ZELIENOPLE — The borough's Main Street Revitalization project will receive a $3 million grant from the state.

The award comes from the Redevelopment Assistance Capital Program and will go for phase one of the project, which includes a new parking lot, infrastructure improvements and the renovation of the closed Kaufman House.

State Sen. Elder Vogel, R-47th, said his office was notified Friday afternoon about the grant by Gov. Tom Corbett's office.

“It's going to be a huge boon for Zelienople and to be able to get the community college involved, the Kaufman House up and running. It's a great win-win for everybody,” Vogel said.

The state budget office had announced most grant recipients in October, but Vogel said he heard that it was holding a few awards to announce in November or December.

“I was very happy. It's a really nice Christmas gift,” he said.

Borough manager Don Pepe said he was surprised when he was notified Friday evening of the grant since the borough thought all the money had already been distributed for the program.

“I was shocked. We thought it was dead,” he said.

Pepe said once he receives an official letter of the award, a more detailed application will be submitted. The borough does not yet know what percent of the grant it has to match and what parts of the project qualify for the grant.

The first phase of the project will cost an estimated $9.8 million and will focus on Main Street between Spring and New Castle streets. Projects would include redoing sidewalks and streetlights, moving utility lines underground and building a new municipal parking lot on West New Castle Street behind Main Street businesses.

Council member Mary Hess said she was “overjoyed” when she heard about the grant.

Zelienople PA Revitalization, a nonprofit group, and the borough will work together to plan the next stages of the project, she said.

In September, state Department of Community Development Secretary Alan Walker visited the borough and got a tour from members of the revitalization group and borough, county and state officials.

Hess said she thought the community's pitch to Walker was key in getting the grant.

“I think that was instrumental in us getting the money,” Hess said.

To date, the borough has spent $250,000 out of its electrical reserve fund for project planning and grant applications. It has an agreement to borrow up to $1.8 million from a bank for matching funds for grants.

The project also has been granted $500,000 from the Keystone Communities program, $100,000 from the Appalachian Regional Commission and $480,000 from the state Department of Transportation.

Hess expects some of the work to begin in 2015, with the parking lot being a high priority. With grants and matching money, the budget to start will be about $5 million, she said.

The revitalization group will continue to seek grants and donations for additional aspects of the project, which is split into three phases.

Jack Cohen, president of the Butler County Tourism and Convention Bureau, said he expects the Kaufman House project to use about $800,000 from the $3 million grant.

This comes in addition to a $400,000 grant the tourism bureau already received from the state Keystone Communities Program. The two grants and a $500,000 contribution from the tourism bureau will be enough to buy the property and start the rest of the project, Cohen said.

The plan is to reopen the restaurant and hotel as a for-profit business being staffed partially by Butler County Community College students learning culinary arts and hospitality.

The Kaufman House has been closed since 2011 when it had a fire.

After the purchase of the property is finalized, work will begin on the plans and permitting for renovating the building. Cohen said he expects the construction to take about 10 months, though he doesn't know when it will start.

He said, “The Kaufman House has been closed almost three years now. We think it's an anchor building of the community. It's going to be a beautiful project and really great for the community.”

State officials who supported the borough with its application include Vogel, state Sen. Scott Hutchinson, R-21st; state Sen. Randy Vulakovich, R-40th; state Rep. Jim Marshall, R-14th, and retiring state Rep. Dick Stephenson, R-8th.