Subaru Relocation Concerns Drive Redevelopment Studies, Officials Say

With rumblings of interest from Philadelphia’s Navy Yard and other sites, Cherry Hill officials threw down their hand in trying to keep Subaru of America’s headquarters in the township, approving two redevelopment studies that could pave the way for an expanded Subaru location—or a new home for another major corporation.

The two studies OK'd by council Tuesday night—one on a 10-acre parcel originally slated for an off-track betting parlor at Garden State Park, and the other on a 35-acre property currently home to Victory Refrigeration—were spurred by the possibility of Subaru leaving the township, but aren’t necessarily exclusive to the Japanese automaker, township officials said.

“I envision transforming the Victory site into an economically viable and thriving world-class corporate campus fit for the 21st century,” Mayor Chuck Cahn said. “This is an opportunity to grow the township’s commercial ratable base, solidify our thriving local economy and set a precedent for future growth.”

The 250,000-square-foot Victory property—coincidentally, across the street from the Woodcrest Corporate Center, which came about after the bankruptcy of Langston Steel and the creation of one of the township’s other seven redevelopment zones—dates to the mid-1960s, and is currently owned by the Vineland Construction Corporation, which leases it to Victory. The Brown family, whose relationship with Cahn was part of Republican criticism of a move by the township and Camden County to try to buy Woodcrest Country Club, owns Vineland Construction, and has donated money to Cahn’s campaign.

But township officials said the study is about determining whether the property, which appears almost abandoned at first glance, with plywood sheeting covering some windows from the inside, may be significantly underused. They touted the location’s close proximity to the Woodcrest PATCO stop and the Route 295 off-ramp that serves Woodcrest Road as factors that could entice full development of the property.

“The Victory plant was built for a different time, a time when Cherry Hill’s economy relied on manufacturing,” said township council President David Fleisher. “We need to revitalize this property and bring it to 21st-century standards, to attract important tax ratables and further enhance the local economy.”

The off-track betting site, vacant apart from the old gatehouse from Garden State Racetrack, is significantly smaller than the Victory site, but is almost directly across Route 70 from Subaru’s current headquarters, and could be attractive because of its location, officials said.

“This is the gateway to Cherry Hill and an ideal location for a state-of-the-art commercial facility,” Cahn said.

There was vocal opposition to the off-track betting redevelopment study, though. Ballard Spahr attorney Barbara Casey, who represents GS Park LP, the off-track betting developer, said there’s zero interest from GS Park LP in selling, no matter the circumstances.

“We will be taking every action that is necessary to challenge any attempt to move this redevelopment designation forward,” she said.

Subaru officials have said they’re looking for a space almost double the size of their current headquarters along the Cooper River, a 115,000-square-foot office tower on a 13-acre property that's maxed out, with no room for growth, and could make a move in the next two years to new digs.

Close to 900 employees from various locations could be moved into a new space, according to Michael McHale, the company’s director of corporate communications, which is the focus of trying to find a suitable location, rather than other concerns.

“It's been driven from an operational standpoint,” he said previously.

Though McHale said the company would like to stay in the township, there have been reports of other locations trying to peel Subaru away from Cherry Hill, including Philadelphia’s Navy Yard. Newsworks.org reported Pennsylvania could offer various incentives to the company because of the Navy Yard’s designation as a Keystone Opportunity Improvement Zone, though it’s not immediately clear if Subaru would qualify for any of those incentives, which include tax credits.

Concerns over that possible relocation got Cherry Hill officials looking at what properties might be a good fit, which resulted in the two proposed redevelopment studies.

“You don't want to lose the jobs, you don't want to lose that marquee name,” said township spokeswoman Bridget Palmer.

The studies are just the first step in the process, however. The township’s planning board will have to conduct the studies, which could take at least three or four months, and potentially beyond that, Palmer said, and there will have to be a public hearing on the results.

“Once they feel like they've done their due diligence, they'll send it to council,” she said. “It’s definitely not a process that’s going to be done overnight.”

If either redevelopment zone is approved, it could be part of a package of incentives, including efforts from the state and county, presented to Subaru to persuade company officials to stay in the township, Palmer said.

The studies could also potentially help attract other large corporations, though Palmer said the township hasn't yet pitched the sites to anyone else.