Millcreek residents question transparency, costs of Eighth Street property purchases

West Eighth Street property purchases by the Millcreek Township General Authority came as a surprise to most township residents.

Residents on Tuesday asked township supervisors why there was no public notification that the purchases were being considered before authority members voted to approve them.

Millcreek Township General Authority: Approves purchase agreements for Bel-Aire, Joe Root's Grill, Sandbar and more West Eighth parcels

The authority voted 4-1 on Jan. 30 to buy the former Bel-Aire Hotel and former Joe Root's Grill as well as the Grasshopper shop, Sandbar Draft House & Grille and Manor Motel for almost $7.2 million. The authority intends to demolish the properties and offer the vacant parcels for development.

Residents also challenged the project cost and officials' description of the properties as blighted during Tuesday morning's supervisors' meeting and the Millcreek Township General Authority meeting Tuesday afternoon.

A legal notice and agenda for the Jan. 30 authority meeting were the first public notifications about the planned property purchases, resident Mary Ellen Magoc told township supervisors.

"Two weeks ago I heard and and read in the local news about the township (decision) to purchase and then demolish properties on West Eighth Street," Magoc said. "Since then I have immersed myself in researching the procedural maneuvers of township officials in orchestrating this major redevelopment initiative.

"I agree that this area is in need of revitalization and renewal and improvements" as detailed in the township's Embrace Millcreek comprehensive plan, Magoc said. "However, I have concerns for the way this purchase plan transpired."

Questioning costs: Critics say purchase of Bel-Aire Hotel, other properties to cost Millcreek more than $7.2M

The Embrace Millcreek plan envisions the West Eighth Street and Peninsula Drive area as a village-style gateway to Presque Isle State Park, but it does not envision the township buying and demolishing properties, resident Nancy Shea told supervisors.

"There was never any mention (in Embrace Millcreek) that the township would be in the real estate business," resident Nancy Shea said.

The $7.2 million property purchase costs will come mainly from proceeds of the 2015 sale of the Millcreek Township Water Authority to Erie Water Works. The $22 million was set aside for capital projects and could be better spent, former Millcreek Supervisor Sue Weber told authority members.

The township is facing major costs to come, Weber said, including contract negotiations with unionized township staff, paying firefighters to cover shifts when volunteers aren't available and resolving stormwater flooding in some neighborhoods.

Boosting volunteer ranks: Millcreek Township to add fire chief, full-time paid firefighters

"You have millions of dollars worth of flooding problems in this township and I just can't see using the money for (property purchases) until nobody floods, the street in front of everybody's house is decent and until we have enough police officers," Weber said.

Another former township supervisor, John Groh, also said the water sale proceeds can be better spent, primarily to resolve flooding issues. Groh was unable to attend Tuesday's meetings and shared concerns about the property purchases in an email to authority members that he also shared with the Erie Times-News.

Chief Carter Mook: New Millcreek police chief pledges to build community relationships, up officer training

In the email, Groh urged the authority to heed the advice of township Treasurer Mark Zaksheske, who opposed the property purchases.

"He knows his work quite well and doesn't want to see you folks squander this money and place the township into financial ruin," Groh said.

On the move: Dick's Sporting Goods will locate in Millcreek Mall's main building

Costs related to the property purchase continue to mount, Shea said, including consulting fees and liability insurance for two of the properties approved by the Millcreek Township General Authority on Tuesday.

Altair Real Estate Services of Erie is being paid $60,000, in $5,000 monthly increments, as consultant for the West Eighth Street properties purchase. The authority also approved spending up to $2,700 for general liability coverage for the former Joe Root's Grill and Grasshopper properties.

Township supervisors voted 2-1 Tuesday to provide $1.5 million to partially fund the Millcreek Township General Authority for 2023. The money will be used for operating expenses and toward the property purchases, township and authority solicitor Mark Shaw said.

There will be no tax revenues from the properties while they are owned by the authority. Preparations approved by the authority Tuesday to close the sale of the Joe Root's and Grasshopper properties include tax-exemption applications to the Erie County Board of Assessment Appeals.

From spring 2022: A year into receivership, debt-heavy Bel-Aire Hotel closes

The property purchases will help the township address the beginnings of blight in the Presque Isle Gateway District and attract new commercial and residential development in line with Embrace Millcreek's vision for a walkable, village-type neighborhood along West Eighth Street, authority members said earlier in February.

"Rather than allowing that blight to exponentially grow, we feel it is in Millcreek's best long-term interest to (purchase) the properties so that a developer can come in and reignite the area," township Supervisor and authority member Kim Clear said.

Coming to Millcreek: New owner plans early learning/community center at former Montessori school

Groh challenged the authority's description of the West Eighth Street properties as blighted.

"None of these buildings is anything close to the definition of blight," Groh, a former building inspector, told the Times-News. "If you don't like the way a building looks or there's nothing in a building doesn't make it blighted."

Board of Supervisors Chairman Jim Bock voted against funding the authority Tuesday and as a member of the Millcreek Township General Authority voted against the West Eighth Street property purchases.

All three township supervisors serve on the General Authority, along with Millcreek residents Dave Zimmer and Cheryl Mitchell.

Supervisors pledged that future actions on the West Eighth Street properties will be shared with the public.

Bock said he will make a motion at the Feb. 28 supervisors' meeting to schedule two public meetings on the property plans.

"The meetings will give further opportunities for input on the West Eighth Street project," Bock said. "It's something (the public) deserves and that we should do for them."

The township also will look for better ways to share news of major projects on the township website and social media platforms and will consider livestreaming or recording authority meetings, Clear said.

"We will talk about how to do that going forward," Clear said.

Contact Valerie Myers at vmyers@time.snews.com.

This article originally appeared on Erie Times-News: Millcreek residents question transparency, costs of property buys