Core Spaces conditional use hearing turns to State College housing, affordability concerns
A conditional use hearing on Chicago-based developer Core Spaces’ latest project proposal — a 12-story luxury apartment building in the heart of State College — turned into a discussion on lack of housing options at Monday night’s council meeting.
In early November, Core Spaces submitted a land development plan to demolish four buildings in the 400 block of East College Avenue and construct a 12-story mixed use building with commercial space on the first two floors and 135 residential units above.
The demolition would displace several longtime businesses, including George’s Floral Boutique, Eddie’s Bicycles and Hockey Equipment and Pizza Mia’s State College location. The replacement building will house a mixture of one-, two-, four- and five-bedroom units for a total of 493 bedrooms, with 20 double-occupancy bedrooms. A below ground parking structure will hold 172 parking spaces, with nine allocated for retail.
The building will also be LEED certified, have a 25 foot setback allowing for wider sidewalks and a terrace with a pool on the roof.
In a presentation to council, State College Senior Planner Gregory Garthe said Core Spaces’ plan met most of the criteria to be approved for a conditional use permit, and will work to fulfill certain other criteria for long term management and leasing documents. Core Spaces’ land development plan was reviewed by the Design Review Board, Planning Commission and borough staff. Signage, stormwater management and traffic impacts will all be part of the final plan submission, he said.
Some council members, including Theresa Lafer, said that though the company advertises “a mixed-use building with 10 floors of multi-family apartments,” the building would be mostly tailored toward students.
“(Families) are not going to move in there if the apartments are filled with students,” Lafer said. “And the students aren’t going to want them there.”
Chip Schell, the vice president for new business at Core Spaces, said the company’s market strategy focuses on four core groups: professionals, non-students, graduate and undergraduate students. To capture a more diverse swath of population, he said, Core Spaces starts the marketing process “early” by developing relationships with staff and faculty at universities, large companies, young professional groups and local hangouts like breweries.
After being questioned on how that marketing strategy would be implemented in State College, Schell said leases will be offered by the bed. Council member Dan Murphy pointed out that practice caters to students, rather than the young professionals and families the company claims to market toward. Additionally, he said, single-occupancy apartments often aren’t affordable if they’re marketed at the same rate as a double-occupancy apartment.
Schell also couldn’t give estimates on new apartment lease costs to Genvievre Miller, the University Park Undergraduate Association council liaison, who wondered if apartments would be affordable to displaced residents and others looking for housing. He did say they would likely be at market value or above, because of their new construction and amenities.
Mark Goehausen, senior development manager with Core Spaces, told council that the company would pay a “fee-in-lieu” of constructing inclusionary housing units, which rent for no more than 30% of a very low- to middle-income household.
Because State College sets the fee based on 10% of total units, Core Spaces will pay about $130,000 per unit, meaning $1.75 million will go to the affordable housing program. Planning Director Ed LeClear said the borough uses the funds to subsidize homebuying costs for individuals who qualify based on income.
He added that in 2022, when Core Spaces anticipates this project will be completed, roughly 4,200 new beds from apartment development will have been added to downtown State College since 2017.
Candice Bradley, president of State College Young Professionals, said she’s worked with property management companies for high-rises in the area to attract young professionals downtown, but her conversion rate is zero because apartments range from $1,000-$1,400 per bed.
“I would urge the council as well as these organizations ... to have a more realistic perspective about affordability with young professionals because we’re the future of this community, and to get us to stay requires us to have affordable housing where we can feel like adults and professionals and be able to afford a future in this community,” she said.
State College Borough Council will vote whether to approve the conditional use permit for Core Spaces at its Feb. 3 meeting.
.jpg)