Developer proposes 24-unit conversion at 504–512 Chestnut; zoning hearing set for Oct. 1

A developer planning to convert a long-troubled property at 504–512 Chestnut Street into apartments asked Pottstown Borough Council for its support as he moves through the zoning review process.

The proposal, presented Sept. 3 by the applicant team, calls for demolishing an on-site single-family structure and rehabilitating existing factory buildings to create 24 apartment units with 36 parking spaces. "Their plan is to demolish the residential structure and then totally rehabilitate the existing property to make a 24 apartment units with 36 parking spaces in the parking lot," said the applicant's attorney, Mr. Murray, during the presentation.

The developer, Elon Sherman, described his approach as focused on converting dilapidated buildings into two-bedroom apartments with premium finishes. "I'm a local developer... I've been at this for about 12 years," Sherman said, adding that units typically are 750 to 900 square feet with hardwood flooring and stainless-steel appliances.

Why it matters: The Chestnut Street property has been identified by staff as a longstanding blight and a target for neighborhood stabilization. Council members and local development representatives said the conversion could increase the borough tax base and encourage further investment in the area.

Key details and next steps: The applicant filed a zoning review application and a conditional-use application; the Zoning Hearing Board is scheduled to hear the variances Oct. 1. The team said they also have submitted the conditional-use application, which will be heard at the borough's October meeting. The applicants seek multiple variances tied to the existing building footprints, including relief from the ordinance requirement of two parking spaces per unit (they propose 36 spaces for 24 units).

Council response and community input: Councilor Proskal said the presentation showed visible improvement from earlier photos and voiced support, while noting concerns about the proposed rooftop addition and building height. "I'm much in support of it," Proskal said, while adding that the height increase for a rooftop amenity is a concern. In public comment, Peggy Lee Clark, representing PAID's economic development interests, said the organization will support the project at the zoning hearing and encouraged council backing, calling the project "a property that would stabilize and also encourage further development."

Affordability question: A council member asked whether the developer would consider reserving one unit at 30% of adjusted gross income to address local housing needs; the developer and attorney said they were willing to discuss such options but that no agreement had been reached.

Limits of action tonight: No land-development approvals were granted at this meeting; the applicant confirmed the sale is "under agreement of sale" and said the project is contingent on obtaining the required zoning approvals. The solicitor noted that if zoning approvals are not secured, the project could be delayed or cancelled.

What’s next: Council was asked to consider taking a position and to include the item on the agenda for Monday's meeting so members can decide whether to send a support letter to the Zoning Hearing Board.

Ending: The applicant said the team will return with more detailed materials at the October meeting and requested council consideration of a formal support position before the Oct. 1 hearing.