No bids entered in Follansbee property auction

FOLLANSBEE -- While city officials have anticipated the sale of the former Jo-Jon's property at Follansbee's north end, a public auction held for it Wednesday failed to draw bidders.

City Attorney Michael Gaudio presided over the auction Wednesday afternoon, noting a $400,000 minimum bid had been set for the 0.94-acre lot near the intersection of state Route 2 and Mahan Lane.

And while the event held outside the City Building drew curious onlookers, it didn't net a bid for the property.

Required for the sale of any city property, the auction was scheduled after Mayor David Velegol Jr. advised a national entity had expressed interest in the lot.

He said he won't disclose the entity's identity to ensure the auction is held in an impartial manner.

After the auction, Velegol said he learned through Cedar One Realty, which was representing the party, a representative expected to attend was unexpectedly detained.

The mayor said he plans to call a special council meeting so a date can be set for a second auction and make sure there's sufficient time to place the required legal advertisement.

The lot is part of nearly 3 acres purchased by the city in 2021 for $195,000.

It had been occupied by a single-story block structure housing various businesses owned by brothers Joseph and John Settimio.

But Follansbee Council agreed to raze the long-vacant building in hopes of drawing economic development to the site, which is adjacent to a four-lane section of the highway and across from former Wheeling-Pittsburgh Steel property being developed by Empire Diversified Energy.

Velegol said other businesses have expressed interest in other lots on the property.

Had a bid been submitted on Wednesday, it would have been presented for council's approval at a future meeting.

Gaudio noted council has the right to reject any bid.