NorCo Eyes Purchase of Human Services Building Next Year

Northampton County's Centralized Human Services Building is located at 2801 Emrick Blvd in Bethlehem Tp. It was dedicated a little over four years ago, in April 2014. It was a dream come true for former Executive John Stoffa. He devoted his career to Human Services. He had long argued for a single centralized building for the 80,000 clients who often need services from several departments  The County leases this building, currently owned by Polaris Emrick Development. The County currently rents this building at a rate of $1.05 million per year. Is it time to buy? That's a question Executive Lamont McClure discussed  at last night's County Council meeting.

The lease is what is known as a triple net lease. What this means, according to McClure, is that the rent is slightly below market rate. But the tenant pays maintenance,insurance and taxes. Taxes alone are $190,000 per year, on top of the rental. 

In March of next year, the County can exercise an option in its lease agreement to purchase the building for $14,468,731. If you count the rent already paid, the actual purchase price will be $19.5 million. 

If the County fails to exercise that option, it will have to wait another five years until 2024, when it can buy the building for $16.3 million. With rent paid, the actual purchase price then will be $26.55 million.

If the County fails to act in 2019 or 2024, it will have a third option to purchase in 2029 for !8.5 million. The actual pruce, if you count rent already paid, is $34.17 million.

If the County does nothing, it can purchase the property after 29 years and 10 months for $1. By that time, it will already have paid $32.9 million.

Executive McClure advised Council that the most fiscally prudent thing to do is purchase the building next year.

Most of the money for this purchase has been set aside.

In his report, Executive McClure also reported on "TeleDoc," a smartphone application with which courthouse workers can visit their doctor in cyberspace. It became available in early July, has 542 subscribers and has already saved the County $8,000 in medical insurance claims. McClure said app saves the County $517 for each visit.

In other business, County Council voted unanimously to seek a $300,000 grant from the Commonwealth Financing Authority for streetscape improvements at the courthouse campus. These include wheelchair-accessible curbs, decorative lighting and a crosswalk from Washington Street to the Milides Building. Executive McClure plans to demolish that building and increase the parking.