said it may only take “a little bit of time” to get more money out of the deal.

“I think we’re leaving money on the table and we should be further negotiating with these bidders,” Cozzone said.

Costello said he worried that prolonging the process, which started a year and a half ago, would possibly put a ding in the county’s credibility. The county asked for and received final and best offers from both, Costello said, and to ask for more wouldn’t be right. Costello also pointed to the carrying costs, saying more delay could easily make up for the $300,000 difference in bids.

“Frankly, you’re really choosing to play favorites with the bidders,” Costello said to Cozzone.

She denied favoring one over the other, and explained that she just thought that if a late bid came in, there might be more money in the sale than what was currently offered.

Costello said both Zukin and Kahn are entitled to a prompt decision and shouldn’t be held for more negotiations. He added that more time might mean the bidders could lose faith in the county and walk away from the table.

“I don’t even think I would take us as a county seriously,” if negotiations continued, Costello said.

Ferrell outlined the costs that could be involved in waiting. If the sale settles before the end of the year, that money could go into the 2012 budget, he pointed out. Additionally, if the sale would go into next year, the county could end up on the hook for capital improvements if a system fails in one of the buildings, and Ferrell said the county is already “nursing” the systems along.

The vote was called for, and Cozzone voted against the sale. Following the vote, the commissioners agreed that historic artworks should be persevered if possible. One courtroom contains a wall mural, and the property also features four friezes featuring prominent Chester County people and scenes. The developer will also be asked to work with West Chester Borough on development plans.

Scott Zukin, Stan's brother, approached the podium and thanked the commissioners for their work. He said the developer looks forward to working with the county in the future, and joked that by losing out, they actually saved money. Ferrell called the gesture “very gracious.” 

The properties are located at 2 N. High St., 17 N. Church St. and 32 and 34 W. Gay St.