ZBA approval often represents the culmination of a lengthy entitlement process; a triumph which precedes building permits and construction. But a post-ZBA pivot is certainly possible, as long as the building envelope doesn’t grow and the use changes are less impactful. In other words, a developer can always reduce density but increasing density would require another trip to the zoning board. And indeed, we are seeing this very situation play out at 2201 E Tioga St. in Harrowgate.
We covered this project back in the summer of 2022, but as you can see, nothing has yet appeared on the site. A reminder, Penn Galvanizing Company operated out of a building here for decades, and their business entailed dipping steel into molten zinc baths to prevent corrosion. As you might imagine, the vacant lot that once housed this industrial business is a brownfield site which requires considerable environmental remediation before it can be redeveloped.
When we covered the property a few years ago, we told you to expect a four story mixed-income rental project with 76 apartments and 62 parking spaces. About half the units were to be rented out at market rate, with the rest reserved for tenants within a restricted income band (60% to 80% of AMI) as a condition for the City selling the property for less than its assessed value. After going through the CDR process, the project went to the ZBA and got approval, with the unit count dipping slightly to 70. Please don’t ask us why it made sense for a mixed-income project on a contaminated property in Harrowgate to lose 6 units; we don’t expect we could possibly provide a satisfactory answer.
Instead of proceeding to construction, the development team decided to pursue Low Income Housing Tax Credit (LIHTC) financing for the project. Upon securing federal and state tax credits, the development team went back to the Land Bank with new plans. Instead of a mixed-income project, the team is pursuing a fully affordable project which will also include supportive services to individuals with physical disabilities. The project has reduced the unit count to 51, divided between 25 one-bedrooms, 13 two-bedrooms, and 13 family friendly three-bedrooms. The parking has likewise been reduced, from 66 to 42 spots, which will allow for the creation of a small play area. The development group closed on the property at the end of last year at a $50K sale price and pulled a building permit last week.
While the low purchase price might seem like an awesome deal for the developers, the challenges of the site would suggest it’s spot on. Between the remediation work still needed, the location on the Port Richmond / Harrowgate border, and the inherent challenges of executing affordable housing development, even a $1 sale price would have been reasonable. With the property sold and permits pulled, we expect we’ll soon see progress on this site after a bit of a winding path. Fortunately, the ZBA approval is now past the statutory time frame for appeal, so City Council won’t be able to appeal the ruling and kill the project and we should soon see a small bit of progress toward chipping away at the affordable housing shortage in Philadelphia.