Gov. Wolf Building Gets Zoning Approval, Other Projects Postponed

By Christina Georgiou

The Governor Wolf Building on North Second Street is one step closer to
being renovated into more than 50 apartments after the project gained
the city zoning hearing board's approval Monday evening.

Plans to renovate the Governor Wolf Building on North Second Street into more than 50 one- and two-bedroom apartments were approved by Easton's Zoning Hearing Board Monday night, though five other scheduled hearings for various other projects were postponed until February due to the properties not being posted with the hearing date.

A tech glitch, compounded by a communication failure in the zoning office, resulted in the city not mailing hearing notices to property owners surrounding all six of the properties on Monday night's agenda, and consequently, the properties weren't posted notices of Monday evening's hearing date as well, said Zoning Administrator Cindy Cawley.

The lack of notice left the applicants facing the prospect of any approvals by the zoning hearing board might make Monday being appealed, noted board solicitor Robert Nitchkey.

Five of the proposed projects, which included an application to convert a row of garages on South Tenth Street into a delicatessen and small grocery store, will either be heard at a special zoning hearing board meeting to be held on Monday, February 3 or at the regular meeting on Monday, February 17.

Representatives for the Governor Wolf building, however, chose to go forward with their hearing, saying the agreement of sale to buy the property from Northampton County for $1.92 million is contingent on city zoning approval.

William Vogt, a principal partner of VM Management, which is purchasing the former Easton High School campus, said he'd talked with neighboring property owners and feels their concerns have been satisfied, making the chance of a substantial appeal unlikely.

The Penny Arch will be restored, VM Management partners
have promised.

Architect Lucienne Di Biase Dooley of Artefact, directing the project, echoed statements made by VM partner Mark Mulligan last week, telling zoning hearing board members the building's exterior will not be altered, and that plans include the application for historic preservation tax credits. She added that the group intends to restore the Penny Arch, currently in serious disrepair, and also the former school's bell tower.

Other features of the Governor Wolf building, including an interior spiral staircase and ornamental doors, will also be preserved, she added.

Neighboring property owner Charles Klabunde said he supports the preservation of the building, though he had some questions about the project.

"I think it's a good use," he told zoning board members. "It's not my first choice...(but) I appreaciate the consideration these people are giving this old building."

He added that he was concerned that construction vehicles might cause congestion on the street and inconvenience current residents during the renovation work.

Klabunde also suggested that the clock tower's bell be operated manually after its restoration, saying that the building's residents might not appreciate it ringing every hour through the night. He added the bell could be rung for special occasions, such as on Independence Day.

"It's really worth saving," Klabunde said. "It's the only really big bell we have left, and we ought to maintain it."

Dooley said that construction vehicles will mostly access the building from the rear through the parking lot on Larry Holmes Drive and that traffic along North Second Street won't be affected by the project.

"Historic renovation is what we specialize in," said Vogt. "We're sensitive to the neighborhood. We've done projects like this before. We're looking forward to bringing this building back."

Zoning hearing board members, along with city staff, said they support the project, and noted the variances it requires--including relief from a requirement that the first floor be used for commercial space--largely stem from the nature of the historic building's situation.

"I really think this is a good reuse of an existing building," Cawley said. "They're providing all the parking that's required, and I recommend it."

"Regarding the retail space, they're right. It's too far back," said board chairman Michael Civitella.

Vogt said the board's approval is the last step in ensuring the project will go ahead, and that he expects the agreement of sale with Northampton County to be executed and the property officially transferred to VM Management ownership soon.

It has been previously estimated the project will be complete and the apartments occupied by new residents by the end of 2015.

'We're making a big investment here," Vogt said. "We want everything to work for everyone in the city."

City Planning Commission Okays Gov. Wolf Apartment Plans

By Christina Georgiou

VM Development principal Mark Mulligan talks about the plans
for the Governor Wolf Building on North Second Street Wednesday
evening in front of Easton's Planning Commission

A plan for a mix of about 50 one- and two-bedroom apartments to occupy the Governor Wolf Building on North Second Street was unanimously approved by members of Easton's Planning Commission Wednesday evening.

