Developer says Main & DeKalb project financing is ready pending LERTA, seeks council and school‑board coordination

A developer representative updated council Nov. 5 on the Main & DeKalb project, a proposed Class‑A residential building near the courthouse. The presenter said construction documents are complete and that financing partners — a senior lender, CPACE financing, equity investors and grant support — are in place, but that current market conditions require a layered capital stack and tax‑incentive staging (LERTA) to make the economics feasible.

The developer outlined the rationale: construction costs are comparable across markets, but expected rents in Norristown are lower than in places such as King of Prussia or Center City, which creates a feasibility gap. To bridge the gap the developer seeks a LERTA (tax abatement) and described a proposed “take‑back mortgage” on the purchase price as another tool to lower upfront capital costs and give projects time to stabilize.

Council members asked whether the project could proceed without LERTA and what contingency options exist. The presenter said falling interest rates or alternative capitalization strategies might reduce reliance on tax abatement but acknowledged significant difficulty if LERTA is not granted. He said the developer intends to file the LERTA application when the school board is prepared to consider it in January and noted prior neighborhood investments are staged to create momentum.

Council members pressed for assurances that the Main & DeKalb project would proceed before any follow‑on projects at Erie Street and asked whether there is a concrete fallback if tax incentives are denied. The developer said the firm is committed and would explore alternatives but did not present a detailed contingency financing plan at the meeting.