State shoots down tax credits for Essex building renovation

LANCASTER − Urban Restorations may eventually buy and renovate the massive Essex building at the corner of North Columbus and Mulberry streets. But probably not in the near future as it was recently denied about $3 million in state tax credits.

Urban Restorations treasurer Nicholas Schilling said the company is contemplating reapplying for the next round of credits.

The company planned to buy the approximate 138,000-square-foot building from owner Kevin Stalter for about $900,000. Urban Restorations president Bob Schilling said it would cost about $20 million to renovate the building for about 60 apartments on the second and third floors and retail space on the first floor.

He said he's already been granted a federal tax credit of 20% of the renovation cost.

MORE: New plans announced for long-vacant downtown building pending tax credits

The housing units would also include some short-term rental units, Bob Schilling said. But those plans are apparently on hold for now.

"My understanding is Urban Restorations is still committed to doing the building and they will reapply for the tax credits," Mayor David Scheffler said. "Hopefully, they're going to get them very soon. They've invested a lot of funds into the building to date. They love Lancaster and they're dedicated to doing the project here."

Scheffler said he thinks the state gives out tax credits every six months, but he was not sure.

"With each unsuccessful application, I guess you learn some things for where you could increase your points," he said. "And certainly, we'll be talking to our legislators, etc., to help with influencing the decision. It's seems like the big cities get the money and cities like Lancaster don't. So we just need to call the proper attention to that fact so we get our fair share of the funds."

The last occupant of the Essex building was Fairfield Industries, then a division of the Fairfield County Board of Developmental Disabilities. It moved out of the building in 2005.

The building that dates to between 1900 and 1910 when it was originally the Fairfield Shoe Company.

jbarron@gannett.com

740-681-4340

Twitter: @JeffDBarron

This article originally appeared on Lancaster Eagle-Gazette: State shoots down tax credits for Essex building renovation