The exterior of Butler Middle School is pictured on Tuesday in Butler. Thursday was the final day of school in the building, with the next fifth-graders staying in elementary school and sixth-graders moving to Butler Intermediate High School. Butler Eagle File Photo

The court-approved sale of the former Butler Middle School building in Butler should be set aside and awarded to the second highest bidder, according to a petition filed in Common Pleas Court.

A hearing has been scheduled for Wednesday, April 2 on the petition filed by Sumner McDaniel, the second-highest bidder in the March 6 sale of the building to Pittsburgh self-storage developer Steve Mitnick for $475,000.

The auction-style sale was conducted in court with Mitnick, McDaniel and Dennis Tiche bidding. The initial bids were $115,000 from Tiche, $150,000 from McDaniel and $200,000 from Mitnick. The bids quickly increased until Mitnick offered $475,000 for the building and four lots that make up the school property.

Judge Kelley Streib approved the sale contingent upon Mitnick obtaining zoning approval from Butler for his planned use of the property. Mitnick said he wants to convert the former school building into a combination of storage units and salon suites, which he said he plans to rent to hair, fingernail, cosmetology and tattoo salons.

If the sale to Mitnick falls through, the building will be sold to McDaniel for his final bid of $450,000, Streib said during the sale and in an order she issued March 7.

The order gives Mitnick 120 days from the day of the sale to obtain approval from the city for his proposed use of the property.

In the petition, filed March 19 through an attorney, McDaniel argues the 120-day allowance given to Mitnick is not consistent with the sales agreement, which requires the buyer to close the sale no later than 35 days after court approval of the sale. McDaniel’s $450,000 bid includes no contingencies and the sale can be closed within 35 days, according to the petition.

Making the sale contingent on zoning changes also is not consistent with the sales agreement, according to the petition.

Mitnick said Monday he believes the court took everything into account before approving the sale.

“We’re going to defend our position that it was a legitimate auction and a legitimate purchase,” Mitnick said.

He said he will have representation at the hearing, but is not planning to attend.

The petition includes an argument that McDaniel’s high bid was $450,000, but that was driven up by Mitnick. If it wasn’t for Mitnick’s bids that require a delay in closing, McDaniel’s successful bid would have been $250,000, according to the petition.

McDaniel’s attorney, Jen Gilliland Vanasdale, did not return a message seeking comment about the petition.

The petition also argues that the closing delay in the sale to Mitnick will cost the district $46,575, which lowers his bid to $428,424 and that is lower than McDaniel’s high bid. The argument is based on an affidavit from district superintendent Brian White saying the district pays about $200,000 a year in utility costs on the building. That amount equates to $16,667 a month or $547.95 a day. The 120 days is 85 days longer than the 35 days contained in the sales agreement. Those 85 days will cost the district $46,575.34, according to the affidavit.

White declined to comment on the petition. He said he is planning to attend Wednesday’s hearing.

At the court sale, engineer Joe Gray represented McDaniel, saying his plans called for commercial use on the first floor of the building and mid-to-upscale apartments on the second and third floors. He said the plans fit the property’s R-3 high density residential district zoning requirements.