Sunday News report on Lancaster Square East both informs and raises questions

A front page Sunday News article “Back to square one” is a gratifying summary of the past and current situation concerning downtown Lancaster’s greatest embarrassment, a situation that has been mishandled by City officials for at least five years.

What stands out is the misdirection and at times ignorance expressed by City officials.

Dealing with city assertions in the order they appear in the article:

1) “In 2009, Lancaster spent $1.6 million to demolish portions of the concrete superstructure that had been built in the late 1970s, when ‘urban renewal’ first sought to revitalize the 100 block of North Queen Street.”

According to the owners of the Brunswick, the demolition brought about conditions that contributed to the water penetration situation for the Brunswick Annex, a condition for which the Annex was recently condemned subject to repairs being made.

2) “The Bulova property is now in bankruptcy proceedings with a ‘significant outstanding mortgage,’ Patterson said. That’s yet another hurdle to redevelopment, as it adds to the cost of acquisition and renovations.”

That isn’t bad news, that’s good news. With a proper offer, the Bulova property might be purchased out of bankruptcy at an affordable price. While under court jurisdiction, now is the perfect time to strike a deal with the mortgage holders.

3) “ Bhatt, general manager of the hotel, said the city wants to blame him for problems caused by people with no connection to the Brunswick. ‘You have homeless people in that square,’ he said. ‘The Bulova building is closed, yet there is no security. People can go up those stairs [on the north side of the building, in the square] and walk around on the roof, and they are blaming the hotel for this.

 Lancaster Mayor Rick Gray shot back  ‘His primary problem is his failure to take responsibility like our other city property owners.’

Without defending the conduct of the lessee of the Brunswick, how can hotel management possibly “take responsibility” for what takes place on City property?

4) “ ‘ ‘There are few subsidies available for projects like this,’ said Randy Patterson, the city’s director of Economic Development and Neighborhood Revitalization, in an email. Without them, officials’ vision of mixed-use development featuring offices, retail, entertainment and residential space may have to wait — as it has for nearly 40 years.”

A “few subsidies”   might be enough, especially if alternate methods of funding are developed. 

5) “City officials say they would like to see a hotel remain part of Lancaster Square, particularly in light of a recent report that the nearby Lancaster County Convention Center might be more successful if there were another nearby hotel comparable in quality to its Marriott in Penn Square.”

How can a hotel exist on the basis that for a few days a year it will receive ‘spill over’ business from the Marriott?  The notion is preposterous. 

NewsLanc’s communication via e-mail with Patterson and Pat Brogan, Gray’s Chief of Staff, suggest that Patterson has focused his attention on finding a use for the former Bulova Building and has not given sufficient thought to the possibility (and future likelihood) of the razing of all of Lancaster Square East, apart from the  parking garage that can remain.   It is a prime site for mid-rise and low-rise luxury residential use, an imporant step towards further revitalizing downtown.

According to Hamid Zahedi, partner in the ownership of the Brunswick, the owners have not been approached by Patterson or others from the City concerning the possibility of redevelopment of Lancaster Square East.  The logical first step is for the City to  to discuss matters with the Brunswick owners.

6) “Gray said city officials had offered to help the Brunswick owners improve the property — which also would have improved Lancaster Square: “We offered to help move the lobby down to the first floor, which would make it more accessible, and give them some of Lancaster Square,” perhaps for use as a drop-off area.

We don’t question Gray’s competence as a criminal defense attorney or as a mayor, but he is clueless in his assertion that the Brunswick problem is a lobby on the second level.  Guests do not mind taking the escalator or the elevator to the second floor which is the situation  in many three and  four star hotels.  (See “The photos are for Mayor Gray“)    For a recent example, the new Revel Hotel and Casino that just opened in Atlantic City has its lobby on the sixth floor. The Brunswick problem is the same as the predecesor Hilton’s problem…not enough commercial and tourist business downtown. The opening of the Marriott Hotel was the coup de grâce.

7) “ ’It is, in fact, for sale: It was first listed in May 2011′, said Kevin Fry, vice president and manager of Prudential HSG Realty Commercial Division’s Lancaster office, who is handling the listing. ‘There has been significant interest,’ Fry said.”

What else would any broker say about a property he or she  represents?

As NewsLanc recently reported, City Director of Economic Development and Neighborhood Revitalization Randy Patterson, refused to meet with its publisher, regional and international real estate developer Robert Field, on or off the record, to discuss what efforts are being made by the city and possible solutions to the problem.

Patterson and Gray need to recognize that there is no independent Bulova Building or Brunswick Building solution to Lancaster Square East, but rather the need for a holistic solution through razing the buildings and redeveloping the site.

The City is  flirting with the imminent possibility of the Brunswick closing down, being boarded up, obtaining a major reduction of its real estate assessment, and sitting idle until the City comes up with a redevelopment proposal for the site.   According to Zahedi, efforts are being made to terminate the current lease and the owners have no intention of operating the hotel themselves.

Lastly, it is the City’s responsibility to talk with media. Given his impressive record for liberal causes prior to his election of mayor, Gray should especially champion this.

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