Lancaster Township approves support for $7.7M Harmony fire station
LANCASTER TWP — Supervisors approved an agreement Monday, Aug. 21, to assume guarantor status for the Harmony Fire District’s new $7.7 million fire station.
Lancaster Township is the third municipality to approve the agreement after Jackson Township and Zelienople approved their own agreements last week. Harmony, which is also served by the fire district, will vote on its ordinance Sept. 5.
According to solicitor John Bench, the department will need a loan for approximately $2.8 million to pay up front for construction — to be reimbursed by a state and federal grant it received last winter.
“To get that loan, the bank will not loan $2.8 million to a nonprofit without governmental guarantees,” Bench said.
Each member municipality in the fire district will guarantee a portion of the loan relative to its annual contributions to the department, according to Bench, with Lancaster Township contributing 25% for a guarantee of just over $700,000.
“It’s not actually debt incurred, as if we were taking out loans to build roads, build over at the township building,” he said. “It’s just that we’re guaranteeing that this bill will be paid back.”
Bench emphasized that there would be no cost to the taxpayer.
“The fire department already has 100% of the money, all the grants in place, locked in — there is no risk to the township,” he said.
The township also approved advertising a bid for the West Lancaster Road Culvert Replacement Project.
In early January, the township received funding for the project through the Butler County Municipal Infrastructure Program grants.
“It was a grant that was worth $195,590, with an estimated project cost of $215,100,” chairman Greg Kessler said.
Township engineer Tom Thompson said the culvert was previously identified as a project for stormwater management improvements.
Supervisors also approved the resignation of Township Manager Michael Foote on Monday and advertise for a new manager.
Kessler said Foote was looking to “explore other options.”
“I’d like to thank Michael Foote for his two years of service,” he said. “And as we’ve mentioned we will start the process of acquiring a replacement.”
Foote’s final day has yet to be determined as the supervisors “work on a transition period,” according to Kessler.
“It will probably be a difficult role to fill,” he said. “But as we head into a busy time of the year with budget preparation and things like that, time will be of the essence.”
