Heidelberg buying building for public works
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Heidelberg is ready within the next two weeks to close on the purchase of a 6,000-square-foot building at 1639 E. Railroad St. that will serve as a public works building.
Council approved borrowing $155,000 from Fidelity Bank at its January reorganization meeting to complete the financing needed to buy the two-story building that once housed South Hills Engraving. Total cost for the purchase, and an adjacent house at 1643 E. Railroad, is $270,000, but the borough has already made a $115,000 down payment.
"The borough used money accumulated in its rental fund to make the down payment," borough manager Joe Kauer said.
Most of the money in the rental fund, Mr. Kauer said, came from a rental agreement the borough made in 2004 with Mabey Bridge and Shore, which rents property owned by the borough next to the municipal park on Industry Way. "We looked at reconstructing the current borough's public works garage behind the borough building, but the cost came out to over $210,000 and we would still have only a 1,152-square-foot building," Mr. Kauer said.
Plans call for tearing down the current garage that is dilapidated beyond repair and replacing it with a small parking lot.
Not only will the building become the new home of the public works department, but there will be enough room left over for a council public meeting room and a small community room. The community room will house the Heidelberg Historical Society and provide space where residents can hold small get-togethers of 30 to 40 people, and where other community groups like the Girl Scouts can meet.
"About 60 percent of the first floor will go to public works, and 40 percent will be devoted to the borough council public meeting room and the community room," Mr. Kauer said.
The borough also will make available the 3,000 square feet on the second floor for rental to a business tenant. The second floor features two large offices, a conference room, kitchen and bathrooms.
Mr. Kauer said the house at 1643 E. Railroad St. has a tenant paying rent already, and potential rental income from the second floor of the commercial building will help pay down the loan, but even if the second floor isn't rented, there will still be enough money in the rental fund for the payment.
The end result is that the borough will be able to upgrade its facilities without any taxpayer money being used, and all of the work to make the first floor ready for its public use will be done in-house by the borough, he added.
Mr. Kauer said the new public works facility will be ready in the summer and the meeting rooms will be done by August.
First Published February 2, 2012 5:08 am
