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Setback for Pennsauken waterfront plans

A real estate developer in talks to remake the industrial area along the Pennsauken waterfront with homes, shops, and office space has pulled out.

A real estate developer in talks to remake the industrial area along the Pennsauken waterfront with homes, shops, and office space has pulled out.

In a letter to the township dated March 24, Vineland Construction president John Krauser said his company had determined that developing the 350-acre property, which was contingent on attracting tenants, would take longer than anticipated.

"This longer time frame is not consistent with the township's present plans for the project," the letter read.

Krauser did not return a phone call for comment.

Mayor Rick Taylor cited the poor economy as contributing to the decision.

"You look around, and it's real evident it's difficult times," he said.

Vineland Construction's decision is the latest setback in a years-long effort to redevelop the waterfront south of the Betsy Ross Bridge. In 2008, Cherokee Investment Partners of Raleigh, N.C., called off its $1 billion redevelopment, which included controversial plans to build a golf course and hotel on Petty's Island.

Last year the 392-acre island, on which Citgo Petroleum Corp. once operated a refinery, was declared a nature preserve by the state.

Pennsauken officials are now looking to scale back the project and develop a smaller piece.

"We've come to the realization we're going to have to do the project piecemeal," Taylor said. "If that doesn't work, we may just put the land up for sale."

The township owns about 20 acres in the redevelopment zone, which will likely be shopped around to developers this year, said Pennsauken Administrator Ed Grochowski.

Vineland Construction owns about 140 acres along the waterfront, which it leases to a variety of businesses, including warehouses and a scrap yard. Grochowski said the company had indicated it might be interested in developing that land in the future.

Redevelopment projects around the region have been put on hold as the economy casts doubt on the ability to attract tenants.

For Pennsauken, the waterfront property faces an additional hurdle as an industrial site that could require extensive cleanup. Grochowski said the full extent of contamination was unknown.

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