Developers of proposed condo hotel in downtown State College offer detailed look at plans

Developers of a proposed condo hotel in downtown State College said Wednesday they are aiming for a high-end, luxury space that’s geared toward returning alumni, visitors and tourists.

The nine-story, mixed use building planned for 321 W. Beaver Ave. looks to deliver a “five-star experience,” Jamison Morse told the State College Borough Planning Commission.

“We want this to be a representation of the fabric of this community. We want it to be a high-end use and feel, but we want it to be here,” the Penn State alumnus said during the public meeting. “We don’t want it to be something that seems like it came from Chicago, New York, whatever. We want this to be a State College product that people here are proud of.”

BioLife Plasma Services would be demolished to make way for the new building. Developers plan to construct a 95-foot tall building with 4,750 square feet of commercial space on the first floor, as well as a 64-unit luxury condo on the upper eight floors.

Plans include 48 two-bedroom units, eight two-story two-bedroom units and eight three-bedroom units. The smallest would be about 1,060 square feet, while the largest would be 1,860 square feet.

Developers did not reveal how much each unit will cost.

Each unit would be sold to individual investors who would become part of an association that’d hire a hotel operator. Any units not in use by the owners would become part of the hotel’s rental inventory.

Hotel revenue would be shared by unit owners and the hotel management company.

Investors can use their units whenever they want, but developer James Venture said association covenants would bar them from using the units as a permanent residence.

Other restrictions are aimed at preventing investors from listing their units on vacation rental websites such as Airbnb and Vrbo that connect people offering residences or rooms with others who want to rent them for short-term stays.

Each unit owner would pay taxes, which Venture said would make the building’s tax benefit to the borough and school district significantly higher than a single-owner building.

Venture, a fellow Penn State alumnus, marketed the project as a boon for businesses.

“You’re going to have not only the owner stay there from time-to-time, but you’re going to be able to keep people in these units and occupied in a high-end type hotel that are going to spend a lot of money downtown,” Venture said. “These units we hope generate a lot of ability for the businesses and restaurants to get additional people downtown.”

The project is expected to have a minimal impact on public infrastructure, traffic and schools.

Plans include 72 parking spaces; 46 would be in an underground garage and 26 would be at the surface. That total is 14 more than required by the borough.

Bicycle storage and handicapped-acessible parking is planned for both levels. Electric vehicle chargers are planned for the lower level.

Developers are “fairly confident” they’ll be able to fill the commercial space, Venture said in an attempt to alleviate concerns of it becoming another downtown high-rise that doesn’t need to fill the space to turn a profit.

“We want to be able to provide ... sort of high-class amenities for our guests,” Venture said. “What we intend to do is .... give these spaces away virtually for free to get these users in so that we can use them as an amenity to our hotel.”

The 4,000-square-foot rooftop is expected to include seating, an outdoor TV and more all with a view of Old Main and Mount Nittany.

The building would have a blue, gray and white color scheme.

“I can promise you there’s not going to be any red or scarlet in our design,” Morse said, a reference to Big Ten foe Ohio State.

Developers hope to see construction begin in January 2025, giving way to a potential opening in fall 2026. A final land development plan would need to be approved by the borough before the project could move forward.

No residents spoke during the meeting. The next planning commission meeting is scheduled for Feb. 22.