Residents seek answers to Iron Works questions
At the June 6 Catasauqua Borough Council meeting, council members were greeted by more than 50 residents demanding to know why the Iron Works project had been scuttled.
A resident approached council asking about the current status of the project. The gentleman said council “blew this deal” and expressed hope there is still time to “revive the project.”
A June 1 meeting had been scheduled to update the public and allow for questions about the project. Council President Brian Bartholomew reportedly canceled the meeting earlier that day.
“We were not going to have a vote, so there was no reason to hold the meeting,” Bartholomew said.
Other council members reportedly disputed Bartholomew’s “no vote at that meeting” statement.
Councilman Cameron Smith said he was disappointed council did not have the opportunity to vote or ask questions.
“Bartholomew ended our opportunity to move this forward,” he said.
Councilman David Bernini was also vocal about his disappointment in the cancellation of the meeting, noting he was ready to vote to continue with the project. Bernini pointed out significant progress has been made.
Bartholomew said the borough does not have the $2 million to continue with the project.
A resident said this is a private/public partnership. Council knew the costs would climb over time due to inflation and that council still had time to find the money.
Another resident pointed out in-kind improvements can be used and applied to the borough’s match. Dunn Twiggar, the developer, also can provide in-kind match dollars to manage costs, it was suggested.
Councilman Paul Cmil, an Iron Works project opponent, said he had talked to “a bunch of people” who said the project is not viable.
It was reported Dunn Twiggar sent the borough an email asking for an extension of the sales agreement that was set to lapse June 3. The extension would have afforded the borough time to seek additional funding.
Council did not act on the extension request. The borough reportedly received a termination letter June 3 from Dunn Twiggar.
Council Vice President Howard Cunningham alleged Dunn Twiggar pulled the project.
“You guys (Bartholomew and Cunningham) made it difficult for Dunn Twiggar,” Bernini said in response. “We are no longer attractive for grants for this project because of this action.”
Bartholomew said they still have the opportunity to get grants, but Bernini refuted this, saying Bartholomew denied council a right to vote to extend the sales agreement.
Borough Solicitor Anthony Brichta said Dunn Twiggar was not ready to close. They were in a due diligence phase.
Solicitor Thomas Dinkelacker said the due diligence period is followed by the approval period. Dunn Twiggar did not move from the due diligence period to the approval period.
It took more than three years to get the agreement done, then due diligence and then to the approvals period. The approvals period may have taken more than a year, which reportedly would have allowed the borough time to seek additional funding.
Cmil blamed Dunn Twiggar for ending the project.
Dinkelacker explained Dunn Twiggar did not have, beyond attorney fees, a large expenditure for the development.
Dunn Twiggar was called by a resident during the meeting. Dunn Twiggar reportedly said, at that moment, there was no communication because the company’s solicitor was told he was not allowed to speak with the borough. It is not clear who from the borough issued the directive or its accuracy.
According to a June 7 interview with a local news organization, Andy Twiggar, a partner at Dunn Twiggar, said it remains unclear why communication with borough council abruptly ended.
Twiggar said his company still has interest in developing the Iron Works project.
The news organization also interviewed former council President Vincent Smith about the abrupt ending of the project. Vincent Smith, a former 16-year council veteran with 10 years experience as council president, was one of the driving forces behind the project.
The news organization reported Vincent Smith said it was irresponsible for a new council in office for five months to kill a project 12 years in the making. He noted the completed project could increase tax revenues for Catasauqua in the neighborhood of more than $300,000 and potentially provide $900,000 in tax revenue to Catasauqua Area School District.
Many of the residents in attendance at the meeting voiced their displeasure at council’s decision.
“There is no confidence in the council,” a resident said. “You have to be transparent toward each other. There does not seem to be any sense of urgency. It is extremely uncomfortable watching you discuss this issue among yourself.”
Another resident challenged them to be accountable.
“This is craziness ... letting this project go,” the resident said. “You are ‘nickel and dimeing’ everything. The people here want answers and want this project to proceed.”
Another resident accused the majority of the council ending the project as part of a political agenda. She noted the new council members ran for election on the platform of stopping the project.
Another resident expressed dissatisfaction with the council situation, noting he was excited about the Iron Works project.
“I am flustered as we focus on the ‘now.’ We should be looking at the future,” the resident said. “We have an opportunity to make Catty great. Council needs to get on the same page. Look 10 years ahead for our children and grandchildren.”
Many in attendance wanted to know council’s next move on the issue.
Councilwoman Jill Smerdon said she would like the next developer to purchase the property outright and pay for all the infrastructure improvements needed at the site.
Cameron Smith said the process would have to be rebid.
Cmil said a town hall meeting should be held to discuss the next step.
Borough council next meets 7 p.m. June 27 at the municipal complex, 90 Bridge St. It is a hybrid meeting, with both in-person and virtual options. Visit catasauqua.org for the access codes to participate virtually.