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PENNSYLVANIA LIQUOR CONTROL BOARD

INVITATION FOR BIDS #260331

EXPIRED RESTAURANT LIQUOR LICENSE AUCTION

Calendar of Events

IFB #260331 posted on http://www.emarketplace.state.pa.us

Monday, June 18, 2018

Questions due via email only to Issuing Officer at [email protected]

Thursday, June 28, 2018 at Noon

Answers to be posted by Issuing Officer to http://www.emarketplace.state.pa.us

Monday, July 2, 2018 at 3:00 p.m.

Deadline for bid withdrawal via email only to Issuing Officer at [email protected]

Thursday, August 2, 2018 at 10:00 a.m.

Bids due to Issuing Officer at:PLCB Purchasing & Contract Administration

Northwest Office Building, Room 312Harrisburg, PA 17124-0001

Thursday, August 2, 2018 at Noon

Public bid opening at:Northwest Office Building

Room 117Harrisburg, PA 17124

Monday, August 6, 2018 at 9:00 a.m.

Public posting of highest bids on http://www.emarketplace.state.pa.us

Within two business days of tabulation of all license bids

Payment in full of awarded bid amount to PLCB via cashier’s check, certified check, ACH, or wire

transfer

No later than fourteen calendar days from date of Issuing Officer’s Notice of Selection

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Licenses To Be Auctioned

License Auction #

County Municipality Restaurant Liquor License #

221 ARMSTRONG RURAL VALLEY R-13260222 BRADFORD STEVENS TOWNSHIP R-19405223 BUCKS PLUMSTEAD TOWNSHIP R-20310224 CAMERON PORTAGE TOWNSHIP R-17133225 CARBON LEHIGHTON R-13018226 CLINTON DUNNSTABLE TOWNSHIP R-18166227 CRAWFORD LINESVILLE R-16839228 DAUPHIN LOWER PAXTON TOWNSHIP R-13793229 ELK SAINT MARYS R-7972230 GREENE FRANKLIN TOWNSHIP R-1098231 HUNTINGDON CARBON TOWNSHIP R-11107232 LEBANON LEBANON R-9723233 MCKEAN ELDRED TOWNSHIP R-18228234 MERCER WHEATLAND R-17084235 MONTGOMERY SPRINGFIELD TOWNSHIP R-18704236 NORTHAMPTON PALMER TOWNSHIP R-18739237 NORTHUMBERLAND ROCKEFELLER TOWNSHIP R-10136238 PHILADELPHIA PHILADELPHIA R-8566239 PIKE MILFORD R-20437240 POTTER COUDERSPORT R-10669241 SCHUYLKILL EAST UNION TOWNSHIP R-20896242 SUSQUEHANNA SUSQUEHANNA (DEPOT) R-20033243 WASHINGTON JEFFERSON TOWNSHIP R-16852244 WAYNE PAUPACK TOWNSHIP R-17938245 WESTMORELAND VANDERGRIFT R-16723

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OVERVIEW

The Pennsylvania Liquor Control Board (PLCB) is accepting bids for the rights to file transfer applications for certain expired restaurant liquor licenses as set forth in this Invitation for Bids #260331 (IFB) and in conformity with Section 470.3 of the Pennsylvania Liquor Code. 47 P.S. § 4-470.3.

ISSUING OFFICE

This IFB is issued by the PLCB, Purchasing and Contract Administration Division, Room 312, Northwest Office Building, Harrisburg, PA 17124-0001; email: [email protected]. Melinda John is the Issuing Officer and the sole point of contact at the PLCB for this IFB.

QUESTIONS

Questions regarding this IFB must be submitted via e-mail only , with the subject line entitled “IFB #260331 Questions” to the Issuing Officer, Melinda John, e-mail: [email protected], no later than 12:00 P.M. EDT on Thursday, June 28, 2018. Do not contact the Issuing Office by phone with any questions. Bidders shall not attempt to contact the Issuing Officer by any other means.

Until the results of this IFB are posted on the Department of General Services (DGS) website as set forth herein, no Bidder or agent on behalf of a Bidder shall address questions regarding this IFB to any other employee or agent of the PLCB. Violation of this requirement may constitute grounds for disqualification of the Bidder.

All questions received will be answered in writing, and such responses shall be posted to the DGS website at www.emarketplace.state.pa.us as an addendum to the IFB by 3:00 P.M. EDT on Monday, July 2, 2018.

All questions and official responses are considered an addendum to, and part of, this IFB. The PLCB shall not be bound by any verbal information, nor shall it be bound by any written information that is not either contained within the IFB or formally issued as an addendum by the Issuing Office. The Issuing Office does not consider questions to be a protest of the specifications or of the solicitation.

Before submitting questions, please carefully review this IFB as well as the Frequently Asked Questions document (FAQ) found at Attachment A. These FAQs constitute a material, substantive part of this IFB.

ADDENDA TO THE IFB

If the Issuing Office deems it necessary to revise any part of this IFB before the bid response date, the Issuing Office will post an addendum to the DGS website at www.emarketplace.state.pa.us. It is the Bidder’s responsibility to periodically check the website for any new information or addenda to the IFB.

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BID REQUIREMENTS

Each license being auctioned has been assigned a License Auction Number. Bidders may bid on one or more licenses; however, each PLCB Bid Sheet is specific to a particular license being auctioned. For example, if a Bidder wishes to bid on License Auction Numbers 221, 224 and 235, then Bidder must submit three separate bid packages. Note that the License Auction Number is different than the Restaurant Liquor License Number as set forth on page two of this IFB.

Each bid package must include the required bid surety of $5,000.00 or 5% of total bid amount, whichever greater, and the relevant PLCB Bid Sheet for each particular license, properly signed and properly sealed. Failure to include these required documents may render the bid non-responsive and may result in bid rejection. Bids may not be conditioned in any manner, nor may Bidders make any changes to the PLCB Bid Sheet.

Each sealed bid package must be prominently labeled on the outside of the envelope with “IFB #260331,” the License Auction Number, and the name of the bidding individual or legal entity . For example:

If you submit more than one sealed bid in a delivery package, please indicate that on the outside of the delivery package. For example, if you submit bids for three licenses via FedEx, each license bid package must be sealed and labeled, and you should also note on the outside of the FedEx envelope “contains three sealed bids.” This is to streamline the bid opening process.

