KENNETT SQUARE >> Soon after Victory Brewing Co. opens its third location in Kennett Square this spring, a new construction project will start nearby that will add a restaurant, office space, apartments and some retail space.

Kennett Square Borough Council last week approved an intergovernmental cooperative ordinance with Kennett Township that puts the development on the fast track. The 5.2-acre property being developed by Cannery Row Properties, LTD, has 1.3 acres in the borough.

“Not all municipalities agree to collaborate in this way,” said Marc Jonas, Kennett Square’s solicitor. “You just don’t see this kind of very assertive cooperation. It’s not standard fare. It (the intergovernmental cooperative agreement) is a not-often used device to resolve development or property located in two municipalities.”

The property is located at 698 Cypress Street in Kennett Township, and at 214 South Mill Road in Kennett Square. Construction calls for four separate buildings of varying uses. It is the site of the former Sunny Dell Foods, which burned to the ground in a massive fire years ago. The agreement is valid for zoning issues only and allows the developer to have reasonable use of the property without having to go through expensive and time-consuming variance hearings in both municipalities. Both lots are deed restricted.

Mike Pia, Jr., of Kennett Realty, who is managing the project, said the new development will complement Victory Brewing Co. and Magnolia Place.

“This is really going to be a nice little campus,” Pia said. “It is designed to stay in conjunction with the traditional neighborhood design setting we have at Magnolia Place. It should complement that neighborhood and give people living there some amenities that don’t exist now.”

Pia said he is pleased with the cooperation he received from municipal officials at Kennett Township and Kennett Square.

“This really is a first for the borough and the township to have this kind of cooperation on a development of this size,” Pia said. “I hope to get final approval by the end of summer and break ground immediately. There are already a number of interested tenants.”

The project still requires final land development approval from both Kennett Square and Kennett Township. Pia said he expects to have a sketch plan ready in a month or so.

Meanwhile, construction of the nearby Victory Brewing Co. and the Magnolia Place townhouses is nearing completion.

Victory’s 250-seat restaurant will have space for outdoor dining and will occupy all 8,138 square feet of the bottom floor of a four-story, luxury apartment building. The three stories above Victory Brewing Co. will feature 33 apartments — 16 single bedroom, 16 two-bedroom and one loft apartment.

The property will be home to 79 apartments and condos, with a starting base price of $329,900, according to Eddie Riggin, broker at Re-Max Wilmington. It will have three multi-use buildings with retail stores, restaurants and office spaces.

Matt Kreuger, vice president of operations at Victory Brewing Co., said windows are being installed and final construction will commence soon.

“We should be able to begin improvements within next month or so,” he said. “You know how it is with construction, it is very dangerous to offer a (prediction).”

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