The State College borough Redevelopment Authority may try to seek additional state funding for the delayed Fraser Centre project, borough officials said Monday night.
Construction on the mixed-use, $50 million project, planned for the 100 block of South Fraser Street, was to have begun in 2008. But the decline in the economy and complications with financing have pushed back the groundbreaking.
Borough Manager Tom Fountaine said potential large tenants are in talks with Susquehanna Real Estate, the York-based developer now leading the Fraser Centre plans.
If those tenants commit to the project, Fountaine said, the infrastructure designs may need to be revamped.
And to pay for an altered infrastructure, project planners may need an extra infusion of cash, he said after a Borough Council meeting.
The borough Redevelopment Authority will discuss Thursday whether it might apply to the state Department of Community and Economic Development, on behalf of the Downtown Improvement District, for grant money to cover the additional expense, Fountaine said.
He said he had just learned about the Thursday meeting and did not know how much money may be involved in the discussion. Borough Planning Director Carl Hess said it’s not certain that the RDA will seek the additional state funds, which may be available through the Housing and Redevelopment Assistance Program.
Susquehanna Real Estate is collaborating with the Downtown Improvement District on the Fraser Centre plans. Both groups have expressed optimism that work on the project may begin this year.
It has received support from a variety of public entities, including the Borough Council, which transferred land for Fraser Centre in 2007. The council has supported the concept as a way to help strengthen the borough tax base and diversify and energize the downtown economy.
State officials have already committed $2.5 million in state funds to help support the cinema portion of the project, as well.
In addition, Fraser Centre will benefit from another $2.5 million provided through tax-increment financing. The controversial practice allows a portion of the new tax revenue generated by the project to go toward its debt obligations.
Fraser Centre is expected to include upscale, owner-occupied condominiums and an underground parking garage for residents; office space; nearly 10,000 feet of retail space; and a 10-screen cinema.
StateCollege.com will report additional details in this developing story as they become available.
Earlier coverage: Fraser Centre Plans To Add Office Space, May Not Include Bookstore
