Opportunity
PECO Energy had previously utilized the Property as a service depot for their fleet of utility vehicles until electing to consolidate operations into another facility. The Property, having been vacant for nearly five (5) years, was in a severe state of disrepair and decay causing many concerns from the residential community that surrounded this industrial eyesore. Not only an eyesore this property was a Brown Field site requiring Strategic to secure ACT2 Liability Protection from DEP that would allow this site to be developed residentially.
During the period prior to Strategic becoming involved the School District had considered relocating their bus fleet to this site. This proposal only served to elevate the concern by residents over the future development of this Property resulting in the formation of a community subcommittee that ultimately insisted that they be involved with any proposed development of this Property.
Resolution
Despite numerous competing offers by developers proposing commercial and retail developments, Strategic proposed a residential development of sixty (60) market rate homes which was permitted under existing zoning.
Strategic presented its development plan in a series of “Town Hall” type sessions to the community and very quickly realized that in order to be successful that significant changes would be required to satisfy the community. Rather than proceed with a “By Right” plan like others may have chosen to pursue; Strategic listened intently and designed a plan that was truly “win-win”.
The community desperately wanted affordable senior housing. As such, Strategic successfully acquired the necessary expertise through a joint venture with an affordable housing partner and secured housing investment tax credits that subsidized the development of a 53-unit senior apartment building. In addition to the senior rental building we secured approvals for thirty-one (31) market rate town homes.
In order to deliver a plan that would satisfy the needs of the community, Strategic needed to introduce a new ordinance amendment to the Lower Merion Zoning Hearing Board allowing for increased density in developments that provide a portion of the units as affordable.
Finally, Strategic worked in conjunction with Lower Merion Township and School Board as well as Montgomery County to secure Tax Increment Financing (“TIF”) allowing five (5) of the market rate town homes to be offered for sale to first time needy families at more than fifty (50%) below market value.
Benefit
PECO Energy was able to sell a deteriorating contaminated surplus property for an attractive price while allowing Strategic the opportunity to work cooperatively with local residents to help them realize their dream of finally removing an industrial eyesore from their residential community.
Strategic transformed a blighted property and created a vibrant inter-generational mixed income residential community that will likely serve as a model for many other communities both locally and across the Country. Strategic delivered on its promise to provide affordable senior housing, subsidized town homes for five (5) needy first time home buyers, and market rate town homes for the growing Township population. This was all accomplished on an in-fill industrial Brown Field site thereby helping to preserve the remaining open green space of the Township.