Lancaster City Redevelopment Authority Votes To Become Equity Investor In $4.8 Million Apartment Project

Map of Pennsylvania highlighting Lancaster County (Photo credit: Wikipedia)

Until recently, when real estate developers wanted an extra financial push to make a city redevelopment project viable, they turned to state officials.

But grant funding through the state’s Department of Community and Economic Development has all but dried up, and competition for the remaining funds is fierce.

On Tuesday, the Lancaster City Redevelopment Authority agreed to step into the gap to make a project happen.

Authority board members voted to become equity investors in a $4.8 million apartment construction project.

Read more: http://lancasteronline.com/article/local/839507_City-redevelopment-authority-votes-to-become-equity-investor-in–4-8-million-apartment-project.html#ixzz2QqlkDQLs

Developer Of Old Armorcast Site Wants Big Tax Break From Daniel Boone School District

Now that the former Armorcast factory in Birdsboro is demolished, the property owner and developers are hoping to also clear the unpaid real estate taxes.

Steve Marshall, a lawyer for Meco Demolition Inc. of Bensalem, Bucks County, asked the Daniel Boone School Board this week to waive or reduce real estate taxes from 2007 to 2011 for the 91-acre property.  Unpaid taxes owed to the district total about $86,000.

Owner Gregory Flynn of Armorcast LP hired Meco to demolish the dilapidated factory, which produced steel for tanks during World War II.

Read more:  http://readingeagle.com/article.aspx?id=444662

Rewrite Of Pennsylvania Property Tax Sale Laws Is Tool In Blight Fight

Map of Pennsylvania, showing major cities and roads (Photo credit: Wikipedia)

Editor’s note:  This can’t happen soon enough!

HARRISBURG – Affordable housing advocates are urging a reform of Pennsylvania’s property tax sale laws to help fight blight in both large cities and small towns.

They want to overhaul a system that allows speculators to obtain a lien on property at tax sales by paying delinquent taxes and yet not go the next step and obtain clear title.

Other legislation being sought would give long-standing residents the opportunity to take ownership of homes in cases where the recorded owner has abandoned them and put more restrictions on who can bid at property tax sales.

Rewriting archaic tax sale laws that date to the 1920s and 1940s is seen as a way to help fiscally distressed cities rebuild their tax bases and help get newly authorized land banks off the ground.

Read more:  http://thetimes-tribune.com/news/rewrite-of-property-tax-sale-laws-is-tool-in-blight-fight-1.1414337

Senator Smucker Drafts Redevelopment Plan For Lancaster City

Whenever he holds a meeting in his office on the seventh floor of Lancaster County‘s administration building, at 150 N. Queen St., Commissioner Scott Martin said people always look out the windows and remark on the sweeping view of the city.

“Then, they look down,” Martin said, referring to Lancaster Square, the vacant Bulova Technologies building and the Hotel Brunswick, part of which has been condemned.

The public square and the surrounding buildings are an island in the city. The area has steadfastly resisted redevelopment even as much of the rest of Lancaster city has flowered with restaurants and art galleries in recent years.

On Thursday, state Sen. Lloyd Smucker announced a proposal to help Lancaster city and four other similar-sized cities in Pennsylvania to redevelop problem areas.

Read more: http://lancasteronline.com/article/local/735135_Smucker-drafts-redevelopment-plan-for-Lancaster-city.html#ixzz26SJampk0

King Of Prussia Mall Adding 122,000 Square-Foot Building On Former Wanamaker’s Site

The old Wanamaker’s store at King of Prussia Mall will meet with a wrecking ball to make way for a new 122,000 square-foot building that will house 10 new stores.  The former Wanamaker’s store has been empty for some time now.

King of Prussia Mall is having a great year and the mall is looking to add more prime space to attract additional retailers.  The new construction will continue through the fall of 2012.

This is the first major redevelopment project at the mall since 2001 when the Pavilion was created at the Court in the former Strawbridge and Clothier store.

$65 Million Mixed-Use Community Planned For Phoenixville

PHOENIXVILLE — The long-abandoned Phoenix Steel parcel on Bridge Street is about to be redeveloped into a $65 million mixed-use community by O Creek Associates.

The proposed Shoppes at French Creek will be made up of 80,000 square feet of retail, 275 apartments and 30,000 square feet of office space on seven acres that was once Phoenix Steel’s parcel O, hence the name of the development company.

