By Brad Segall
NORRISTOWN, Pa. (CBS) – Officials in Montgomery County confirm the county is likely to take a $24-million financial hit related to a redevelopment project in Norristown that’s now in foreclosure.
The Logan Square project, which at one time included a movie studio, was supposed to be the cornerstone of the revitalization of the county seat. But six years after the project began the county now believes it’s no longer viable and it stands to lose millions in grant and loan guarantees put up by the previous administration.
Commissioner Josh Shapiro is concerned about future HUD investment in the county.
“Ten million of that is the HUD money. I’m going to do everything I can to mitigate the negative impact on the future of the county by meeting with Senator Casey, meeting with HUD and seeing what we can do,” says Shapiro.
One office building was constructed but it’s only half occupied and the center’s owners are having problems renting many stores on the retail side.
Foreclosure could take six to nine months.