Major Coatesville Downtown Revitalization Project To Get Underway

By Allen Davis
Staff Writer

The financial framework to revitalize five downtown buildings for commercial and residential use was completed when Coatesville council unanimously approved underwriting a $420,000 loan for the city Redevelopment Authority.

The former Tuck's Building is one of the properties to be renovated.

The city's contribution is part of a $4.56 million financial package needed to restore the buildings, several of which have severe structural problems which will require costly repairs to bring them up to code.

Almost half of the $4.56 million -- $2.13 million -- is coming from private investors working in cooperation with The Community Builders (TCB), a private, non-profit group working in partnership with the Chester County Housing Authority; it was the housing authority that obtained $16 million federal HOPE VI grant. The lure for private investors is major tax credits.

"We're setting a new tone for the downtown district," said City Manager Paul Janssen.

Recently city council has been criticized for emphasizing the Family Regional Recreational Center while neglecting the downtown business district. But while the recreation center and its 18-hole golf course has been grabbing headlines, a significant revitalization of the downtown district has been moving forward.

Construction of the six properties is scheduled to begin next month, with the project in full swing by May, according to James Eby of TCB. Five on the buildings are located on East Lincoln Highway and one is on Harmony Street.

The project is seen as rescuing 22 housing units located above the 6 commercial spaces. TCB will control the housing units while the city Redevelopment Authority will lease all six commercial spaces.

"We're more into residential units not commercial space," said Eby.

Having the Redevelopment Authority controlling the commercial spaces through a master lease means that the city has control over what type of businesses go into the store fronts. "We don't need any more hair or nail salons downtown," said Janssen.

Janssen said if the city rents just 75 percent of the commercial space at $7 per square foot, it will have recovered the cost of the master lease. Any additional funds beyond that will go to the city Redevelopment Authority, he said.

The source of the $4.2 million breaks down as follows: $645,000 in HOPE VI funds; $750,000 in county Community Development Block Grant (CDBG) funds; $500,000 in state redevelopment funds that will pass through the city to TCB; $110,000 from TCB; $2.13 million from private investors; and $425,000 to be borrowed from the First National Bank of West Chester by the city Redevelopment Authority. The city is underwriting the Redevelopment Authority loan until the project is finished.

Without government intervention, it is unlikely that any of the buildings would have been renovated, according to Jim Eby of TCB. People who showed interest in the commercial space, he said, were often turned off by the amount of repairs that needed to be done.

"There's just no way it (renovation) would happen without government assistance," Eby said.

Eby said the city has a market study that identifies those type of business that would be successful. It will be up to the city to recruit those businesses into the city, once the renovations are done.

The addresses of the buildings located on East Lincoln Highway are 128 and 130; 209 and 211; 238 and 240; 242 and 244; and 258. The project also includes 237 Harmony Street.

You can write to Allen Davis at allen@chestercountyreporter.com