Downingtown Area SD attorney outlines $64 million sale of former Siemens property to Rockwell

Mister Huggins, the district's attorney, laid out the key terms of an agreement of sale for the former Siemens property, saying Rockwell Development Group has offered $64,000,000 and will post more than $3,000,000 in deposits that become largely nonrefundable after a 60-day due diligence period.

The overview, delivered after the board moved the agreement into the public portion of the agenda, summarized the property's history and the district's selection process. Huggins said the district purchased the site in 2006 intending to build a school; subsequent development plans were blocked by the township or later terminated, including earlier agreements with the Hankin Group, Carvana and Audubon.

Why it matters: The sale would provide the district with multi-year, staged payments totaling $64 million while transferring responsibility for development and approvals to the buyer and township. The buyer's proposals include a zoning-compliant commercial/industrial plan and a separate, age-restricted residential plan that would require zoning relief.

Huggins described Rockwell as a substantial regional developer with a track record of collaboration and said Rockwell will present two plans to Euclid Township: one that complies with existing commercial/industrial zoning and another age-restricted residential plan that would need township zoning relief. "Rockwell offered $64,000,000 for the property," Huggins said in the overview.

Both plans are expected to include substantial open space and a natatorium or swimming facility that Rockwell would construct; Huggins estimated the cost of the pool at about $15,000,000. The district will petition the Chester County Court of Common Pleas for court approval of the agreement of sale, which requires notice and a hearing. Huggins said the court process will run concurrently with Rockwell's 60-day due diligence period.

The agreement ties a milestone schedule to a sequence of deposits. Huggins said the schedule includes an initial $100,000 deposit due three days after signing; $400,000 at the end of the 60-day feasibility period; $250,000 12 months after the feasibility period; a $1,000,000 deposit 16 months after the preliminary plan application; a $500,000 deposit when applying for final plan approval; and a final $1,000,000 deposit 12 months after the final plan application. At the milestone described by Huggins, the deposits total $3,250,000 and would be nonrefundable.

If Rockwell decides to proceed after due diligence, the agreement provides for three closings: an initial closing approximately three years after feasibility when $28,000,000 is paid; a second closing 12 months later for $12,000,000; and a third closing another 12 months after that for $24,000,000, bringing the purchase price to $64,000,000. Huggins said the district's first received payment would likely be just over three years after signing and projected overall completion in about five years, though some dates are set as outside dates and could be accelerated if approvals come sooner.

Huggins said Rockwell will have a 36-month approval period to work with the township and stakeholders on plan approvals, and will need to engage state and local agencies, including the Department of Environmental Protection and PennDOT, and extend utilities to the site as part of the approvals and construction process.

The board made the procedural motion to move the agreement to the public agenda and then heard Huggins's presentation. Huggins closed by asking for questions; Dr. O'Donnell replied that there were none and thanked him. The district will proceed to file for court approval and Rockwell will enter its due diligence period under the agreed timeline.

Sources: Presentation by Mister Huggins, district attorney, at the public meeting.