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

The grant will be used for phase one of the project, which includes a parking lot, infrastructure improvements and the renovation of the closed Kaufman House.

State Sen. Elder Vogel said Monday that his office was notified about the grant by Gov. Tom Corbett’s office Friday.

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

The budget office had announced most grant recipients in October, though 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 of the grant Friday evening since the borough thought all the money had already been distributed for the program.

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

Pepe said once he receives an official letter of the award, a more detailed application will be submitted.

The first phase of the project will cost $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 parking lot on West New Castle Street behind Main Street businesses.

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

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 to use for matching funds for grants.

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

Jack Cohen, president of the Butler County Tourism and Convention Bureau, expects the grant to contribute about $800,000 to the Kauffman House project.

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

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

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