State College officials issued a statement on Wednesday pledging their commitment to help several long-time businesses continue operating after the borough acquires their property through eminent domain to construct a parking garage.
“The Borough’s focus throughout this process is the retention of these local businesses and is committed to working with property owners for a temporary and long-term solutions,” an unattributed statement from the borough reads.
As first reported by StateCollege.com, borough council approved on Monday night authorizing State College’s solicitor to file declarations of taking — a step initiating the eminent domain process — for the building that houses The Brewery, Canyon Pizza, Music Mart and Canyon Wings at the corner of East Beaver Avenue and McAllister Alley, as well as a rental house at 142 McAllister Street. Council members Gopal Balachandran and Divine Lipscomb voted no.
Eminent domain law allows government entities “to take private property for public use in return for just compensation.”
State College plans to construct a new parking garage on the site of the buildings and the current McAllister Street Deck to replace the 50-year-old Pugh Street garage, which has outlasted its life expectancy but is now at “the end of its serviceable lifespan,” according to borough engineering studies. It will be torn down only after a new structure is completed, because the downtown cannot accommodate its 491 parking spaces offline for an extended period of time during construction.
Owners of the properties were unaware of the borough’s plans until they were contacted by a reporter hours before council’s Monday meeting. Jay Horgas, one of the owners of both The Brewery and the building, said it was “shocking.”
“That’s unbelievable,” Horgas said. “They never said anything to us. There has not been one lick of dialogue about this.”
Rodney Hendricks, who owns the rental house, characterized it as “surprising.”
After Horgas and fellow Brewery and building owner Ray Rockey spoke during public comment at Monday night’s meeting, borough solicitor Terry Williams acknowledged meeting that there had been no advance communication with the property owners, but said that is typical of the eminent domain process. The resolution by council “fixes the timescale which damages are to be calculated,” Williams said, meaning the time at which the conditions of the property are appraised and the value assessed.
“There now will be a great deal of discussion with the property owners over trying to arrive at the value, trying find a way to accommodate the businesses, find a way to evaluate the damages for the businesses, both for the owners of the building as well as the other tenants,” Williams said.
The resolution allows the borough to begin negotiations with the property and business owners. They can reach a settlement at any time and either can ask the Court of Common Pleas to appoint a panel of “viewers” to determine damages. They can also appeal the decision in court.
“The municipality is dedicated to a collaborative effort with the business and property owners to ensure a smooth transition and ensure the businesses stay in the community for years to come,” according to the borough’s statement on Wednesday.
Horgas and Rockey said they purchased the building so that they couldn’t be forced out by a new owner and were not looking to sell it. They added that they provided an affordable home for multiple long-running businesses. The dive bar — a descriptor The Brewery wears proudly — dates back to the late 1960s; Music Mart has been in the building for about 35 years; and Canyon Pizza started down the street in the 2000s before moving to the current location in 2016.
“We’ve done everything the American way and now we’re being told because somebody wants to put up a parking deck that everything we’ve done gets thrown out the window, and I don’t think that’s fair,” Rockey said.
News of the borough’s plan to use eminent domain to acquire the properties and lack of prior communication with the business owners sparked significant backlash among community members on social media.
“The decision has generated significant discourse, reflecting the community’s strong emotional attachment to these landmarks and businesses,” the borough statement reads.
Criticism has come on a number of fronts, in addition to those outraged by the displacement of businesses that have operated for decades in downtown State College. Speaking at Monday night’s council meeting, eight people voiced displeasure over the borough spending money on a new parking garage, contending that it should invest in alternative transportation infrastructure to make State College more walkable and bikeable.
Borough Manager Tom Fountaine noted that the new garage will not add parking spaces downtown, only replace those lost from the Pugh Street garage.
The eminent domain resolution also raised questions of transparency and accountability. Horgas and Rockey said they would not have known the issue was on the agenda for Monday had they not been contacted by a reporter. Several council members said they were surprised there had been no prior communication and apologized to the owners for how they learned about the issue.
While the text of the resolutions — which include the property addresses and authorization of both the declarations of taking and payment of damages — were attached to the meeting agenda on pages 119-126, the agenda item itself only listed the property parcel numbers and made no mention of how they were to be acquired.
“The decision to utilize eminent domain has sparked discussions about the impact on local landmarks, Council accountability, parking strategy, comprehensive development planning, sustainable transportation and the Borough’s long-term vision,” the statement reads. “The Borough is actively considering these concerns and seeks to address them in a thoughtful and holistic manner. The Borough of State College greatly appreciates the community’s concern, feedback and discourse around this topic. The Municipality is committed to working collaboratively with the community and local businesses.”
Council President Jesse Barlow said in a statement that the council welcomes community engagement and feedback on the decision.
“As this project moves forward, Council is committed to open communication with our community and to listening to its concerns,” Barlow said. “Only together can we create a sustainable and vibrant community for our downtown.”
