Commissioners tentatively agree to sell S. Lebanon Twp. parcel to developer

This article was funded by LebTown donors as part of our Civic Impact Reporting Project.

An Altoona-based developer has entered into an agreement with Lebanon County Commissioners to potentially purchase 17 acres of county-owned land in South Lebanon Township.

The plan to purchase the acreage was approved by a 2-1 vote at the April 3 commission meeting. Jo Ellen Litz was the lone no vote, citing the sale of a portion of wetland on the property as the reason for her decision to oppose the proposal.

The agreement of sale with real estate developer Bruce Thaler of BT Lebanon County LLC is for county-owned land on East Walnut Street and Career Drive. The property is adjacent to the Pennsylvania Department of Transportation’s Driver License Center at 900 E. Old Cumberland St.

County solicitor Matt Bugli explained the proposal at the meeting, noting the initial sales agreement includes a payment of $25,000 in the first year and an additional $25,000 for the second year for consideration of purchasing the acreage at a cost of $2 million.

“This (sales agreement) is for consideration of $25,000 paid the first year and an additional $25,000 paid if Mr. Thaler does not complete what’s called due diligence after the first year. So the term of the agreement of sale is for two years,” Bugli said. “If at the end of two years Mr. Thaler has not completed his due diligence, requirements from PennDOT, requirements from the state, etc., then he will come back, negotiate with the county. If he’s prepared to proceed to settlement, then we will proceed with a $2 million purchase price.”

In late December 2022, county officials sold nearly 4 acres of adjacent commercial land at 860 E. Old Cumberland St. to Aspen Hill Partners, Altoona, for $770,000.

AHP is owned by Thaler, who is also the principal of BT Management Group, a company that has developed stores for Sheetz, according to the Lebanon Daily News’ coverage of a 2016 meeting. That meeting is when county commissioners first voted to sell the approximate 4-acre parcel, at the time described as a roughly 4.5-acre lot, for $700,000.

Read More: Land developer connected to Sheetz finalizes years-in-the-making purchase of county lot next to DMV

If the proposed sale goes through, that will bring Thaler’s total purchase to about 21 acres at the site.

“Mr. Thaler and his entity presently owns a 3.71-acre parcel which is right at the corner of East Walnut Street and where East Cumberland and Old East Cumberland meet. The parcel that’s currently at issue here is a 17-acre plot, and it’s the plot that the fire school is presently located upon,” Bugli said, adding that the fire school will remain at its present location. “Now the issue here is – there is no issue with the fire school – and the property is going to be essentially subdivided and so what we have here is 17 acres at issue.”

Bugli said county officials and Thaler have held discussions about the future of PennDOT’s property and how it figures into this transaction. LebTown reported in January 2023 that Thaler’s company has developed properties for Sheetz, an Altoona-based convenience store chain. 

Lebanon to get new driver license center?

In 2016, when talks began about developing the site, LDN reported that the project would be a commercial development and that Thaler’s company has developed many commercial sites, including a Sheetz store and Five Guys at State Route 72 and Rocherty Road in North Cornwall Township.

Recent discussions with county officials have focused on the future of the driver’s license center.

“The discussions from the county and center around the driver’s license center right here. This is property owned by the commonwealth of Pennsylvania. The discussions from the county have centered around Mr. Thaler obtaining more property, county-owned property, around back, off of Career Drive, so that way he can discuss with the state, work with the state, to potentially develop a new driver’s license center for Lebanon County,” Bugli said. “So certain proposals have been discussed and there are a number of different parties at play. We’ve had discussions with PennDOT, we’ve had discussions with the governor’s office.”

Bugli said discussions about the potential sale are ongoing.

“A lot of that is very, very early in the process. And so that is where we are this morning,” he said. “Mr. Thaler will acquire an equitable interest in the property. And then he will then start the process working with the state, discussions with regard to possibly a new driver’s license center, and however that he would like to develop his property if it then transfers to him at the end of the agreement sale period.”

Bugli emphasized there are numerous entities involved in making this sale a reality.

“It is a multi-year, multi-step process that includes South Lebanon Township. It includes PennDOT. It includes a number of different players,” he said. “The other thing is because the property where the driver’s license center is, is Commonwealth land, so any sort of a land swap that Mr. Thaler would want to possibly do where he negotiates land to maybe move the driver’s license center to the back area, and possibly to maybe adding CDL testing to that location as well, would actually require an act of the General Assembly.”

All stakeholders will have a say as to whether the $2 million sale occurs at the site, including the six acres that the commonwealth currently owns as part of the driver’s license center. 

“So you’d have to have input from the (house) representatives and (state) senator. So there are a lot of moving parts. All we are here for today is just entering into this agreement for the consideration price,” Bugli added.

Litz said that while she voted to support the original 3.71-acre purchase, she opposes this action because a portion of the property are wetlands that include the headwaters of the Quitaphillia Creek, which later merges with Swatara Creek. County administrator Jamie Wolgemuth told LebTown on Friday that six of the 17 acres encompasses the wetland. 

Commission chairman Mike Kuhn and commissioner Bob Phillips both iterated that Thaler would be required to follow laws pertaining to wetlands, with Kuhn noting that a number of commercial golf clubs have wetlands on their properties and have been bound by the same laws when developing those parcels.

It was also noted that the existing wetland has been considered as part of the $2 million sales agreement.

Other business

In other business, commissioners voted to:  

• Pass a resolution to cancel a proposed ADA building project in Millcreek Township for Newmanstown Post Office and redirect $30,000 to the township’s owner/occupied housing rehabilitation project, bringing the total fiscal year 2024 funding for the project to $79,818. Funding is through the Community Redevelopment Block Grant Program administered by the state Department of Community and Economic Development.
• Enter into an agreement with the state Department of Emergency Management for 2024-25 to receive federal funding through the Homeland Security Grant Program totaling $1,086,766.
• Agree to provide $158,135 for a matching state grant on behalf of Lebanon Transit. Quarterly payments for fiscal year 2025-26 are $39,533.75. 
• Pay 16 provider contracts totaling $118,785 for services provided by the Mental Health/Intellectual Disabilities/Early Intervention department. Services include speech, physical and occupational therapies, special instruction evaluation, and supported employment/job coaching for clients. The funding also includes $38,329 for facility upgrades for replacement of old carpeting in four offices, replacement of flooring in public and private lobbies, and construction of four offices in a vacant unit. 
• Re-appoint the following to the Lebanon County Conservation District: Mervin Horst, Newmanstown, farmer board member; Gary Lentz, Lebanon, farmer board member; and Patrick Kreiser, Newmanstown, contractor board member. All three appointments run through Jan. 31, 2028.
• Accept the 2024 coroner’s year-end report. 
• Provide three full real estate tax exemptions for three fully disabled veterans.
• Approve the treasurer’s report, the minutes of their March 20 meeting and March 26 executive session, and various personnel transactions. The March 26 executive session was to discuss personnel matters.  

As part of the treasurer’s report, commissioners decided to pay the following debts for the month of April from the county’s general fund account with a due date of April 15: $175,958.80 to cover general obligation bond, series of 2016 bank loan; $25,324.81 to the general obligation bond, series of 2017 bank loan; and move $648,445.24 to pay general obligation bond of 2021 bank loan. All three payments are to Fulton Financial.   

Lebanon County Commissioners meet the first and third Thursday of each month at 9:30 a.m. in Room 207 of the Lebanon County municipal building, 400 S. 8th St., Lebanon.