Bid amounts must be in whole dollar figures (example: $25,001.00). Any bid less than $25,000.00 will be rejected. 47 P.S. § 4-470.3(g).

Bids must be signed in ink by an official authorized to bind the Bidder to its provisions. Failure to sign and/or submit the PLCB Bid Sheet(s) (Attachments B #221-245) shall disqualify your bid(s) immediately. For this IFB, all elements of bids must remain valid for at least 240 days, including but not limited to bid amount.

Bids must be hand carried or mailed (U.S. Postal service, Fed Ex., etc.) to:

PLCB Purchasing & Contract Administration Division

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IFB #260331LICENSE # 221

J. Doe LLC


J. Doe LLC


J. Doe LLC

Invitation for Bid #260331Northwest Office Building, Room 312Harrisburg, PA 17124-0001

Faxed or emailed bids will not be accepted.

Bids must be received on or before Thursday, August 2, 2018, no later than 12:00 P.M. EDT.

Bidders mailing bids should allow time to insure timely receipt of their bid. If a receipt is desired, send by U.S. Certified or Registered mail. The PLCB bears no responsibility for delayed delivery to the Issuing Officer, regardless of method selected by the bidder.

BID SURETY

Each bid must be accompanied by a Certified Check or Cashier’s Check in the amount of $5,000.00 or 5% of the total bid amount, whichever is greater, payable to the Commonwealth of Pennsylvania, Pennsylvania Liquor Control Board, as a bid guarantee. By way of example only, if a bid is for $25,000.00, then the bid surety required is $5,000.00. If a bid is for $200,000.00, the bid surety required is $10,000.00 (5% of $200,000.00). The bid surety of a Selected Bidder will be forfeited as liquidated damages if the Bidder fails to comply with the terms of the IFB. See Specifications section below.

Failure to include a Cashier’s Check or Certified Check for $5,000.00 or 5% of the total bid amount, whichever is greater, with each individual license bid may result in rejection of the bid; however, the PLCB reserves the right, at its sole discretion, to allow a supplemental bid surety to be submitted within forty-eight hours of the Notice of Selection in the event that an otherwise responsive highest bid package contains an incorrect or insufficient bid surety.

The PLCB will deposit the bid surety of the highest responsive bidder for each license. The bid surety of the second highest bidder for each license will only be deposited if the highest responsive bidder fails to submit full and timely bid payment. All other bid sureties will be returned to non-selected bidders via certified mail, return receipt requested, within thirty days of the bid opening date. Bid sureties of the highest responsive bidder and the second highest responsive bidder for each license will be refunded by the PLCB within thirty days of the PLCB’s final determination that there are no grounds for forfeiture of said surety.

By way of example only, if the highest responsive bidder for a given license timely remits its full bid amount within the allowed fourteen-day period, then the bid surety of the second highest responsive bidder for that license will be returned within thirty days of the PLCB’s receipt of that bid amount. Likewise, when a timely filed transfer application is approved by the three-member Board, the bid surety of that successful bidder will be refunded within thirty days of the approval.

BID WITHDRAWAL

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Bidders may withdraw submitted bids by notifying the Issuing Officer by email at [email protected]. Withdrawal emails must be received by the Issuing Officer no later than 10:00 a.m. EDT on Thursday, August 2, 2018. The subject line of the email shall be entitled “License Auction Bid Withdrawal,” followed by the assigned License Auction Number of the license at issue; for example, “License Auction Bid Withdrawal License # 221.” If more than one license bid is to be withdrawn, the Bidder shall send one such email notification for each license bid to be withdrawn. Bid packages will be returned unopened to the Bidder for any bids withdrawn by the Bidder in conformity with this section and the PLCB will make no claim against the bid surety for such timely withdrawn bids.

BID OPENING AND BID TABULATIONS RESULTS

The Issuing Officer or her designee shall open bids starting at 9:00 a.m. EDT on Monday, August 6, 2018 in Room 117 of the Northwest Office Building, located at Capitol and Forster Streets, Harrisburg, PA. Bids will be opened in sequence starting with all bids for License Auction Number 221 and continuing until all bids for all licenses have been opened. The bid opening shall be public; however, due to space constraints, it is requested that Bidders limit attendance to two persons per bidding party or entity. Attendance at the bid opening is optional and is not a requirement for participation in the IFB. In the event that bid opening is not completed by 5:00 p.m. EDT on Monday, August 2, 2018, the PLCB reserves the right to suspend the bid opening and to resume on the following business day.

The PLCB will open and sort all bids by bid amount (from highest to lowest) at the bid opening; however, no bidders will be formally selected at the bid opening.

In the event that the highest bid amount for any license is submitted by two or more qualified Bidders, the Issuing Officer shall notify each such Bidder of the tie via email, confirming the amount of the tie bids and the number of tied bids. The tied Bidders will each have the option to submit one best and final offer bid amount (BAFO) by responsive email to the Issuing Officer at [email protected], which email must be received by the Issuing Officer no later than 3:00 p.m. EDT on the next business day. In the event of a further tie among BAFOs, the Issuing Officer will repeat the process until there is only one highest bid.

Once all bids have been opened and finalized as set forth above, results of this IFB will be posted within two business days to the DGS website at http://www.emarketplace.state.pa.us/. Any additional information will require a Right to Know request, instructions for which may be found at http://www.openrecords.pa.gov/RTKL/CitizensGuide.cfm.

Bid results do not confer any legal or contractual rights until a formal Notice of Selection has been issued by the Issuing Officer and full bid payment has been timely received by the PLCB. The Notice of Selection does not guarantee a license will ultimately be approved by the PLCB.

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http://www.openrecords.pa.gov/RTKL/CitizensGuide.cfm

REJECTION OF INVITATION FOR BID SUBMISSIONS

The PLCB reserves the unqualified right to reject any and/or all bids received as a result of this IFB, to waive technical defects or any informality in bids, and to accept or reject any part of any bid if, in its sole judgment, the best interest of the Commonwealth is thereby served.

INCURRING COST

The PLCB is not liable for any cost incurred by anyone for any purpose relating to this IFB.

