The state has awarded $250,000 in historic tax credits toward a more than $36 million renovation project that is remaking the the Yorktowne Hotel.
In addition to the historic tax credits from the state, officials behind the hotel renovations are also pursuing federal historic tax credits worth in excess of $5 million, said Jack Kay, chairman of the York County Industrial Development Authority, which owns the hotel. Approval for the federal historic tax credits is still pending.
Other funding for the project comes from nearly $20 million in grants, foundation donations and private philanthropic gifts, and $10 million to $12 million in historic and new market credits, Kay said. As part of their agreements, donors have asked that their names not be disclosed publicly.
At this point, donations and gifts are still being calculated. The total will determine how much debt the project may need to take on, said Blanda Nace, strategic development director for the York County Economic Alliance. He anticipates that the project will include a loan – or a mortgage of sorts – in the $4 million to $6 million range.
The Yorktowne’s construction is estimated to cost $36,519,123, according to a press release from the state.
Bidding for core and shell work on the building, such as windows and elevators, is open until Aug. 15. Once the bidding closes, Nace anticipates related work will start four to six weeks later.
Interior work on the building will go out to bid in the fall.
Within the next week or two, the 1957 addition on the hotel will be coming down.
The Yorktowne is one of 21 projects that have received a total of $3 million in funding through the state’s Historic Preservation Tax Credit program. The projects are estimated to leverage $257 million to preserve historic buildings throughout the commonwealth. The economic benefits of the program go far beyond rehabilitating one building, said Gov. Tom Wolf.
Historic tax credits are administered through the Department of Community and Economic Development (DCED) and the Pennsylvania Historical & Museum Commission. The tax-credit program helps communities revitalize and repurpose empty buildings for use by new businesses, said Dennis Davin, secretary of the DCED.
This year’s funding is going to various projects expected to create new market rate and affordable housing, bring new businesses to downtowns, and expand educational opportunities, said Andrea Lowery, executive director of the state museum commission.