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To the Skellar-Herlocher Angry Mob

Sorry man, but you're the Herlocher's schill apparently. "The rent that the landlord thought was fair"? Fair to whom? "market-driven"? Riiiight.

My mortgage company suddently tells me I need to pay $1500 more per month because that's the market. Um, no.

They wanted the Gastigers out and now they are paying the public relations price for not thinking this through, for not having any appreciation of what The Skeller means to SC and the Penn State community.

In short, their avarice or stupidity (it does not matter which) is costing them. As it should.
That’s why you take a 30 year fixed mortgage. At the time you signed, it was market driven
 
No, he is saying there is inherent economic value in "likes" and "reviews"... do you not agree?

The Skellar is a $hithole. Has been for decades. If reviews mattered it would have been cleaned up a long time ago.

But again, trying to see the "free market" argument here.

LdN
 
Forgive me if I take your posts on the matter with a massive grain of salt. You admitted that the Herlochers are friends of yours, therefore your opinion is hardly unbiased. The current operators have said they were not offered a new lease. The Herlochers say otherwise. So we don't really know the truth because we are getting two different stories and obviously since you have a relationship with one of the parties it's obvious who you are going to believe.
 
No, he is saying there is inherent economic value in "likes" and "reviews"... do you not agree?
There is if the likes and reviews are based on people who have actually used the products or service.
If i own a business and have all my friends and family give likes and 5 star reviews does that make my business a 5* business?
 
You did not mention any of those markets.

You equated "likes" and "reviews" to the "free market". Neither is a market.

Liquor in PA is not a free market either.

I could go on, but I think I will again state my opinion that you should donate your credit card to help the poor students in SC.

LdN
Your brand is clearly an important part of your ability to survive. The opinions of your customers are a crucial part of your brand. After all, why would their friend Heckmans be whining about how unfair it is if they did not care that they just peed all over their own brand?

When your brand has a great rep, demand raises the price of your product. When you crash your brand into a brick wall? Not so much. That is the free market at work.

When Tiger Woods went nuts he lost his endorsements. Why? Because the people who were paying him decided the association was toxic.

So, unless a market is utterly unaffected by any regulation, it is not a free market? OK, well there are a million rules of law regarding rental real estate. The Statute of Frauds requires a writing to effect a change in ownership of real estate. Whoa! No free market in real estate in SC!

Huh....Well then how did they arrive at a "market rental rate?" LOL
 
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Well “tried to work out a new lease” could mean anything. It also could have been rent so high that it was not feasible. I’m not seeing a super high profit at a college bar where drinks have to be cheap.

This is accurate and has been my primary point all along. I do not know the rent Herlochers were asking. Neither does the Angry mob, but that hasn't stopped the mob from "knowing" that the Herlochers are bad people based on the press release from the Gastigers.

Regarding your last sentence, there are dozens of other bars selling lots of beer while operating under market negotiated leases.
 
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The 850 1 star ratings on Herlocker's FB page yesterday until they shut down the comments? The free market at work. The 6500 people who signed a petition? Free Market. The absolutely brutal reviews on amazon?

1.0 out of 5 starsCan't give less then 1 star, else I would.
ByAmazon Customeron December 4, 2017

If you enjoy destroying local businesses, and loathe history, this may be the mustard for you.

Yeah, that is your same free market at work. You don't get to call it in your favor only when you want to F somebody. It is a 2 way street.
So you condone people posting artificially low reviews of a product on Facebook and Amazon just because they disagree with an issue unrelated to the product itself?

That is akin to you getting in a dispute with a neighbor or other citizen/resident of Berkely Springs and having them go on every "rate-a-lawyer" website and posting negative, artificial reviews about your legal abilities. That doesn't seem like appropriate "free-market forces" to me and I imagine you would be more than a little perturbed.
 
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Well, the only people who like "the skellar as it was" are people that don't live in central PA and don't spend any money in the skellar.
If the business was flourishing, they could afford market rent like every other successful bar currently operating. Either the Gastigers are just stupid and irrational or the business couldn't sustain itself without charity.

OK - so you (and the Herlocher's) say they tried to work out a deal (or 'resolve the situation') with current tenants. That's what they say in the first post. In a follow up CDT article, they then confirm there was no effort to lease the property to current tenants. The Gastigers have said they would welcome a chance to get a new lease in place.