“It will be a place to live, work and hang out,” said developer Manny DeMutis, the managing partner of O Creek Associates, a private equity group…

To read the entire article from the Daily Local, click here:

http://business-news.thestreet.com/daily-local-news/story/mixed-use-development-moving-forward-phoenixville-video-0/1

Spanish American Civic Association Helping Redevelop And Stabilize Lancaster’s SE Quadrant Neighborhood

Image via Wikipedia

Lancaster’s Spanish American Civic Association (SACA) was formed in 1984 to focus on the purchase and rehabilitation of vacant and blighted homes in Lancaster’s southeast quadrant neighborhood.  This neighborhood is 63 percent rental properties.  Lancaster City is 33.2 percent Hispanic.

The SACA Development Corporation rehabilitates numerous vacant and blighted properties and returns them to the housing market every year.  The new or renovated housing units are affordably priced housing for low or moderate-income families. 

The SACA also provides many other services:  a senior center, meals, employment assistance, case management, HIV/AIDs./HepC counseling/testing, career development, training and adult education, youth programs, drug and alcohol education, student family liaison, behavioral health services, a drug and alcohol treatment facility, adolescent counseling and therapeutic services.

The SACA Development Corporation’s latest project is the near completion of 13 townhouses under their Homeownership Choice Program.  These homes are priced at $99,600.  Twenty-seven other homes were built or converted in two other phases prior to this third phase.  An East Petersburg, PA contractor won the bid so construction was done by a Lancaster County company. 

These are state of the art, energy-efficient homes with every conceivable convenience built in.  Because these homes are new construction in Lancaster City, the owners will benefit from a tax-abatement program and pay lower property taxes.  This third phase of transformation will reduce blight, reduce crime and stabilize the area with homeowners (stakeholders) versus tenants (transient residents).

The Homeownership Choice Program is available through the Pennsylvania Housing Finance Agency.  Money also came from the city, the county, the Federal Home Loan Bank in Pittsburgh, PA Department of Community and Economic Development and Neighborhood Assistance program for tax credits.  Lancaster based Fulton Bank was the construction lender. 

Redevelopment really does take a village!

Building York: A Community & Economic Development Summit

A Building York summit was called by York Mayor C. Kim Bracey and her partners to identify economic and community development opportunities and challenges that face the York Metropolitan area.  The summit means to:  identify goals, educate the community, spur redevelopment in the urban core, accelerate investment, formulate new ideas, and create momentum, partnerships and a sense of urgency.

The goal of the two-day summit, which ended Thursday, was to formulate a plan of action from 2011 through 2015.

One of the cool events was the screening of a film called “My Tale of Two Cities” by Carl Kurlander.  The film chronicles where Pittsburgh was, where Pittsburgh is and how Pittsburgh reinvented itself.  Kurlander gave an inspirational talk to the large crowd and said things like:  believe in the possible, what happens in York matters to everyone and do not tear down all the beautiful historic buildings!  It was a message of hope and what can be accomplished if the entire York community pulls together.

Sessions offered to participants were on topics such as:  sustainable infrastructure and Pennsylvania’s green economy, best practices in urban renewal, residential reinvestment and new methods and practices in urban redevelopment and investment.  The sessions were followed by roundtable discussions, led by York civic and community leaders.

Two Roy’s Rants thumbs up to York City and County leadership for working together to improve the entire York Metro area!

Developer Charlie Jefferson: A Driving Force Behind Scranton’s Downtown Renaissance

 Connell Building exterior

My trip to Scranton included meeting and touring with Charlie Jefferson, along with Mayor Doherty.  Charlie is a Scranton developer who has a passion for his work and a desire to see Scranton blossom.  Charlie is responsible for the dramatic transformation of the Connell Building.  Charlie, like Mayor Doherty, is very down-to-earth and approachable.

Charlie took us inside the Connell Building.  The eight-story building sat vacant for 10 years before being developed.  The building’s occupancy rate was about 20 percent for ten years before becoming vacant.  Now there are 89 new 1 – 2 bedroom, market-priced, luxury loft apartments.  The building has been beautifully restored, while maintaining historical integrity and bringing the building up to code.  Every loft is rented.  There is a waiting list!  I have no interior pictures of any apartments because there is no model and Charlie was unable to contact anyone who might have let us tour and photograph their apartment home.  Maybe next trip!

