The $2.7 million renovation and addition to the Lancaster Quilt & Textile Museum was recently completed. The $21 million Pennsylvania Academy of Music expansion is set to open in spring. And construction of a new $13 million parking garage on East King Street will begin soon.

Although the pace of construction seemed to slow after last year's usually high activity, 2007 still had the highest construction spending of any year except 2006 - and nothing compares to 2006.

Last year, the city had $239 million in construction activity - more than three times the previous record. That number was led by the $99.4 million in spending on the Lancaster County Convention Center and the attached Marriott hotel.

This year, the city saw $96.4 million in construction activity, based on the figures submitted for building permits. Those numbers do not include electrical work or furnishings.

The total, for permits filed by Friday, places 2007 comfortably in second place. The next highest figure was $75.5 million in 2003.

Mayor Rick Gray doesn't foresee the construction signs going away.

"In the last two months, I've met with local developers and developers from outside of the region and it's all positive. I don't think it's slowed down at all," Gray said.

Randy Patterson, the city's Economic Development & Neighborhood Revitalization director, also does not see the rate of development slowing.

He pointed to ongoing projects around the city, such as the Northgate condominium project, the revitalization of the former Kerr glass factory as the mixed-use Urban Place, and Lancaster General Hospital's office building and parking garage expansion.

In 2008, Patterson hopes to see the start of work on the long-planned $12 million renovation of Lancaster's Amtrak station.

He expects to see work begin on Lancaster Newspapers' planned parking garage and he has his fingers crossed for the start of the planned renovation of the Lancaster Press Building into luxury condominiums.

"There is a lot of activity in the ground and a lot of activity that is under review and a lot that is in the planning (stage)," said Patterson.

One of those projects in the review stage is a Lowe's shopping center planned for the former Kemps Foods building on Pitney Road.

Demolition of the former ice cream plant is expected to begin in early 2008, Patterson said.

Gray this morning cited additional figures showing the increase in city development.

Through November, the city received $911,000 in realty transfer tax. With the city receiving .5-percent of the value of real estate changing hands, that means nearly $200 million in property has been bought and sold this year, the mayor said. That figure represents a new record.

Gray also noted that the average sale price of a city home has increased to just less than $100,000 this year - up from $60,000 six years ago.

"Frankly, I think the demographics of the future is in urban living," the mayor said.

He said he regularly speaks with people who are interested in living where they can walk to shops and restaurants. He urges them to make the move.

"I think there are a lot of people who would like to move into the city, that are thinking about it. I talk to them all the time," he said.

All of the projects work together, the mayor said. The $170 million convention center doesn't directly support residential development, but the meeting center and hotel help support city restaurants and attractions that will be used by conventioneers and hotel guests and city residents alike, he said.

Just as important as the major projects, are the smaller ones, said Patterson. He pointed to the renovation of the former Elks lodge, on South Duke Street, into a credit union and insurance company offices as an example of a project that is important to the surrounding community.

Similar projects are the construction of new homes on Palm Street and the renovation of a former watch dial factory into a 40-unit apartment complex.

The Marriott hotel on Penn Square is being developed by the private-sector Penn Square Partners.

Penn Square Partners consists of general partner Penn Square General Corp., a High Industries affiliate, and limited partner Penn Square Ltd., LLC, an affiliate of Lancaster Newspapers, Inc., publisher of the Lancaster New Era, Intelligencer Journal and Sunday News.

2007 CITY BUILDING PERMITS

• County of Lancaster, 150 N. Queen St., office building renovation, $19.2 million.

• City of Philadelphia, 29 E. King St., renovations for state Labor & Industry offices, $3.4 million.

• Park City Center, renovations, $2.8 million.

• Burle Business Park LP, 806 New Holland Ave., renovations for five stores, $2.5 million.

• Franklin & Marshall College, College Avenue, addition to Benjamin Franklin dormitory, $2 million.

• Franklin & Marshall College, 931 Harrisburg Ave., Iron Hill Brewery at College Row, $1.68 million.

• EDC Finance Corp., 1101 N. Charlotte St., demolition permits for 45 former Armstrong floor plant buildings, $1.66 million.

• Lancaster General Hospital, 519 N. Duke St., renovations to third and fifth floors, $2.8 million.

• RNL LLC, 507 E. Fulton St., construction of new warehouse, $1.3 million.

• Heritage Center of Lancaster, 37 N. Market St., renovation and addition to quilt museum, $1.24 million.