Plans for apartments at former site of South Bethlehem nightclub clear another hurdle, but not at an 'affordable' rate

BETHLEHEM, Pa. — Where there once was the Casa Blanca Night Club now stands an empty lot.

The former club site at 946 Evans St. sat vacant since its partial collapse and demolition in October 2022, but the area now is planned for new life as 37 apartments and parking, just blocks from the South Bethlehem Greenway and Third and Fourth streets.

David Hitzel, co-property owner with HH Evans Street LLC, was before the city Zoning Hearing Board on Wednesday, looking for dimensional variances to allow for construction of the apartments and 10 parking spaces at 934-946 Evans St., and a corresponding 40-space tenant parking lot at nearby 1004 Evans St.

Zoners unanimously approved relief for lot area per dwelling unit, allowing change from 1,200 square feet required per city code to 525 square feet proposed for 934-946 Evans only, and; 868 square feet proposed if all lots are combined) with 16 units allowed.

Also, the required 56 parking spaces was reduced to the 50 proposed, as well as other land development variance procedure.

The 35-foot, three-story project fronting at Evans Street would include 37 apartments: seven two-bedrooms sporting 1,292 square feet each, 29 one-bedrooms ranging from 669-736 square feet and one studio option at 542 square feet.

The warehouse at 1004 Evans St. has sat vacant for years.

A permitted use

Developers plan to consolidate the three apartment parcels at 934-946 Evans into one for the project. The proposed multi-family apartment use is permitted by right in the city’s High-Density Residential zoning district.

In May, the $9.55 million project got favorable comments from every member of the city Planning Commission.

However, public commenters that evening, including City Councilwoman Rachel Leon, said the proposed density and site access could be an issue moving forward.

Hitzel that day also said it wouldn't be feasible for his team to offer the units at an "affordable" rate — that would be a monthly rental rate set at no more than 30% of a household’s income.

He said the team consulted with city officials on the potential affordable housing reimbursement before making that decision, but ultimately decided against it because of projected, associated operating losses.

The property’s prior owner had been approved to develop 26 living units between 1004 and 934-946 Evans. The 1004 Evans address once was slated for at least 13 living units.

Zoning Hearing Board documents from 2021show the previous project was planned to include “workforce” residential units that would “maximize daily living space but remain modest enough to allow for affordable rents.”

Fitting the neighborhood

Hitzel said his team — which owns properties in Bethlehem, Northampton and Reading — evaluated surrounding land uses within about a six-block radius and found more than 25 multi-family residential structures.

Twelve of those were within half that distance, and a handful of those had more than 10 individual housing units, he said.

“We think our architect did a phenomenal job of drafting something that, one, provides plenty of window, plenty of light for living spaces,” Hitzel said.

“But then additionally, we wanted to keep in mind surrounding structures of the neighborhood.”

But the uneven grading of the lots, specifically along surrounding State and Ridge streets, has proved to be somewhat taxing for developers, Hitzel said.

“The primary challenges are the irregular shape of both lots,” Hitzel said. “So Evans, running at an angle, provides an irregular shape along the frontage.

"1004 has additional irregularities along the rear and east sides, kind of budding the neighboring property.”