State awards funds for $35.5M office building project in Lancaster County
More state dollars are flowing into Lancaster County, this time in the form of $5 million in grants and loans for a proposed office complex on the northern tip of Lancaster City.
Pennsylvania's Commonwealth Financing Authority approved a $2 million grant and a $3 million loan Wednesday for development of the City Gate Corporate Center at 1570 Fruitville Pike. The money comes from the state's Business in Our Sites program, which helps prepare underdeveloped and undeveloped sites for new business.
City Gate Corporate Center is a four-story, 51,000-square-foot office building set to take shape across the street from the under-construction Shoppes at Belmont and next to the Red Rose Commons shopping center, according to online listings. The state says the $35.5 million project is expected to create 488 jobs.
Lancaster-based Oak Tree Development Group is leading the project, according to LNP. The city of Lancaster applied for the Building in Our Sites grant on Oak Tree's behalf because private developers are not typically eligible for the funds on their own.
Representatives from Oak Tree did not immediately return a request from the Central Penn Business Journal for comment.
The developers plan to use the financing authority funds for stormwater management work, water and sewer installation, environmental remediation, construction of an access road and engineering costs, according to the state. They hope to have the building move-in-ready in 2018, the online listing says.
Oak Tree has built up commercial sites throughout the Lancaster area, including the recently completed Lime Spring Square in East Hempfield Township and the still-developing former Wilbur Chocolate factory in Lititz.
The City Gate Corporate Center was one of several midstate projects to receive a boost from the state this week. On Tuesday, the Commonwealth Financing Authority approved a $6.25 million loan for renovations at a downtown Lancaster hotel as well as a $1.2 million infrastructure grant to support highway improvements near a large commercial project off Interstate 83 in northern York County.