Council discusses sale strategy for contaminated lot at 40 East Front Street; remediation costs weigh on minimum bid

Palmyra Borough Council discussed whether to advertise for sale a half-acre light-industrial lot at 40 East Front Street that the borough purchased at a tax upset sale, tore down the building and has since carried remediation and demolition costs.

Staff said two parties have expressed interest. Council members and staff debated whether to set a minimum bid to recoup roughly $80,000 to $90,000 the borough has spent on demolition and an earlier remediation plan. Staff said the remediation estimate the borough previously obtained was about $90,000; demolition and other costs put the borough’s outlays in the neighborhood of $80,000.

Because the property has environmental constraints and any purchaser that intends to dig would face remediation costs, some councilors said a high minimum bid could deter buyers who would not plan to develop the site. Others argued a minimum would protect the borough’s investment. Council asked staff to prepare a calculation of tax revenue lost since acquisition and total borough expenditures on the property so members could set an informed minimum at the next meeting.

Council also discussed nonbinding outreach: staff should discreetly check with the two interested parties about price expectations without disclosing internal strategy. A third-party appraisal was considered but some members questioned the cost; staff agreed to provide tax-revenue and expenditure figures for the next meeting before deciding whether to set a minimum or commission an appraisal. No formal sale or minimum-bid resolution was adopted at the meeting.