Land bank seeks buyer for blighted former restaurant site in Greensburg

The site of a former downtown Greensburg restaurant that fell into disrepair and was demolished in 2021 is on the market.

The Westmoreland County Land Bank is seeking proposals from potential buyers to redevelop the now vacant 5,100 square foot site at 127 S. Pennsylvania Ave.

“We try our best to let the private market figure it out for use. This property had a bad actor owner and separating him from the property and getting that building down was our priority. At this point, it seems our job is kind of done,” said Brian Lawrence, executive director of the land bank.

The century-old building was the home of Derby’s Restaurant that closed about a decade ago and over the years began to deteriorate as tax liens accumulated. In 2021 officials classified it as a blighted structure after a portion of the roof caved in and fears of collapse intensified.

The land bank assumed ownership last year, months after it teamed up with the city of Greensburg to pay $128,000 to have the building razed and the site readied for reuse.

A buyer will be selected based on multiple factors including financial offers for the site as well its potential uses, Lawrence said.

According to a request for proposals, the county will consider plans for residential and commercial uses for the property and a buyer’s financial ability to complete the project.

“We will entertain any type of community use,” Lawrence said. “Doing it this way we will have a say as to what the community wants.”

Proposals will be accepted through March 31, after which a potential buyer will be selected and hold exclusive negotiating rights with the county.

The land bank has about 85 properties in its inventory and the sale of the now vacant Greensburg site is expected to kick start series of similar efforts as a plan to demolish blighted structures throughout Westmoreland County — funded with $10.4 million in American Rescue Program funds — moves into overdrive in 2023.

Final preparations are being made for demolition of 40 structures, and the county is expected to seek bids to take down 14 more buildings in the next several weeks, Lawrence said.

Purchase of a land bank property doesn’t guarantee new construction.

The land bank last year sold a 10,000 square-foot property on Market and South Broadway that was home to the former Fraternal Order of Eagles in Scottdale. The agency paid $33,000 to demolish the dilapidated building and last year sold the vacant property for $25,000 to a purchaser who installed a parking lot at the site.

“Unfortunately, it was the only proposal we received. We did initially hear from a few other interested buyers, but they didn’t submit a proposal,” Lawrence said.

One of the first high-profile properties sold by the land bank was the former Monsour Medical Center site on Route 30 in Jeannette in 2017. The agency paid $2 million to demolish the vacant hospital a year earlier.

Colony Holdings of North Huntingdon paid $2.1 million for the 6.4-acre site and pitched construction of a commercial development that included retail space and a gas station.

The site remains vacant.

Colony officials last year said zoning concerns and other issues caused by the coronavirus pandemic delayed submission of building plans for the lot.

No plans for the site have been finalized, Colony President Don Tarosky Jr. said Wednesday, and his company continues to endeavor to find tenants.

“It’s a struggle, and it’s an uphill battle but we’re working on a couple of things,” Tarosky said.