Allentown’s Redevelopment Authority is looking to transform two vacant properties in its possession into useful buildings on the city’s tax rolls, years after turmoil forced it to cease being an independent agency and merge with the city.
The authority announced in a news release that developers can bid on the purchase of two properties — the former Allentown Toy Manufacturing Co. at 725 N. 10th St., and 540 Hamilton St., a building with a vacant storefront in the heart of the city’s downtown.
According to a statement from Chair Christopher Raad, the authority is seeking “innovative, community-focused proposals that align with our redevelopment goals and deliver lasting value.”
It’s the first time the authority has sought bids for properties it owns since merging with the city in 2024. The Allentown Redevelopment Authority is tasked with acquiring blighted properties in the city via sale or eminent domain and redeveloping them into a productive use.
The move followed turmoil in the authority; its only two staff members resigned in 2023, amid what they said was a breakdown in the relationship between the agency’s board, staff and city administration.
While former staff of the authority sought funding to revitalize buildings in their inventory via grant money, Allentown Mayor Matt Tuerk revoked funding for the authority and claimed its two-person staff did not have the capacity to refurbish and manage buildings on its own.
The disagreement forced the authority to cease being an independent agency.
Mark Hartney, deputy director of Allentown’s community and economic development department, which now oversees the authority, said the redevelopment of the two buildings is a “great opportunity to get two underutilized properties back into a productive use.”
The authority owns nine properties, and officials hope to issue requests for proposals for more of them in the future, Hartney said.
The Allentown Toy Factory has been vacant since shutting down in 2021, following 70 years of operation.
An earlier plan to redevelop the factory failed in 2023, when the authority’s board was split 2-2 on an unsolicited offer by the Islamic Society of Allentown to buy the building and convert it into affordable housing units with a worship space on the first floor. Advocates for the sale said it would provide a much-needed space for Allentown’s Muslim community, while opponents said that the sale would not be a financial benefit to the authority, and was unfair to other prospective buyers who did not have a chance to bid on the building. The split vote meant the sale did not go through.
The toy factory building is zoned for “industrial use,” but Hartney said the authority would support efforts to rezone it into a residential, mixed or other type of use.
Hartney could not recall the prior use of 540 Hamilton St., but said it has not been in active, productive use for “quite some time.” The authority began the eminent domain process in 2019, at which time it was vacant, Hartney said.
Proposals for the two buildings are due April 1. More information can be found on the Allentown Redevelopment Authority’s website.
Reporter Lindsay Weber can be reached at Liweber@mcall.com.