LEGAL SPECIFICATIONS AND REQUIREMENTS

Act 39 of 2016, as amended by Act 85 of 2016, requires the PLCB to auction expired restaurant licenses in cases where the licenses were either non-renewed, revoked by an administrative law judge, or are no longer eligible for safekeeping. 47 P.S. § 4-470.3(a). This requirement applies to all restaurant licenses that expired on or after January 1, 2000 to the present. 47 P.S. § 4-470.3(a.1)(1).

The PLCB may auction a maximum of fifty restaurant liquor licenses per county per year and any eligible licenses not sold at a scheduled auction shall be available for sale at future auctions. 47 P.S. § 4-470.3(a.1)(2).

Auctions shall be conducted in the manner set forth by the PLCB, at times and dates and under conditions set by the PLCB. The PLCB shall award to the person or entity making the highest bid for the license the right to file a transfer application for the license, which right is conditioned upon the PLCB’s timely receipt of full bid payment. In other words, a Selected Bidder is not approved for a liquor license as a result of the auction process; rather, a Selected Bidder is merely awarded the right to file an application for the license following receipt of bid payment. No bid lower than $25,000.00 shall be accepted. 47 P.S. § 4-470.3(g).

The Selected Bidder shall pay to the PLCB the full bid amount as set forth in the Notice of Selection no later than fourteen calendar days from date of Issuing Officer’s Notice of Selection. Payment may be made by cashier’s check, certified check, ACH, or wire transfer. Wire transfers are subject to a $14.00 processing fee, which must accompany the full bid amount when submitted. ACH and wire transfers should be directed to the PLCB’s account at BB&T Bank as follows:

Name on account: Pennsylvania Liquor Control Board Escrow Account Account number: 1390005915658 Routing number: 031309123

The PLCB will hold the bid amount in escrow until the license application is approved. 47 P.S. § 4-470.3(h). In the event that a bidder is awarded the right to file an application for more than one license, payment for each such license must be remitted separately, with reference made to the relevant License

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Auction Number (for example, License Auction #221). To be clear, lump sum payments for multiple licenses are not acceptable. Receipt of the full bid payment held in escrow does not constitute the approval of a liquor license.

Once payment has been made, the Selected Bidder is required to send an e-mail notification of same to [email protected]. This e-mail notification must reference the Restaurant Liquor License Number (for example, License R-12345). The Selected Bidder’s receipt of payment will be confirmed by the PLCB in writing with instructions on how to file a transfer application. If the Selected Bidder fails to remit the full bid amount within the time allotted, the Notice of Selection will be rescinded and the next highest responsive Bidder for that license will be awarded the right to file a transfer application for the license, which right is conditioned upon the PLCB’s timely receipt of full bid payment. Id. Failure to timely remit the full bid amount will result in forfeiture of the bid surety. In the event that there are no other qualified responsive bids for the license at issue, that license will be returned to the list of expired licenses to be made available at future auctions.

Within six months of the date of the Notice of Selection, the Selected Bidder or its assignee shall file an application to transfer the license. Failure to timely file a transfer application will result in forfeiture of the bid surety, rescission of the Notice of Selection, and the license will be made available for bid at a future auction. Notwithstanding the above-noted provision, the PLCB reserves the right, at its sole discretion, to refund the bid surety upon receipt of adequate documentary evidence that the failure to comply with this application requirement was due to circumstances beyond the control of the Selected Bidder. Please note that bid surety will be forfeited in any circumstance involving an attempt to transfer a license when such transfer is clearly prohibited by the Liquor Code or the PLCB’s Regulations. By way of example only, this would include an attempt to transfer a license into a “dry” municipality. See e.g., 47 P.S. § 4-472. The PLCB’s decisions in such instances shall be final.

The transfer application shall be processed by the PLCB in the same manner as any other transfer application and shall be subject to the same restrictions as any other transfer application. The PLCB’s three-member Board shall only approve the transfer of a license under this section to a municipality other than the municipality in which the expired license last operated if such transfer is first approved by the governing body of the receiving municipality. 47 P.S. §§ 4-461(b)(3), 4-470.3(i).

If the auctioned license was subject to any unpaid fines, unserved suspensions, liens and/or judgments accrued by the previous license holder at the time the license expired, then such fines, suspensions, liens and/or judgments are rendered null and void. Furthermore, the Selected Bidder or its assignee will not be required to supply any information about or secure any information from the previous license holder as part of the transfer application process. 47 P.S. § 4-470.3(j).

A person or entity that would be precluded from acquiring a license due to prohibited interlocking business interests, 47 P.S. § 4-411; 4-438(c); 4-443, or due to not being of good repute, 47 P.S. §§ 1-102, 4-404; 40 Pa. Code §§ 1.5, 5.23, may not apply for a license transfer and the PLCB shall reject any

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mailto:[email protected]

transfer applications submitted by that person or entity. 47 P.S. § 4-470.3(f). Failure of a Selected Bidder to comply with this requirement will result in forfeiture of the bid surety, rescission of the Notice of Selection, and the license will be made available for bid at a future auction.

Individuals or entities considering participation in this IFB are encouraged to seek private counsel experienced in Pennsylvania liquor law to ensure eligibility. Due to the potential for conflicts of interest or other appearances of impropriety, the PLCB cannot provide legal advice to Bidders; however, the following general guidance is offered.

Interlocking Business Interests. The Liquor Code prohibits a person or entity from possessing more than one class of license. 47 P.S. § 4-438(c). Thus, the holder of a distributor or importing distributor license may not also hold a restaurant license. Likewise, the holder of a manufacturing license generally may not also hold a restaurant license.

There is an exception to the interlocking business prohibition that allows a holder of a restaurant license to also hold a manufacturing license, and operate as a “couplet,” which is an entity that has both a manufacturer’s license and a restaurant license for use at the same location. 47 P.S. §§ 4-411, 4-438(c). Neither the Liquor Code nor the PLCB’s Regulations provide interpretation of the term “same location.” However, as long as both buildings are on the same deeded property and the same entity owns the entire property, a restaurant license and a manufacturing license located on that same property could be considered a couplet.

The Liquor Code’s provisions on interlocking business practices generally prohibit licensees of one class from providing money or other things of value to equip or otherwise help the operation of a licensee of a different class. 47 P.S. §§ 4-411; 4-443. Further, there are interlocking business restrictions on the leasehold and financing of property used as licensed premises such that a person or entity holding one class of license may not be interested, either directly or indirectly, in the ownership or leasehold of any property or in any mortgage against the same, for which a license of a different class is granted.

