Southgate Shopping Center Official Purchase

FRANKLIN COUNTY, Pa. (WHTM) – The Chambersburg Area Municipal Authority (CAMA) officially completed its purchase of the Southgate Mall, Thursday, October 13, 2022.

This comes as CAMA purchased the mall’s remaining balance, totaling $4.5 million. This purchase plan has been divided into two distinct phases.

The first phase began on April 7, 2022, according to a press release from Chambersburg Deputy Borough Manager Phil Wolgemuth.

The purchase of the first phase included:

  • Part of the mall south of W. Washington Street
  • A large car park
  • Space formerly owned by Golds Gym (recently purchased by Keystone Health on August 25, 2022)
  • A building that occupied various other businesses.

The Phase 2 purchase took place on October 13, 2022 and included:

  • Part of the center between W. Washington Street and Loudon Street – between Cedar Street and Conococheague Creek.
  • Space formerly owned by Rent-A-Center
  • Space formerly owned by JCPenny Auto Service facility

With a price tag of $4.5 million, CAMA was able to make the purchase with the help of federal grants – money that doesn’t need to be returned to the federal government even after the resale of the site.

Under the American Rescue Plan Act (ARPA), acquisition costs were fully covered for this 2-phase purchase – these funds were provided by the US Treasury Department and then remitted to CAMA through the borough.

It should also be noted that no borough taxes or local taxpayer dollars were used for the entire purchase of the mall.

Unlike the Phase 1 purchase, which was mostly resold, CAMA will retain ownership of portions of the Phase 2 property, to eventually develop infrastructure to improve the areas’ stormwater management. These plans are not yet finalized.

Control of property management was handed over by CAMA and entrusted to the borough.

If you have any questions regarding the mall redevelopment, please contact Community and Economic Development Specialist Guy Shaul at (717)-251-2446 or [email protected]