Louis Zecca from Weston Solutions addressed Catasauqua Council at their regular meeting on May 6, delivering disappointing news.

"We have always felt that this was a good project," he said. "When Woodmont backed out of the project we were prepared to assume all the risk, but we had capital restrictions placed on us and we weren't able to complete the purchase with FL Smidth."

Zecca spoke after council passed a resolution voiding the December agreement made between the borough and Weston. The Woodmont Company, a commercial real estate investment and brokerage firm, was in the project to build high-end residential apartments in the areas of the FL Smidth property not used by borough municipal functions.

Zecca promised Weston would stay active in the project even on a voluntary basis and offered to make available company data, profit projections, and plans.

"We continue to talk to our equity partners and there is some interest," said Zecca in closing.

For all practical purposes, council recognized that development prospects with Weston are dead. Council members met in a closed executive session to discuss potential courses of action.

FL Smidth did offer the property to the borough for an undisclosed price. Councilman Vincent Smith expressed his opinion on the offer.

"We passed on the opportunity to buy this property two years ago and now we have a second chance," he said.

Smith's position was supported by several residents. Robynn Shannon and Tammy Cameron both spoke in favor of making the purchase.

Sean McHugh, who is a candidate in this year's election for mayor, also expressed his support for the project. Mayor Barbara Schlegel, running for re-election, reiterated her stance, saying she would not jeopardize the borough's financial position to purchase the Front Street property. The upcoming primary could serve as a referendum on the two different approaches.

Smith's proposal suggests the borough use a capital reserve fund set aside specifically for a new fire station. He indicated the reserves would be close to the price offered by FL Smidth.

The fire station reserve fund has a balance of $700,000 according to borough Manager Eugene Goldfeder. The borough increased local tax rates by 1.5 mills several years ago to fund the firehouse fund. In recent years, council budgeted the 1.5 mill revenues to defray general operating costs.

The borough has a general reserve fund valued at $300,000, which Goldfeder said should be sufficient to cover most contingencies and emergencies.

During Zecca's report, Smith questioned him at length on the potential for the site. Zecca noted many investors were interested in the site.

"Having the borough as an anchor is key," he said. However, no investors have come forward since Woodmont dropped out of the project.

Catasauqua resident Virginia Tabor expressed her opinion on the possibility of a purchase.

"The borough should not be in the real estate business," she said.

Smith and Councilwoman Jessica Kroope both responded that the borough was already in the real estate business.

"We own property on Pearl Street and Third Street," replied Smith. "It is natural that the borough owns real estate."

The borough again returns to development square one and starts the process anew in an election year.