yor Ed Pawlowski has asked state officials for an additional $ 500,000 to help the Fegley family, owners of Bethlehem Brew Works, a complete plan for the restaurant and brewery on Hamilton Street.
The Brew Works' Allentown location, announced three years ago, has been awarded more than U.S. $ 4.5 million in local, state and federal loans and grants, and shall be exempt from most state and local taxes until 2011.
The project is also scheduled for $ 1.8 million in loans through local financing pool administered by the Lehigh Valley Economic Development Corp.
But construction costs have created an unexpected $ 700,000 funding gap, raising the project cost more than $ 7.7 million, and further delay the opening.
Engineers determined in December that the floor of the former Harold's Furniture building was too weak to support the quarry tiles and hundreds of visitors who will stand on it, said Dick Fegley, co-owner of the restaurant.
"No one gave this thought because it has become a furniture store," said Mike Rosenfeld, executive director of the Allentown Redevelopment Authority, which has a building at 812-814 Hamilton St.
Fegley said the building was built for the pre-World War I standards, and the floor needs to be strengthened with a steel beam. That, coupled with inflation of construction costs while the project has been delayed, creating a funding gap.
Project and the family also jumped in February by the death of 33-year-Fegley, son of David, who is a partner in Allentown restaurants.
The long-awaited restaurant and bar, which was initiated by Pawlowski in 2003 when he became director of community and economic development, seen as the anchor of Allentown's downtown revitalization efforts.
Pawlowski said the initial projects in urban revitalization efforts often require significant government loans and grants for businesses to take the risks associated with the opening of the city center.
"This is what you need to do to get projects of this size and place in an urban environment," he said.
Most of the aid comes in the form of loans to pay back Fegleys, he said.
State, which has pledged $ 1 million for the project, had convinced the city can meet the demand for another $ 500,000, said Francis Dougherty, Pawlowski's candidate for director of Community and Economic Development, but can not formally committed to the project until after passing the state budget.
Budget deadline is June 30, but it's up to Pennsylvania General Assembly to approve the state spending plan, and sometimes beyond the deadline.
The family will Fegley took the additional cost of $ 250,000. Fegley said his family has sunk more than $ 500,000 to the project.
Kevin Ortiz, spokesman for the state Department of Community and Economic Development, said the country to evaluate requests for assistance, and that Gov. Ed Rendell to see the project as important to Allentown's revitalization efforts.
"Governor and the DCED are committed to making this project successful," said Ortiz.
In addition to the $ 1 million in state funds, the Brew Works has received U.S. $ 3.4 million Department of Housing and Urban Development loan and $ 1.8 million in financing from the Lehigh Valley Economic Development Corp.
City has donated $ 3000 to assist with the design and $ 90,000 for facade improvements. Work has been completed facade.
The agreement Fegleys have to pay city parking authority and $ 40,000 for a property and parking nearby.
Location of the building in Keystone Opportunity Zone that would be exempt from most state and local taxes until 2011.
After getting interior work underway, construction is expected to take about nine months. When the federal loan was approved in April 2005, officials hope the restaurant will open this summer. Now that schedule looks more like the opening of spring 2007.
Includes plans for 350 seats, 100-seat basement, 200-seat third-floor banquet hall and 100-seat outside the yard. Expected to employ approximately 160 people. The top floor is expected to be converted into leasable office space.
If things can not move quickly, can cause problems for the HUD loan, Rosenfeld said. Document that requires a loan of money to spend in September, unless an extension is received.
While the possibility of extension, Rosenfeld said anything can happen in Washington, DC, and that the longer the time for construction, the higher the uncertainty.
"The longer this out, the more worried I get," said Rosenfeld.
www.mcall.com
The Brew Works' Allentown location, announced three years ago, has been awarded more than U.S. $ 4.5 million in local, state and federal loans and grants, and shall be exempt from most state and local taxes until 2011.
The project is also scheduled for $ 1.8 million in loans through local financing pool administered by the Lehigh Valley Economic Development Corp.
But construction costs have created an unexpected $ 700,000 funding gap, raising the project cost more than $ 7.7 million, and further delay the opening.
Engineers determined in December that the floor of the former Harold's Furniture building was too weak to support the quarry tiles and hundreds of visitors who will stand on it, said Dick Fegley, co-owner of the restaurant.
"No one gave this thought because it has become a furniture store," said Mike Rosenfeld, executive director of the Allentown Redevelopment Authority, which has a building at 812-814 Hamilton St.
Fegley said the building was built for the pre-World War I standards, and the floor needs to be strengthened with a steel beam. That, coupled with inflation of construction costs while the project has been delayed, creating a funding gap.
Project and the family also jumped in February by the death of 33-year-Fegley, son of David, who is a partner in Allentown restaurants.
The long-awaited restaurant and bar, which was initiated by Pawlowski in 2003 when he became director of community and economic development, seen as the anchor of Allentown's downtown revitalization efforts.
Pawlowski said the initial projects in urban revitalization efforts often require significant government loans and grants for businesses to take the risks associated with the opening of the city center.
"This is what you need to do to get projects of this size and place in an urban environment," he said.
Most of the aid comes in the form of loans to pay back Fegleys, he said.
State, which has pledged $ 1 million for the project, had convinced the city can meet the demand for another $ 500,000, said Francis Dougherty, Pawlowski's candidate for director of Community and Economic Development, but can not formally committed to the project until after passing the state budget.
Budget deadline is June 30, but it's up to Pennsylvania General Assembly to approve the state spending plan, and sometimes beyond the deadline.
The family will Fegley took the additional cost of $ 250,000. Fegley said his family has sunk more than $ 500,000 to the project.
Kevin Ortiz, spokesman for the state Department of Community and Economic Development, said the country to evaluate requests for assistance, and that Gov. Ed Rendell to see the project as important to Allentown's revitalization efforts.
"Governor and the DCED are committed to making this project successful," said Ortiz.
In addition to the $ 1 million in state funds, the Brew Works has received U.S. $ 3.4 million Department of Housing and Urban Development loan and $ 1.8 million in financing from the Lehigh Valley Economic Development Corp.
City has donated $ 3000 to assist with the design and $ 90,000 for facade improvements. Work has been completed facade.
The agreement Fegleys have to pay city parking authority and $ 40,000 for a property and parking nearby.
Location of the building in Keystone Opportunity Zone that would be exempt from most state and local taxes until 2011.
After getting interior work underway, construction is expected to take about nine months. When the federal loan was approved in April 2005, officials hope the restaurant will open this summer. Now that schedule looks more like the opening of spring 2007.
Includes plans for 350 seats, 100-seat basement, 200-seat third-floor banquet hall and 100-seat outside the yard. Expected to employ approximately 160 people. The top floor is expected to be converted into leasable office space.
If things can not move quickly, can cause problems for the HUD loan, Rosenfeld said. Document that requires a loan of money to spend in September, unless an extension is received.
While the possibility of extension, Rosenfeld said anything can happen in Washington, DC, and that the longer the time for construction, the higher the uncertainty.
"The longer this out, the more worried I get," said Rosenfeld.
www.mcall.com
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