$20 Million Dollar Redevelopment of East Ohio / Madison Ave Announced

A $3 million state grant announced Monday will spur a $20 million redevelopment of about 20 parcels on two acres along East Ohio Street on the North Side.

Site work is expected to begin in a week or two.

Under the plan, the site — from the corner of Madison Avenue east — would accommodate a 120-room hotel, a 65-unit apartment building, parking to accommodate both, and renovation of the historic Workingman’s Savings Bank, known more recently as the ARC House.

Built in 1902 in the Beaux Arts style, the historic structure has been vacant for more than 20 years after serving as an alcohol recovery center. It was granted historic status by city council in 2008.

The Northside Leadership Conference is managing the project in collaboration with the property owner, October Development.

The collaboration began five years ago when they began assembling the properties. Much of the land is vacant.

Mark Fatla, executive director of the conference, said the plan is “consistent with the Deutschtown-East Deutschtown strategic masterplan.”

The historic building is to be renovated and will most likely be a restaurant and catering business, Mr. Fatla said.

The Northside Community Development Fund provided some acquisition money, but the state Economic Growth Initiative grant “is critical money for an incredibly important site for the Deutschtown neighborhood and the North Side as a whole,” Mr. Fatla said.

“It is a major entry point that 100,000 cars a day go past. Right now what you see there does not reflect what the North Side has become.”

The Economic Growth Initiative funding program was created to target construction-ready projects that offer the greatest potential for jobs and economic impact, according to a press release from Gov. Tom Corbett’s office.

Details about parking, building heights and the rest of the financing structure have not been worked out, Mr. Fatla said.

He said construction should start by next spring or summer but the timeline needs to coincide with the Pennsylvania Department of Transportation’s work replacing the road bed in front of the parcels.

“We want to key our project to that so that we can do utility work while they have the street open,” he said.

Diana Nelson Jones: djones@post-gazette.com or 412-263-1626.