224 South Allen Street Reuse or Redevelopment Update on the site, proposals and process for discussion
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1 224 South Allen Street Reuse or Redevelopment Update on the site, proposals and process for discussion Joint meeting of State College Borough Council, Planning Commission and Redevelopment Authority March 3, 2015
2 Agenda Historical Context Site Specifics Master Planning Proposals Review Process 224 S. Allen St.
3 Historical Context 2002 Oct 2007 Oct Downtown Vision & Strategic Plan recommends arts and cultural venues for the Allen St. corridor, such as a Children's Science Museum. Borough purchased property from Verizon Pennsylvania, Inc. Council issued Letter of Intent to Discovery Space Board of Directors indicating Council s commitment to make site available to Discovery Space. $750,000.00, as-is, with flexible payment terms Ability to amortize principal over 8 years, beginning in 2010 Further discussion of conditions, particularly Borough s right to repurchase should Discovery Space elect not to utilize the building
4 Historical Context Discovery Space asked for extension on Borough agreement, looked for a smaller location to launch; Borough leased building for campaign offices for the Clinton, Obama & Centre County Democratic Committee election offices. Leased to Penn State University: Nov 2011: Initial two-year, triple-net lease for $77,004.00/year with option to renew Mar 2013: notification of two year renewal to expire November 30, 2015 Feb 2015: request to extend lease through Dec 31, 2015 to accommodate delay in campus construction Discovery Space notifies Borough of renewed interest in building; other proposals received regarding acquisition/use of building.
5 Site Specifics 10,560 Square Foot Lot (per County GIS) ~9,200 Square Foot gross; ~7,700 Square Foot leasable Building Area Estimates of actual habitable/ heated space vary based on historical appraisals and independent building evaluations Lease Rate $10/Square Foot W. Beaver Ave Located between First National Bank Drive Thru site and Jeramar Plaza 224 S. Allen St.
6 Site Specifics Borough has completed: Lead Based Paint test, Asbestos Abatement, Fire Alarm Repair, HVAC Repair, annual insurance/permitting, misc. repairs by PW staff Basement First Floor Plan S. Allen Street Entrance
7 Site Specifics Front facade Northern facade, FNB Drive-Thru & Parking Rear facade Interior
8 Site Specifics Borough Expenses Borough purchase price in 2008: $757, $750, purchase + closing costs from Capital Reserve Incurred Costs as owner, to-date: $82, (from General Fund) Income Generated from Rents, to-date: $354, Paid to Capital Reserve Historical average lease rate of $10/SF rate Current Balance to Capital Reserve: $402,611.38
9 1990 Plan Recommendations 200 Block Allen Street focus of redevelopment in master plans dating back to 1990 Downtown Economic Development & Urban Design Plan, 1990: Borough Center as a focal point to reinforce community Location of civic center (prior to construction of current municipal building & Schlow Library), other important institutional buildings, public spaces, community-serving facilities Location of 224 S. Allen St relative to 1990 Downtown Plan concept for Borough Center
10 2002 Plan Recommendations Downtown Strategic Plan & Vision, 2002 Multiple Concepts for 200 block Allen St., including: Civic, institutional center Entertainment, arts, cultural center Downtown core with greater mix of non-student housing Identified future uses for Allen St., including a Children s Science Museum Civic Moderate Density Residential Higher Density Residential Office/Services Retail/Beverages Location of 224 S. Allen St relative to 2003 Downtown Plan concept as the economic, cultural & recreational hub
11 2013 Plan Recommendations Downtown Master Plan, 2013: Allen Square as part of Traditional Downtown core: Focus on 200 block Allen Street as an expanded family and locallyoriented corridor Ideas for infill or redevelopment of multiple sites between Allen and Fraser Streets Clear and attractive connections between Municipal Building, Schlow Library, Memorial Field/Sidney Friedman Park, Discovery Space, etc. Location of 224 S. Allen St relative to 2013 Downtown Plan Allen Square Concept
12 2013 Plan Recommendations Allen Square Concepts: FNB Drive Thru & Verizon Building sites become public open space Infill development on Allen Street surface parking lot and area behind Jeramar Plaza; redevelopment of post office; infill of Beaver Avenue lot Recommended uses include: nonstudent housing, family attractions, senior center, open space (plaza), incubator, coworking space Location of 224 S. Allen St relative to 2013 Downtown Plan Allen Square Concept
