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
Agenda
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Historical Context
Site Specifics
Master Planning
Proposals
Review Process
224 S. Allen St.
Historical Context
2002
Oct 2007
Oct 2008
2002 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.
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$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
Historical Context
2008 - 2010
2011 - 2015
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:
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2015
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.
Site Specifics
• 10,560 Square Foot Lot (per
W. Beaver Ave
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
• Located between First National
Bank Drive Thru site and
Jeramar Plaza
224 S. Allen St.
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
Site Specifics
Front facade
Rear facade
Northern facade, FNB Drive-Thru & Parking
Interior
Site Specifics
Borough Expenses
• Borough purchase price in 2008: $757,192.33
– $750,000.00 purchase + closing costs from Capital Reserve
• Incurred Costs as owner, to-date: $82,920.21 (from General Fund)
• Income Generated from Rents, to-date: $354,580.65
– Paid to Capital Reserve
– Historical average lease rate of $10/SF rate
• Current Balance to Capital Reserve: $402,611.38
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”
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
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
2013 Plan Recommendations
Allen Square Concepts:
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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
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
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
3rd 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
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?
Review Process
Analysis of Individual Proposals
When reviewing options for the block, and proposals that have been
offered, some guiding considerations should be:
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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?
Review Process
Potential Council Actions
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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
Review Process
Roles of Agencies
Borough Council
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Consider consistency of proposals in scope of financial and strategic
commitments
Owner of property, responsible for decision on intended action(s)
Planning Commission
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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
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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)
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
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)
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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.