Alvernia University to acquire former Giant grocery store in Pottsville

Jun. 22—POTTSVILLE — Alvernia University will purchase the former Giant grocery store in the city's downtown, a year after closing to shoppers

President John Loyack confirmed Monday the university signed an agreement to purchase the property, at 500 Progress Ave. A sale price was not disclosed. Information on when the sale will be completed was also not available.

"We expect to close at the end of the year as we line up funding for the project," he said in an email.

A formal announcement will take place July 1.

Alvernia currently operates the Schuylkill Center at the Cressona Mall. With the purchase, the Reading-based university will move out of the space it has occupied for 12 of the 20 years of the campus' existence.

The new building will expand on the existing bachelor's degrees, master's degrees and certificate programs offered at the mall location in North Manheim Township, as well as offer new ones, such as logistics and college credit offerings for high school students.

The university would bring the CollegeTowne concept it already implemented in Reading to the city, where university officials work with those in the city and economic development.

It would also have a business incubator, where students partner with an entrepreneur on a business plan, and both work with mentors at the building, and a dual-enrollment program with the Joseph McCloskey School of Nursing.

The purchase comes nearly a year after Giant officials closed the store in July 2020, stating it was underperforming. It had operated at the location since 1983.

City officials contacted Monday afternoon said Alvernia's move to Pottsville will be beneficial.

"It's a great step in the right direction for Pottsville," City Administrator Thomas A. Palamar said Monday afternoon.

He said having a college adds vibrancy to the downtown area and is a boost to businesses there.

"A college presence creates economic development," Palamar said.

Mayor James T. Muldowney said filling buildings such as the Giant property is important for the city's growth.

"With all the activity going on there, it will bring more businesses to downtown Pottsville," he said.

Both Palamar and the mayor said city officials are discussing implementing a payment in lieu of taxes, or PILOT, with the university. The PILOT works by having an entity compensate a government for some or all of tax revenue lost due to being tax exempt. Nationwide, colleges and universities, which are usually tax exempt, use the payment to compensate governing bodies.

This year, Giant has paid the city $34,766.29 in property taxes on the building. Palamar said the university will still pay local service and business privilege taxes on it and the school's presence increases the property value and strengthens the tax base of nearby properties.

The building became controversial last summer when county officials disclosed they were looking to purchase it, with reports indicating they planned to turn it into either a prison pre-release center or a warehouse.

Their plans drew the ire of city officials and business leaders, who felt the plan devastated Pottsville's revitalization and tax base. The commissioners ultimately voted 2-1 in the fall to allow County Administrator Gary R. Bender to make an offer to buy the property.

Commissioner George F. Halcovage Jr. said the vote was to explore the possibility of purchasing the former grocery store, which he said would have been advantageous to the county. He pointed out its large parking lot, adding the county pays nearly $60,000 a year to the Pottsville Parking Authority for parking. It also had an opportunity to expand the juvenile probation program.

He said county officials would respect the agreement and "look for other opportunities to benefit residents."

Both Halcovage and Commissioner Gary J. Hess said they were excited the university is coming to downtown Pottsville.

Hess said Alvernia's move to downtown Pottsville will draw people to the area, potentially filling jobs in the county.

Halcovage said Alvernia has been a "great partner" to the county with its Schuylkill Campus and the county would work with the school.

He said the move expands its footprint in the county and gives residents more educational opportunities.

Commissioners Chairman Barron L. Hetherington and Bender could not be reached Monday for comment on the agreement.

The controversy over the property got the state Senate involved, when Sen. David G. Argall, R-29, Rush Township, sponsored Senate Bill 1296, which would have prohibited a fourth-class county from purchasing a property in a third-class city without approval from the affected city and school district, if the property is in an area of the city targeted for revitalization.

Contacted Monday, Argall said he wouldn't be asking for a vote on the bill, which was voted on by the Senate, but not by the House of Representatives.

With a new legislative session that started in January, the Senate would have had to vote again on it.

Argall said he thought Alvernia's announcement was "tremendous news not only for Pottsville but all of Schuylkill County."

Contact the writer: clee@republicanherald.com; 570-628-6028; @Cleespot on Twitter