City Council plans to authorize borrowing $2.6 million to acquire four properties on Esterbook Avenue to eventually develop a 60-unit senior housing facility.

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City Council introduced a $2.66-million ordinance (O-28-23) at its May 8 regular meeting, which states that the properties will be purchased for $2,579,850. The legislation is scheduled for a public hearing and final adoption at the June 12 regular meeting.

UPDATED 6/12: After a public hearing with no comments or questions from the public or council members, City Council unanimously (8-0 with one absent) approved the ordinance.

The properties consist of Lots 20, 21, 22, 23 within Block 151 and would have an address of 1430 Esterbrook Ave.:

• Lot 20 / 1436 Esterbrook Ave.
• Lot 21 / 1430 Esterbrook Ave.
• Lot 22 / 1416 Esterbrook Ave.
• Lot 23 / 1410 Esterbrook Ave.

The ordinance authorizes the city to acquire property “in connection with the Esterbrook Senior Citizen Affordable Housing Redevelopment Project.” It would include “real estate transaction and environmental assessment expenses, and all work, materials and appurtenances necessary and suitable therefor.”

The estimated cost of $2.66 million includes $60,000 which is estimated to finance the cost, including “architect’s fees, accounting, engineering and inspection costs, legal expenses, and other expenses,” according to the ordinance.

Collingswood-based Ingerman Development Company (IDC) in April 2022 presented a plan for a 60-unit affordable housing facility. A resolution passed by City Council at the time authorized the city, “as a means to facilitate the effectuation of the project, to acquire the property and transfer or ground lease it to IDC, as may be later mutually determined by and between the city and IDC.”

The city plans to sell the properties to an affordable housing developer for the price that the city purchases the properties, according to William George, public relations coordinator, adding that Ingerman is not yet confirmed as the developer.

Over the past several years, the properties have been studied and declared in need of redevelopment. Last summer, the Redevelopment Agency awarded a contract to have the four lots appraised.

An entity named Iconic Development Partners or Iconic Estates or related entity acquired three of the lots in 2021 and the other in 2018 for a combined $1.735 million.

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