LANCASTER TWP — Supervisors during a meeting on Monday, Oct. 20, authorized a non-electoral debt ordinance in preparation of purchasing a property that they hope will develop into the township’s new municipal campus.

With the approval, the maximum amount that officials can borrow for a general obligation note in regards to the purchase at 600 Perry Highway is $2 million.

During a meeting on Aug. 18, supervisors entered into a sales agreement contingent upon three condition — a second appraisal, an environmental study and property inspections.

The property was initially appraised at $1 million by an independent third party. Township manager Mary Hess said she received the second appraisal, conducted by Cranberry Township-based firm Nicklas King McConahy, which valued the property slightly higher at $1,015,000.

Members of the township’s bond counsel explained to taxpayers that WesBanco would be the financial institution distributing the loan on a variable interest rate.

Currently, the township would be offered a rate of 3.89%, according to the bond counsel, but whatever the rate is at signing would be fixed for five years. After five years, the rate could change based on an index. The maximum rate at any point in time would be 12%, although, officials emphasized it would be unlikely for it to reach anywhere close to that figure.

The general obligation note would then mature on or about Dec. 15, 2045, or 20 years after the note is issued.

Hess added that doubling the amount of the loan was out of an abundance of caution in case other costs surrounding the property came up. However, she stressed that if the township did not need the other $1 million that it could be returned to the bank with no penalty to the township.

Along with the second appraisal, Hess said the county will pay for and conduct a Phase 2 environmental study after discovering the property on Perry Highway was the site of a gas station in the 1950s.

While it’s still unclear when supervisors would officially vote on the purchase, they have emphasized the importance of staying ahead of future growth while not raising taxes.

“We’re trying really hard to be proactive so that we’re staying ahead of the curve and are able to respond — not only to what’s happening today, but what we see happening in a year to five years out,” Vice Chairman Rich Marcotte said.