Construction to impact I-83 traffic for the next few weekends: PennDOT

Yorktowne project to receive $10 million state grant

David Weissman
  • The York County IDA was awarded a $10 million state grant to renovate the Yorktowne Hotel.
  • The hotel is set to close Nov. 6 until 2018 to begin renovations outlined in RACP grant application.
  • Yorktowne one of only 7 York County applicants to receive funding through RACP this year.

The Yorktowne Hotel renovation project has received a $10 million state funding grant.

A view of York City is shown from the rooftop of The Yorktowne Hotel in downtown York, Pa. on Friday, Jan. 8, 2016. (Dawn J. Sagert - The York Dispatch)

The York County Industrial Development Authority, which owns the hotel, announced approval for the Redevelopment Assistance Capital Program grant in a news release Friday.

The authority had announced more than a week earlier that the hotel would close Nov. 6 to begin renovations, with a reopening planned for 2018.

Per RACP guidelines, the authority must match the $10 million grant with at least $10 million in nonstate funding.

Jack Kay, chairman of the IDA, confirmed in a statement that the authority has secured the necessary matching funds "through community stakeholders committed to the Yorktowne project as an essential part of York’s redevelopment.”

The state's guidelines also state that those matching funds must be secured at the time of the application, though noncash assets such as land or building values are permitted for entry.

Jeff Sheridan, a spokesman for Gov. Tom Wolf's office, said RACP funding is a reimbursement program that is contingent upon the grantee submitting detailed documents proving they've done what they are required to do.

Ten percent of the funding also is withheld until a closeout audit of the project is submitted, Sheridan added.

According to a spreadsheet on RACP applicants posted on the state Office of the Budget website, the authority's application detailed a demolition of the Yorktowne's garage and a 1957 addition, which Kay said was in the back of the current building, along with mechanical improvements.

Wedding plans threatened by Yorktowne closure

A discussion also is being held with an employer in the medical field to convert two floors of the hotel into office suites to improve cash flow and provide more customers for the hotel's food-and-beverage services during the work week, the spreadsheet shows.

“We cannot confirm any tenants at this point in the planning process," Kay said in the statement. "As we work on the plans for the property, we are exploring a variety of mixed uses, including office space."

State Rep. Kevin Schreiber, D-York City, and York City Mayor Kim Bracey both praised the project and the grant in separate news releases.

“This project will help maintain the Yorktowne Hotel as an anchor in the community while creating and retaining jobs downtown,” said Schreiber, who will take over as president and CEO of the York County Economic Alliance on Dec. 1. “This is possible thanks to Governor Wolf’s continued commitment to York.”

Other projects: The Yorktowne was one of seven York County projects that requested RACP grants for this year and the only one approved.

The list of denied requests included: a $2.5 million request by Blue Ridge Holdings and Robert Rauhauser for downtown Hanover developments; a $20 million request by the IDA to construct a building for a confidential user at the former Harley-Davidson west campus in Springettsbury Township; a $3 million request by Hanover Hospital to provide state-of-the-art cardiac catheterization suite space to accommodate lifesaving procedures; a $3.6 million request by Royal Square Development and Construction to renovate three buildings on Market Street; a $700,000 request by the Strand-Capitol Performing Arts Center for renovations to its Capitol Theatre; and a $5 million request by the York County Conservation District for the construction of a county agricultural and natural-resource service center in Springettsbury Township.

The IDA sold the former Harley-Davidson west campus to NorthPoint Development for $4.5 million last November.

The Kansas City-based developer has since constructed the Eden Road Logistic Center, a 755,500-square-foot industrial facility that was built on a speculative basis. The developer and YCEA will host dedication ceremony for the facility at 10 a.m. Friday at 1445 Eden Road, according to a YCEA news release.

Royal Square Development's request related to development efforts at the former Woolworth, Zakies and Weinbrom Jewelers buildings on West Market Street.

Isaac's among future tenants in downtown York

Josh Hankey, president of the company, said the developer applied for the RACP grant at the same time it applied for a New Market Tax Credit because officials weren't sure which it would receive.

Community First Fund allocated Royal Square an $8.25 million tax credit, worth about $2.5 million in equity, last September, and Hankey said the company is set financially in renovating those buildings.He added that Royal Square might apply for an RACP grant in the near future to include renovating the H&R Block building at 101 E. Market St.

Representatives from Blue Ridge Holdings, Hanover Hospital, Strand-Capitol Performing Arts Center and York County Conservation District did not immediately return requests for updates on their respective projects.

Past organizations to receive RACP grants include Think Loud Development, LLC, which was granted $7 million for its renovation of 210 York St. in York City; and Glatfelter, which was granted $5 million to replace coal-fired burners with natural gas boilers at its Spring Grove facility.

— Reach David Weissman at or on Twitter at @DispatchDavid.