State College, First National Eye Downtown Redevelopment Concept

State College borough and First National Bank have begun preliminary conversations about a potential redevelopment project on South Allen Street, borough and bank representatives confirmed this week.

They’re talking specifically about two neighboring addresses: 222 and 224 S. Allen St. — home, respectively, to a First National Bank drive-in branch and to a former Verizon Communications building.

‘Obviously, we’re interested in the State College community. And, as a good neighbor in that regard, we’re interested in plans for redevelopment’ there, a First National Bank spokeswoman said in a phone interview Wednesday.

The borough bought the former Verizon building for $750,000 in 2007, expecting that the Discovery Space children’s museum would locate there.

But museum organizers have since relocated their endeavor to a smaller space on West Foster Avenue, leaving the onetime telecommunications facility with an uncertain future.

Borough Council has charged the borough Redevelopment Authority — the RDA — with investigating options for the property. The RDA, in turn, has suggested that a mixed-use redevelopment project there — perhaps in a public-private partnership — could encourage non-student residences; professional offices; retail and restaurants; and a tax-base boost.

At an RDA meeting Tuesday, borough Planning Director Carl Hess said he has met with First National representatives. He told them the borough believes a six- to seven-story project spanning both 224 and 222 S. Allen St. could accommodate, in part, an improved bank branch, some limited bank parking and a revamped bank drive-through, among other features, Hess said.

‘They seem interested in upgrading their facility,’ he said. ‘And I think they’re serious about it. … I think they’re interested in doing something with that site.’

First National wants to see, in a schematic layout, exactly how such a redevelopment project could come together, Hess said.

Right now, he said, he’s determining how best to use the borough’s limited resources to develop schematics and encourage a First National partnership with the municipality. Hess believes the bank company would like to see some drawings in less than a year’s time, he said.

RDA board member Jawaid Haider suggested that qualified Penn State students may be able to help create the schematics. Hess and Vicki Fong, the RDA board chairwoman, appeared to agree.

For now, the First National spokeswoman told StateCollege.com that the bank company remains in a fact-finding mode, looking to see ‘what’s best from a community standpoint and a business standpoint,’ as well.

Conversations about the prospects are expected to continue in the coming weeks. The RDA is scheduled to reconvene for its next public meeting at noon June 23 in the State College Municipal Building, 243 S. Allen St.

The borough has been leasing space in the former Verizon building to private tenants while the property’s future is sorted out.

Earlier coverage

• State College Authority Finalizes Suggestions for Old Verizon Site (Nov. 4, 2010)