A potential new hotel found a loophole to build a 4th story. State College residents aren’t happy
A potential new hotel has irked residents — and caused consternation among some members of the State College planning commission — after finding a legal loophole that would allow it to skirt a borough ordinance that limits new buildings in similar zoning districts to three stories.
Design plans for the 122-room hotel, at part of the former Autoport motel and restaurant property (1401 S. Atherton St.), show the new building will be four stories, creating concerns for nearby residents about both the aesthetic and the traffic/safety impact. The owner, South Atherton Real Estate I L.P., appears able to build the extra story because of an ambiguous borough ordinance that allows for additional building height for inclusionary housing, or affordable housing designed for low- to moderate-income households.
The proposed extended-stay hotel, part of the Home2 Suites by Hilton brand, will feature eight apartments. And a single one will be under the umbrella of inclusionary housing, legally allowing the entire hotel to build that extra story.
“This perverts the inclusionary housing requirement at a time when the State College borough is in dire need of inclusionary and affordable housing,” State College resident Michael Cross said Thursday night during a virtual planning commission meeting. “State College needs more inclusionary housing, not a developer doing the bare minimum to get what he wants without really helping the community he’s going to profit from.”
The borough ordinance in question limits new buildings to a maximum of 35 feet in CP2 zoning. The proposed hotel will be at least 45 feet tall at its highest point, more than 28% greater than normally would be allowed.
But there’s essentially nothing the planning commission can do about the loophole in this case. The borough is legally obligated to approve any plan that conforms to local laws and, technically, officials said, this one appears to.
“We have reviewed this multiple times with a solicitor, and his guidance to us has been that we cannot deny it,” planning director Ed LeClear said.
A Hilton representative told the CDT the proposed hotel is independently owned and operated, meaning it carries the Hilton brand but is not owned or managed by the company. The principal owner of the limited-liability company in charge of South Atherton Real Estate I L.P, Gregory Welteroth Jr., did not immediately return a message seeking comment.
The developer, Concord Hospitality, emphasized in a written statement to the CDT that it is “fully compliant with all applicable statutes.”
“In addition to providing inclusionary housing, we are confident that this hotel will attract a regular stream of guests from outside the area that will spend their money at local businesses, restaurants and shops,” wrote Carl Hren, senior vice president of development. “In addition, the property will create approximately 25 local jobs.”
Residents and commission members were a bit more direct with their criticisms.
Planning commission member Scott Dutt referred to the hotel’s plan to put the entrance far from the parking lot as “illogical.” A group of 11 residents near Bradley Avenue co-signed a letter last March, expressing multiple concerns. And several residents spoke up during Thursday’s public meeting with questions about the fourth story, the positioning of a dumpster and the impact of traffic.
Based on current plans, the property’s main dumpster will be positioned directly behind the property, which one resident said could be seen from their dining rooms.
“In terms of being a good neighbor, I don’t feel like putting a dumpster in someone’s backyard is really the best approach,” said Karen Henninger, who spoke on behalf of her mother, who lives on Bradley Avenue.
Others pointed to potential traffic problems, especially as a result of having a fourth story and higher density. The proposed hotel plans to construct a “slip lane,” which essentially amounts to a temporary third lane northbound on South Atherton that would allow travelers to turn onto the property.
The problem, several residents pointed out, is that a “slip lane” could only add to problems for southbound travelers. Not unlike the issues at Patton Township’s Chick-fil-A or the KFC about a half-mile from the proposed hotel.
No action was taken on the property Thursday night, in large part because of the potential traffic issues. Neither PennDOT nor the borough’s consulting traffic engineer have yet issued their reviews of the completed traffic impact study. But the reviews could be ready when the topic is taken up again during a planning commission meeting at 7 p.m. Feb. 18.
The borough has a legal obligation to approve, or offer a list of “deficient” items, of the final plan by mid-March, 90 days after the plan was submitted. Borough Council will vote only on the property’s subdivisions — which, similarly, the borough is legally compelled to pass — and will not vote on the actual final plan, which falls on the shoulders of borough staff.
Even if Council amends the ordinance in question, eliminating any ambiguity and closing the inclusionary-housing loophole, it’s still too late to impact this plan. But this proposed hotel was the first time the exception was used for a primary commercial use, and Council might be able to ensure it’s the last time.
Borough spokesperson Douglas Shontz acknowledged Friday the issue will be covered in an upcoming council meeting. But specifics are unknown at this early point; it’s also still early in the final-plan process, as the start of construction could still be months away.
But plenty of residents will be closely following it.
“There’s a whole lot of concerns here,” Cross, a local resident, said during the meeting Thursday. “I don’t hear anybody on this call saying, ‘Geez, don’t build the hotel.’ But this is a major impact on people, and I’d like to understand where the borough is with respect to addressing this very serious situation.”
The next borough council meeting is 7 p.m. Feb. 1, and the next planning commission meeting is set for noon Feb. 3.