Herlocher statement:

7925338.jpeg





From the CDT:
7925426.jpeg
 
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Well, the only people who like "the skellar as it was" are people that don't live in central PA and don't spend any money in the skellar.
If the business was flourishing, they could afford market rent like every other successful bar currently operating. Either the Gastigers are just stupid and irrational or the business couldn't sustain itself without charity.

See, being the herlocher’s mouthpiece on a message board and just slamming the current owners doesn’t buy you any goodwill. You get all your info directly from Neil, so is this the way Neil is talking about the Gastigers?
 
That’s why you take a 30 year fixed mortgage. At the time you signed, it was market driven

Exactly. So the unanswered question is "why didn't Gastiger have a lease?" Not having one is what got him into this mess. If he had a lease, there'd be no issue here. For some reason, he and the old owner didn't sign one. Why not?
 
But I want to be mad at somebody.... LOL. Thanks for the post. I still think for longevity's sake someone should make it a historical landmark of some kind.
Perhaps, but trying to turn it into a historical landmark doesn't make it a sustainable business. The original Yuengling brewery is Pottsville a landmark, but if people stop drinking Yuengling, it doesn't mean the business will continue to operate, no matter how many old-timers who drink 1 beer a month are upset.
 
It's easy to armchair QB this. Much like PSU was caught flat-footed, is it so hard to believe that a small business owner focused on running the business didn't anticipate that the Gastigers would misrepresent the situation and the PSU community would act like a bunch of irrational teenagers?

Arm chair QB? Is your last name Herlocher or are you just one of their butt buddies?

Let me put this another way. The Herlochers are absolutely stupid if they didn’t anticipate or plan for backlash regardless of what the Gastingers did or didn’t do. It’s not being an arm chair quarterback. It’s called dealing with the public in today’s internet age.
 
A "Free market" assumes people will act rationally but more importantly "rationality" is the same for all parties. I'm sure the Gastinger's thought that the "good will" they have amassed over the years would allow them to pay less than market. By the same token, I'm sure the Herlocher's didn't anticipate the backlash.

The Gastinger's should have addressed the lease years ago and the Herlocher's shouldn't be so tone deaf.
 
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Herlocher owns most of the 400 block of E. College Ave...you know, that space where the Train Station, etc used to be. Here are a few excerpts from the Collegian back in 1985.

"The only thing that's going to change is that the caboose will be removed and the main entrance to the restaurant will be relocated from the one side of the building to what was originally the entrance to the caboose,"

The two new buildings will each have a lower level, a sidewalk level and a mezanine, Herlocher said. The roofline and the facade of both buildings have been designed to incorporate the architectual style of The Train Station building, he said.

We do not anticipate The Train Station having to close


http://www.collegian.psu.edu/archives/article_8286097c-7156-52b4-84b9-f86b23aeecad.html

Based on what happened at the Train Station I think everyone should just take Herlocher at his word.
Guffaw
 
This kind of reminds me of what happened to the Stone Balloon in Newark, DE.

Developers turned this:

6502906153_a56d8ca38e_b.jpg


Into this:

photo-de-l-exterieur.jpg
 
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See, being the herlocher’s mouthpiece on a message board and just slamming the current owners doesn’t buy you any goodwill. You get all your info directly from Neil, so is this the way Neil is talking about the Gastigers?

You know what they say about assuming.
1. Yes, I have know the Herlochers for 20+ years.
2. I have not spoken to, or otherwise communicated with Neil since Sept.
3. I am not the "Herlocher's mouthpiece." I have nothing to do with the business and do not pretend to speak for them.
4. I have no interest other than truth and fairness which means combating all the really really smart people on this board who are really angry at people they don't know over a situation they have no insight into.

I have shared what I know about the situation and the Herlochers as people, and presented rational facts of running a business that don't support the Gastiger's press release or the assumptions of the angry mob. I have not "slammed" the Gastigers. It is an indisputable fact that if the skellar is successful and viable, then the Gastigers would be able and willing to operate under market rates for the space. To not do so, would be stupid and illogical. IMHO, the only rational conclusion is that the business is not all that healthy, either because of a lack of sales, poor management, or a combination of both. If the truth hurts, I'm sorry, but that is not "slamming" anybody. I'm the first to admit that I don't have all the facts. I'm simply looking at the available evidence and taking it to logical conclusions, which is more than the angry mob who are mad that a business they no longer frequent, managed by people who were not the owners when they did, might change hands or cease to operate.
 