The bottom two floors of the Connell Building will be used for commercial/retail/office.  This will be a great example of mixed-use development when this part is finished.  Charlie said he is working with a grocery store to move into the building along with other tenants to fill the remaining commercial/retail/office space.  Imagine the convenience of going down an elevator to the grocery store.  No driving, parking and traffic!  City living at its finest!

Another nice feature of the Connell Building is the attached parking garage.  Secure garage parking is available to all the residents of the Connell Building if they choose to rent a space.

Over 50% of the Connell Building’s tenants are new residents to Scranton and Lackawanna County.  There is a growing segment of people who want to live in a redeveloped heritage property.  These people are usually well-educated professionals who want the best urban living has to offer.  There are looking for walkable downtowns with fine restaurants, shopping, cultural events, services and entertainment.  Concentrated pockets of people in a downtown, with disposable income, will greatly increase the customer base for stores, restaurants and other businesses in general.  This phenomenon is not necessarily limited to the 20’s – 30’s demographic.  There are more middle-agers and seniors who want to sell the house, downsize and become urban dwellers entering this emerging market.

The Connell Building’s first tenant is a grandson of the building’s original owner.  He was very excited to see his family’s former building redeveloped and wanted to be part of the renaissance in Scranton.

Charlie’s newest project is the redevelopment of the former Chamber of Commerce Building, not far from the Connell Building.  The building is now vacant.  Like the Connell Building, the old Chamber Building was constructed during Scranton’s King Coal heyday.  It is very opulent.  Charlie plans to do the same thing with this building as he did with the Connell Building.  It is expected that Scranton will need 600 more apartments/condominiums in the next 5 years because of the medical college and spin-off development.  If the law school becomes a reality, that number will substantially increase. 

Charlie took us inside the old Chamber Building and we poked around.  Structurally it is in great shape and ripe for development.  The building has amazing architectural features and many of the apartments will feature spectacular views of downtown Scranton.  There will be balconies!  This project will rent out quickly because of the location and unique features of the space.  The success of the Connell Building has paved the way for further mixed-use development downtown.

I am looking forward to the completion of Charlie’s newest project.  It promises to be amazing.

Having a great developer, like Charlie Jefferson, to work with is a huge part of the redevelopment process.  Mayor Doherty has surrounded himself with some very competent people to help turn his vision for Scranton into a reality.

 

Chamber Building pictures below, currently vacant awaiting development!

Horsham Mulls Development Opportunities At Willow Grove Naval Air Station

Image via Wikipedia

The Horsham Land Redevelopment Authority (HLRA) has a great opportunity ahead.  892 acres of land from the Willow Grove Naval Air Station will be available for development.  The possibilities are endless for such a vast tact of land.

Also joining HLRA will be Hatboro-Horsham School District, Montgomery County Community College and Horsham Township.  This group will craft a vision of the Horsham of the future.  Public participation is desired.

Only 200 acres of the enormous base will remain with the Army Reserve and PA Air National Guard.  The runway will be closed in March.  The base has been “on again, off again” since 2005, but the end has finally come.  Now, the daunting task of what to do with this much public land begins.

HLRA has an exciting task ahead.  They have partnered with other good organizations, and the public, to create something amazing that will benefit the Philadelphia region.

I am excited to watch the process unfold and see the result.

To check out HLRA’s website and keep abreast of developments you can click here:

http://www.hlra.org/about/

One Of My Adaptive Reuse Posts Catches Eye Of Scranton Mayor

Image via Wikipedia

This is one of those moments that makes sitting here blogging away every day worth the effort.

I wrote a post for Code Blue’s The Pulse blog about an adaptive reuse project, here in Pottstown, that would transform the old armory building on King Street into luxury apartments.  This would be significant as there are several other projects lining up along the same lines.  If this project is successful, it could jump-start redevelopment in the central core neighborhood.

As an example of adaptive reuse in a central downtown neighborhood, I cited the Connell Building project in Scranton‘s central business district.  My post and reference to Scranton’s renaissance caught the eye of Scranton Mayor Chris Doherty.  As a result, I am traveling to Scranton on Tuesday to meet Mayor Doherty and get the mayoral tour of Central Scranton.  I am more than a little excited!