Please note that this prohibition was modified by Act 166 of 2016, which became effective on January 17, 2017. Specifically, section 411(e) of the Liquor Code allows any officer, director or stockholder of any hotel, restaurant or club license to own land or buildings which are leased to a holder of an eating place retail dispenser license, a distillery license, or a limited distillery license. 47 P.S. § 4-411(e). The Act also expanded upon the current exception for ownership of 5% or less of a restaurant or eating place retail dispenser license, by allowing a 10% or less ownership of a retail license. Id.

Good repute. The PLCB’s three-member Board may consider criminal records of licensees and officers, directors, managers, or stockholders of licensees, because section 404 of the Liquor Code requires that licensees be persons of good repute, and the Board’s Regulations specify that

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criminal convictions impact a person’s reputation. 47 P.S. § 4-404; 40 Pa. Code §§ 1.5, 5.23. Section 404 further provides that the Board shall have discretion to refuse a license (including renewal thereof) to any person, corporation, partnership, or association or any officer, director, or member thereof who shall have been convicted or found guilty of a felony within a period of five years immediately preceding the date of application for said license. 47 P.S. § 4-404.

Upon submission of the above information, the PLCB’s Bureau of Licensing conducts an investigation and recommends to the three-member Board whether a person with a criminal record should be permitted to serve as an officer in the organization. The ultimate decision is made by the Board at its sole discretion.

Local Option Restrictions. Section 472 of the Liquor Code gives municipalities the option of prohibiting the retail sale of both liquor and malt or brewed beverages within their borders, i.e., designating themselves as “dry” municipalities. 47 P.S. § 4-472. Under this section, municipalities are permitted to prohibit the issuance of any license which falls under one of a list of specific categories, including most relevantly, restaurant liquor licenses. Id.

If a municipality has specifically opted to prohibit restaurant liquor licenses, then a Selected Bidder may not file a transfer application seeking to transfer a license into that “dry” municipality. Doing so may result in forfeiture of the Notice of Selection, as well as forfeiture of the bid surety. In order to ascertain whether a given municipality prohibits restaurant liquor licenses pursuant to section 472 of the Liquor Code, you may consult with the PLCB’s Bureau of Licensing at (717)-783-8250 and/or review the information on the PLCB’s website at http://www.lcb.pa.gov/Licensing/Topics-of-Interest/Pages/Wet-Versus-Dry.aspx .

Collusion. The Commonwealth Procurement Code expressly prohibits bid-rigging and other forms of collusion in competitive bidding processes, including this IFB. 62 Pa. C.S.A. § 4501 et seq. Violation of these provisions constitutes a third-degree felony and exposes the violator to between $50,000 and $1,000,000 in criminal fines, and imprisonment for up to three years. Alternatively, the Office of Attorney General may impose a civil penalty up to $100,000, and that violator would then be barred from any further business dealings with any Commonwealth agency. Id.

The PLCB is required to refer any suspected violation of the above statute to the Office of the Attorney General for investigation and potential prosecution. As set forth with specificity below, each Bidder warrants that its bid amount has been arrived at independently, without any communication with any other bidder or potential bidder; that the bid amount has not been disclosed to any other bidder or potential bidder; and that there has been no discussion or agreement with any other bidder or potential bidder to submit (or refrain from submitting) a complementary or otherwise non-competitive bid.

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http://www.lcb.pa.gov/Licensing/Topics-of-Interest/Pages/Wet-Versus-Dry.aspx

BIDDER’S REPRESENTATIONS AND WARRANTIES

By submitting its bid, each Bidder understands, represents, acknowledges and warrants that:

A. All of the Bidder’s information and representations in the bid are material and important, and the Issuing Office may rely upon the contents of the bid in awarding the bid. The PLCB shall treat any misstatement, omission or misrepresentation as fraudulent concealment of the true facts relating to the bid submission, punishable pursuant to 18 Pa. C.S. § 4904.

B. The Bidder has arrived at the price(s) and amounts in its bid independently and without consultation, communication, or agreement with any other Bidder or potential Bidder.

C. The Bidder has not disclosed the price(s), the amount of the bid, nor the approximate price(s) or amount(s) of its bid to any other firm or person who is a Bidder or potential Bidder for this IFB, and the Bidder shall not disclose any of these items on or before the bid submission deadline specified in the Calendar of Events of this IFB.

D. The Bidder has not attempted, nor will it attempt to induce any firm or person to refrain from submitting a bid in response to this IFB, or to submit a bid higher or lower than this bid, or to submit any intentionally high, low or non-competitive bid or other form of complementary bid.

E. The Bidder makes its bid in good faith and not pursuant to any agreement or discussion with, or inducement from, any firm or person to submit a complementary or other non-competitive bid.

F. To the best of the knowledge of the person signing the bid for the Bidder, the Bidder, its affiliates, subsidiaries, officers, directors, and employees are not currently under investigation by any governmental agency and have not in the last four years been convicted or found liable for any act prohibited by State or federal law in any jurisdiction, involving conspiracy or collusion with respect to bidding or proposing on any public contract or license. 62 P.S. § 4501 et seq.

G. To the best of the knowledge of the person signing the bid for the Bidder, the Bidder has conducted appropriate due diligence and warrants that the Bidder is of good repute and, if awarded the right to file an application for a restaurant liquor license pursuant to this IFB, has no prohibited interlocking business interests in any other PLCB license. Violation of this provision will result in forfeiture of the bid surety.

H. To the best of the knowledge of the person signing the bid for the Bidder, the Bidder has no outstanding, delinquent obligations to the Commonwealth including, but not limited to, any state tax liability not being contested on appeal or other obligation of the Bidder that is owed to the Commonwealth.

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I. The Selected Bidder acknowledges that selection as the highest bidder as a result of this IFB only confers the right to file an application for the license if full bid payment is received by the PLCB within fourteen days of the date of the Notice of Selection and does not guarantee a license will ultimately be approved by the three-member Board.

J. Until the Selected Bidder or its assignee receives written notification from the PLCB that a license transfer application has been approved by the three-member Board, the Selected Bidder shall have no legal rights, privileges or interests in the license, in law or in equity.

K. The person signing the bid for the Bidder does so with full legal authority to bind the Bidder to the terms of the bid.