While the interior of the building will undergo renovation, the exterior will look the same after the  modifications, though a small cooling tower on the south side of the structure will be removed, Mulligan said.

"Basically nothing is changing on the exterior of the building," he said. "We're going to get rid of this really ugly tower and replace it with a small park for the residents."

At the sidewalk level, the "Penny Arch", so named because it was erected with penny contributions from local school children as a tribute to former Pennsylvania Governor George Wolf's dedication to public school education, will be restored, along with the building's bell tower, Mulligan promised.

"The deed restriction will prevent us--actually anyone--from every doing anything other than restoring (the Penny Arch)," Mulligan said. "And we're going to do that."

The entire plan to renovate the building will follow national historic preservation guidelines, Mulligan said.

"We're actually going for historic tax credits on this project," he said, adding, "The (national) park service is actually pretty thrilled with this project."

The building has been granted a Keystone Opportunity Zone (KOZ) designation, which exempts the property from taxes. After a 10-year abatement period, the redevelopment will generate an estimated $17,400 in income taxes and about $100,000 in property taxes annually.

The rehab of the 55,000 square foot space into a residential use will add an estimated 7.6 new students into the local school system.

The planning commission's go-ahead on the project Wednesday night included a variance from the city's requirement for the Downtown district that the ground floor space be used for a commercial purpose.

While the building had been used by Northampton County for offices, Mulligan said putting the first floor to a commercial use didn't fit with the project.

"It just never worked as an office building...we just didn't see commercial in it," he said, adding that to change that to comply with the standard zoning requirement would require a lot of interior demolition, and "that would ruin the building."


The former site of Easton High School will house three one-bedroom and two two-bedroom apartments on the first floor, five one-bedroom and three two-bedroom units on the second floor, 12 one-bedroom and three two-bedroom apartments on the third floor, 12 one-bedroom and one two-bedroom apartments on the fourth floor, and one one-bedroom and 11 two bedroom units on the fifth floor, VM Development principal Mark Mulligan told the board.

Mulligan said he's already received some inquiries from potential tenants interested in occupying the building. Most of the building's residents are likely to come from outside of the City of Easton, he said.

"We find they're more likely to be 'move in' rather than 'move up'," he said. "You've got people in the (Lehigh) Valley that are beginning to look at Easton as a place to live."

All of the units will be rentals, Mulligan said.

"But we're going to condo everything when the condo market recovers. Ownership is the gateway to a stable community," he told planning board members.

Mulligan estimated the project will be complete and ready for tenants sometime in 2015.

Mulligan and VM Development have invested in a number of significant properties in Easton in the last few years, including the the former Pomeroy department store building, which has since been renovated and houses more than 40 apartments, two restaurants and medical office space, the National Building on the corner of South Fourth and Northampton streets, the Alpha Building which is planned to be redeveloped into a mix of residential and commercial space when the new city hall is completed, and the former Simon Silk Mill complex on North 13th Street.

Silk Mill Project Awarded $1.5M Federal Grant

U.S. Rep. Matt Cartwright (D-PA17) announced today that the U.S. Department of Commerce has awarded a $1.5M  grant to the City of Easton towards the redevelopment of the Simon Silk Mill Complex.  The funds are to be distributed via the U.S. Economic Development Administration (EDA).

"This grant provides an opportunity to put people back to work while improving Easton’s infrastructure," said Cartwright.  "These funds will serve as a catalyst for the development of a creative economy.  I am pleased that the EDA chose to invest in the City of Easton."

The grant will support the construction of public infrastructure necessary for the redevelopment of the Simon Silk Mill Complex and is to fund access roads, parking, water, sewer, and storm water improvements necessary to convert a remediated brownfield site into a modern commercial site.

"I appreciate Congressman Cartwright’s involvement in securing this grant, which will help with the $70 million project to redevelop the Simon Silk Mill Complex, the largest economic development project in this city.  This project will help create job opportunities for our citizens in our west ward neighborhood," said City of Easton Mayor, Sal Panto.

Cartwright said the EDA anticipates the creation of 50 to 80 new jobs as a result of the award.

