Centre of Attention
When city Councilman Richard Schontz Jr. stands at the corner of South McKean and East Jefferson Streets, he doesn't see parking lot.
He sees a new hotel set to spark the city's redevelopment efforts.
“It's a wonderful thing to stand and visualize what that corner will look like next year,” Schontz said.
After nearly a decade of work by numerous individuals, Schontz's dream is set to become a reality.
Construction on Butler's Centre City project began in March.
The project will bring a Marriott Springhill Suites hotel, a Rite Aid pharmacy, and a 225-space parking garage to downtown on the block between East Jefferson, East Cunningham, South Main, and South McKean streets.
The cornerstone of the project is the $8.1 million hotel. The 80-room Marriott will be the first hotel built downtown in decades.
“I think this will lead to real economic development downtown,” Schontz said.
Mayor Tom Donaldson said the impact will go beyond Main Street.
“The positive focus will carry success not only downtown, but into the neighborhoods,” he said. “There has been a lot of time and effort put into this, and it will be a springboard for further development.”
Construction on the hotel is to begin early this summer, according to Art Cordwell, the executive director of the city redevelopment authority.
The authority, which will own 40 percent of the hotel, has played a vital role in the project.
Cordwell said he has spent most of the past two years focusing on it.
“I've been spending at least four or five hours everyday on it,” Cordwell said. “There's been a lot of evenings dedicated to it. It's been pretty hectic.”
The project has been the topic of numerous city council meetings.
“It's been a very tedious process, but we've been involved each step,” Schontz said.Cordwell said the need to plan and develop three structures has been the most difficult part of the process.“Because it's three projects in one, it complicated the whole issue,” he said.A major sticking point for the city has been figuring out how to finance the multimillion dollar parking garage.That was the main topic of discussion at most council meetings during the second half of 2013.“There was a lot of information in the last year,” Schontz said. “There has certainly been an increase in meetings.”The city worked out the details in approving up to a $6.5 million bond through PNC Bank to build the garage, but then had to turn its attention to figuring out who would build it.The issue resolved itself in January when developer J.S. Capitol Construction suggested it build the garage and sell it back to the city at a predetermined fixed rate. This would expedite the process because the city then would not be required to put the project out to bid.The developer also is expected to be able to build the garage for less money than the city could.“Discussion on building the tier garage really accelerated the process,” Schontz said. “Now that it looks like the developer is going to build it, it will be much cheaper and faster.”Councilman Kathy Kline said planning the project really picked up once each of the agencies involved got together and coordinated efforts.“I think once everyone had all the information and knew our expectations, that's when things really started to move forward,” she said.
Kline said having J.S. Capitol build the garage is the best way to finish the project.“It's a more challenging endeavor for the city,” she said. “We don't have the experience in doing a project of that size.”The city still must finalize an agreement with the developer to build the garage, but each member of council seems confident with the plan.“We're in a good mode,” Donaldson said. “I don't think we'll need any more meetings to discuss this.”Cordwell said he expects garage construction to begin about the same time as the hotel.The first piece of the project to be to built will be the Rite Aid pharmacy at the corner of Main and East Cunningham streets. Construction is to begin in early April.The $4.2 million pharmacy will be nearly twice as large as the current Rite Aid on Main Street and will have a drive through pharmacy window.The members of Butler Downtown hope the Centre City block is just the start.“We want to see that block become the model block for the rest of Main Street,” said Chelynne Curci, Main Street manager.While the Main Street program had no official say in the project, it was invited into the conversation with the redevelopment authority on how the block should look.In addition to the three structures to be built, the redevelopment authority is investing $2 million into infrastructure improvements on the block, including moving utility lines underground.
Curci said she would specifically like the streetscape to set the theme for the city.“We were pleased to be invited into the conversation,” Curci said.After this project is complete, Cordwell said the redevelopment authority won't be done with its revitalization efforts.“There are a lot of buildings along Main Street that could use work,” he said.Perhaps the vacant Penn Theater, which is owned by the authority, is the No. 1 issue. The biggest problem is that the state no longer will provide grants, saying the property is not profitable or vital to the community.“We'd like to start with the Penn Theater, but the state doesn't see it as a priority as much as we do,” Cordwell said.The city also must deal with other matters, such as a tight budget.“We haven't been focusing quite as strongly as we would like on different areas,” Schontz said, adding the Centre City project consumed much time and attention. “We want to focus on finding better ways to do business and serve the public better.”
