Thursday, December 19, 2013

Developer is confident Ardmore project will get 'back on track', Pennsylvania’s Office of the Budget will not support the use of $12 million in Redevelopment Assistance Capital Program grant funds for a mixed-use project there.



The death knell for new luxury apartments and retail with public parking in the heart of Ardmore  should not be rung just yet.

The man who wants to build all of this on Lower Merion Township’s Cricket Avenue parking lot said he remains “fully committed” to the project, and looks forward to a groundbreaking in 2014.

That was Carl Dranoff’s response one day after Lower Merion officials were notified that Pennsylvania’s Office of the Budget will not support the use of $12 million in Redevelopment Assistance Capital Program grant funds for a mixed-use project there. In a letter received Monday through the Montgomery County Redevelopment Authority, which would be the conduit for the funds, the state office relates that of the $15.5 million in RACP grants pledged for an Ardmore Transit Center and downtown revitalization initiative, Gov. Tom Corbett will release only $3.5 million tied directly to a first phase of planned improvements at the Ardmore Train Station.

In light of that development, it was expected that the topic, though not listed on the agenda, would come up for discussion at a meeting of the board of commissioners tonight.

In a similar reaction to board President Liz Rogan’s initial comments to Main Line Media News Monday, Dranoff said in a phone interview Tuesday, “Our interpretation is this is a misunderstanding” of the project. And it is a misunderstanding that he said he believes “will be rectified.” Dranoff’s company, Dranoff Properties, is the township’s development partner on the Cricket project, which he has dubbed One Ardmore Place.

Other responses Tuesday were either noncommittal or outright gloomy.

In response to a request for an interview, Township Manager Douglas Cleland said through a spokesman that he would not be available for comment Tuesday. Public Information Officer Thomas Walsh related that Cleland felt he could not add much more than Rogan had said in her comments, when she focused on “inaccuracies” in the letter from the Commonwealth. “We are developing a plan on how to deal with the situation,” Walsh said in a voicemail.

Christine Vilardo, executive director of the downtown business authority, The Ardmore Initiative, said late Tuesday that the organization would not comment at this time, feeling that it did not have enough information about the funding decision.

Commissioner Lewis Gould, who has repeatedly raised concerns whether the funds could be redirected to a project on the Cricket lot, most recently at board meetings and in a letter to the Main Line Times this fall, took a dimmer view. But he also said he took no joy in apparently being proven right.

“I am heartbroken about it,” he said, referring to the overall Ardmore project. As he has pointed out, it was he who nearly a decade ago encouraged Lower Merion to pursue transit-oriented development in Ardmore. He was also instrumental in working with U.S. Rep. Jim Gerlach, the township’s then-Congressional representative, to secure an initial $5.8 million federal grant for an Ardmore Transit Center project in late 2004.

Gould said he questioned from the beginning whether the RACP grant funds could be used for a project that is primarily residential, rather than for transit improvements to include a new commuter parking garage.

That is one point, however, on which Dranoff agrees with Rogan that the letter from the state official seems “inaccurate.” The developer of several major residential redevelopment projects in Philadelphia, he noted that RACP grants were used in both his Symphony House and 777 South Broad projects, which include commercial components.

As for One Ardmore Place, “The portion being funded [with RACP funds] are the commercial areas, not the residential part,” Dranoff said. He also said the state’s letter was incorrect in stating that the project was still “conceptual” and in suggesting that its financing has not been secured.

“The project is moving forward,” he said. “We have preliminary plans being prepared, we have done the geotechnical work on the site, we’re rolling this thing out right on our schedule for mid-2014,” he said, pointing out that the letter itself cites an expiration date for the grants of Dec. 31 of that year.

As far as financing, “I’m the person putting up the [private] money,” he said, meeting the grant requirement of a 100 percent match of funds. The requirement for matching funds is one reason the $12 million cannot simply be applied to building a parking garage at the train station, where a significant fund gap remains and township commissioners have been adamant no additional township taxpayer money will be spent.

Dranoff said he personally was present, along with Dranoff Properties’ general counsel, Rogan and Cleland, at a meeting in Harrisburg earlier this fall, when as Rogan has said, the group was given verbal assurances that the application of the use of the $12 million was in order.

Working cooperatively with the township, Dranoff said that, as it did in playing a large role in securing the full amount of the RACP grants initially, his team will work to get the Cricket lot project “back on track.”

“As a developer who is used to [having to get] past speed bumps and obstacles, this is what we do,” he said. “Usually we prevail, and we look forward to breaking ground next summer.”

Check back with Main Line Media News for updates following tonight’s board meeting.

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