More than 230 apartments proposed for former Promenade in Exeter | Reading Area

EXETER TWP., Pa. – The former Promenade property in Exeter could be the site of the township’s next big residential development.

Metropolitan Development Group presented township planners with an informal sketch plan Monday night for an apartment complex that would feature 232 apartment units across nine buildings at 3925 Perkiomen Ave.

John Rathfon, assistant vice present of land development at MDG, said the presentation was a “conversation starter” to get the planning commission’s feedback before the company potentially moves forward with its plan.

One-bedroom units would range in size from 875 square feet to 1,036 feet, Rathfon said, while two-bedroom units would be 1,175 square feet to 1,367 square feet. Among the nine buildings, there would be 108 one-bedroom apartments and 124 that offer two bedrooms.

Rent is currently projected to range from the high $1,700s to the low $2,000s, although Rathfon said those numbers could change by the time the complex is constructed.

Jaime Perez, executive director of the Berks County Redevelopment Authority, said at the onset of the presentation that mixed-use development previously emerged as the preferred plan for the property. However, retail and commercial developers expressed “limited optimism” for the site because of its topography and setback from Perkiomen Avenue, along with evolving economic conditions and rising construction and financing costs that created skepticism about the site’s viability for commercial use.

Perez said there was one proposal for a primarily residential development with smaller-scale commercial components that seemed promising, but it was withdrawn when the BCRA and the developer could not reach mutually acceptable terms.

The BCRA then offered a second request-for-proposal, Perez said, that brought forth MDG’s plan for residential use. While it’s not a mixed-use plan on its own, Perez said it would complement the existing context of the area, adding value to nearby commercial and retail businesses.

If built as proposed, Rathfon said the apartments would contribute to the community a net fiscal impact of around $366,000 annually. That’s after deducting expenses related to police, fire, township services, and a projected 14 school-aged children that the complex would house.

The development would include 366 surface parking spaces. It would also feature 50 garage spaces that include storage units on the ends of them, typically costing residents $90-$125 per month. Rathfon said it’s not just the number of parking spaces that’s important; renters also care about the spaces’ proximity to front doors.

“When we have parking issues, people don’t want to rent from us, so we’ve spent a lot of time on this,” Rathfon said.

Plans for the complex also propose a community center, a pool, a sports court and a dog park. Rathfon said MDG intends to create an “upscale and luxury feeling” with more numerous and upgraded amenity features including firepits and pergolas.

While the planning commission seemed generally receptive to the plan, members expressed numerous concerns about connectivity to 40th Street — or lack thereof.

Representatives for MDG said the 50-foot elevation from the complex’s parking lot to 40th Street would require significant grading and retaining walls that could impact neighboring properties, making connectivity difficult. They also said the road would be steep, creating maintenance and safety concerns.

However, planners pushed back, saying their commission and members of the community have expressed the need for connectivity and accessibility.

“I think it’s being exaggerated. I really do. I don’t see that much grading having to take place to make that connection,” planner Jeffrey Whitman said.

Rathfon expressed reluctance for MDG to initiate plans for a connection but said if the township wants to pursue options, those could be discussed further as plans progress.

Planners also questioned whether effort was made to incorporate retail. Rathfon said retail was considered, but no big users showed interest in coming to the site and not enough smaller users would have made it worthwhile.

Planner Mitch Zimmer said his constituents wanted him to ask whether Pennsylvania American Water Company would be able to handle the needs of the complex and if its water use would impact other residents’ rates in the township.

Representatives for MDG said the company has received a “will-serve” for water, meaning there is no issue for the water company to meet the demands that would be generated by the apartments. As for sewer, MDG will submit a full planning module to confirm capacity, which it also did for the Lorane apartments, another residential project being developed in Exeter by MDG.

“When we do anything with PA American Water…we are charged just over $4,000 per apartment as a connection fee,” said Gregg Adelman, an attorney representing MDG. “We pay for all of the infrastructure that goes in….we do the work, and then we turn all that infrastructure over to PA American, should they want it.”

“They can’t just unilaterally change prices when new developments come in. They have to go through the process with the public utility commission to change rates,” he said of the water company. “Nobody’s rates go up when new development shows up. The utility would have to go back through the process….so your numbers don’t change in terms of your cost.”

As Monday night’s presentation involved only an informal sketch plan, no decisions were made. The developer said it would take the commission’s feedback and work towards next steps in the land development process.