Allentown State Hospital site will be redeveloped
New report gives three buildout scenarios
Allentown State Hospital is gone, and officials have begun to consider in earnest what the future holds for the 200-acre site along Hanover Avenue.
Allentown on Wednesday released a 91-page reuse feasibility study for the east Allentown property. The report, completed by Michael Baker International, offers three redevelopment scenarios with varying mixes of residential, industrial, commercial and institutional land uses. For each scenario, the study estimates the number of permanent jobs created (as many as 6,600) and amount of annual city tax revenue generated (up to $6 million), among other projections.
A reminder: Pennsylvania, not Allentown, owns the state hospital land. But the city controls the site’s rezoning and will have considerable say in the redevelopment process.
Local leadership “can have significant roles to play in establishing a favorable development atmosphere, serving to manage community expectations and robustly champion the success of the redevelopment effort,” the study concludes.
Gov. Tom Wolf in July 2019 enacted a law that required the state Department of General Services to demolish 44 buildings and structures on the site before creating a competitive bidding
process for the sale of the property. The roughly $13 million demolition unfolded over the latter half of 2020.
A committee consisting of state Sen. Pat Browne, R-Lehigh; state Rep. Mike Schlossberg, D-Allentown; Leonard Lightner, Allentown’s director of community and economic development; and Secretary of General Services Curt Topper will review proposals and recommend a buyer. (The site is in Browne’s and Schlossberg’s districts.) The committee will choose a development proposal based upon best value and return on investment.
While not binding, the redevelopment scenarios contemplated in the feasibility study will inform the selection process. Allentown will also consider the study as it updates its zoning ordinance, which dictates, among other things, the types of land uses permitted in any given section of the city.
In coming up with the three scenarios, the city and its economic development partners considered the topographic and geological challenges of the hilly site (roughly 120 acres are developable); the market feasibility of particular land uses; and community input provided in 2019 during the Allentown Vision 2030 comprehensive planning process.
They also weighed various options for site access, seeking to avoid increasing traffic on residential streets while also searching for a viable entry point besides the main one on Hanover Avenue. As for the site’s distinctive boulevard entrance, planners considered the pros and cons of maintaining the road alignment.
Here’s a summary of each redevelopment scenario:
Town Square
The Town Square concept keeps the straight road alignment leading into the site. In the center of the site where the main hospital building stood, the main street splits to surround a central green square.
This is the only concept that includes a new school for Allentown School District. It’s also the only one to include no industrial uses. Town Square features the largest nature preserve and, like the other two, offers low- to mid-density housing in the southwestern portion of the site, next to existing housing between East Hamilton and Fairview streets. It “reflects market needs that can be more easily accepted by the community.”
Projected annual city tax revenue: $5.2 million
Estimated jobs created: 4,380 permanent jobs; 5,600 construction jobs
Residential units: 644
Senior living units: 141
Office space: 206,400 square feet
Flex( office, manufacturing or R&D) space: 160,000 square feet Industrial space: none
Retail: 92,800 square feet Preserved land: 90 acres
Grand Boulevard
The Grand Boulevard concept aligns the main entrance from Hanover Avenue with Plymouth Street. Within the site, the main road turns to follow the existing road, ending at an “employment campus” at the location of the former main hospital building.
The concept has the largest developable footprint (120 acres), and presents the most industrial space, primarily on the eastern end of the property (providing some tax revenue for the Bethlehem). It also calls for the largest senior care facility of any of the scenarios, and features a park near the existing neighborhood and Community Services for Children building on the western end of the property. A transit station would be developed along Hanover Avenue, with bus service likely extending onto the site. It would require the most land leveling to pull off.
Projected city tax revenue: $6.15 million
Estimated jobs created: 6,637 permanent jobs; 6,819 construction jobs
Residential units: 524
Senior living units: 170
Office space: 172,800 square feet
Flex space: 240,000 square feet Industrial space: 330,000 square feet
Retail: 140,000 square feet Preserved land: 69 acres
Urban Plaza
The Urban Plaza concept creates a large plaza along Hanover Avenue with multiple entrance points and greater visibility to the larger development extending into the site. It “maximizes development in the most feasible areas but avoids major regrading that only supports small areas.”
Like the Grand Boulevard concept, it features a transit station and industrial development, though it’s more compact.
The senior care site is also smaller, but stands atop the property, with great views. The Urban Plaza also offers the largest park.
Projected tax revenue: $5.8 million
Estimated jobs created: 5,300 permanent jobs; 6,400 construction jobs
Residential units: 598
Senior living units: 143
Office space: 268,800 square feet
Flex space: 80,000 square feet Industrial space: 210,000 square feet
Retail: 125,000 square feet Preserved land: 83 acres In 2018, the Lehigh Valley Economic Development Corp. identified five target industry sectors for the region based on employment trends. The state hospital site could accommodate four: manufacturing, life science research, professional services and health care operations requiring medical office space.
Given the unmet demand for light industrial and flex manufacturing spaces smaller than 80,000 square feet, the campus provides an opportunity to construct buildings that “help replenish older industrial building stock,” the study says.
As for residential development, the study suggests the state hospital site should meet steady demand for multifamily housing. It also says the location is ripe for a long-term care facility given its open space, proximity to hospitals and transit access.
Office space would be best targeted at smaller users requiring 8,000 square feet or less given the larger-scale corporate offerings in the city’s Neighborhood Improvement Zone.
The Wildlands Conservancy would preserve the steep slopes on the southern portion of the site, above River Drive. Each of the scenarios includes a trail network and bike paths.
The property is zoned for institutional use. During a presentation to City Council on Wednesday, city Planning Director Irene Woodward emphasized that nothing in the study is set in stone, and that rezoning is in order.
“We recognize that these are just concepts. There’s going to be a long process ahead in terms of choosing a developer and working with them as they go forward,” she said.
The request for development proposals has not yet been drafted, Lightner said. Councilman Joshua Siegel urged the city to be proactive in rezoning the site so that prospective builders are “coming to us on our terms.”
Councilwoman Ce-Ce Gerlach reminded the city to keep East Siders in the loop as the planning conversations continue.
The hospital, which featured a main building constructed in 1904 and was eligible for the National Register of Historic Places, cost taxpayers roughly $2 million annually in maintenance following its closure in 2010.
Browne, who wrote the legislation enabling building demolition and site sale, has long argued that adaptive reuse of the buildings was not economically viable, and that it’s vital to get the property back on city tax rolls.
The state hospital redevelopment tax projections represent 6%-7% of the $86 million in tax revenue Allentown expects to collect this year.