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Letterkenny selling more than $2 million worth of surplus

March 09, 1999

Letterkenny surplusBy DON AINES / Staff Writer, Chambersburg

photo: RIC DUGAN / staff photographer




CHAMBERSBURG, Pa. - The Letterkenny Industrial Development Authority is getting ready to sell off thousands of items ranging from used waste baskets to front-end loaders it acquired from the Army.

"The quality ranges from literally junk to stuff that hasn't come out of the box," Franklin County Area Development Corp. Executive Director L. Michael Ross told the authority board earlier this month.

Last week, Ross said the most expensive single item was a machine used to make wooden containers appraised at $100,000.

"We have a whole host of things in the $12,000 to $30,000 range," but many items such as nail bins, coffee tables and chairs will sell for as little as $5, Ross said.

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The total value of the items on the initial list being prepared for sale is between $2 million and $3 million, according to Ross. The property was acquired by the authority when the Army transferred 234 acres of land and buildings to the authority last year.

Unlike sales of surplus government equipment the depot has run in the past, there will be no sealed bids or auctions. Ross said all of the equipment and furniture acquired by the authority is being appraised, priced and tagged.

Under the memorandum of agreement with the Department of the Army, Ross said the sale will not be open to businesses from outside Franklin County, equipment or furniture dealers, or people wanting to buy goods for personal use.

Ross said the purpose of the sale is to support job creation and economic development in the county. Letters to about 250 county industries and municipalities will be sent out in the next few weeks informing them of the availability of the property for sale.

Companies and municipalities will be able to go to the depot and see the equipment by appointment, he said. The disposition of the property is being handled for the authority by the Franklin County Area Development Corp.

The first $400,000 from the sales will be used to recapitalize the Letterkenny Opportunity Center Fund to $800,000, according to Ross. The fund provides reduced-interest loans to businesses that want to locate within the Cumberland Valley Business Park at the depot.

Subsequent funds from the sale of the property will be used to expand the Franklin County First Fund, a revolving loan fund that offers below-market interest rates to businesses wanting to relocate, start up, or expand in the county.

"This is going to become a very fluid situation over the next two or three years" as the Army continues to transfer more property to the authority, Ross said. The Army eventually will turn over 1,500 acres to the authority for development as the Cumberland Valley Business Park.

That will mean more personal property being acquired, appraised and sold by the authority, Ross said.

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