I am still confused about what is the issue. Somebody bought the building. They told the existing tenants here is the new lease arrangement. The old tenants said no, we are not renewing as too expensive. Happens all the time in real estate. You own the building, you can sort of do what you want with it within the bounds of the law. So somebody bought the building as an investment in prime real estate. They will rebuild Spats and Skellar into a new, modern restaurant and bar, I am confused as to the issue.

For the prime location, Spats was a not a very good restaurant/money maker. Skellar was a $hithole. We all loved it, but that is what it was. I don't know if they never upgraded because they were cheap or the fact if that if they tried to remodel/upgrade some then they would have to bring things up to code and that was cost prohibitive. Either way, sounds like they had a sweet deal from an absentee landlord for a long time that came to an end.

Please stop making sense. There are pitchforks to sharpen and people to demonize!
 
Sorry man, but you're the Herlocher's schill apparently. "The rent that the landlord thought was fair"? Fair to whom? "market-driven"? Riiiight.

My mortgage company suddently tells me I need to pay $1500 more per month because that's the market. Um, no.

They wanted the Gastigers out and now they are paying the public relations price for not thinking this through, for not having any appreciation of what The Skeller means to SC and the Penn State community.

In short, their avarice or stupidity (it does not matter which) is costing them. As it should.

Umm...Do you think a bank can increase your mortgage?
Your mortgage is a contract. It cannot be unilaterally changed without recourse and ramifications.
A lease is also a contract and cannot be unilaterally changed without recourse and ramifications.
The Gastigers did not have a lease since 2011 and were paying rent below the market.

In short, your premise can be summed up by your words..."Um, no."
 
You know what they say about assuming.
1. Yes, I have know the Herlochers for 20+ years.
2. I have not spoken to, or otherwise communicated with Neil since Sept.
3. I am not the "Herlocher's mouthpiece." I have nothing to do with the business and do not pretend to speak for them.
4. I have no interest other than truth and fairness which means combating all the really really smart people on this board who are really angry at people they don't know over a situation they have no insight into.

I have shared what I know about the situation and the Herlochers as people, and presented rational facts of running a business that don't support the Gastiger's press release or the assumptions of the angry mob. I have not "slammed" the Gastigers. It is an indisputable fact that if the skellar is successful and viable, then the Gastigers would be able and willing to operate under market rates for the space. To not do so, would be stupid and illogical. IMHO, the only rational conclusion is that the business is not all that healthy, either because of a lack of sales, poor management, or a combination of both. If the truth hurts, I'm sorry, but that is not "slamming" anybody. I'm the first to admit that I don't have all the facts. I'm simply looking at the available evidence and taking it to logical conclusions, which is more than the angry mob who are mad that a business they no longer frequent, managed by people who were not the owners when they did, might change hands or cease to operate.

You have not responded to my post which shows the Herlocher's admitting they did not offer the Gastigers a new lease despite saying they made good faith efforts previously. You still continue to say they tried to work with the Gastigers when that is clearly not true. I don't care either way, but to continue the charade that they made as much of an effort as possible to keep the Skeller 'as is' is baloney.
 
This kind of reminds me of what happened to the Stone Balloon in Newark, DE.

Developers turned this:

6502906153_a56d8ca38e_b.jpg


Into this:

photo-de-l-exterieur.jpg

Wow -- Niiiiiice. I would probably actually step foot into the Skeller if it looked like that (lower) picture someday.
 
You have not responded to my post which shows the Herlocher's admitting they did not offer the Gastigers a new lease despite saying they made good faith efforts previously. You still continue to say they tried to work with the Gastigers when that is clearly not true. I don't care either way, but to continue the charade that they made as much of an effort as possible to keep the Skeller 'as is' is baloney.
Perhaps what they meant was although they had tried to come to an agreement on price, they were unable to do so- so they did not "offer" a lease simply because there was no agreement on one to begin with. Since none of us were in the room, we don't know- so let's not pretend we do.
 
Perhaps what they meant was although they had tried to come to an agreement on price, they were unable to do so- so they did not "offer" a lease simply because there was no agreement on one to begin with. Since none of us were in the room, we don't know- so let's not pretend we do.

That's fine with me, but no need to read that much into it. Herlocher said no lease offered - should have said that from the beginning. If it was how you suggested, they could have said as much. Instead, people defending them say they tried to work things out - doesn't sound like it from their two statements and the Gastiger's comments indicating they would love to work on a new lease. Just say they're the new owners and have no interest in doing business with current tenants. Done and done. They're trying to have their cake and eat it too (note folks on other boards who have worked with both parties here say they trust one more than the other - FWIW).
 
