NORRISTOWN, PA — The massive redevelopment project to bring affordable housing to a part of the former Norristown State Hospital grounds is moving forward.
Municipal and county authorities officially signed on the $4.7 million deal with the developer, Pinnacle Realty Development Company, this week.
The proposal will bring a sprawling multi-use residential, business, and retail area on the 70 acre swath of the hospital that was deeded to the municipality and county from the state in 2023.
A total of 728 residential units, including 453 townhomes and 288 apartments, are in the initial proposal, PRDC said.
There is also roughly 70,000 square feet of commercial space, and what they're calling an "office/industrial tech complex" that they're hoping would attract major employers. The tech office space would cover about 200,000 square feet, according to the latest estimate.
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In the past, discussions of a mixed use apartment building, retail development, and more public space, including parks, has been floated for the state hospital grounds.
Regardless of what comes to the property, Norristown will see a huge boon in real estate and other local taxes, possibly up to tens of millions of dollars.
Gov. Wolf's administration originally reached an agreement in December 2017 with the municipality to vacate two buildings on the state hospital grounds by 2022, opening the door for the long-discussed possibility of redevelopment.
The announcement came after controversy stewed over the state was forced to begin construction at the state hospital to add more beds following a lawsuit. In a settlement with ACLU in June 2017, the state agreed to create 110 new spots, including 50 at Norristown, after the civil rights organization alleged that individuals with severe mental illness had "languished" for extensive periods of time in jail cells when they should have been receiving care.
DHS previously stated that due to the settlement, the state faces millions in fines if it does not provide the needed space in a timely manner. Norristown was reluctant to comply with the state's demands until the state put together a plan for the future deeding of the hospital to local authorities, which it did in 2023.
The state hospital will remain open into the future at a lower capacity, with altered uses for some of its buildings. There remain 137 beds for forensic patients, and a new forensic facility began construction in 2022.