Lower Merion Township extends development agreement for Ardmore Revitalization Project
After an update from the Economic Revitalization Committee, the Board of Commissioners voted to approve a 90-day extension of the developer's agreement, along with a term sheet dictating terms for revised agreements.
Concerns from a few residents and commissioners aside, Lower Merion Township Board of Commissioners voted Wednesday to approve an extension with Dranoff Properties' development agreement for the Ardmore Revitalization project.
Every commissioner other than Commissioners Jenny Brown and Lewis Gould approved the extension, along with terms for a revised agreement.
As it stands, the project would mirror option 3 discussed since May, including a three-level parking garage near the train station, and the construction of a mixed-use building at the lot on Cricket Avenue.
Transit improvements would be deferred until additional funding became available.
Brown was concerned about the amount of money shelled for the project, formerly called the Ardmore Transit Center project, which has been in development for about eight years. Brown noted this was the third time the agreement with Carl Dranoff and his company, Dranoff Properties, has been extended, expressing concern about the affordability of the project.
"Each time the cost incurred by the township goes up," Brown said at the meeting. "Additional taxpayer money was not one of the compromises the township made."
The attorney representing the township in the development, David Scolnic from the firm Hangley, Aronchick, Segal, Pudlin and Schiller, said that Dranoff Properties is responsible for reimbursing the township with out-of-pocket costs from March 1, 2008 forward. If sufficient funding is available, Dranoff and his company will also reimburse expenses incurred after completion of the development's proposed parking garage.
Additionally, Dranoff will only receive a three percent developer's fee as opposed to the original five percent. Dranoff has an incentive to receive up to an additional two percent if the project yields a low cost that permits enough funding.
This did not sit well for some of Lower Merion Township residents, like Ardmore resident Bob Guzzardi who spoke during public comment about the project's viability.
"We [taxpayers and the township] will lose what we put into this project," he said. "There's no need to extend it, it can't possibly work."
Giannini Jewelers owner John Iannocone felt the contrary, citing enthusiasm in the retail community.
"People want to come to Ardmore because people believe something will be built," Iannocone said during public comment.
Township Manager Douglas Cleland said it's even possible that a larger project could still occur if additional funding became available. For example, the application for the Transportation Investment Generating Economic Recovery (TIGER) program grant mentioned at the Tuesday, Oct. 4 Ardmore Ad Hoc Committee meeting, which awards $25 million, was authorized at the Oct. 19 meeting.
Commissioner Gould proposed the board review the actual grant application, which is due at the end of the month. When trying to amend it for review, Gould only received support from Commissioner Brown. The board then authorized the application.
"I'm excited to do a reasonable project," said Commissioner Cheryl Gelber. "And I believe this project would also jump start other projects, which helps with the process of everything we've been trying to do."
Under the approved term sheet, there is a 90-day extension for the development extension between the township and Dranoff Properties from Oct. 31, 2011 to Jan. 31, 2012.
Click here for the approved term sheet.
