City building permits up, revenues down a bit

Mayor Gray Photo Courtesy Lancaster Newspapers

Still, it was a good year and the mayor is happy to see people all over Lancaster renovating their homes.

Lancaster New Era

December 30, 2008

Buildings continued to rise in Lancaster City this year, but spending on building projects fell from previous years.

According to data from building permits issued by Lancaster City officials, the total value of permitted construction was down in 2008, while the number of permits was up.

The increase in the number of permits was for projects with a lower cost - specifically $10,000 or less.

Lancaster Mayor Rick Gray was upbeat about the numbers.

While there were fewer multi-million dollar projects being built, Gray called the increase in spending on homeowners' new roofs, kitchens and bathroom renovations "a very positive indicator."

"It's a vote of great confidence in the city," Gray said. "People are voting with their pocketbooks."

Gray said residential renovation is being done in neighborhoods citywide.

"It's hard to go down to a neighborhood and not see at least one house being fixed up."

Even with the economic downturn, the mayor expects the trend to continue.

And, even with the economy in recession, the city still had a strong construction year. With $109.9 million in construction spending, 2008 takes third place in the city record books.

It ranks behind last year, in which permits were issued for $138.2 million in construction spending. Both of those years fall far behind 2006, when the $239 million in construction activity was triple any previous year.

That year's total was skewed by the $99.4 million in permits for the Lancaster County Convention Center and the Marriott Lancaster at Penn Square Hotel. Those facilities are due to open in April.

Whether 2009 will rank among the best years for city construction "really depends on the markets," said Randy Patterson, director of the city's Economic Development & Neighborhood Revitalization department.

Several projects are in the pipeline, but must secure financing from the constricted markets. That applies to both private developers seeking bank loans and public-sector efforts to sell bonds, Patterson said.

If financing can be secured for a public parking garage, Patterson said, he hopes to see a start by mid-2009 on the $25 million Lancaster Press building project.

The long-vacant building would be converted into market-rate apartments and condominiums by a private-sector development group. A 390-space parking garage is planned for an existing parking lot behind the building.

Patterson also anticipates a quick start to the redevelopment of the former Lancaster Stockyards into a business park. The construction of a 40,000-square-foot research building for Benten BioServices should start this winter. Benten is expected to move into the $20 million facility by late spring.

A second phase of the project, with the construction of retail and other buildings, could also start in 2009, Patterson said.

An early start is also planned for the long-anticipated renovation of the Lancaster Amtrak station. The $12 million project would bring a bus terminal, shops and air conditioning to the 1929 station. Officials hope work will start in March.

Work is also expected to begin next year on a new parking garage and expanded Lancaster Museum of Art, at the corner of North Queen and East Chestnut streets. Plans also call for a private-sector condominium tower to rise above the public garage, but that will depend on pre-sales of the luxury residential spaces, Patterson said.

A more remote possibility for 2009 is a start on a still undetermined project for the lot at North Prince and West Chestnut streets. Patterson said a request for proposals from developers will likely be issued early next year for the city-owned lot.

Although the city does not have specific plans for use of the lot, he anticipates proposals will likely call for construction of a building to house retail, commercial and residential tenants.

2008 TOP 10 CITY BUILDING PERMITS

• Lancaster Newspapers Inc., 33 S. Prince St., seven-story parking garage, $9.85 million.

• PR Lancaster Ltd Partnership, 1801 Hempstead Road, Lowe's store, $9.47 million.

• Lancaster Family YMCA, 265 Harrisburg Ave., new YMCA, $9.33 million.

• Franklin & Marshall College, 605 College Ave., renovate laboratories, $7.99 million.

• Lancaster Parking Authority, 156 E. King St., new parking garage, $7.43 million.

• Dial Housing LP, 510 Second St., renovate factory building into apartments, $4.17 million.

• Swisher Properties LP, 419 N. Prince St., renovate warehouse into apartments, $3.85 million.

• Park City Center, new Apple store, $2.99 million.

• Franklin & Marshall College, 417 W. Frederick St., renovations for daycare and adult daycare, $2.81 million.

• Lancaster General College of Nursing, 410 N. Lime St., addition and renovation, $1.87 million.