L.

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ATTACHMENT AIFB #260331

FREQUENTLY ASKED QUESTIONS

ABOUT THE LICENSES

1. Can you identify owner and address of establishment of the expired licenses that are up for auction in advance of the auction?

The expired licenses being auctioned are no longer owned as these licenses were non-renewed, revoked by an administrative law judge, or are no longer eligible for safekeeping.

2. Can you provide any other information about the licenses being auctioned (Amusement permit, Sunday Sales permit, any liens etc.)?

The licenses being auctioned are expired restaurant licenses in cases where the licenses were either non-renewed, revoked by an administrative law judge, or are no longer eligible for safekeeping, as described in the Legal Specifications and Requirements section of the IFB.

Amusement permits, Sunday Sales permits, Extended Food Hours permits, and Tavern Gaming licenses are examples of additional privileges of a license, each of which must be requested by the individual or entity seeking a transfer.

As set forth in Act 39 of 2016 (“Act 39”), once a license has become available to be auctioned, it may no longer be subject to any unpaid fines, unserved suspensions, liens or judgments accrued by the previous license holder. Therefore, all of the licenses being auctioned in this IFB # 260331 are clear of all such claims.

3. When I try and look up a license being auctioned on the PLCB website, the license number R-xxxxx does not register to any license. Is this the correct license number?

The licenses being auctioned in this IFB are expired licenses, many of which predate implementation of the current license database.

4. Must a bidder for one of the expired restaurant liquor licenses have a location on which to activate the license at the time of submitting a bid?

No.

5. Must the application for the transfer of the license (which is to be submitted within 6 months of the Notice of Selection) include the location to activate the license or may the winning bidder elect to put the license in safekeeping, subject to the safekeeping rules and regulations?

An application for transfer of the license must be filed within six months of the date of the Notice of Selection. This transfer application may be filed under prior approval, but there must be a proposed

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licensed premises at the time of filing. Note also the restriction against attempts to transfer a license into a “dry” municipality, which may result in forfeiture of the bid surety as outlined in Legal Specifications and Requirements section of the IFB.

6. If the application must include a specific location, can it be anywhere in the county in which the license is available or are there limitations as to the municipality in which it may be placed?

If the license is to be transferred to a municipality other than its original municipality, any transfer applicant must first obtain approval from the receiving municipality if the receiving municipality is at or above quota. Additionally, a license may not be transferred to a location that is “dry” for retail liquor licenses. Applicants are strongly encouraged to seek such municipal approval as soon as possible following receipt of the Notice of Selection, as failure to do so may be grounds for forfeiture of bid surety.

7. Will the applicant have to obtain the receiving municipality’s approval to locate the license in that municipality, much like moving a license from one municipality to another under the current procedures?

Yes, if the license is going to a different municipality in the same county, which receiving municipality is at or above its municipal quota. Applicants are strongly encouraged to seek such municipal approval as soon as possible following receipt of the Notice of Selection, as failure to do so may be grounds for forfeiture of bid surety.

8. If the application for the license by the winning bidder cannot be to maintain the license in safekeeping, may the application be on a prior approval basis?

Yes.

9. Will the application for the license follow the same procedure as a double transfer (i.e., person-to-person and place-to-place transfer) of an existing license and, if not, what additional (or lesser) procedures will be required?

Yes, the license transfer procedure will follow the directives found in sections 403, 404, 461 and 468 of the Liquor Code.

10. How long after one of these licenses is acquired must it be put into use?

A transfer application must be filed within six months of the date of the Notice of Selection, after which the usual licensing investigation will commence. Once a license application is approved by the Board, a licensee commences operations. An exception to this timeline is if the transfer application is submitted on a “prior approval” basis, in which case the licensee will have six months to become operational. A license approved on a “prior approval” basis may not be transferred until it actually operates.

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11. Where do these licenses have to be used?

The license may be used in its originating municipality or the selected bidder may seek an intermunicipal transfer. Act 39 directs that the PLCB may only approve an intermunicipal transfer of a license won at auction if the transfer is first approved by the governing body of the receiving municipality. No such approval is required for transfers within the originating municipality. If the applicant wishes to transfer it to a different municipality within that county, the regular transfer statutes and regulations on intermunicipal transfers would apply, as described in Legal Specifications and Requirements, paragraph six of the IFB. Applicants are strongly encouraged to seek such municipal approval as soon as possible following receipt of the Notice of Selection.

Licenses may not be transferred out of the original county.

Any “Philadelphia license” bought at this auction may be used in the City and the County of Philadelphia.

12. Are there any restrictions on the licenses being auctioned, such as conditional licensing agreements or county quota restrictions?

No licenses scheduled for this auction are encumbered with a conditional licensing agreement. Auctioned licenses are an exception to the county quota, as provided in Act 39.

13. Would one be able to resell the license at any time, or will one only be able to resell after a certain period of time? There are no time limits on the ability of a license holder to resell a license once a transfer application is approved; however, please note that any such “sale” only grants the right to file a transfer application, which must then be investigated and approved by the Board as in the normal course. Note also that a selected bidder may assign its right to apply for a transfer of the license to another eligible individual or entity.

ABOUT THE AUCTION PROCESS

A. Who Can Bid

14. Can I bid as an individual person or does it have to be under a corporation? Bidders may be individuals or entities, and no particular corporate structure is required for purposes of bidding.

15. Do I need representation to be part of the bid process (i.e., a lawyer)?

No, legal representation or any other type of representation is not a requirement for submitting a bid; however, it is always highly recommended that you seek your own legal counsel.

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16. If I have a prohibited interlocking business interest (I own a beer distributor or importing distributor license) but I intend to assign the license to someone else who does not have a prohibited interlocking business interest and is of good repute, can I be selected if my bid is the highest? No, individuals or entities having prohibited interlocking business interests or who are not of good repute are not eligible to participate in the auction. Please carefully review the Bidder’s Representations and Warranties section of the IFB, noting also the bid surety forfeiture provisions. You are encouraged to seek private counsel experienced in Pennsylvania liquor law to assist you.

17. If there are two R licenses available, can one entity bid and win both?

Yes. Each license being auctioned has been assigned a unique License Auction Number, and bidders may bid on one or more licenses as long as separate bid packages are submitted for each license. Each PLCB Bid Sheet is specific to a particular license.

