The Philadelphia Redevelopment Authority (PRA) has allowed its commitment letter to KBK Enterprises to expire without renewal, potentially marking a turning point in the long-stalled redevelopment of the historic Germantown YWCA. The expiration, confirmed by PRA Board Chair David Thomas, means the property is now technically open to new applications from other developers.

The expiration represents the latest chapter in an eight-year saga that has long left one of Germantown's most historically significant properties in limbo. KBK Enterprises, which received development rights in 2016, has repeatedly failed to secure necessary financing for the project, most recently losing its bid for crucial state low-income housing tax credits in July 2024.

While Thomas confirmed the property is available for applications, PRA board members reported at their February 12 meeting that they have received no applications since KBK's letter expired on December 31. Community members suggest this lack of interest may stem from City Councilwoman Cindy Bass's continued support of KBK, and the city’s tradition of councilmanic prerogative – which gives district council members effective veto power over land use decisions in their districts.

"Knowing that our council person very strongly supports a different developer is very prohibitive and whether or not you want to pursue an application," said Renée Cunningham, executive director of Center in the Park. "If you know that the council person is supporting somebody else, it doesn't make sense for you to submit."

The former YWCA, which served as a community anchor and civil rights hub for over a century before closing in the early 2000s, has faced a troubled path to redevelopment. The PRA seized the property in 2013 after its previous owner, Germantown Settlement, defaulted on a $1.3 million loan and filed for bankruptcy. During its ownership, Germantown Settlement made no payments toward the loan and failed to make any progress on redevelopment.

KBK's $18 million proposal would create mixed-income housing and commercial space, but the company has consistently struggled to secure financing. It has missed multiple project deadlines and failed to begin construction, leading to growing frustration among community members. 

At a community meeting last October, both KBK's CEO Keith Key and Councilmember Bass emphasized that the state tax credits the company failed to get were the final piece needed to begin the project, promising construction would start in fall 2024 with completion by the end of 2025.

Julie Carroll Stapleton, board president of Germantown United Community Development Corporation, noted that while KBK was relatively unknown when first selected, they have “now” shown a track record of not completing projects.

When questioned about whether a developer’s past performance would be taken into account when reviewing an application for the project, PRA's Deputy Executive Director Angel Rodriguez stated, "If somebody came in with a track record of not completing properties, that would factor into it." However, the board did not specifically comment on their view of KBK's track record.

The Friends for the Restoration of the Germantown YWCA, a community group that formed in response to the delays, attended the February PRA board meeting to voice their concerns. The group formally requested that the "PRA decline to consider any current or future proposals from KBK for the development of the Germantown YWCA building."

Questions arose during the meeting about whether KBK might reapply for Low Income Housing Tax Credits at a lower 4% rate, after being denied at 9%. Thomas dismissed this possibility, stating, "There's no way that we're probably going to be able to support a 4% allocation at this stage right now."

Bass, who won her district by just a few hundred votes in the 2023 primary, has maintained her backing of KBK, citing the importance of having a Black-owned business develop the property in the majority-Black neighborhood. In an email statement last August, Bass said, "We do still maintain that KBK Enterprises is the right developer for this project as a Black-owned business operating with the best intentions for a majority-Black neighborhood like Germantown."

The building's deteriorating condition has added urgency to the situation. Recent court testimony revealed issues including loose bricks, water damage, crumbling steps, and a retaining wall near collapse. 

The Friends group also raised concerns about accessibility to PRA meetings, requesting a hybrid option for board meetings "to accommodate those who have health, mobility or other issues preventing them from attending in-person meetings downtown." This accessibility issue has made it difficult for many older Germantown residents to participate in discussions about the building's future.