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Penn Market bids far exceed construction budget; RDA to pursue grants, tax credits
Summary
Bids for the Penn Market renovation came in at about $6.9 million versus roughly $2.6 million budgeted for construction. The York City RDA agreed to pursue state RACP funds, historic tax credits and foundation support to close the gap and to evaluate alternates and sponsorships for the community room.
Bids for the Penn Market renovation arrived substantially higher than the Redevelopment Authority of York City anticipated, prompting the authority to push staff to pursue additional grant funding and incentives to close an estimated multi‑million‑dollar shortfall.
Speaker 2, a staff member, told the board that the authority currently has about $2.6 million available for construction but “our bids came in at about 6.9,” leaving an “about 3 and a half to $4,000,000 delta.” The bids arrived across multiple trades, with four general‑contractor bids, plumbing and mechanical bids, and several alternates for items such as vendor stalls and community‑room finishes.
The nut graf: the gap between available funds and contractor bids means the RDA will not immediately proceed to full construction as budgeted; instead, staff and the board said they would pursue a mix of state grants, historic tax credits and philanthropic support, and analyze which alternates to include to reduce cost.
Staff said they will analyze alternates — for example, whether to finish a community room or defer it, whether to purchase prefab vendor stalls instead of custom stalls, and whether to close the market temporarily — and vet contractor qualifications. Speaker 2 said a historic tax‑credit consultant has proposed a path that “could bring 1,000,000 dollars in historic tax credits,” which would reduce the net funding gap.
Board members asked about timing and next steps for additional funding. Staff outlined three near‑term grant possibilities: applying to shift an existing RACP line item to Penn Market with the Office of Budget and Harrisburg University as partners; a Food Trust state food‑investment grant currently shortlist decision expected in March; and renewed outreach to private foundations. Speaker 2 said staff will prepare a draft joint letter with RACP consultants and Harrisburg University to request reallocation of existing RACP funding if the university agrees.
The board directed staff to return with grant‑application materials and recommended alternates to bring the project closer to a fundable package. No final construction contract was approved at the meeting; the authority recorded the bids and authorized next steps to pursue funding and value‑engineering alternatives.