Here is a link to my post about the armory project:

http://codebluepulse.blogspot.com/2011/01/pennsylvania-state-armory-building.html

There will be a posting and lots of pictures from my trip!

Former Franklin Mint Site In Delaware County Being Eyed For Planned Community

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A 173-acre site, that includes the former Franklin Mint in Middletown, Delaware County, will become a planned community if developers have their way.  The mint site and two other adjacent properties will be developed into a new “walkable community”.  This project would take 5 – 10 years to complete and would feature 1,253 homes, 798,000 square feet of commercial space, 235,000 square feet of office space and a 225-room hotel.

The new community would enable residents to live, work and play in the same place.  This “town center” concept is becoming very popular.  Construction would create 4,748 jobs.  The number of permanent jobs this project would bring to Middletown is estimated at 2,800!

Tax revenue generated from this project, for the borough, school district and county, would be over $8.1 million!  The Franklin Mint, Middletown site has been closed since 2004.

Public hearings have already started and developers stated they are willing to hold as many hearings as it takes.  500 people attended last night’s legislative hearing.  The Franklin Mint redevelopment project is endorsed by the Delaware Valley Smart Growth Alliance and the Delaware County Chamber of Commerce.

The project is strongly opposed by a group called Save Middletown.

Here is a link to the developer’s website that will answer many questions you might have about the project:
http://www.transformingthemint.com/index.htm

Here is the Save Middletown website:
http://www.ourmiddletown.org/index_files/fms

You can read both sides and draw your own conclusions.

Three York County Projects Will Benefit From Pennsylvania Bond Sale

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The Pennsylvania Redevelopment Assistance Capital Program is going to receive just that, an infusion of capital that will make three York County projects possible.  Approval has been given for the sale of $650 million dollars in bonds by Pennsylvania Treasurer, Rob McCord.

The Northwest Triangle project is waiting on a $7.5 million dollar grant to demolish buildings and make way for new construction.  For more information on the Northwest Triangle, you can read my post on this very large brownfield redevelopment project in York City.

York College is waiting on $4 million dollars to complete various projects around their campus including the creation of a business incubator!

The York Fire School wants to construct a new building for live-burn training.  They have applied for $1.5 million dollars to complete this project.

Quakertown Takes The “Rebranding” Plunge

The next town in my series of redevelopment success stories in Quakertown, PA.  Pottstown area residents are all familiar with Quakertown.  We even share Route 663. 

Quakertown has benefited over the years, to some degree, by their proximity to the big cities in the Lehigh Valley.  They are part of suburbia on heavily traveled Route 309.  What many people think of when they get a visual of Quakertown is the “Big Box” sprawl on 309.  However, there is more to Quakertown.

Quakertown Borough is 2.0 square miles and contained 8,931 residents according to the 2000 census.  A 2009 estimate put the population of the borough at 8,672.  The estimated median income for Quakertown in 2008 was $53,340.  The 2008 estimated per capita income was $27,000.  The City-data crime index for Quakertown in 2009 was 258.0, which is considered low.

This all sounds rather idyllic.  Why not roll with it?  However, the status quo was not good enough for Quakertown officials who felt they needed to get people excited about their downtown and what it has to offer.  Honestly, I never thought there was much more to Quakertown than Route 309, if the truth be told.  So now I am excited too!

Quakertown has come up with the all important “tag line” which is “Explore The Possibilities”.  Kind of peeks your interest further, doesn’t it!  I enjoy exploring!  Now I feel the urge to drive up to Quakertown and venture into their downtown to “explore” the possibilities!  Local officials want to make Quakertown a destination.  To that end, they hired Delta Development Group of Mechanicsburg, PA to help lead them to the promised land of redevelopment.  In addition, Quakertown has hired Marketing Solutions of Quakertown to help them identify and market their borough.

The $64,000 question:  What kind of destination does Quakertown want to be?  The winning answer is recreation, culture, shopping and dining.  To that end a logo was carefully crafted incorporating these elements.  Because Quakertown is strategically located on the edge of the Lehigh and Delaware valleys, they are marketing themselves in both areas.

Quakertown was once a manufacturing and commercial center.  With the decline of industry, Quakertown is now a bedroom community and regional shopping destination.  Quakertown has decided to work with the assets they have and improve upon them.  Instead of crying over what once was, they are embracing what is.