The Silk Mill redevelopment project is being undertaken by the Easton Redevelopment Authority, and developer Mark Mulligan of VM Development was awarded the contract for the extensive renovation of  the first several of more than a dozen structures at the former Simon Silk Mill late last year. Since then, selective demolition has taken place at the site, along with environmental remediation work, to prepare the location for commercial and residential uses.

Mulligan was also awarded contracts for the soon-to-be complete Pomeroy building, as well as the Governor Wolf and Alpha buildings, for which work has not yet begun, in the city's Downtown district.

The former Simon Silk Mill is also traditionally the location for the annual Movies at the Mill independent film festival, but due to the demolition and construction at the site, this year's event, held last weekend, took place at Hugh Moore Park instead.

Easton to Sell Alpha Building to Developer Mark Mulligan

By Christina Georgiou

CEO of VM Development Group Mark Mulligan, center, talks about
plans to renovate Easton's Alpha Building during a press conference
announcing the city had chosen the firm's bid for the project in
city council chambers Thursday afternoon. From left to right, he is
accompanied by VM partner William Vogt, Easton Mayor Sal Panto,
and Easton city councilmen Ken Brown and Jim Edinger. City councilman
Roger Ruggles, as well as numerous other city officials attended the event.

VM Development Group, led by developer Mark Mulligan, will buy the Alpha Building, currently the site of Easton's City Hall and the tallest building in the city, for $4 million, it was announced at a press conference this afternoon.

"The sale price is higher than the appraisal," said Mayor Sal Panto, adding that city council will vote on the sale's approval at next Wednesday's regular meeting, and that it's expected to give final approval at the meeting after that, before the end of the month.

The City of Easton will lease back the space it currently occupies for 19 months, begining in November, while the new city hall and transportation center is being constructed.

"Should we not be out (of the Alpha Building), we have three 90-day options," the mayor noted, adding that while the city will be paying for the space, administrators expect that renting the space will ultimately save about $150,000 due to not having to pay for maintenance and other expenses related to the building.

The Alpha Building will become home to about 30 or 40 apartments on the uppermost floors, with  offices below. The first floor will continue to be retail space, Mulligan said, estimating that the conversion will take three or four years to complete.

While this will be the fifth high-profile--and multi-million dollar--property Mulligan has acquired in just a few years, Panto said he's confident of the developer's ability to fulfill his promises.

"I can assure you this developer has different investors for different projects," Panto said.

Mulligan said the necessarily delayed timing of the Alpha Building's use conversion made bidding on the project not only attractive to his firm, but also made it more possible for it to handle from a practical point of view.

"Because of (the city's) time line, it works," Mulligan said. "We're pretty confident of our ability to produce."

VM Development's work on the Pomeroy Building conversion into apartments, offices, and retail space is nearly done, and should be complete by the end of the year, he added.

While work on the Simon Silk Mill redevelopment project in the city's West Ward is ongoing and the first phase won't likely be complete until the end of next year, work on the Governor Wolf building on North Second Street, which Northampton County recently announced it would be selling to Mulligan for a mixed-use space similar to the Pomeroy project, has not yet begun, but should be complete by the time the developer starts work on the Alpha project.

"We expect to be completely done with Wolf and Pomeroy by the time we start on Alpha," Mulligan said.

The National Building, which VM Development acquired a little more than two years ago, is not slated for any changes.

Work on the Alpha Building, due to the city's lease agreement, as well as tenancy by several other private firms, won't begin in force for about two years, Mulligan said, promising that current commercial tenants in the Alpha Building will be "taken care of."

Plans to renovate the lobby are likely to move forward sooner than the major construction efforts, and Mulligan said he plans to seek out tenants for the first floor retail space more immediately too. The street-level space has been vacant since the Crayola store moved next door during the Crayola Experience expansion earlier this year.

Serious work on the Alpha Building probably
won't begin for about two years, though
the lobby may be expanded and renovated, and
tenants found for the first floor retail space
sooner, said developer Mark Mulligan.

