A developer asked State College Borough Council on Monday to consider a zoning change to accommodate plans for new student apartment complex on the Addison Court property, as residents of the existing low-income apartment building for seniors and people with disabilities on the site continued to voice worries about their futures.
State College-based developer PrimeCore has proposed a new seven-story building on the 120 E. Beaver Avenue site and is seeking a zoning text amendment that would allow the complex to have a uniform height. Council ultimately voted 6-1 to refer the request to the Planning Commission for a recommendation after an 80-minute discussion that also encompassed concerns for the tenants of the current building and the developer’s plans to help them relocate.
The parcel is split in half by zoning regulations governing building height limits in the commercial district. While the northwest side of the property is permitted a maximum height of 65 feet, the southeast side is subject to a 2007 zoning amendment that limits building heights to 45 feet within 200 feet of South Allen Street.
Splitting the height limits, PrimeCore CEO Ara Kervandjian said, requires any new building constructed there to be designed with a step down, creating “a split building form on a single development site, thereby restricting and diminishing private developer rights.”
“The success of a project is directly related to the balance among good design, construction cost, and the financial viability,” Kervandjian said. “The existing height differential across the parcel creates an impediment to this project’s viability, which may render moving forward as designed infeasible.”
The intent of the 2007 zoning amendment was to prevent tall buildings that would create a “canyon” effect at the corners of South Allen Street and Beaver Avenue, which former longtime planning and zoning officer Herman Slaybaugh confirmed. PrimeCore is proposing the zoning provision be reduced to within 100 feet of South Allen Street, which Kervandjian and Slaybaugh said would protect they intent of the amendment.
Council member Matt Herndon, the sole vote against referring the request to the Planning Commission, said he is a “strong proponent” of building more housing, but that the request “turns [his] stomach.”
“If I’m understanding this request correctly, the company that’s about to demolish Addison Court and throw numerous seniors out of affordable and accessible housing is asking us to make a special exception to allow their new building to be bigger and more profitable for them while they displace their current tenants,” Herndon said.
Developer Discusses Plans, Residents Share Concerns
The proposed new building would mirror the neighboring Pugh Centre, which was co-developed by PrimeCore and opened in 2020. It would include two 2,120-square-foot spaces for commercial tenants on the ground floor, six levels with with 40 apartments, a rooftop terrace and underground parking.
Plans for the new building to have 40 apartments with four inclusionary housing units would remain unchanged with the uniform height, Kervandjian said, but that it is possible several more inclusionary units could be added.
Addison Court, which was developed by Kervandjian’s father-in-law, Henry Sahakian, was built in 1994 using Low-Income Housing Tax Credits. The affordability requirements of those tax credits expired at the end of 2024, and current owner Calibre Residential has an agreement in place to sell the property to PrimeCore.
Tenants received a letter in December initially informing them that all current leases would have an end date of Nov. 30, 2026. Staff from the borough and the Pennsylvania Housing Finance Agency, which administers the tax credit program in the commonwealth, reviewed legal documents related to the property and determined a deed covenant prohibits the eviction of tenants who resided there as of Dec. 31, 2024 without cause before Dec. 31, 2027 because of a required three-year wind-down period,
Kervandjian said that the 30-year-old building is in need of extensive repairs and renovations that would displace current residents — about 50 of the mostly one-bedroom 89 apartments are currently leased — and would be”cost prohibitive to offer the rents at affordable rates.”
“I can tell you that this building has not had its proper upkeep and maintenance over the years, and it’s significant,” he said.
A prolific developer of affordable housing projects in Centre County, Kervandjian said his company is working to ensure all current residents find a new home that meets their needs.
“We don’t intend to leave anyone without security and peace of mind about where they live,” he said. “We’ve determined that the most viable redevelopment path that preserves current residents’ living arrangements is to start now by securing suitable housing for each resident that fits their personal needs.”
Starting this week, Continental Real Estate Management has been engaged to work with each resident of Addison Court to find housing options within the areas. The local company will have an office in Addison Court and also will be available to residents by phone.
Some of the areas being looked at for relocation include Waupelani Drive, “whether they’re Lion’s Gate or some of the other communities,” developments on Southgate Drive and in College Township, where Kervandjian’s companies have built multiple affordable housing complexes in recent years, he said.
Several Addison Court residents who spoke at Monday’s meeting said they remain worried about where they will go.
Kathryn Santoro, who only moved into Addison Court in August, said she has been unsuccessful finding an affordable option that meets her needs within the borough.
“I’ve been unable to locate an apartment in State College because they are not accessible to my disability, and they will not take housing vouchers,” she said. “And I refuse to move to Jacks Mills [in Harris Township] or out of town — no transportation or handicap accessibility for me, bedrooms are upstairs and I cannot use steps. Addison Court was perfect for me: access to CATA, Penn State shuttle, shopping, library, entertainment.”
Richard McCarty, who has lived in Addison Court for about 15 years, said he has epilepsy and Parkinson’s disease, but that many other tenants suffer from significantly more debilitating conditions.
“The vast majority of them do not drive, and a vast majority of them live by themselves,” McCarty said. “They would be forced into a situation where they would… need professional movers because there are basically the only members of their families left. And I simply don’t see the reason for tearing this building down.”
Rodger Weir, who has lived in Addison Court since 1999, said he has senses “an increase in open hostility” from the building’s current management toward tenants since the pending sale was disclosed.
“This uptick in the antagonism and the hostility that’s being expressed through the form of lease violations is extremely noticeable. The timing of it is not a coincidence,” he said, alleging that he recently began to receive lease violations for a service animal that he has had for five years. “… It’s effectively trying to force us out because we are not leaving fast enough to suit them on our own.”
Council Members Hope for ‘Creative Ideas’
Council members had the option of rejecting the zoning text amendment request outright, but voted to follow the typical process of referring it to the Planning Commission for a recommendation.
Several members said they voted in favor of doing so with the hope of arriving at a solution that will help the residents of Addison Court.
“I was absolutely convinced that I was going to vote no on this tonight, just end it right here,” council member Susan Venegoni said. “But if there is a willingness through the Planning Commission process to find a way to help these people keep their community, I’ll vote for it to go to the Planning Commission. But it’s going to have to come back with some concrete help for this community.”
Added council member Nalini Krishnankutty, “I, too, hope that we get back from the Planning Commission, some really creative ideas. And it’s not just the planning commission; all of us helping them too, and our communities. I hope we get that. So, I am voting for that.”
Herndon credited Kervandjian for showing up to discuss the issues, but said he could not vote in favor of referring the request. He added that he hoped Kervandjian would also appear if and when there is a public hearing on the Planning Commission’s recommendation.
“Unless this community sees a real solution to providing real housing for the current tenants. I don’t expect that hearing to go well,” Herndon said. “People do not want to see seniors thrown out on the street, and I know that is not your goal, but we need to see a real solution. ‘Cause just wait for that meeting. It will be a public meeting, and you will hear from a lot of people who are much angrier than me.”
Kervandjian said he and his company remain committed to assisting the residents of Addison Court, and to helping develop more affordable housing in the area.
“The best solution is to put in more new units in the area. And I’ve also made a proposal to the borough here if there’s land available, I’d be happy to help develop more affordable housing in the market,” he said. “But know this, if nothing happens to that building, there’s no units that you’ll get if it’s repurposed for something else. But we are sympathetic. We are interested in helping every single person in that building.”
