The developer of the Centre City project is still mulling over details of the proposed hotel’s financing.

NexTier Bank last week approved financing the 80-room Marriott Springhill Suites hotel set to be built at the corner of East Jefferson and South McKean streets.

J.S. Capitol Construction, the developer of the project, was seeking a $3 million loan to build the structure. The company will own 60 percent of the finished hotel.

The city redevelopment authority is set to contribute $2 million in previously approved state funds to its construction. The authority will be a 40 percent owner of the property.

“We’re still working with NexTier and the developer for final approval,” said Art Cordwell, executive director of the authority.

The hotel is set to join a new Rite Aid Pharmacy under construction along Main Street and a proposed 225-lot parking garage as part of the Centre City project.

Cordwell said the developer is reviewing terms of the financing for the hotel, including looking into the investors in the loan.

“They want to make sure all the investors are qualified and able to provide investment into the business,” Cordwell said, adding there are other minor details to finalize.

Cordwell said he expects the terms of the financing to be worked out by the end of next week.

“This is all standard practice,” he said.

Assuming financing is eventually approved by the developer, construction of the building could begin later this year.

“(The developer) would like to start in October or November at the latest,” Cordwell said.

The hotel would take about 12 to 16 months to complete.

However, the developer must first lock down financing for the third and final piece of the project before the hotel can be built.

“The parking garage has to be in place before they can start drawing money down from the bank for the hotel,” Cordwell said. “The projects are connected.”

Jeff Schmitz, president of J.S. Capitol, has previously said he expects his company to finance the garage then sell it back to the city parking authority after one year.

That plan has yet to be approved by the parking authority. City council authorized late last year an ordinance allowing the city to spend up to $6.5 million for a new parking garage with a bond through PNC Bank.

Schmitz did not respond to request for comment. Paul Dunn, the project manager with the developer, said he would be available to speak next week.

Rite Aid sign

The city Zoning Hearing Board will hold a meeting at 10 a.m. Tuesday at the city building to review an application by J.S. Capitol requesting a variance in the city’s size of signs ordinance.

The city has a limit of 75 square feet for signs, but the developer of the Centre City project is requesting two signs that would exceed that limit for its new Rite Aid Pharmacy.

The two signs, both along East Cunningham Street, would be 79 square feet and 98 square feet.

The store is expected to open in October.