During the summer of 2016, Jenkintown Borough was approached by the owner of 433 and 435 Cedar Street in Jenkintown. He was in the process of selling the property and had been approached by real estate developers who planned to construct six units of dense housing. The owner did not care for that plan, and approached the Borough offering to sell the property for a price significantly lower than market value.
During a period of due diligence, the Borough contracted with qualified firms and commissioned a comprehensive property appraisal, an environmental study (ESA I), and home and property inspections.
At a public meeting on September 8, 2016, the Borough Council voted unanimously to approve the purchase of the property, pursuant to the Pennsylvania Borough Code.
On November 9, 2016, again by unanimous vote at a public meeting, Borough Council voted to borrow $250,000 from Republic Bank for a term of 15 years to purchase the property. The Debt Service Fund receives .88 mills; that millage currently pays the General Obligation Note (GON). The GON was recently refinanced and the reduced interest rate that was negotiated reduced the annual cost of the GON by the amount of the note required to purchase the property. This allowed the purchase of the property with no increase to the tax payer.
This Borough owns only one other community park space – Town Square. Through public surveys and information sessions held for the Jenkintown 2035 Comprehensive Plan, residents and business owners declared a desire for pocket parks and open space. The Jenkintown Environmental Action Committee has been working for the last two years to identify parcels that would accommodate small parks or seating areas throughout the Borough, and they are strongly supportive of the Cedar Street purchase.
Presented with an offer to purchase the property below market value, the forward-thinking Borough Council considered it a wise decision for the future of the community. Although there will be a revenue loss of approximately $9,000 per year, primarily in school taxes, this represents .06% of the school’s budget; adding six housing units would have increased population density and may have added several more children and associated costs to the school’s enrollment.
The Borough will continue to gather public input on the property and existing structures, plan the space’s best use, and apply for grant funding to create and maintain a space that will improve the health and welfare of the Jenkintown community for years to come, at the lowest possible cost to the Borough taxpayer. Early ideas include a rain garden, community garden, or open play space. No decisions regarding the use of the property have been made.
We look forward to planning and embarking on a period of public input to ensure the use of the property reflects the needs of the community.