The McDonald's in the 400 block of State St. in downtown Erie is set to permanently close Saturday, the manager told Erie News Now.

No workers are expected to lose their jobs; we're told they will be transferred to other locations.

City of Erie Mayor Joe Schember told Erie News Now the closure is the result of an agreement with the Erie Downtown Development Corporation (EDDC).

"My understanding is that McDonald's and the EDDC have reached an agreement for McDonald's to close the 5th and State McDonald's," said Schember in a statement. "This agreement is a necessary step to allow the EDDC to transform the block where McDonald's is located."

Our requests for comment from McDonald's Corporate have not been returned.

Recommendations from recent study

A study by the Urban Land Institute (ULI), completed in 2018 and released by the City of Erie and Erie Downtown Development Corporation (EDDC) in January 2019, said the block where the McDonald's is located requires immediate attention because it has such an immediate effect on the center of downtown.   

The panel of experts recommended a complete development of the southern and western sides of the block. They called for a new building for the restaurant and more population density for the block.  They believe 140 dwelling units could be accommodated on the block. The study also suggested new, urban-stacked townhouses to be built with rooftop terraces. While some parking would be eliminated, the panel believes the block would still accommodate up to 180 parking spaces. It said existing retail beside McDonald's would be supported, along with new retail.