County savings on complex hits $1.8 million, with millions more to come
SUNBURY — The first five years of a renegotiated lease for the Northumberland County human services complex has saved the county approximately $1.8 million, with millions more in savings to come, Commissioner Chairman Vinny Clausi said.
Clausi updated the lease negotiation savings, first announced in 2008, at a press conference Monday morning.
The county will save $23,952,246 during the life of the 20-year lease, at which time the county will have the option of buying the three-building complex in 2028.
Clausi, joined by Commissioner Steve Bridy and numerous other county staff in the complex parking lot, said he was proud to make these announcements.
“It’s all about taking care of the people,” he said.
When Clausi first became commissioner in 2008, he put together a team of local businessmen — Joe Pancerella of Kulpmont and Gene Welsh and Craig Fetterman of Coal Township — and successfully renegotiated the terms of the lease with Stan and Penn Seiple, father and son owners of the buildings.
“They could have said ‘no.’ They could have told us to go pound sand,” Clausi said about the Seiples.
While Stan Seiple joked that it hurt to renegotiate, the father and son owners agreed that they were happy to help the county.
“We live here. If everybody can help save a little, we’d all be better off,” Penn Seiple said.
The new lease took effect July 1, 2008, with an automatic annual rent decrease of $59,602. Since then, the rent has decreased from $1,136,225 in 2008 to $1,049,540 this year.
By 2014, the rent will decrease to $688,494 where it will be frozen until 2028. Comparatively, projections show that the county could have been paying $2,817,721 by 2028 had the lease not been renegotiated.
Clausi said the lease for the parking lot is approximately $100,000, putting the rent for the property up to approximately $788,494.