The developer of the signature Exelon Tower at Harbor Point wants to convert five floors of the building to apartment units, a representative of the Beatty Development Group told the Urban Design and Architecture Review Panel (UDARP) today.

Jonathan Flesher said that retail space, originally proposed for the lower floors of the 656,000-square-foot complex, would be turned into 103 studio and one-room apartment units.

Mixed-use space would be “a better use of the property,” he said, and enhance the 24/7 nature of the building – the first of 3-million-square-feet of development approved for the 27-acre site.

Flesher acknowledged that the change could help with financing the tower. He said private debt and equity have been lined up for the $110 million tower, but that the parties are still going through due diligence. Exelon has pre-leased 88% of the 23-story tower for its new regional headquarters, replacing its current facilities on East Pratt Street.

The apartments would overlook a public square, but their view of the harbor would be mostly blocked by buildings closer to the waterfront when Harbor Point is completed, now scheduled for 2022.

Today’s disclosure, made at a meeting held to discuss design elements of the building, was the first time that Councilman Carl Stokes heard of the switch to apartments.

Stokes is chairman of the Council’s Taxation, Finance and Economic Development Committee that approved (over Stokes’ objections) a $107 million TIF financing plan for the project. The financing was approved by the full Council earlier this month.

The agreement requires the Beatty Group to earn enough cash flow to pay special taxes to the city, which in turn will pay off the TIF bonds. Apartment rentals could provide an immediate and dependable source of cash.

UDARP Calls for Design Changes

The commissioners voiced reservations today about the redesign of the building’s lower floors to accommodate the apartments. In its original iteration, the building included masonry piers along the east wing of the complex. But that element was eliminated because it would obstruct some apartment windows.

Panel member Gary A. Bowden criticized the sheer glass facade proposed for the apartment space as “mundane.” He also told architect Elkus Manfredi that the front entrance, consisting of a 24-foot glass cube, intruded too far into the public sidewalk.

The design panel called on revised plans to be submitted at a future hearing.

Flesher did not say whether the redesign would delay groundbreaking of the building, which is also under final review by the Environmental Protection Agency (EPA) and Maryland Department of the Environment because it lies over a capped hexavalent chromium waste site.

Exelon wants the building completed by mid-2015, and Beatty is under intense pressure to begin construction as soon as possible.