Affordable Housing Complex, Hotel Approved For Moorestown Mall

MOORESTOWN, NJ — After about a year of discussion, affordable housing is coming to the Moorestown Mall.

Moorestown Council unanimously approved a resolution to allow the township to enter into a redevelopment agreement with mall owner Pennsylvania Real Estate Investment Trust (PREIT) on Monday night.

The agreement centers around a three-phase plan to bring apartments and a hotel to the mall property. The first phase calls for an apartment building that houses 375 units, 75 of which would be set aside for affordable housing in the area formerly occupied by Lord & Taylor’s, near the Sears auto center in the back of the property. It also calls for the construction of a hotel on the property.

If the plan advances to the second and third phases, additional units would be built. The total built over three phases would be 1,065 units, with 213 set aside for affordable housing.

The plan would help satisfy the township’s unmet need of 310 affordable units under the settlement it reached previously with the Fair Share Housing Center. These units would count for the township’s fourth round obligation under the Mount Laurel Doctrine.

However, there is no obligation for the second and third phases of the project, according to officials.

The agreement came about after PREIT objected after council approved zoning changes for the mall back in February. The proposal changed the use of the site from a specially restricted commercial district to a mixed-use overlay district that would allow for a mix of retail and residential uses. The township was also considering the site as a possible area in need of redevelopment.

When PREIT objected to the plan, the judge ordered the township and PREIT to enter into mediation, according to township solicitor Kevin Aberant. Mediation was conducted through a series of Zoom meetings before reaching the agreement that was approved Monday night.

Councilwoman Victoria Napolitano was concerned that the township was entering into a non-condemnation agreement without saying the second and third phases of the plan were necessary.

“This agreement remains open until the end of time,” Napolitano said. “What if something changes with the mall and it becomes vacant? Are we stuck with this?”

“If something changes with the mall, and it becomes vacant, we can abandon this agreement and pursue condemnation,” Aberant said.

Deputy Mayor Brian Donnelly was concerned about the mall’s financial state possibly impacting the agreement. As of Nov. 1, 95 percent of PREIT's lenders were on board with an agreement for an additional $150 million to support its continuing operations, according to court filings. Read more here: Moorestown Mall Owner May Face Bankruptcy, Pending $150M Deal

“No one has the right to challenge this agreement,” Aberant said.

The agreement includes a Payment In Lieu Of Taxes (PILOT) on the residential aspect of the plan only. It was one of a number of items that were clarified before council approved the agreement. This included a slightly larger land mass for what is being built. The ideal ratio was increased to accommodate for portions of the first phase of the plan, but would be reduced to the ideal ratio should the township enter into the second and third phases.

The increase means no demolition will take place for the first phase, but may happen in later phases. Council members and township officials worked together to ensure the proper wording clarifying this position was in the right spot in the agreement.

“This is what happens when government works together,” Donnelly said. “I wish the White House and Congress would work this well together.”

They also clarified the uses, which included anything covered in specially-restricted commercial districts. This includes theaters, both movie theaters and the performing arts.

Moorestown Theater Company Artistic Director Mark Morgan asked about the performing arts during the public hearing. He has been looking for places to perform, recently putting on a production of “The Addams Family” in Cinnaminson. He has been interested in performing in the mall in the past, and this agreement would allow for that, according to officials.

Other permitted uses include medical offices and open space. The non-consent agenda resolution was approved with a 5-0 vote by council.