During the Dec. 16 Catasauqua Borough Council meeting, council unanimously approved a nonbinding letter of intent between VM Development Group of Easton, the Redevelopment Authority of Lehigh County and the borough to serve as a good-faith framework for moving forward with the development of the Iron Works site.

According to information provided by Christopher Gulotta, executive director of the RALC, the agreement of sale will provide for a $320,000 price, with VM Development providing a $32,000 deposit at the time of signing. VM Development will then have time to assess any title or environmental issues, obtain approvals, including the land development plan, and obtain financing commitments for the project.

The property title will be transferred from the borough to the RALC, which will convey the property to VM Development. After the acquisition of the property, VM Development has 18 months to begin the first phase of the project.

Future phases are expected to be completed during a three- to five-year span.

It was reported anticipated uses for the space include apartments and town houses, 10,000 square feet of commercial space, public plazas and parks space and pedestrian and bike connectivity to the D&L Trail canal tow path. Two existing structures are expected to be preserved.

The borough and RALC have applied for three grants, totaling more than $4.7 million for improvements at the site and the renovation of the two buildings.

If approved, some of the grant funds will supplement the Pennsylvania Department of Transportation Multi-Modal Grant for streetscape improvements along Front Street, between Bridge and Wood streets. Improvements could include the widening of this section of Front Street to allow for two-way traffic with sidewalks on each side of the street, with a two-foot amenity street with lighting and trees.

According to a report given by council President Howard Cunningham, two grant applications were submitted recently. One was for $1 million from the Pennsylvania Department of Community and Economic Development’s Local Share Account statewide program for a new retaining wall along Front Street to assist with the widening and other improvements. The second new grant was for approximately $3.68 million from the DCED’s new mixed-use housing development pilot program for site preparations and improvements. Neither grant requires additional matching funds.

Cunningham also noted the letter of intent was approved by the RALC Nov. 26. He reported the project team is working to schedule a meeting with state Sen. Nick Miller, D-14th, and state Rep. Jeanne McNeill, D-133rd, to update them on the process. Both legislators have reportedly been very supportive of the project.

At the Dec. 16 meeting, council also approved a contract extension with Taggart Associates, a real estate development company that has been assisting with the Iron Works project for the last few years.

The agreement of sale is expected to be considered by all parties during the next 90 days before moving on to next steps.