RDA approves oil and gas agreement and talks tax sale
Oil and gas royalties and this week’s judicial sale were the main topics of discussion at Wednesday’s City of Warren Redevelopment Authority meeting.
The RDA approved an agreement to collect royalties for oil and gas development that will occur under some of its properties.
Director of Codes and Planning Randy Rossey said developer John Branch obtained permits to drill under east-side properties owned by the RDA including 908 and 910 Pennsylvania Ave. E.
He said the vertical well would be drilled about one block from the RDA’s properties. A horizontal well would then tap into oil and gas under those properties.
Rossey said the drilling is expected to start by the end of June and that the RDA would receive one-eighth of value for five years or, if longer, as long as the well is productive.
Monday’s judicial tax sale was before the board because the RDA was a bidder, purchasing 325 Prospect St. for just under $3,200.
According to information from the Tax Claim Bureau, a total of 13 properties were up for sale and six sold. Four sold for less than $2,500. Bidding went highest for 380 Newton Rd. in Pittsfield ($17,500) and 202 N. Irvine St. ($15,500).
The N. Irvine St. property has been deemed blighted and was before the RDA on Wednesday.
“(You) can see it’s been vacant for a long-period of time,” Rossey said. He proposed – and the RDA agreed – to invite the owner to the August meeting to allow time for the property transfer to take place.
The RDA also heard an update on 418 Hazel St. and took a similar action, agreeing to invite the owner to the July meeting to discuss the property.