Montgomery County Loses Over $24 Million To Bankrupt Developer: Report

Montgomery County officials have lost over $24 million in the final accounting to a Lower Merion developer who went bankrupt, according to reports.

Developer Charles Gallub was lent $25 million by the county in 2007 to create a shopping center and movie studio at Logan Square in Norristown, Philly.com reports. They will receive back $800,000, after years of litigation on the issue.

Gallub’s project started to fall apart in 2009 after a movie tax credit was cut by Pennsylvania and his movie studio backed out of the project, the report states.

He turned into an office and retail park, but could not bring in enough rent to pay bills, according to the report. He soon filed for bankruptcy.

Montgomery County officials reportedly believe that $800,000 is a good deal and the best one they could hope for.

Image courtesy of Logan Square shows the proposed movie studio in Norristown.