18. Must the winning bidder be identical to the name of the applicant for transfer? For instance, if the winning bid is submitted by an individual, can that individual form an entity (LLC or corporation) and submit the transfer application in the name of that new entity?

The winner of a license auction may assign its rights to another individual or entity, including a corporate entity, which may then file the transfer application. For purposes of the bid surety, the winning individual or entity retains legal responsibility for all elements of the auction, including but not limited to the prohibitions against application by an individual or entity having an interlocking business interest or by an individual or entity that is not of good repute.

The bid surety will be forfeited if the selected bidder or its assignee has an interlocking business interest, is not of good repute or if there is an attempt to transfer the license when the Liquor Code or PLCB’s Regulations clearly prohibit the transaction, such as transferring into a municipality that is “dry” for restaurant liquor licenses pursuant to section 472 of the Liquor Code. Furthermore, the winning individual retains legal responsibility for the timeliness of the filing of the transfer application by the assignee, such that the bid surety will be forfeited if the assignee fails to timely file.

19. Does the entity/person who bids on the license need to be the entity/person who becomes the licensee?

No. The right to file a transfer application may be assigned by the selected bidder to another qualified individual or entity; however, the selected bidder retains all obligations for timely payment of the bid amount and for timely filing of the transfer application.

____________________________________________________________________________

B. How to Bid

20. How does one bid on an expired license? Can you please send me the necessary forms?

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The Invitation for Bid can be found at: http://www.emarketplace.state.pa.us/Solicitations.aspx?SID=260331

Bidders are required to submit their bid(s) by Thursday, August 2, 2018 at Noon. Each bid package must include two items: a PLCB Bid Sheet for the particular license, properly signed and sealed, and a bid surety in the amount of $5,000.00 or 5% of the total bid amount, whichever is greater. Each sealed bid package must be contained in a sealed envelope, labeled on the outside with the IFB number, the license auction number, and the name of the person or entity bidding. Detailed instructions regarding submitting a bid, bid package requirements, and PLCB Bid Sheets are included in the Bid Requirements section of the IFB. Bid packages must be hand-carried or mailed to:

PLCB Purchasing & Contract Administration DivisionInvitation for Bid #260331Northwest Office Building, Room 312Harrisburg, PA 17124-0001

21. Does the bid surety check need to be a cashier’s check, or can it be a personal or business check?

Each bid must be accompanied by a Certified Check or Cashier’s Check as described in the Bid Surety section of the IFB. Certified checks and cashier’s checks are generally available from banks and other financial institutions. No personal or “business” checks will be accepted. Bidders are encouraged to consult with their private counsel and/or financial advisors.

22. Do I need to register as a bidder prior to submitting a bid package?

If you are referring to registering as a supplier through the Pennsylvania Supplier Portal, the answer is no. Registration is not a requirement of this IFB.

23. Can I submit more than one bid on a single license? Yes; however, all bids will be opened for each license being auctioned and only the highest bid by each bidder will be considered. For example, if a bidder submits two or more bids on one license, all bids by that bidder for that license that are lower than the highest bid by that bidder for that license are immediately rendered null and void. Therefore, there is no practical advantage in submitting multiple bids on one license.

24. If I submit more than one bid for a single license and my bids are the highest and the second highest for that license, which amount do I have to pay? If selected, a winning bidder must remit the full amount of the highest bid within fourteen days of the date of the Notice of Selection. All bids by a bidder for a license that are lower than the highest bid by that bidder for that license are immediately rendered null and void.

25. What are the mandatory bid requirements that, if not followed, will result in disqualification of a bid?

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http://www.emarketplace.state.pa.us/Solicitations.aspx?SID=260330.

http://www.emarketplace.state.pa.us/Solicitations.aspx?SID=260330.

A bid must be timely received, properly signed, and must contain the appropriate PLCB Bid Sheet for the license at issue, along with a bid surety check.

26. How do you determine whether a bid that is mailed is “timely received” -- is it based on the postmark date? As set forth in the IFB, bids must be in the possession of the Issuing Officer no later than 12:00 p.m. EDT (Noon) on Thursday, August 2, 2018. The postmark date is irrelevant, as is the date of “posting” to the U.S. Postal Service or any other mail carrier or delivery service. To be clear, the legal principle of “the mailbox rule” is not applicable to this IFB. Bidders are encouraged to submit bids in a manner and on a time line that will ensure receipt by the Issuing Officer on or before the deadline.

27. If I am bidding on more than one license, can I submit copies of one bid surety check in each envelope? No. Each bid package must include the relevant PLCB Bid Sheet and a bid surety check of $5,000.00 or 5% of the total bid amount, whichever greater, that is specific to that license being auctioned. Therefore, if a bidder is bidding on three licenses, then there must be three LABELED bid packages, each of which contains an original certified check or cashier’s check. Failure to include the appropriate bid surety may result in rejection of the bid.

____________________________________________________________________________

C. Bid Opening

28. What happens at a bid opening? Bids will have been presorted by License Auction Number and the bid tabulation sheet will have been prepopulated with the names of the bidders. This information will be gleaned from the labeling information required per the IFB (IFB #260331, License Auction Number, and name of bidding individual or entity). Any bid packages having illegible or unclear labeling will be opened first and the license being bid on will be identified. That bid package will then be placed at the bottom of the group of bids for that particular license and the bid information will be entered in the spreadsheet when the bids for that license are being opened and recorded. The bid tabulation sheet will be projected so that all in attendance may see it. Attendance at the bid opening is not required.

Except as noted above regarding unclearly labeled bids, all bids received for License Auction Number 221 will be opened in alphabetical order. The Issuing Officer and/or her designee will open each envelope, verify that the PLCB Bid Sheet and bid surety is contained therein, and then the Issuing Officer or her designee will enter the bid amount into the bid tabulation sheet. This process will be repeated for each license being auctioned.

The bid tabulation sheet will be sorted from highest to lowest for each license once all bids for that license have been opened. This will also be projected so that all in attendance may see it. Bids are NOT validated at the bid opening, licenses are NOT awarded at the bid opening, and questions are NOT entertained from the audience at the bid opening.

