Nearly $12 million makeover planned for York's Market Street buildings

Royal Square Development and Construction is planning a major revitalization of the former F.W. Woolworth building at 44-50 W. Market St., as part of the development on that block. As seen in the rendering, the plans include adding two stories to the building and creating 21 apartments and a roof-top deck. (Submitted)

Royal Square Development and Construction has an almost-$12 million project in the works to turn some vacant or nearly vacant downtown commercial buildings on York's Market Street into new stores, apartments and a restaurant.

Joshua Hankey, Royal Square's president and CEO, detailed the approximately $11.7 million plan Tuesday before a meeting of the York County Industrial Development Authority. The vision, Hankey said, is to breathe new life into the Market Street corridor and have it serve as a bridge between thriving commercial areas on Beaver Street and the Royal Square neighborhood Hankey's company is redeveloping.

On Tuesday, the Industrial Development Authority board voted to partner with Royal Square in seeking a $3.6 million state economic development grant under the Redevelopment Assistance Capital Program to help fund the project.

Royal Square plans to seek another $3.7 million in New Market Tax Credits, $900,000 in historic tax credits and $3.7 million from private investors, Hankey said Tuesday. Royal Square has already raised $1.8 million from investors, he said.

The Market Street project will create 120 jobs — 70 new permanent jobs and 50 construction jobs — and annual wages of at least $1.3 million for permanent positions. Construction could start as early as May and take two years to complete, Hankey said.

The plans got a warm reception Tuesday from downtown York retailers like Melissa Grove, owner of women's boutique Sweet Melissa's on North Beaver Street.

"I think it's phenomenal," said Grove, a 15-year downtown retailer. "I'm so happy to see it. We're all on the same team. We're all here about York. They're a great team and they've got a lot of really great ideas and a lot of energy."

Royal Square's plans include building a total of 43 apartments and space for 19 stores in four buildings. The group plans to add two floors to the former F.W. Woolworth building at 44-50 W. Market St. and transform the long-vacant building into 21 apartments with a rooftop deck, retail space on the ground floor and 30 parking spaces behind the building. Royal Square has an option to buy the building from York's Redevelopment Authority.

Royal Square's plans also include renovations to the former Weinbrom Jewelers building at 54-56 W. Market St,, the building at 24-27 W. Market St. that once housed Zakie's nightclub and Market Street Saloon, and the building at 101 E. Market St. that houses H&R Block, Hankey said.

"This is going to be the biggest thing downtown has seen in 30 years," Hankey said following Tuesday's Industrial Development Authority meeting. The project, he said, will be "the beacon that shines and shows downtown York is back in business."

Royal Square is talking with an established restaurateur, whom Hankey declined to identify, to bring a restaurant to the ground floor of the former Zakie's building. Royal Square plans to build five apartments on the building's upper floors.

H&R Block will remain a tenant at 101 E. Market St. with retailers filling the first-floor storefronts along Duke Street. The 10 upstairs apartments will be renovated.

Hankey said Royal Square hopes to bring to a men's clothing store to one of the renovated Market Street buildings. The company, which developed Redeux Marketplace and 56 Urban Provisions, also has had interest from tenants there who have expressed interest in moving to one of the Market Street properties, Hankey said.

David Cross, chairman of York's Redevelopment Authority, said the Market Street project is crucial because the street, which cuts through Continental Square is "the heart of our city."

"We're behind it and we want it to move forward," Cross said.

Downtown Inc has long wanted to see improvements to the so-called "unit block," the buildings on West Market Street between Beaver and George streets.

The size, age and deterioration of some Market Street properties has made that block a challenge to develop, leaving about 500,000 square feet of property sitting vacant or underused, Sonia Huntzinger, Downtown Inc's executive director, said Tuesday.

Rather than putting in stores in hopes of drawing shoppers downtown, the key to the street's success will be to fill the apartments with tenants who will need places to eat and shop, Huntzinger said.

"When we fill those residential needs, then we'll start to see those retailers and restaurants come in, too," she said.

Huntzinger said Royal Square's plans are part of a broader effort to improve the quality of life downtown.

"We're not just building one thing and hoping it will pull our downtown back," Huntzinger said. She cited new housing, landscaping, recreation opportunities, business cultivation and marketing as pieces in the revitalization puzzle.

Royal Square's Hankey and his plans also won praise Tuesday from Bob Pullo, a longtime fixture of York County's business community.

"He has great ideas and he's obviously very active at his development activities," Pullo said. "He's a young and up-and-coming developer and I admire what he's done at Royal Square."

"He's good, he's serious and he's capable." Pullo said. "He has a lot of interested supporters both financial and moral supporters."

Alexandria Keener, owner of My Girlfriend's Wardrobe on West Market Street, said Royal Square's plans are "definitely a welcome development."

Keener, who moved her shop to West Market Street in July, said adding more apartments, retail and a restaurant to the street will increase foot traffic and benefit existing retailers in the area.

"I wish that everything could be done tomorrow," she said. "I'm very excited about it."

See the buildings owned by Royal Square Developments or its affiliates here.

Source: Central Penn Business Journal