The fate of Germantown's historic YWCA building may be decided within a few weeks, as a judge presides over a court case that could determine whether the long-vacant property will be transferred to a new developer.

Local developer Ken Weinstein, who filed the case, claims that the building is blighted due to neglect by the Philadelphia Redevelopment Authority (PRA), the city agency that owns it. He is seeking to take a “conservatorship” of the building so he can address the blighted conditions and seek a new developer for the project. 

At a third hearing on the matter on Thursday, Judge Ann Butchart acknowledged the case's significance. "I'm very aware how important this property is to the people of Germantown," she said, noting the large crowd in attendance.

The YWCA building, located at 5820-24 Germantown Ave., has been a beloved cornerstone of the neighborhood since its construction in 1915. It was one of the first Ys in the nation to desegregate and served as a hub for women's empowerment and community activities for decades before closing. 

Community members from Center in the Park (CIP), Maple Village, and Friends for the Restoration of the Germantown YWCA Building chartered a bus to the hearing, hoping the judge would rule the building is blighted and should be taken from the PRA.

"Right now, it's like a dead building," said Lorraine Givnish, a longtime Germantown resident and CIP member.

The PRA first awarded the redevelopment project in 2016 to KBK, an Ohio-based development company owned by Keith B. Key, who has no experience in the adaptive reuse of historic buildings. KBK, favored by district Councilmember Cindy Bass, has failed to meet expectations since then, repeatedly failing to secure funding.

In early July of this year, KBK failed to qualify for state credits for low-income housing from the Pennsylvania Housing Finance Agency (PHFA), which was crucial to his financing. And last week – the day after Thursday’s hearing concluded – community members discovered that it didn’t get the credits because the application was reportedly so poorly completed that it wasn't even considered.

During his testimony on Thursday, PRA deputy director Angel Rodriguez, who also serves as Executive Director of the Philadelphia Land Bank (PLB),  and Senior Vice President of Land Management at the Philadelphia Housing Development Corporation (PHDC), acknowledged that KBK has not accomplished what the PRA has asked. He also said the tax credits KBK did not get would have amounted to more than 50% of its financing, making the project "difficult to complete" without them.

Irv Ackelsberg, a member of the building’s friends’ group and a lawyer, expressed disappointment that this information didn't come out during the hearing.

"The PRA gave a deceptively incomplete picture of the denial of tax credits to KBK," Ackelsberg said. "The testimony made it seem that KBK lost out in a competition for limited funds."

Ackelsberg said the community just wants to see the building redeveloped. "We didn't care who the developer was, we just wanted the deterioration to end, and for something positive and appropriate to happen with such an important building," he said.

He added, "There has been tremendous frustration in the community about KBK, and why it's been continually renewed after nothing has happened with that property in eight years."

In previous hearings, Weinstein outlined 15 major issues with the building that he says need addressing to remove the blight, including loose bricks and mortar. At Thursday's hearing, Rodriguez admitted that the agency had only addressed one issue: the litter surrounding the building.

"They did a great job at that, as I now don't see any trash around the site, but the other 14 items have not been accomplished," Weinstein said.

The role of councilmanic prerogative — a city tradition in which other council members defer to the district council person on local development matters — emerged as a significant factor in the case on Thursday. Rodriguez testified that the PRA cannot move forward on any properties until the district council person has introduced an ordinance, which is their "prerogative."

Bass, who represents most of Germantown, has continued to favor KBK, saying Key is the best developer for the job. Her office did not return a request for comment this week. 

After the hearing, Weinstein told the Local he was "glad" that the issue was finally addressed openly in court.

“The judge clearly understood what was being said, and that the PRA was blaming the blight on councilmanic prerogative but would not overtly say that,” Weinstein said. 

Renee Cunningham, director of CIP, testified about the observed state of the property, describing broken glass, used syringes, and safety concerns. She said the prolonged vacancy posed safety risks to the community.

"These proceedings are focused on the last two years, but the Y has been vacant for 18 years," Cunningham said. "First it was awarded to Germantown Settlement - who filed for bankruptcy and defaulted on the PRA loan. Then 10 years later, still vacant, an outside developer is chosen and they have been denied state funding for this project every time they have applied for it. That started eight years ago."

Judge Butchart said she would decide the matter within 30 days and scheduled a November date for a follow-up hearing.

Ackelsberg, who has attended all three hearings, left feeling optimistic about the outcome. "Having sat through all three hearings I feel very encouraged. She was listening and asked good questions," he said.