13 Current Proposals Discovery Space of Central PA: Request to Borough to gift building to Discovery Space Consider a short-term lease arrangement while developing/locating a long-term permanent home downtown Development through Public Private Partnership : Penn Trust has expressed private development interest, through a Public Private Partnership with the Borough, Discovery Space and FNB to redevelop 224 S. Allen and adjacent FNB drive thru site Condominium arrangement for tenants Upper floors to include residential, structured parking within building
14 Current Proposals Penn State University Economic Development Initiative: Economic Development commitment to University & Community, interest in an off-campus incubator, as an extension of the New Leaf concept and a model for commonwealth campuses Requesting 5 year extension of current lease for interim location while considering a long-term/permanent home for the space 3 rd Revolution (Community Maker Space): Requesting to be part of a community-wide conversation about how a community maker space can be developed downtown Model may encompass goals of PSU Economic Development initiatives, Downtown Plan, Discovery Space, Schlow Library and other community partners 224 S. Allen is one tentatively identified location
15 Review Process Current interest in this block presents a significant opportunity for partnerships to enhance downtown. Decisions made today will shape the next 30+ years. Master Plans and current proposals provide many ideas for consideration for the block. Are there short- and long-term opportunities available?
16 Review Process Analysis of Individual Proposals When reviewing options for the block, and proposals that have been offered, some guiding considerations should be: How closely is the proposal aligned with Borough Council s Strategic Plan & Adopted Downtown Master Plan(s) What is the requested financial and/or strategic commitment by Borough? What is the proposed timeframe(s)? Does the proposal build on partnerships that can unlock the potential of this corridor, or preclude future opportunities due to a limited scope? Can the proposal be part of a phased approach?
17 Review Process Potential Council Actions Dispose of property through sale to highest bidder Gift or sell property to a non-profit organization, such as proposal by Discovery Space Continue leasing building to current or alternate tenants Direct RDA to undertake redevelopment of 224 S. Allen Street (Verizon Building) only Temporarily lease 224 S. Allen St to current or alternate tenants; Direct RDA to undertake phased redevelopment of both 224 S. Allen St and Allen St parking lot
18 Review Process Roles of Agencies Borough Council Consider consistency of proposals in scope of financial and strategic commitments Owner of property, responsible for decision on intended action(s) Planning Commission Consider consistency of proposals in scope of local and regional plans If property to be sold, provide a formal recommendation on the sale to Borough Council as required by state law Redevelopment Authority Consider ideas in scope of Community & Economic Development Goals If property to be redeveloped, property will transfer to RDA who will become responsible for the RFP and redevelopment of site(s)
19 Review Process Background & Kick-off: March 3 Joint Meeting Receive information on site & proposals, approve review schedule Press release to request any additional community proposals Presentation of Individual Proposals: March Review proposals in conjunction with Council Work Session 20 minute presentations of each proposal Council Discussion of proposals: April Council Decision: May Vote on intentions for reuse or disposition of property
20 Review Process Identifying Important Goals In order to frame the review process for the potential actions and proposals, please rank the following in order of importance. (1 =Highest Level of Importance, 4 =Lowest Level of Importance) How closely is the proposal aligned with Borough Council s Strategic Plan & Adopted Downtown Master Plan(s) What is the requested financial and/or strategic commitment by Borough? What is the proposed timeframe(s)? Does the proposal build on partnerships that can unlock the potential of this block, or preclude future opportunities due to a limited scope? Can the proposal be part of a phased approach? Please rank on the form at your seat and leave with staff.
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