In an effort to save a surface parking lot from being
developed, a community group in Ardmore, Pa., has sued the developer of the
property claiming state funds dedicated for the project is a misappropriation
of public money and now there is a hearing date set for Wednesday over the
matter.
The Save Ardmore Coalition sued Dranoff Properties in
August claiming that $10.1 million the Philadelphia developer received from the
state through Pennsylvania’s Redevelopment Assistance Capital Program, or RACP,
was a “misappropriation of public funds for improper and inappropriate private
use."
The group also questioned why "Dranoff Properties is
the only developer in Lower Merion Township - one of the wealthiest townships
in Pennsylvania - to demand that taxpayer money subsidize the construction of a
luxury apartment development."
The financing, meanwhile, is common. The state subsidizes
well-financed developers, companies and even non-profits such as museums
through the program.
RACP was established in 1986 with $400 million to help
support economic development projects that would not only enhance a community
but also produce construction and permanent jobs. The amount of money has
increased by hundreds of millions of dollars over the years and is doled out
annually by the governor.
Just last year, developers, institutions and companies
that proposed projects just in the city of Philadelphia sought more than $341
million in taxpayer funds from the program. Some of those looking for the
handouts at the time included: Dietz & Watson, Thomas Jefferson University
Hospital, Wistar Institute, a partnership developing Girard Square, and Liberty
Property Trust, which asked for $25 million for infrastructure associated with
the construction of the new
It’s not just those well-heeled developers doing projects
in the city looking for funds. Closer to Ardmore, Villanova University sought
$10 million to help pay for a portion of a proposed development of the school's
surface parking lots along Lancaster Avenue.
And even counties, through their economic development
agencies, ask for these funds either for infrastructure improvements or for
companies located within their borders.
At one point Montgomery County had 14 projects seeking
money totaling $41 million. One of the entities that received money was
Abington Hospital, which got $3 million of a $10 million request for the
construction of a 63,000-square-foot cancer center.
Dranoff has been trying to develop the Cricket Avenue lot
since 2008. The $56 million mixed-use project the developer has proposed would
be called One Ardmore and would include apartments, retail and parking. In spite
of support from the township, the project has never gotten out of the ground.
It has been met with steep opposition for years and, in
what appears to be a last ditch effort to thwart the development, Save Ardmore
Coalition is taking Dranoff to court over the state funds. Dranoff Properties
has countered the group’s claim, saying it is an aggrieved party and believes
that the lawsuit can only go forward against the involved governmental
authorities.
Save Ardmore disagrees.
In a statement, the group said it “opposes Dranoff
Properties’ petition to intervene in our pending lawsuit against Lower Merion
Township, Montgomery County Redevelopment Authority and the Governor’s Office
of the Budget.”
A hearing is scheduled Wednesday in Pennsylvania
Commonwealth Court on the petition filed by Dranoff Properties.
Source: Philadelphia
Business Journal
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