Mulligan said the Alpha Building lobby may be expanded into the former Crayola store space, reducing its square footage, though the final decision will be made after he talks with potential tenants. He will also add seating and generally make the space more inviting in anticipation of the residential use on the upper floors. The third elevator, now only used for freight, will be upgraded and probably be reserved for the residential apartments, he added.

"It's going to be nicer, with places to sit down," he said.

Other upgrades to building, including a new roof and other necessary maintenance city officials have previously mentioned the need for are also undoubtedly part of the renovation, though the extent of these was not discussed during the announcement Wednesday afternoon.

The lobby renovation, along with getting the first floor retail space occupied, is expected to happen by the end of 2014, Mulligan said, adding that he expects major conversion construction on the Alpha building won't begin for about two years, and that the entire project won't be completed until sometime in either 2016 or 2017.

Mulligan added he's very pleased the city accepted VM's bid over others.

"It's been pretty exciting. This city has continued to grow on us," he said. "It's not just about us any more. We really want to help the city."

Silk Mill Plan Gets Planning Commission Preliminary Approval

By Christina Georgiou


One of 18 buildings on the Simon Silk Mill property. The former
textile mill in Easton's West Ward has stood vacant for the
past 40 years.


The Easton Planning Commission unanimously gave preliminary approval for the first phase of redevelopment at the former Simon Silk Mill to move forward Wednesday evening, paving the way for it to become a mix of residences and commercial applications.

Eighteen buildings are currently on the former textile mill property lots, located in the city's West Ward. Phase I of the project, under contract with VM Development through the Easton Redevelopment Authority (ERA), will include mostly infrastructure work, said ERA Director Gretchen Longenbach.

The first part of the project includes the redevelopment of two of the buildings into a mixed residential/commericial building and a parking facility, with two accessory parking lots.

The first building to be developed is planned to contain 11,070 square feet of commercial space on the first floor, with 36 one- and two-bedroom apartments ranging in size from 476 to 728 square feet aimed at the middle income market. The building will be served by 83 parking spots.



A map of the Simon Silk Mill parcels, as they are now. Building
"M", along with the "North Building" will be demolished to make
way for a through road and parking.

The development is not expected to greatly impact the local school district, with just eight children projected to be residents.

Infrastructure to support the new use of the former textile mill will have to come  first, with a new, yet-to-be-named road to be built which will run through the complex, from North 13th Street to Bushkill Street. Large trucks will not be permitted to access the development from North 13th Street, according to the plans, and the city hopes to get PennDOT approval to make the speed limit on the new boulevard 10 mile per hour, Longenbach said.

A new sewage system is also planned.

"Wet wells and pumps are being designed to serve the entire project," said one representative for Van Cleef Engineering Associates in Bethlehem. "There is a very old gravity system that goes across the (Bushkill) creek, but it's been damaged by floods. It's our intention not to use it."

While flooding damaged the old sewer system to the complex, flood waters shouldn't be a problem for the development, as no flood water has reached any of the buildings in the last four floods, Longebach said.

"The city thinks there's no impact for reuse in the flood plain," she said.

Easton Planning Commission members questioned the traffic impact the new use of the silk mill might create, along with costs and benefits of its taxation situation and ecological impact.

"I'm not so concerned with the flooding. I'm more concerned with the traffic," said Planning Commission member Ron Shipman. "I think it could be a nightmare, quite frankly."

Shipman noted that there's little room to widen North 13th Street and that area is already prone to backups.

"I just think if you had residents living there and going in and out, I think traffic could be backed up," Shipman said.

He also worried that pedestrian safety might be an issue along North 13th Street, where the sidewalks are narrow.

Speaking for the city, Pennoni engineer Earl Armitage said the situation might be mitigated by bumpouts near the site entrance, which would narrow North 13th Street slightly, making pedestrians more visible and calming traffic.

Planning Commissioner Robert Sun questioned the tax data presented in the proposal, and wondered what the costs of providing public services to the site would be after its improvement.

The proposal states that the site currently generates a total of $23,537 in taxes, of which $7,263 goes into city coffers. But since the land is currently owned by the ERA, it is tax exempt.

After redevelopment, Phase I is projected to generate $363,130 in taxes annually, with $112,053 going to the city, but since the site is part of the city's LERTA district, those property tax amounts won't be generated in full for ten years.

