Representatives for the developer of a proposed mixed-use building that would replace a State College apartment complex for low-income seniors commented publicly for the first time Wednesday on the timeline for ending leases of tenants who will be displaced by the project.
John Haschak, land development attorney for developer Primecore, told the State College Planning Commission during a preliminary plan review that the goal is to assist tenants of Arnold Addison Court, 120 E. Beaver Ave. with relocating over the next two years.
Primecore plans to construct “Encore,” a new seven-story building with 40 apartments primarily geared toward students and ground-floor commercial space at the current site of Addison Court, which offers income-restricted housing for individuals 62 and older or with disabilities. Tenants were notified in a Dec. 8 letter from property manager Calibre Residential that the property was “under consideration by new investors” and that all current leases would have an end date of Nov. 30, 2026.
State College Planning Director Ed LeClear, however, wrote in a subsequent letter that borough and Pennsylvania Housing Finance Authority staff reviewed legal documents related to the property and believe tenants who resided in the building as of Dec. 31, 2024 cannot have their leases terminated without cause before the end of December 2027.
Addison Court was constructed in 1994 using Low-Income Housing Tax Credits, a program administered in Pennsylvania by the PHFA. The 30-year affordability requirements attached to those credits expired at the end of 2024, meaning the property is no longer required to be maintained as low-income housing.
LeClear further explained on Wednesday that a deed restriction for the property requires a three-year “wind-down” period after the affordability period expired, so tenants could not be forced out without cause until Dec. 31, 2027.
During a presentation to the Design Review Board on Tuesday, Tony Fruchtl, of project engineer PennTerra, said the plan is to begin construction in 2027. But he clarified at Wednesday’s Planning Commission meeting that represented “an ideal situation regarding relocation of the existing tenants and where that goes.”
“If it ends up being what Ed talked about as far as when they leave, then, yes, the construction schedule obviously gets pushed,” Fruchtl said.
Primecore and its affiliates have six affordable housing tax-credit housing projects with 186 units in the Centre Region, Haschak said, and the company is “well aware of the restrictions and the deed restrictions and the items of record and their obligations.” Primecore’s CEO is State College-based developer Ara Kervandjian, who has led multiple affordable housing projects in the State College and Bellefonte areas.
“Given their ongoing relationship with PHFA and their reputation as a low-income housing developer, they have no intention on breaching a covenant or unduly burdening a tenant,” Haschak said. “As Ed mentioned, the three years is a wind-down period. The goal isn’t to wait until December 31 of the last year until everybody is gone. The goal is to work over that [wind-down] period to relocate people, assist people, figure out an option for the existing residents. If that happens sooner rather than later, construction starts sooner. That three-year period is waivable by the PHFA under certain circumstances.
“So while the tenants and the PHFA may have enforcement rights, the goal is to certainly use the wind-down period to wind down and not just wait till the last minute and create chaos.”
The Addison Court building, which also houses Masala Palace Indian restaurant, has 89 apartments, 88 one-bedroom units and one two-bedroom. According to records provided to the borough in December, 29% of the units in the building are currently vacant, with 63 of the 89 apartments leased.
The apartments are restricted to tenants with income no more than 60% of the area median.
Borough Manager Tom Fountaine said in December that as of 2019, the most recent figures available, 56 of the apartments had Section 8 vouchers, 74 were rented to households with incomes of less than 60% of the median area income for State College and 15 units were rented to households with incomes less than 50% of the median.
The Centre County Housing Authority has been notified of the development plans to advise tenants on next steps, according to the Dec. 8 letter from property manager Calibre Residential.
Borough staff are also working with the Addison Court residents.
“Obviously we’ve had dialogue with human service agencies,” LeClear said on Wednesday. “The borough has provided a series of other low- and moderate-income housing options, to try to give existing tenants opportunities so they know where they may be able to go. And we’ve also provided some correspondence related to what our understanding of the legal requirements are for the existing building… not legal advice, but our best understanding of what their rights are.”
State College Council members said at a December meeting that while it is privately owned and the borough is limited in what it can do, the property is important to the borough because it provides affordable housing downtown for seniors with easy access to transportation and amenities. The borough, in fact provided a $440,000 loan to Addison Court’s original developer for the property acquisition in the early 1990s, and it was repaid in full in 2012.
Council member Kevin Kassab called the planned redevelopment “a really sad situation,” and said the borough needs to think long-term to avoid potential displacement of affordable housing residents in the future.
Council President Evan said that while the borough can’t stop a development plan that meets legal requirements, it can work to help residents find affordable housing.
“Now, that doesn’t mean we’re going to be successful immediately, and it’s also something that we should look at in the long term,” Myers said.
ENCORE PLANS
The planned U-shaped building is designed to structurally mirror and abut the neighboring Pugh Centre, which was co-developed by Primecore and designed with the possibility of a complementary complex being constructed on the Addison Court property, John Campbell, of project architect AE Works, said at Tuesday’s DRB meeting.
It won’t be identical to Pugh Centre, but will use exterior materials that complement the neighboring building, including brick, metal paneling, fiber cement siding and lower-level cast stone veneer. Its main entrance is planned next to Pugh Centre’s.
Encore’s eastern side willloors two through five would each have eight five-bed apartments, while floors six and seven have four apartments each. Four apartments will be designated for inclusionary housing, Fruchtl said.
“The apartment units, everything are based on the same type of unit at the Pugh Centre, which has been received very well by our client’s tenants,” Campbell said.
A rooftop terrace is also planned for the upper level. be 72 feet to the roofline, matching the Pugh Centre’s height, and with an elevator tower reaching 81 feet. The western side drops to 45 feet, in line with the neighboring Schlow Centre Region Library.
Plans for parking include an internal garage with 71 spaces, including 3 ADA spots, accessed from Beaver Avenue and spiraling down one level. Ten covered bicycle parking spots are also included.
The first floor will have two 2,120-square-foot spaces for commercial tenants, along with a lobby, mail room, lobby and fitness center for residents.
Fruchtl said the developer hopes to submit a final land development plan in March or April. Construction, whenever it begins, will take approximately 16 months.
