North Penn: Key date fast approaching for sale of ‘movie lots’

March could bring the next key step in the North Penn School District’s sale of a long-discussed patchwork of properties in Hatfield.

School board members heard an update last week on the sale of the so-called “movie lots” on Welsh Road in Hatfield, and a key date that’s fast approaching.

“In January, the board authorized an extension of the due diligence period, it was amendment number two to the sales agreement, and the due diligence period now ends on March 3rd,” said district CFO Steve Skrocki

“I did reach out to Pulte, the developer that we have a contract with, and asked a simple question: Do you anticipate any additional extensions, or are you in a good place, and you feel you’ll be able to meet the due diligence period by March 3rd?” he said.

In mid-September 2024 the school board announced and approved a $15 million sale agreement with Pulte for the “movie lots” near Welsh Road in Hatfield Township. The lots total about 56 acres and are located on the northeast corner of the intersection of Welsh and Forty Foot Roads and are farmed on a year-to-year contract with an area farmer.

The parcels have been called “movie lots” because the strips roughly 100 feet by 20 feet had been given away by movie theaters in the 1920s as prizes for those attending movies. The land was acquired by the district over the years for non-payment of property taxes, and selling the lots had been discussed by the board as far back as 2022.

In the September meeting, the board discussed offers from developers seeking to acquire the lots, and accepted one from Pulte, contingent on the buyer receiving final approval to build 85 homes on that land. The September agreement had a 90-day due diligence period that would have expired in mid-December, then both agreed to an extension to allow more time for environmental testing on the site.

The second extension, approved by the board in January, was requested to continue talks with Hatfield Township on developing the movie lots and adjacent Beach property as one combined project rather than two separate ones. During their Feb. 11 finance committee meeting, Skrocki told the school board he recently checked in with the developer to ask if any more extensions would be needed.

“I asked twice, two weeks ago and again today, and both times the response was they feel confident they can meet the due diligence period on March 3rd,” he said.

“After that, they do need to place money in escrow. So things get a little more serious, because nothing is in escrow right now. Crossing that threshold of due diligence is a really important criteria in the sale agreement,” Skrocki said.

    Site plan showing the “Movie lots” owned by North Penn School District, and the adjacent “Beach property” just to the north, located off of Welsh Road, at bottom, in Hatfield Township. (Credit: North Penn School District)
  

Another key hurdle has also been cleared: Skrocki told the board that a court hearing was held on Jan. 27 to seek formal approval to conduct the sale, and the district learned in early February that the sale request had been approved by a county judge.

“It really boiled down to the fact that, we had affidavits from both appraisers saying the sale price value was well in excess of what they felt was the appraised value of the property,” he said.

“That’s really what the judge needed to hear, and the judge issued the court order that we have the authority now to continue with the sale, so that’s good news,” Skrocki said

North Penn’s school board next meets at 7 p.m. on March 11, the finance committee next meets at 6 p.m. on March 11, and the facilities and operations committee next meets at 7 p.m. on Feb. 24; for more information visit www.NPenn.org.

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