Council and community members heard an update on the Iron Works property project during the Jan. 19 Catasauqua Borough Council meeting. Christopher Gulotta, from the Redevelopment Authority of Lehigh County, shared details on the project and asked council to approve an amendment to the site’s agreement of sale.

Gulotta reported the amendment would be to split the conveyance of the site into two phases. It was noted a reason for this split is to keep the project moving along while floodplain studies and work are addressed on part of the property. The 10-plus-acre property would be conveyed from the borough to the RALC, then from RALC to Iron Works Development Group, a spin-off from VM Development Group. Using RALC will help the borough avoid the public sale process.

The first phase is for 2.58 acres, which will include the depot building, townhomes and apartments. It was noted the space in the first phase includes the borough hall parking area, but there are discussions to incorporate the parking in the final plan.

Gulotta noted there is no need for additional public financing for the first phase.

“All of the funds are in place,” he said.

The cost is about $160,000 for each phase.

The second phase will include the remaining 8.04 acres, which will include multifamily units, townhomes and retail and commercial space.

It was noted the residences will be rentals, managed by the developer. According to Gulotta, VM has “an exemplary track record of property management.”

Additionally, Gulotta noted VM has experience working with properties with historic value and is sensitive to celebrating the history of a site.

Gulotta noted the developer is ready to go for phase one and interested in moving “relatively quickly” to get the project underway. He reported the amendment was already approved by RALC and, if approved by Catasauqua, it will take no longer than 12 months for phase one to start and 16 months for the start of phase two.

In detailing the timeline, Gulotta said the developer has one month after signing to do due diligence, up to six months for approvals, up to three months for financing and up to two months for closing for the first phase. The second phase time line includes up to two months for due diligence, seven months for approvals, four months for financing and three months for closing.

Gulotta specified these numbers are the outside limits of the timeline, and he expects things to move faster within that time frame.

He noted the project received a $350,000 grant from the statewide Local Share Account for the work needed on the Front Street retaining wall. This effort will assist with making Front Street a two-way road and other improvements. This is in addition to $1.1 million already received in grants from the Redevelopment Assistance Capital Program.

It was noted there is another funding source for additional streetscape work.

Borough Manager Glenn Eckhart noted the whole thing is “probably about a $75 million project,” and there really isn’t a project of that size possible anywhere else in the borough right now.

“There are a lot of moving parts,” Eckhart noted about the project and its funding.

It was also reported there is an agreement for the borough to pay $25,000 to RALC for each phase. This helps fund the authority’s work and cuts down on extra costs.

“Is there any downside to splitting the project into two phases?” council Vice President Kim Brubaker asked.

“Nope. All positives,” Gulotta said.

Council voted and approved the revised agreement of sale.