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By STEVE MOCARSKY [email protected]
Tuesday, May 08, 2001     Page: 1D

HAZLETON – Two local developers and city officials on Monday trumpeted the
sale of a run-down building they say will be the cornerstone of revitalization
of the city’s downtown.
   
George F. Hayden and Charles J. Palermo Jr. signed a sales agreement to
purchase the Markle Building – the city’s tallest at 11 stories – from New
York lawyer Alan Haberman.
    Hayden, vice president of a prominent electrical and communications firm,
said his expertise in construction coupled with Palermo’s experience in
marketing and input from the community will make the development project a
success.
   
Palermo said he and Hayden anticipate a restaurant and retail businesses
will locate in the bottom floor of the former bank building. They envision
professional office space on the second through fifth floors and an
extended-stay all-suite hotel on the sixth through 11th floors.
   
Palermo said he expects the renovations will cost about $5 million and
anticipates low-interest financing from the city, state and Luzerne County.
   
City administrator Sam Monticello said the developers probably can acquire
about $500,000 in financing through the city. State Rep. Todd Eachus, D-Butler
Township, announced later Monday that he included wording in Gov. Ridge’s
capital budget to match investor dollars for the renovation.
   
Although the 90-year-old building bears a six-year history of failed
attempts at revitalization, Mayor Louis Barletta said he is confident Palermo
and Hayden will succeed.
   
“We have two young men who live here and care about the city of Hazleton
and what happens here,” Barletta said.
   
In 1994, the top floors of the building were shut down for safety and
fire-code violations. The Hazleton City Authority’s now-defunct industrial
division bought the building in 1995 with hopes of finding a reliable
developer.
   
The authority’s board brought in a developer from Buffalo, N.Y., who
borrowed $55,000 from the authority but did nothing to the building and later
withdrew from the project.
   
The authority sold the building in 1997 to developers from Philadelphia and
funneled $250,000 in state grant money – provided in the form of a city loan –
to the new owners, who began repair work on the nearly vacant structure. The
developers shut the building down and evicted the few remaining tenants in
1999.
   
The authority never recouped the $55,000 loan made to the first developer,
and city and state officials have been frustrated in efforts to account for
the $250,000 loan passed on to the Philadelphia developers. Litigation
continues.
   
Haberman bought the building at a sheriff’s sale in November 1999 for
$1,000 – the highest bid placed.
   
Although neither Palermo nor Hayden would reveal the purchase price during
a press conference Monday, it was stated in a televised report that the
building was sold for $385,000. According to the deed when Haberman purchased
the building, the fair market value was $853,000.
   
Steve Mocarsky, a Times Leader staff writer, may be reached at 459-2005.