Lansford Borough Council members say an abandoned, fire-damaged building demonstrates why they recently increased the amount of insurance money the borough can hold in escrow after a fire.

“They’re walking away from burned-out buildings, pocketing insurance money, and leaving us with the bill,” Council President Bruce Markovich said.

A Dec. 8 fire heavily damaged 156 W. Ridge St. and two neighboring buildings. Five residents were displaced.

On Tuesday, Lansford Borough Council voted to hire Radocha Excavating to demolish the building at a maximum cost of $32,000.

In order to fund the demolition, council voted to seize $9,163.57 from the fire insurance payout to the owner of 156 W. Ridge St., which it has held in escrow. The rest will be funded by the borough.

Council also voted to put a lien on the property for the remaining demolition cost, meaning the property can’t be sold until the bill is paid.

Immediately after the Dec. 8 fire, the borough ordered Andy Pedraza, who owns the property through EC Properties 1 LLC, to demolish the building.

Pedraza said the borough wouldn’t let him use his own contractor. He said he did not think the borough’s price for the demolition was reasonable.

Pedraza said he thought the money kept in escrow should have been enough to fund the demolition.

“If they want to keep the escrow and put a lien on an empty lot, the town is welcome to it. I don’t mind,” Pedraza said.

Markovich said that the $9,163.57 was 15 percent of the insurance payout for 156 W. Ridge, the maximum amount the borough was allowed to hold under its fire escrow ordinance at the time. Since then, they have changed the ordinance so the borough can hold as much as it will cost to demolish the property.

The two other buildings damaged in the Dec. 8 fire are also slated for demolition, but their escrow funds are enough to cover the cost of demolition.

Markovich said the old fire escrow ordinance wasn’t strong enough to prevent landlords from walking away with insurance payouts after fires in their buildings. He said the owner of another building damaged by fire walked away with $160,000 after one of his units burned.

“They’re legally making money on the fact that their buildings are burning down,” Markovich said.

Markovich said the lien carries other penalties for Pedraza and EC Properties. Under borough ordinances, the company won’t be allowed to renew the rental licenses for three other rental properties it owns in the borough. He said it will also hurt his ability to buy other properties in Carbon County.

Pedraza said the borough is unfairly targeting his property, when there are other burned-out properties which have gone unaddressed longer, like the site of a March 2021 fatal fire on West Bertsch Street.

Markovich said the borough has been attempting to track down the owner of the West Bertsch Street property.

In other business

Borough council:

• Hired Shantel Lauer as part-time borough secretary at $16 an hour, and Austin Signarowitz as a part-time police officer at $21 per hour.

• Approved the one-year lease of a two-bay garage at the former Silberline property to Matt Tirpak for $250 a month.