Yorktowne Hotel: More — unsurprising — costs
The cost to fully renovate the Yorktowne Hotel has gone up, but the increase isn't alarming to the two organizations that are spearheading the project.
An additional $7 million will be required to continue renovations at the building, adding to the project's $33 million price tag and bringing the total cost to $40 million. The original budget for the project was $20 million.
The hotel renovation project is a joint endeavor between the York County Economic Alliance and the York County Industrial Development Authority. The YCIDA purchased the building in late 2015 and the project began in 2016.
Kim Hogeman, manager of strategic development for the YCEA, said the increased cost and the delay did not come as a surprise. According to Hogeman, the scope of the project has not changed, but she acknowledged that there can be a great degree of unpredictability when renovating a 90-year-old building.
When the Yorktowne Hotel reopens, it has to meet the standards of the Americans With Disabilities Act and be brought up to code to comply with historic standards, she said, and it was impossible to predict the level of deterioration in different areas of building until demolition and construction work began. As a result, the project's completion date has been delayed until late spring 2020.
“There were a lot of things that came up,” she said.
She also said the cost increase was not unexpected, as the initial $20 million budget was only meant to cover the first phase of the project. The YCIDA received a grant from the PA Redevelopment Assistance Capital Program that covered $10 million of the first phase and required an additional $10 million in matching funds.
“It was never a $20 million project,” she said.
The remaining cost of the project will not directly affect taxpayers in York County, Hogeman said, as the YCIDA plans to use a combination of additional stage grants and philanthropic donations to complete the project. Any debt that remains will be funded through long-term financing, she said.
Hogeman said workers have spent the winter demolishing portions of the hotel’s interior, but will be moving outside to work on the hotel’s exterior this spring.
“People will see a lot more activity going on with it,” she said.