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If necessary, the bid opening may be suspended for meal breaks or to continue on a second day. Please see the IFB for details. After bids are validated and Notices of Selection are sent to winning bidders, which is expected to be within a few days of the end of the bid opening, a public listing of the winning auction results will be posted on the PLCB’s website and also on the DGS website at http://www.emarketplace.state.pa.us/BidTabs.aspx searchable by “Bid number” #260331.

29. Will there be an opportunity to ask questions at the bid opening? No. The purpose of the bid opening is solely to publicly open each bid, to verify what is contained in each envelope, and to record bids received. The question period closes at Noon on Thursday, June 28, 2018 and the bid opening is not an interactive event.

30. How can I know who else is bidding?

Bids are sealed and will be opened publicly. Except as to those precluded from participation by virtue of having a prohibited interlocking business interest or being of ill repute, the only criteria for participating in the auction as a bidder is the timely submission of a bid package for each license sought, including the appropriate signed PLCB Bid Sheet for each license and bid surety for each license. The highest qualified bidder for each license will receive a Notice of Selection and all winning results will be publicly posted. __________________________________________________________________________________

D. Next Steps

31. Will all bid surety checks be cashed or will non-selected bidders’ checks be returned?

All bid surety checks for the highest responsive bid for each license will be deposited into the PLCB’s escrow account. In the event that a bidder fails to timely remit the full bid amount, the second highest responsive bidder’s bid surety will then be deposited into the PLCB’s escrow account and a Notice of Selection will be sent. Bid sureties will be returned to non-selected bidders within thirty days of the finalization of bid tabulation.

32. If I receive a Notice of Selection, do I remit the full amount that I bid, or do I reduce my payment by the bid surety submitted with my bid package?

The bid amount to be paid within fourteen days of the date of the Notice of Selection is the full bid amount and is not to be reduced by the amount of the bid surety. For example, if the winning bid amount is $100,000.00, then the full $100,000.00 is due and payable. Furthermore, if you choose to submit your payment via wire transfer, then your payment would be for $100,014.00, to include the $14.00 wire transfer processing fee.

The bid surety is a wholly separate payment. The purpose of the bid surety is to demonstrate the bidder’s intent to follow through with his/her bid. It also serves as liquidated damages to the PLCB if the winning bidder fails to comply with the bid requirements. To be clear, the bid amount due following a Notice of Selection must be for the full bid amount and must not be reduced by the amount of the bid surety.

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http://www.emarketplace.state.pa.us/BidTabs.aspx

33. If I am the winning bidder for one or more licenses, can I decide to drop my bid for any or all of the licenses? As set forth in the IFB, bids may not be conditioned in any manner and bids must remain valid for at least 240 days. Once selected, a bidder’s failure to proceed will result in rescission of the Notice of Selection and forfeiture of the bid surety.

34. If I am notified by the Issuing Officer that I am tied with another bidder or bidders for the highest bid on a license, am I required to submit a higher bid amount or can I drop out? As set forth in the IFB, tied bidders will have the option to submit one best and final offer (“BAFO”). As bids must be unconditioned and must be valid for at least 240 days, a bidder cannot “drop out.” If a tied bidder elects not to submit a higher bid in response to the BAFO opportunity, then that bidder’s bid amount will remain as originally submitted.

35. What happens if both the highest bidder and the second highest bidder fail to pay the bid amount—does it go to the third highest bidder or is the license put back in the inventory of expired licenses to be auctioned later? Per Act 39, the license will be put back into the inventory of expired licenses to be auctioned later and both bidders will forfeit their bid surety.

36. In what situations would I forfeit my bid surety?

The bid surety of a selected Bidder will be forfeited as liquidated damages if the Bidder fails to comply with the terms of the IFB. Failure to timely remit the full bid amount will result in forfeiture of the bid surety. If a person or entity that would be precluded from acquiring a license due to prohibited interlocking business interests or due to not being of good repute, bids for a license and is selected, this will result in forfeiture of the bid surety. Failure to timely file a transfer application may result in forfeiture of the bid surety. Applying to transfer a license when the Liquor Code or PLCB’s Regulations clearly prohibits the transaction (for example, trying to transfer a license into a “dry” municipality) will result in forfeiture of the bid surety. Notwithstanding the above-noted provision, the PLCB reserves the right, at its sole discretion, to refund the bid surety upon receipt of adequate documentary evidence that the failure to comply with this application requirement was due to circumstances beyond the control of the Selected Bidder. The PLCB’s decisions in such instances shall be final.

37. In what situations would I forfeit my full bid payment?

There is no legal mechanism for the PLCB to retain bid payments since Act 39 requires the funds to be escrowed pending approval of a license transfer application. In the event there is no such approval, the full bid amount will be refunded, less any outstanding bid surety amounts.

38. What is the time frame during which the license can be taken out of safekeeping? The licenses are not currently in safekeeping. A transfer application must be filed by the winning bidder or its assignee within six months of the date of the Notice of Selection.

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39. If the winning bidder is intending to file for an Intermunicipal Transfer to a location outside the municipality for which the license was issued, yet is then denied the municipal approval or is unable to obtain the municipal approval prior to the six-month deadline to file for the transfer with the PLCB, may an extension of the six-month period for filing with the PLCB be granted by the PLCB for the winning bidder to obtain a municipal transfer or is the six-month period absolute?

The transfer application period is not extendable. Applicants are strongly encouraged to seek such municipal approval as soon as possible following receipt of the Notice of Selection.

40. Are there any provisions to allow the winning bidder to submit the PLCB transfer application without submitting a municipal approval along with the application under such circumstances until the municipal approval is obtained or otherwise?

Only if the license is to be used in its originating municipality. Otherwise, municipal approval must be presented along with the transfer application, unless the receiving municipality is below the municipal quota. Applicants are strongly encouraged to seek such municipal approval as soon as possible following receipt of the Notice of Selection.

41. Can a winning bidder assign or sell his/her bid to another unrelated party? For instance, the winning bidder is a broker, or speculator, for $150,000. This bidder then sells the bid and right to file a transfer (like with a Sheriff’s Sale) to another party for $175,000, and that party then files the transfer with the PLCB.

Yes, this is permissible as long as the bidder and third-party entity remain in compliance with the conditions set forth in the IFB.

42. What are the guidelines around selling a license? Am I correct in assuming a license that I own can be readily sold to another individual/corporation? Or are there restrictions around this?