Click here to check out the Quakertown development organization’s website – Quakertown Alive! http://www.quakertownalive.com/

Hat tip to readers Katy and Andrew for bringing this story to my attention!

Demographic data from Wikipedia and City-data.com

Philadelphia’s Logan Triangle – 35 Acres Of Blight

Here is a story about a large blighted area, in an urban environment, and the challenges it brings.

Philadelphia’s Logan section had a particular problem back in 1986 which you may remember.  Some of the land was not properly prepared before homes were built and the houses began sinking, making them eventually unsafe for habitation.  This area, called the Logan Triangle, is 35 acres of land that was formerly a creek bed.  The water was diverted but when the land was “filled in” it was not done properly.  The City of Philadelphia relocated 950 homeowners from this tract of land and tore down those homes.  Now a large open and unoccupied area exists that has become a trash dump.  There are rodents, stray cats, animal feces, mountains trash and crime.

What to do?

The Urban Land Institute (many in Pottstown are familiar with this organization) recommended turning the area into a large green project in 2009.  Something like a community garden, urban farm, tree farm or anything green would be the way to go.  This idea has merit and has garnered much support.

Other ideas from developers have been commercial or residential.  However, before any building starts land remediation would need to take place.  Estimates put the cost at $60 million dollars to remediate the entire 35 acre area.  Because of the poor economic conditions, the expensive land remediation project is prohibitive for developers.  One developer wants to build a supermarket, senior housing and a banquet hall and is still interested in doing so.

A big problem is the city only owns 10 percent of the lots on the property.  The city has no extra money at this time to purchase the additional properties which are owned by various government agencies, private owners and the Logan Assistance Corp.  Maintenance of this blighted former neighborhood is daunting and expensive for the city.  Basically the area is not maintained. 

For 25 years this area has been allowed to go downhill due to lack of direction, financial issues, ownership issues etc.  Those who live in this area wish the city would do SOMETHING.  Nobody wants to buy a home here.  As houses bordering this giant swatch of trash become available (owners die) they will remain empty.  The blight will spread because no one wants to live next to a crime ridden trash heap.

This story does not have a happy ending.  Presently nothing is in the works to transform this cancerous blight.  The longer this area continues to fester the further the blight spreads and the more disillusioned surrounding homeowners become.  One resident stated they get so disgusted they don’t feel like doing anything.  That statement says it all!

Massive Brownfield Reclamation Project In York City

The City of York is undertaking the largest economic development project in that city’s history.  The Northwest Triangle project will span 29 acres and cost $50 million dollars.  The project will be paid for by a $7 million dollar state grant, $12 million dollars in public funds and $14 million dollars in private funds.  Enterprise Homes will contribute $18 million dollars.

The project is varied and includes a residential component, commercial space and a charter school.  84,000 square feet of new and rehabilitated space will be available for professional, office, entertainment, restaurants, retail, townhouses and condominiums.  The project will create 300-500 jobs and add 250 new city residents.

The York Academy Regional Charter School is being created and will be part of this massive project.  The building is being renovated and will be completed in July 2011.  Phase one will be kindergarten through second grade.  Within five years the school will be K – 12.  York Academy Charter will be York’s fifth charter school and will feature an International Baccalaureate curriculum.

Enterprise Homes is the residential part of the project.  85 to 125 homes will be built based on a market study to be conducted.

Four existing buildings are part of the redevelopment project which will also include extending the York County Heritage Rail Trail through the city to the Northwest Triangle.  A streetscape project is also expected to be approved and will be paid for by an $890,980.00 federal grant.

To recap, we have a state grant and a federal grant being combined with money from public and private developers to reclaim 29 acres of blight!

Redevelopment Venture In Easton

This is yet another example of a local redevelopment effort from The Morning Call.  Through their state representative, Bob Freeman, Easton secured a $200,000 grant from the PA Redevelopment Assistance Capital Program.  Another $100,000 is anticipated from PA’s Growing Greener II grant fund.

Here is the Link: http://www.mcall.com/videobeta/e81b9413-cb17-4305-9798-952ea8770478/News/Redevelopment-Plans-moving-Forward-on-Easton-s-Pomeroy-Building-