A proposal to convert the original Crayola crayon factory into apartments may be “the only economically viable use” for a historic industrial site that will soon be part of the 1,500-mile , a lawyer for the developer said Tuesday.
The Palmer Township zoning board, which would need to change the zoning to allow for apartments there, heard from expert witnesses at its meeting Tuesday night as it began looking into Allentown developer Nat Hyman’ s plan.
After two hours of testimony, zoners did not issue a decision. Instead, they adjourned the hearing until 7 p.m. Feb. 4 at the township municipal complex off Weller Place.
Hyman bought 2025 Edgewood Ave. last summer for $3 million. The complex of four connected buildings totaling 102,000 square feet along the Bushkill Creek has been named Water’s Edge.
Hyman, who owns apartment buildings in Allentown and elsewhere in the Lehigh Valley, wants to create 94 one-bedroom apartments, scaling back from the originally proposed 108 units.
The former Crayola property, which was used to make crayons and later became office space, has sat mostly vacant in recent years. It is zoned light industrial-mixed use, and residences are not allowed.
In addition, township officials and residents have raised concerns about fire safety, flooding, parking and traffic. Hyman, who did not speak Tuesday, has said he believes he can overcome those obstacles and turn the property into housing.
“It is a case I would describe as adaptive reuse,” said John A. VanLuvanee, Hyman’s attorney. “We will explain why it is an appropriate use and perhaps the only economically viable use.”
The first witness, commercial broker Matt Sprung, said he tried unsuccessfully for months to sell the property for office or commercial space on behalf of the former owner, until Hyman pitched a plan to convert it to rentals.
He said the Edgewood Avenue property sits in a prime area that is slated to become part of the 1,500-mile 9/11 National Memorial Trail.
“As I look at this area … this is part of a very, very special corridor, and I think Mr. Hyman’s proposal only enhances it,” Sprung said.
He hoped regional planners or Northampton County officials could reimagine the property.
“You hate to see somebody get to Crayola when it is near the 9/11 walkway, and it’s condemned or not in use,” he said.
Sprung walked the audience of about two dozen through the several reductions in purchase and lease prices since 2022, when the building was put on the market. He said before the sale to Hyman, the property lease was at $2.99 for square foot. Depending on size and condition, office space has been running $8-$25 a square foot in the Lehigh Valley.
Sprung and retired Lehigh University professor Stephen Thode, the other expert witness, said the market for office space has dried up significantly since the pandemic.
“I see no expectation that a buyer would come along,” said Thode, who chaired Lehigh’s Goodman Center for Real Estate for about 30 years. “There’s no market for it.
“My opinion is, given the location, given the size of the buildings, given the multilevel nature of the structures and the lack of market demand for permitted uses, I do not see any of the currently permitted uses being financially feasible as a redevelopment,” he said.
and said he showed the property four times in approximately 20 months, including to an area charter school and an owner of self-storage. Another person wanted one floor to put in a gym, which also is not a permitted use.
VanLuvanee said he plans to call more expert witnesses, so it was unclear over how many meetings the zoning hearing might run. Zoning Chair Kris Grube said once all testimony is presented, the five-member board will have up to 45 days to make a decision. Hyman could appeal an unfavorable decision within 30 days to Northampton County Court, Grube said.
Palmer officials said besides zoning approval, Hyman’s project would need to be reviewed by the township planning department and supervisors.
Cousins Edwin Binney and C. Harold Smith, who founded Crayola under the corporate name Binney & Smith, premiered the Crayola eight-pack in 1903, with the crayons made on Hyman’s property along the Bushkill. The global company has since moved manufacturing to Forks Township and elsewhere.
Contact Morning Call reporter Anthony Salamone at asalamone@mcall.com.
