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Proposed development on surface parking lots and out-of-place downtown McDonald's restaurant.

Agency plans 7-story complex
Downtown structure would house parking ramp, residences, retail space
BY GEORGE MILLER

Plans are under way for a possible $21 million, seven-story complex at the northeast corner of West Fifth and Peach streets that would contain a parking ramp, 90 residential units and retail space.

The Erie Redevelopment Authority on Monday unveiled plans for the structure and agreed to apply for $3.5 million in funds through a state program that will be critical for the project to go ahead.

"This project shows a lot of promise," said John R. Elliott, the authority's executive director. "I don't want to say it is definite. It's a strong enough possibility that we are pulling the pieces together. Our goal is to have building permits within 12 months."

Elliott said the parking ramp is "absolutely essential" to downtown revitalization in that area and was identified as an element in the city's downtown master plan.

"We all know that a parking ramp is desperately needed in that area to encourage development," he said.


Erie city officials and some merchants have been pursuing the parking ramp for several years, saying it's needed to relieve parking congestion in the area.

But a study on behalf of the Erie Parking Authority found that there was not enough demand to allow the construction to be done by traditional financing.

The multiuse structure will make the project feasible, creating additional parking demand and also providing tax revenue, Elliott said.

The first floor of the complex will contain about 10,000 square feet of retail space.

The parking facility would contain about 296 spaces and will be on the second, third and fourth floors. The last three floors would be for the residential units.


Elliott said the complex could contain an eighth floor for office space.

The $3.5 million is being sought through the state's tax-increment financing program. Under it, the city, Erie School District and Erie County would have to agree that the increased real-estate tax revenue generated by the project would be used to repay the $3.5 million.

"We know that project will not work without tax increment financing," he said.

Elliott said the housing and retail space will add about $13 million to the local tax rolls.

A private firm has tentatively agreed to provide $7 million for the project, he said. In addition, federal tax credits of at least $2 million will be sought.


The remainder of the funding will come from bank financing.

Elliott said a Hamot Medical Center affiliate owns five of the site's six parcels. A McDonald's restaurant owns the other.

The Redevelopment Authority has been in discussions with them about the project, he said.