Contractors for the Erie Downtown Development Corporation (EDDC) began site preparation Monday for the construction of three new buildings in downtown Erie.  It's the first brand new construction project for EDDC, which has been focused on restoring and breathing new life into old and historic buildings downtown.

Heavy equipment began tearing up old pavement and utility supports at the site of the former McDonald's at 5th and State streets, as well as a former Gannon University parking lot. The construction site spans from State to Peach streets. 

The three projects include two retail and residential buildings and a parking garage. 

A 5-story, 62,000 square foot building is planned for the corner of 5th and State streets. The building will include 25,000 square feet for a single retail tenant on the 1st and 2nd floors. Thirty residential units will be developed on the 3rd, 4th and 5th floors. 

The second structure going up will be a parking garage with 340 parking spaces. The parking is essential to support the development EDDC is doing in existing buildings as well, including the Flagship City Food Hall and Market.

Another 5-story, 60,000 square foot building will wrap around the parking garage at 5th and Peach streets, concealing the garage from street view.  It will feature 10,000 square feet of retail space for up to four new businesses on the ground floor. Another 30 residential units will be available on the 2nd through 5th floors. 

The $45-million dollar investment to develop the property is led by the Erie Downtown Equity fund, and supported by opportunity investors and local stakeholders.

Matt Wachter, EDDC Vice President of Finance & Development said the project will generate a big jump in real estate tax value. "The property that we've acquired pays approximately $176 thousand a year in real estate property tax, when we're done, our back of the envelope numbers say that's going to pay over $2.5 million a year.  Think about that," Wachter said, "that's funding for our social services, our city, our county and probably most importantly our school district."

Neighboring businesses, such as the Happy Garden restaurant, tell us the project will be positive for their businesses too.  

Vicke Marz, owner and inn keeper at Victoria Inn Bed and Breakfast, is supportive of the development project too, and called EDDC a good partner, but she is concerned about noise and dust may affect her customers during the construction project. "Because in the end our goal for the Victoria Inn is to create an oasis in the middle of the city," Marz said.

She is planning to install taller fencing, and she's writing a letter to EDDC officials to discuss the construction schedule and hours, to see how any issues can be mitigated. "Who knows what the noise level is going to be like, what the dust level again...because progress is messy, right?" Mars said.  She feels confident however that EDDC CEO John Persinger and his team will listen.  "I know he’ll work with us, because he’s been really great so far." Marz added.
 
After the site is leveled, construction on the foundations for the three buildings will get underway.  EDDC expects the projects to be completed by the end of 2022, or early in 2023.