Petersburg Assembly authorizes negotiated sale talks for Skylark Park affordable-housing proposal

The Petersburg Borough Assembly voted to authorize the borough manager to begin direct negotiated-sale talks with Skylark Park LLC over seven borough-owned lots intended for affordable housing.

The motion to authorize negotiations, which passed 5–1 with Assembly Member Marsh opposed, allows the manager to negotiate final terms subject to subsequent assembly approval and to return with an ordinance spelling out sale conditions, timing and any penalties for noncompliance.

Manager Giesbrecht told the assembly the application requests disposal of borough lots under Petersburg Municipal Code 16.12.030(b) for a public-benefit purpose. The manager's staff report recommended proceeding by direct negotiated sale and noted a proposed starting benchmark of 50% of appraised value, to be determined in negotiations, or a negotiated amount of $55,500 as an alternative.

Assembly members asked detailed questions about construction standards, timelines and how parcels would be marketed. Assembly Member Marsh said the borough must not transfer property without “definitive answers” on road construction, sale order and consequences if the developer fails to meet conditions. Marsh also noted a borough rule that “utilities, including the road, need to be finished before any parcels are sold,” and urged that sale terms reflect that requirement.

Manager Giesbrecht said the item before the assembly was only whether the project met the code’s public-benefit definition and whether to proceed by negotiated sale. He said outstanding items — road excavation depth, construction standards, permitting timeline and specific penalties — will be incorporated into the sale ordinance and negotiated contract that the assembly will consider in its required three readings and public hearing.

Assembly members also sought clarity about how lots would be allocated once developed. Several members said they want any reduced-price parcels prioritized for first-time homeowners rather than speculators or insiders; the manager said the details of resale restrictions or eligibility criteria would be addressed in the contract and implementing ordinance.

The application covers seven borough lots described in the manager’s packet and was referred by the planning commission, which held a public hearing and recommended approval. The assembly’s authorization directs the manager to commence negotiations; final sale terms must return to the assembly for formal approval, and planning and zoning approvals will follow as required before construction begins.

The manager estimated the review and ordinance process could run over several months; planning approvals and detailed engineering remain to be completed before any ground work begins.