State College Borough Council closes loophole that allowed a proposed hotel to plan a 4th story
Months after a developer exploited a loophole to plan an extra story on a Hilton-branded hotel, the State College Borough Council closed it Monday night by unanimously changing the related ordinance.
The proposed 122-room Home2 Suites by Hilton, at part of the former Autoport motel and restaurant property (1401 S. Atherton St.), was able to plan for a fourth story by triggering an exception related to inclusionary housing, or affordable housing for lower-income families. By adding eight apartment units on to the hotel — only one unit of which is inclusionary housing — the hotel was able to plan for an entire additional story. (Without inclusionary housing, the hotel would have been limited to three stories.)
Council’s amended ordinance should prevent an incident like that from happening again. However, the changes are not retroactive — meaning that Home2 Suites by Hilton, which hasn’t yet started construction, can still legally proceed as planned. The borough solicitor previously said the plan could not be denied because it still technically complied with the law at the time of the proposal.
“Staff have received many complaints from the State College South Neighborhood Association and the Coalition of State College Neighborhood Associations,” borough manager Tom Fountaine said. “And this has frequently been called an abuse of the ordinance.”
Added planning director Ed LeClear: “As the manager indicated, this was not an intended result of the ordinance.”
Previously, to incentivize the building of affordable housing, the borough allowed for an extra story if inclusionary housing made up at least 10% of a building’s residential housing, in certain zoning areas. The problem with Home2 Suites is, as a hotel, its proposed gross floor area is 90% non-residential. In other words, because a fraction of the hotel is residential and a fraction of that includes inclusionary housing, the entire hotel technically qualifies for a fourth story.
After Borough Council voted 7-0 to amend the ordinance, future buildings that want that extra story due to inclusionary housing must essentially have at least 70% of the gross floor area set aside for residential purposes. What would that look like? Atherton Place, a four-story affordable housing building at 1311 S. Atherton St., is 74% residential and 26% commercial with its Dunkin Donuts.
Council members discussed the issue little Monday night, as they unanimously agreed an amendment was needed. The topic was initially brought before council earlier this year, and virtually no one — outside of those directly involved with the project — publicly supported the hotel’s fourth story.
When the CDT reached out to the developer, Concord Hospitality, and owner, South Atherton Real Estate I L.P, in January, a Concord spokesperson emphasized they were “fully compliant with all applicable statutes.” A Hilton representative also said the proposed hotel is independently owned and operated, meaning it carries the Hilton brand but is not owned or managed by the company.
One public comment was taken on the issue Monday night. And the resident applauded changing the ordinance.
According to borough spokesperson Doug Shontz, a revised final plan from Home2 Suites is expected sometime this summer. The revisions address traffic flow and access to South Atherton Street and have nothing to do with the additional story, however.
There is not yet a construction timeline.
