Haddon Township is suburb of Philadelphia with 20-minute commuter rail service to Center City Philadelphia via the Westmont Station. This station is conveniently located one block off the main commercial corridor (Haddon Avenue) and two blocks from the 7-acre Transit Village parcel. In 2000 the Township selected a developer to purchase this property, which the Township had already assembled and remediated. An agreement of sale was in place for $8.5 million but the developer’s plan was not accepted by the community. The site is located in the heart of the downtown, and its redevelopment was critical to Haddon’s continued revitalization.
After changes in the market, the community required the addition of 23 affordable housing units and ground floor retail at the project. To accommodate these requests the developer wanted additional financial incentives from the Township, claiming that the project would not be financeable without them. The developer proposed a 30-year PILOT including a $6 million public bond issue, and the Township hired RESGroup to review the need for tax incentives and provide an objective review of the proposed project for Council consideration.
RESGroup reviewed the developer’s proposal including the project plan and the financial projections, evaluated the need for the PILOT, and estimated the tax revenue impact on the Township should the project move forward. The evaluation included a market overview to compare the projected rents and unit sizes with existing competitive properties as well as projects proposed in the market area. Presentations were made to Council, the Mayor, and the public to explain the outcome of the analysis and to verify the need for the incentives.
The Towne Center project was completed in 2017 with the assistance of Township funds. The project includes 227 units (with 21 units allocated to individuals or families with very low- to moderate-incomes), a clubhouse, outdoor heated swimming pool, parking, and ground floor retail.
