Hershey Report (8/1)

Traditional Media Coverage

1. Officials worry 'Hershey West End' development could overshadow downtown efforts

   Jul 28, 2017 | Central Penn Business Journal

   By Jason Scott
   
   
   Derry Township could undergo a sizable transformation over the next two decades under a plan to develop a 230-acre tract off Route 322 near Penn State Health Milton S. Hershey Medical Center.

Traditional Media Coverage

1. Officials worry 'Hershey West End' development could overshadow downtown efforts

   Jul 28, 2017 | Central Penn Business Journal

   By Jason Scott

   Derry Township could undergo a sizable transformation over the next two decades under a plan to develop a 230-acre tract off Route 322 near Penn State Health Milton S. Hershey Medical Center.

   Earlier this month, the Hershey Trust Co., which owns the farmland being eyed for development, presented early sketches for what it is calling “Hershey West End.”

   The trust’s goal is to develop a village-style community in the western end of the township that would blend clusters of owner-occupied and rental housing options with commercial and mixed-use buildings. Plans also call for retail shops and restaurants, as well as the potential for a hotel, among other projects.

   The development would leave about 50 percent of the land as open space for public walking trails, parks and a village square.

   While the initial plan is an attractive concept for the land, Supervisor Justin Engle said, he is concerned that the township’s desire to see more construction downtown may now be trumped by development plans for the trust-owned land.

   Indeed, development efforts in the heart of downtown Hershey stalled somewhat in recent months after Derry Township school directors opposed giving tax incentives to a public parking garage that was part of a mixed-use project on West Chocolate Avenue. However, that project has been scaled down by the developer as a smaller commercial development and could win approval from township supervisors in August.

   Mixed-use projects have historically been slow to emerge in Derry Township, largely due to deed restrictions imposed by the trust, which at one time controlled most of the downtown real estate. The trust has slowly sold parcels to private developers.

   The supervisors acknowledge that the farmland near the medical center campus, which is the township’s largest employer, could have ended up as mostly commercial office development. The township recently rezoned the tract to allow for the trust’s broader development plans.

   “We need good well-planned development in Hershey,” Engle said. “Otherwise, people will be driving in and out of Hershey and we become a commuter town. We have to accommodate the growth in jobs in Derry Township.”

   Supervisor Susan Cort said she’s confident the trust will end up building something that is “reflective of the needs of our residents.”

   Early-phase projects connected to the west end include an expansion of the area’s U-Gro Learning Centre, a possible medical office building for Penn State Health and the renovation of a large existing barn for an entertainment venue dubbed The Englewood. Nearby Grace United Methodist Church, meanwhile, wants to see more senior-friendly housing for people who want to retire in the area.

   “The Hershey West End project has the potential to dramatically change the way people recreate, socialize, shop, dine and live in that part of our township,” she said. “The mixed-use development could give a real sense of community and provide many benefits to all of our residents.”

   While current residents worry about traffic from new developments, especially projects on big tracts such as the trust site, Cort said the west end project could lead to road improvements that smooth traffic through the township.

   The project also should boost the local tax base, which could help mitigate taxes on existing property owners, she said. But there needs to be a delicate balance between residential and commercial properties on the tract.

   “The increase in residential will make Derry Township a more attractive commercial market, and the better our commercial offerings, the more people may want to move here,” Cort said.

   Trust officials said a formal plan could be submitted to the township “later this year.” It’s possible that site work could begin as early as next year, depending on local and state approvals, which would involve environmental and traffic improvement plans in and around the site.

   The environmental and traffic plans are often the longest part of the development process. Traffic improvements also are quite costly.

   It is more likely that construction will not occur until 2019. And the development process, given the mixed uses and size of the tract, will likely take 15 to 20 years to fully play out, said Paul Ostergaard, managing principal with Pittsburgh-based Urban Design Associates, the master planner hired by the trust.

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