Additionally, the site may become part of a proposed Keystone Opportunity Zone (KOZ), which would further exempt the project from property taxes, as well as state and business taxes for up to a decade if approved.


Mark Mulligan of VM Development, at the podium, addresses
the Easton Planning Commission Wednesday evening.

Mark Mulligan, principal for VM Development, which is also working on Phase II of the Pomeroy Building conversion Downtown, defended the tax abatements.

"There have to be some incentives to get a developer in here," he said.

"Is there a figure as to what the costs to the city will be?" Sun asked.

Longenbach acknowledged that the site won't generate much in tax dollars for the city for some time, but said that redeveloping it is worth it, with the cost of services and road maintenance less than what the site is currently costing the city.

"We anticipate those to be reduced from what they are right now," she said. "I'd also argue the benefit of the development far outweighs any small cost of maintaining the roadway."

The first phase of redevelopment of the site doesn't have an official time table, and there is still more infrastructure work that needs completion before work actually begins on gutting and restructuring the buildings, both Longenbach and Mulligan said.

"There's been much work going on, but not visible work," Longenbach said.



An aerial view of the site, provided by Van Cleef engineers.

She added the city is pursuing a $2 million grant to aid with infrastructure costs borne by the ERA, and that it will also cost an additional $300,000 to add necessary electrical infrastructure upgrades to the site which weren't originally anticipated.

But VM Development hopes to have some of its planned work bidded on by early 2013, with the possibility of beginning construction by spring or summer of the same year, Mulligan said.

VM also has the contract for Phase II of the project, with first rights of refusal for the remainder of the project, which is expected to continue for a number of years.

"We're likening it to an industrial park, where the infrastructure is created and then the buildings are sold off," Longenbach said. "The Redevelopment Authority intends to stay involved with this to make sure they adnere to the master plan.

Pomeroy Gets Green Light for Second Building, Easton Home to

By Christina Georgiou

The second portion of the Pomeroy building redevelopment was given a unanimous nod of approval from the Easton Planning Commission Wednesday evening, and construction work on the back portion of the site is expected to begin in 30 to 45 days.

Developer Mark Mulligan said the 90 percent of the apartments in the front portion of the property have been already leased.

"So the demand in 60 days was great. It even surprised us," Mulligan said.

The second building will include 22 more apartments similar to those on Northampton Street, along with medical and professional offices with some already under agreementwith Easton Hospital, and a small personal training gym in the basement, along with resident storage. That building, which was formerly part of the Northampton Street structure, was detached as part of the redevelopment plan and faces Pine Street.

Mulligan said prices in the second phase of the project are likely to be more expensive.

"We're going to be raising prices," he said. "We have a waiting list of people that want to live in the tower."

The courtyard between what is now two buildings will likely have tables and chairs, but whether they are for residents or will be outdoor seating for a second restaurant on the site is yet to be determined.

Maxim's 22, a new restaurant being opened by the owners of Sette Luna on Ferry Street, has decided they will place their outdoor seating on Bank Street, Mulligan said.

"The configuration of the courtyard will be determined," he added.

Representatives of Easton Home also appeared before the board to discuss a planned expansion of their facilities to include independent living senior apartments. However, as some critical parts of the plan are not yet complete, including stormwater management details, the board didn't vote on the matter, though they said they have no problems with what has been presented so far.

"The project overall meets the criterion...but we're not there yet when it comes to details," said Planning Director Becky Bradley.

The senior living facility's expansion will include two new buildings near the corner of South 10th and Northampton streets, which will adjoin the current assisted living home. A total of 104 one- and two-bedroom apartments, intended for low- to moderate-income seniors age 55 and older, are planned for the site.

Representatives for Presbyterian Senior Living, who owns the facility, said they are seeking the preliminary approval vote to help them get a tax credit application approved, a critical part of the financing they're seeking. The deadline is in October.

The matter is expected to be revisited in September. If the plans cannot be approved by then, they hope to at least get a letter of support for the project's intent from the planning commission, representatives said, adding that municipal support for the project is crucial to their tax credit application being approved.