ALLENTOWN, Pa. – The Redevelopment Authority of the City of Allentown (RACA) is shining a spotlight on two properties it hopes to bring back to life, including the longtime home of a toy company.

The agency is currently seeking proposals from developers for 725 N. 10th Street, and 540 W. Hamilton Street. The former was the site of the Allentown Toy Manufacturing Company for decades, leading up to its closure at the end of 2021.

“I think that these are two prominent properties in the community that have tremendous potential,” said Chris Raad, chair of the redevelopment authority board.

In a way, whatever rebirth is in store for those properties also will mark a new chapter for the agency itself. 

In 2023, the redevelopment authority’s only two staff members- its executive director and project manager- handed in their resignations amid reports of tension with the agency’s board, as well as funding issues.

The following year, the city of Allentown and the redevelopment authority entered into an intergovernmental cooperation agreement.

According to Mark Hartney, deputy director for Allentown’s Department of Community and Economic Development, RACA is still independent and makes all the decisions pertaining to the properties it acquires, but the city provides administrative and staff support. The redevelopment authority then reimburses the city for at least a portion of that staff time. 

Allentown Redevelopment Authority seeking visionaries for two prominent properties, including old toy factory

Amy Unger | WFMZ-TV

With the problems of the past in the rearview mirror, it’s time to get back to business, said Raad, who was not on the authority’s board during that transition time. “I think these two properties are excellent starters for us to reintroduce the redevelopment authority back to the community.”

725 N. 10th Street

Both Hartney and Raad see a lot of possibilities for the old toy factory site; perhaps something residential with a commercial component.

“(The property) is currently zoned industrial, and we would entertain working with a developer to change that zoning to support more residential, like a mixed-use development,” Hartney said.

RACA acquired the property in 2022, which has been vacant since the toy company’s departure. The two-story, 18,350-square-foot building went up in 1920.  

RACA is encouraging the site’s buyer to adapt the existing building, rather than tear it down and start over, to keep costs down and keep the project moving along.

It’s possible the site may qualify for a Local Economic Revitalization Tax Assistance (LERTA) designation. LERTA is a 10-year tax abatement program meant to spur economic development projects.

According to the Request For Proposal (RFP) issued for the property, in order to be considered for a LERTA designation as a housing project, the plan must include a minimum of 20% of units to be reserved for affordable housing at or below 80% Area Median Income (AMI)

“Allentown faces a housing shortage of approximately 1,900 units, and projects incorporating affordable housing are strongly encouraged,” the RFP reads.

540 W. Hamilton Street

The second property, 540 W. Hamilton Street, is located in the heart of downtown Allentown, as well as in the city’s Neighborhood Improvement Zone (NIZ). It’s zoned as MX-D (Storefront Mix Downtown Core). 

“To have a building sitting in the middle of the 500 block of Hamilton Street when all this other growth and revitalization is happening, that property is well positioned to be a real asset to the city there,” said Raad.

The three-story, 5,800-square-foot building was built in 1890. According to existing signage on the exterior, it last served as the Berks Title Insurance Company. There’s an elevator inside that lends itself to both commercial and residential uses.

According to the RFP, the building is currently the only vacant storefront on the 500 block. “A strong proposal should leverage the area’s concentration of employers, businesses, visitors and foot traffic,” the document reads.

The building is in the Historic Building Demolition Overlay, meaning demolition is prohibited, so the new owner will have to work with what’s there. 

What comes next

The RFP submission process for both properties closes on April 1. 

The redevelopment authority has seven other properties in its inventory, a mix of residential, warehouse, mixed-use and commercial sites.

Raad said RACA’s goal is to get all of them out for RFPs and back on the city’s tax rolls. “We want to see these properties get turned over and re-released. I think we’re in a really good spot.”