A proposed mixed-use project in the heart of downtown Hershey may still happen as planned despite a school board’s vote against a tax-incentive plan that would have helped the project.
The Derry Township school board voted 6-3 Monday night to reject a tax-increment financing proposal, or TIF, pitched by the project’s developer, Wormleysburg-based RVG Management & Development Co.
RVG has proposed a $28 million, 130,000-square-foot mixed-use complex on West Chocolate Avenue, a project that would include a three-story parking garage.
The developer was seeking $2.3 million from the TIF, or about 38 percent of the parking garage’s cost. The garage was added to the project to provide parking to accommodate on-site users, plus give the community more downtown parking.
Following the vote, RVG officials said it’s back to the drawing board. At the same time, the company has made a long-shot request for a $2.5 million state grant to build the parking garage.
The developer has applied to the state’s Redevelopment Assistance Capital Program, or RACP, according to records filed with the Office of the Budget.
RACP is a grant program used largely by businesses for the acquisition and construction of regional economic, cultural, civic, recreational and historical improvement projects. The RACP requires an equal match of nonstate funding from the applicants.
A couple of Harrisburg projects received RACP funds last year. Prior to that, grant announcements had been delayed during the lengthy 2015-16 budget stalemate that carried into March 2016.
About $125 million in RACP grants is available each year.