‘Not how America’s supposed to work’: Canyon Pizza, The Brewery to be razed for parking lot
Jay Horgas and Ray Rockey assumed they had nothing to worry about.
The two longtime business owners were among the group that purchased State College dive bar and local institution The Brewery in the early 1990s. Then, about 20 years ago, Rockey said they realized the “American dream” when they bought the Beaver Avenue building that housed their business — and houses other small businesses like Canyon Pizza and Music Mart — to ensure a developer couldn’t scoop it out from under them.
They discovered Monday they were wrong. Maybe they should have been more concerned.
State College Borough is looking to exercise eminent domain — the right of a government to take private property for public use (with compensation) — on two downtown buildings, so they can convert the spaces into parking. Horgas and Rockey received no prior notice and found out hours before Monday’s scheduled council meeting involving the matter.
“I’ve personally bought the bar. Then, part of the American dream, we bought our building so no one could buy it out from under us,” Rockey said during the public portion of Monday’s borough council meeting. “And now you’re going to come in and say that we just want to take it and close you — and that’s not how America’s supposed to work.”
Several council members, unaware the property owners received no notice, apologized to Horgas and Rockey after they spoke. But they still voted to move forward with acquiring two properties via eminent domain — the parcel on Beaver Avenue owned by a group including Horgas and Rockey, and a parcel with a rental house on McAllister Street owned by Rodney Hendricks. (Gopal Balachandran was the only opposing vote; Divine Lipscomb’s vote was not recorded because he walked away from the meeting, which he attended remotely. But he told the CDT he would have voted no.)
Councilwoman Deanna Behring empathized Monday night, acknowledging the owners must be shocked, and implored them to push the borough for what they needed to keep the businesses operating. She told the CDT on Wednesday that she trusted the borough to conduct negotiations in good faith.
“I’ve been personally assured that no business is going to be kicked out and that the borough will work on a mutually agreed plan for compensation and relocation in the borough,” Behring said. “The borough is currently reaching out to the owners and managers to start a conversation on what’s needed.”
According to borough spokesperson Doug Shontz, the property owners and borough will attempt to arrive at a mutual settlement. If that’s not possible, the property owners can petition the court to appoint a board to assess damages. (And, if either party is unhappy with the damages, they can appeal to the Court of Common Pleas.)
Shontz also acknowledged the possibility that the businesses could be temporarily relocated in the future, or other temporary solutions could be made, until a permanent solution is agreed upon. “The borough is committed to supporting those local businesses located at this site, and doing all it can to retain those businesses in Downtown State College,” Shontz added.
Why is this happening?
For years now, borough officials and council members have openly discussed the need to replace the 51-year-old Pugh Street Garage due to safety concerns and increasing costs. Experts have told them the lightweight concrete structure is nearing the end of its useful life.
“Based on existing parking demands in downtown State College, the borough has concluded that a replacement structure should be constructed before removing the 500 parking spaces at Pugh Street from the system,” Shontz said. “The goal is to maintain the integrity of the parking system to meet local demand.”
Because that parking needs to come from somewhere, officials identified two parcels — one on Beaver, one on McAllister — to construct a new parking garage with commercial space. A design firm is expected to be chosen to create the plan “over the next few months.”
There are no current plans for the Pugh Street site after the garage is demolished. But retired conductor Doug Meyer has proposed a five-story Nittany Performing Arts Centre, which would cost in the tens of millions and would not be the borough’s financial responsibility.
Exercising eminent domain is not unprecedented in the borough. In early 2004, State College Borough did just that to make room for the 529-space Beaver Avenue Garage, by acquiring properties along South Fraser Street and West Beaver Avenue.
Back then, however, the acquired properties included a district justice’s office and an apartment building. No other business was mentioned in the Centre Daily Times’ coverage of the matter, let alone State College institutions similar in popularity to The Brewery and Canyon Pizza. Social media, which has widely circulated the news since StateCollege.com first reported it Tuesday, was also still in its infancy at that time.
Why no notice?
Several members of the public spoke after Horgas and Rockey on Monday night, expressing surprise that the owners received no heads-up. One man called it “a little bit shocking,” while another labeled it “almost disgusting.”
Councilwoman Deanna Behring wasn’t quick to disagree.
“So I have a lot to say to the community here,” she said. “But I think the most important thing to say is to apologize to Rockey and to you (Horgas) for how this was dropped on you today. I’m sure you must still be in shock, so I apologize.”
Added Councilman Divine Lipscomb: “I actually am shocked, as well. This is upsetting to me. ... I want to echo that apology to those business owners.”
But, according to the borough solicitor, it’s common practice not to give notice in such instances. Borough spokesperson Doug Shontz explained that’s because — if property owners are given advance notice — it’s possible they might perform work on the property to artificially increase its appraisal, like with a fresh coat of paint.
The appraisal is based on the condition of the property on the day Borough Council formally approved acquiring it. So, with no notice, there’s no way for a property owner to artificially inflate the price. (An appraisal can’t happen before Borough Council gives its OK to exercise eminent domain.)
Still, whatever the reason, that didn’t seem to sit right with a number of council members.
“I would hope that the solicitor and the manager would get with those folks and bring them up to speed on their options and what’s going to happen next, because I can imagine what that might feel like at this point in time,” Councilman Peter Marshall said. “You were very clear on how it affected you. And I think we need to make an effort to bring you up to speed so you know what’s going on, what your options are, how you can make out from it, whatever. I think you should know.”
Rockey said Wednesday afternoon he’s still processing everything and has had no dialogue with the borough since (or prior to) Monday night.
“We have been receiving a lot of support from the community,” he added.
This story was originally published August 9, 2023 at 5:00 PM.