Exactly. So the unanswered question is "why didn't Gastiger have a lease?" Not having one is what got him into this mess. If he had a lease, there'd be no issue here. For some reason, he and the old owner didn't sign one. Why not?

That's a great question. How long did the Gastigers run the Skeller? Were they friends with the previous owner? Did they have some sort of gentlemen's agreement instead of an actual lease? Did the old owner do it on purpose? It's much easier to sell a building if the tenants don't have a lease.
 
One of the things I love about the place was the smell- I don't think the mop water has been changed since 1970. It is a real time capsule, in a way that even the Phyrst is not since they moved the bar.
 
You know what they say about assuming.
I have shared what I know about the situation and the Herlochers as people, and presented rational facts of running a business that don't support the Gastiger's press release or the assumptions of the angry mob. I have not "slammed" the Gastigers. It is an indisputable fact that if the skellar is successful and viable, then the Gastigers would be able and willing to operate under market rates for the space. To not do so, would be stupid and illogical. IMHO, the only rational conclusion is that the business is not all that healthy, either because of a lack of sales, poor management, or a combination of both. If the truth hurts, I'm sorry, but that is not "slamming" anybody. I'm the first to admit that I don't have all the facts. I'm simply looking at the available evidence and taking it to logical conclusions, which is more than the angry mob who are mad that a business they no longer frequent, managed by people who were not the owners when they did, might change hands or cease to operate.

I'm not taking sides but just because a business is successful doesn't mean they are willing to pay market rent. And market rent isn't just set by the owner/landlord. Frankly, it would be stupid to simply accept whatever the landlord is offering without negotiating. By the same token, isn't it stupid and illogical for Herlocher's to not have offered the Gastinger's a chance to negotiate a lease? (If that is indeed the case.)

Unrelated to my post above, let's assume the Gastinger's owned the building and they decided to close up the Rath and sell the building to Starbucks for $8MM. Would they face the same backlash? I suspect not.
 
Worked for Charley back in 1964, senior year. He had a little corner pizza style place then. I quit with two weeks left before graduation. Charley screamed he would never give me a reference, in my only "smart ass" comment till that time, I answered don't need a reference from a little pizza maker. Reflecting on all of Charley's accomplishments maybe I could have used the references. Proud of my PSU education and starting my 43rd year as owner of a software development company.
 
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It is too bad they couldn’t meet half way. Market rate schmarket rate. It is about the money to them. Too bad they close the Skellar.

Flint stones scenery coming to downtown state college soon.
 
So, the Gastigers were NEVER OFFERED A LEASE !!!!!!

Oh. That's different. I wonder why Heckman's failed to mention this. LOL.

But I suppose that makes me reactionary. They want to redo the building into something more "classy," by their standards, but they did not want to admit that, exactly. So they come up with this dog and pony show about how there is no lease. Ok, well that is how they can get rid of them quick, but that says nothing about whether Herlochers want to rent to the Gastigers. Not offering them a lease says everything about whether they want the Gastigers in their building.

As the building owners, that is their right. As a disappointed customer, it is my right to make them regret their decision.

As a friend of the Herlochers, it is heckman's right to plead their case, but it sort of seems like he left out a crucial fact. Thanks, Midnighter, for clearing it up for me.
 
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All of you in the angry mob, frankly, have no idea what you are talking about.

Let's take a step back, forget your undergrad years, and look at this rationally.
Landlords want stable tenants and rent checks, every month. Plain and simple.
Failed businesses and searching for new tenants means missed rent checks, reduced cash flow, and risk to your business.
As much as we all may love it, looking at it rationally, the skellar is a old sh*thole of a space that could only exist as a basement bar with a "history" that people romanticize.
Any attempt to make that space into anything else would require a massive amount of time(missed rent checks) and money to turn it into something inhabitable by a 21st century business.
Think about it. If you want to call the herlochers "greedy," the way they would maximize their profits and cash flow would be to keep the Gastigers as tenants with a lease that reflects the 2017 market.
The 2nd best option would be to find new operators willing to take on the challenge of reinvigorating the skellar.
The worst option would be to close it down, try to convince someone to locate their business in a basement with low ceilings, and then spend well into 6 figures to remodel it.
(Frankly, the backlash and calls for boycotts are probably the greatest threat to the continued operation of the skellar as we all know it, as it must be making the new operator think twice). I suspect that after the Gastigers are out, you'll see necessary improvements made to core infrastructure (ie bathrooms, tap system) and perhaps even some updating of worn out features that will make it inviting to current students, while maintaining the feel of the establishment that alumni romanticize...just my guess.