You are encouraged to seek private counsel experienced in Pennsylvania liquor law to assist you with your business plans. By way of general information, sales of liquor licenses are private sales, and the PLCB is not involved in setting license prices. There are restrictions on who may hold a liquor license, as specified in the Liquor Code.

43. If someone is the winning bidder to an auctioned license, may he then assign the right to apply for transfer of the license to an entity of which he is the sole principal, to an entity in which he is one of a group of other principals, or to a person or entity in which he has no ownership interest?

Except as to those precluded by virtue of having a prohibited interlocking business interest or being of ill repute, there are no restrictions on who may bid for a license in this IFB. Winning bidders are permitted to assign rights to file a transfer application; however, there are qualification requirements that must be met by the assignee that is applying for the transfer.

44. Are interlocking business interests and ill repute the only reasons that the PLCB will reject a transfer application submitted for an auctioned license?

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No. As set forth in Act 39, “the application shall be processed in the same manner as any other transfer application and shall be subject to the same restrictions as any other transfer application.”

45. When will the bidders who do not secure the winning bid be told the amount of the winning bid? It is public information, correct? All bids will be opened in a public meeting scheduled to begin at 9:00 a.m. on Monday, August 6, 2018, in Room 117 of the PLCB’s Northwest Office Building in Harrisburg, PA. Bidder names and bid amounts for each license being auctioned will be publicly screened in the Hearing Room as bids are opened. Once all bids have been validated and Notices of Selection have been issued, winning results of the IFB will be posted within two business days on the PLCB website and on the DGS website at http://www.emarketplace.state.pa.us/BidTabs.aspx searchable by “Bid number” #260331.

46. Does the PLCB have any idea when the next auction will be? Is there any idea of how many auctions will happen over the next year or so, and how many will be released?

Acts 39 and 85 allow the PLCB to set the dates, times, and other conditions for the auctioning of licenses. Auctions will occur on dates to be determined by the PLCB. The PLCB will post notice of each auction, including a listing of all the licenses that are to be available for that auction, several weeks prior to the auction date. Future auctions will have different numbers and may be conducted via a different method.

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http://www.emarketplace.state.pa.us/BidTabs.aspx

ATTACHMENT BIFB #260331

PLCB BID SHEETLICENSE AUCTION #221

Intending to be bound and in conformity with all provisions of the IFB, the undersigned Bidder hereby bids the following bid amount for the stated expired restaurant liquor license:

License Auction

#

County Municipality Expired License #

Bid Amount

221 Armstrong Rural Valley R-13260 $ Click here to enter text.

Notes:

(a) Print this PLCB Bid Sheet and submit with required bid surety in sealed and labeled envelope per instructions.

(b) Bid amounts must be in whole dollars and must be no less than $25,000.00. (c) Only one bid amount may be entered on this PLCB Bid Sheet.(d) This PLCB Bid Sheet is specific to and applicable only for the license listed on this PLCB

Bid Sheet. (e) By signing this PLCB Bid Sheet, the Bidder explicitly accepts the terms and conditions of

the IFB #260331, including but not limited to the provisions relating to potential forfeiture of the bid surety.

Signature of Authorized Representative of Bidder:

Printed Name of Authorized Bid Signatory:

Click here to enter text.

Full Legal Name of Individual or Entity:


Address of Bidding Individual or Entity:


Contact Phone Number: Click here to enter text.

Contact E-mail Address: Click here to enter text.

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License Auction

#


Bid Amount

222 Bradford Stevens Township R-19405 $ Click here to enter text.

Notes:














24




License Auction

#


Bid Amount

223 Bucks Plumstead Township R-20310 $ Click here to enter text.

Notes:














25




License Auction

#


Bid Amount

224 Cameron Portage Township R-17133 $ Click here to enter text.

Notes:














26




License Auction

#


Bid Amount

225 Carbon Lehighton R-13018 $ Click here to enter text.

Notes:














27




License Auction

#


Bid Amount

226 Clinton Dunnstable Township R-18166 $ Click here to enter text.

Notes:














28




License Auction

#


Bid Amount

227 Crawford Linesville R-16839 $ Click here to enter text.

Notes:














29




License Auction

#


Bid Amount

228 Dauphin Lower Paxton Township R-13793 $ Click here to enter text.

Notes:














30




License Auction

#


Bid Amount

299 Elk Saint Marys R-7972 $ Click here to enter text.

Notes:














31




License Auction

#


Bid Amount

230 Greene Franklin Township R-1098 $ Click here to enter text.

Notes:














32




License Auction

#


Bid Amount

231 Huntingdon Carbon Township R-11107 $ Click here to enter text.

Notes:














33




License Auction

#


Bid Amount

232 Lebanon Lebanon R-9723 $ Click here to enter text.

Notes:














34




License Auction

#


Bid Amount

233 McKean Eldred Township R-18228 $ Click here to enter text.

Notes:














35




License Auction

#


Bid Amount

234 Mercer Wheatland R-17084 $ Click here to enter text.

Notes:














36




License Auction

#


Bid Amount

235 Montgomery Springfield Township R-18704 $ Click here to enter text.

Notes:














37




License Auction

#


Bid Amount

236 Northampton Palmer Township R-18739 $ Click here to enter text.

Notes:














38




License Auction

#


Bid Amount

237 Northumberland Rockefeller Township R-10136 $ Click here to enter text.

Notes:














39




License Auction

#


Bid Amount

238 Philadelphia Philadelphia R-8566 $ Click here to enter text.

Notes:














40




License Auction

#


Bid Amount

239 Pike Milford R-20437 $ Click here to enter text.

Notes:














41




License Auction

#


Bid Amount

240 Potter Coudersport R-10669 $ Click here to enter text.

Notes:














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ATTACHMENT B IFB #260331



License Auction

#


Bid Amount

241 Schuylkill East Union Township R-20896 $ Click here to enter text.

Notes:














43




License Auction

#


Bid Amount

242 Susquehanna Susquehanna (Depot) R-20033 $ Click here to enter text.

Notes:














44




License Auction

#


Bid Amount

243 Washington Jefferson Township R-16852 $ Click here to enter text.

Notes:














45




License Auction

#


Bid Amount

244 Wayne Paupack Township R-17938 $ Click here to enter text.

Notes:














46




License Auction

#


Bid Amount

245 Westmoreland Vandergrift R-16723 $ Click here to enter text.

Notes:














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