You imply that there were/are missed payments for rent... I'd be very careful with the words you choose
 
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So is this, unless I missed the part where the Herlocher’s tried and failed to work out a new lease for the Gastingers. There was never an attempt to keep them - a new tenant was always part of their plan.
Even if that is true... ownership does give them that right.
 
So, the Gastigers were NEVER OFFERED A LEASE !!!!!!

Oh. That's different. I wonder why Heckman's failed to mention this. LOL.

Do you realize that discussing/negotiating a new lease and offering a lease are two different things? If the discussions/negotiations are unsuccessful, no lease is offered to be signed.
 
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You do realize that discussing/negotiating a new lease and offering a lease are two different things. If the discussions/negotiations are unsuccessful, no lease if offered to be signed.
Where does it say there were negotiations? You know, this is the Herlochers' story. They could have told it, rather than depend on you to attempt to gloss it for them.

Where does it say they attempted to negotiate the lease? (Setting aside for the moment that suggesting a lease at $x per month for y months is "offering a lease." And the Herlocher says they did not do that.) Right?
 
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You know what they say about assuming.
1. Yes, I have know the Herlochers for 20+ years.
2. I have not spoken to, or otherwise communicated with Neil since Sept.
3. I am not the "Herlocher's mouthpiece." I have nothing to do with the business and do not pretend to speak for them.
4. I have no interest other than truth and fairness which means combating all the really really smart people on this board who are really angry at people they don't know over a situation they have no insight into.

I have shared what I know about the situation and the Herlochers as people, and presented rational facts of running a business that don't support the Gastiger's press release or the assumptions of the angry mob. I have not "slammed" the Gastigers. It is an indisputable fact that if the skellar is successful and viable, then the Gastigers would be able and willing to operate under market rates for the space. To not do so, would be stupid and illogical. IMHO, the only rational conclusion is that the business is not all that healthy, either because of a lack of sales, poor management, or a combination of both. If the truth hurts, I'm sorry, but that is not "slamming" anybody. I'm the first to admit that I don't have all the facts. I'm simply looking at the available evidence and taking it to logical conclusions, which is more than the angry mob who are mad that a business they no longer frequent, managed by people who were not the owners when they did, might change hands or cease to operate.
You "have not slammed the Gastigers"???? You called them "stupid and irrational"! YOU ARE nothing but a damned liar! The CDT confirmed from your 'butt buddy' Neil that they never offered a new lease to the Gastiger's and only informed them that they had to be out by end of February! CONTRADICTS EVERY PIECE OF CRAP THAT YOU HAVE STATED ON HERE! Before berating and denigrating everyone on this site that disagrees with you, perhaps you should find out what the actual truth is!
 
You "have not slammed the Gastigers"???? You called them "stupid and irrational"! YOU ARE nothing but a damned liar! The CDT confirmed from your 'butt buddy' Neil that they never offered a new lease to the Gastiger's and only informed them that they had to be out by end of February! CONTRADICTS EVERY PIECE OF CRAP THAT YOU HAVE STATED ON HERE! Before berating and denigrating everyone on this site that disagrees with you, perhaps you should find out what the actual truth is!
As landowners they have the right to lie to us about what they have done, what they are doing now, and what they intend to do. Landowners' rights include misleading statements to the press, self-aggrandizing hype about saving the skeller from the wrecking ball, and having your self-proclaimed friends come here and double down on the BS, while throwing in a nice layer of insults on top.
 
Even if that is true... ownership does give them that right.

Agreed. But, they want to play the 'We're the good guys! We're saving the building! We tried to work things out with the Skeller ownership but they're cheap-o's who didn't have a lease and wouldn't take our offer of...um, actually, we never really offered them anything, but never-mind that.....WE saved the building!' card.
 
So the fact that somebody bought a prime piece of State College real estate most likely for a huge sum of money and is going to take that real estate and try to maximize the revenue streams by upgrading the bar, restaurant and apartments (which everybody agrees were in very poor shape and in need of some upgrades) is or is not acceptable?

Or is the issue that they tried to play the good guy and 'blame' the owner of the Skellar for it being shut down the bad thing? So the better thing would have been to buy the building and then put out an announcement that it was purchased and that the existing tenants leases are not being renewed and the facilities will be upgraded and put back in service.
 
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