Construction could begin within a week on the first six of 23 Federal Hill townhomes in the lower North Side, residential developers said Tuesday.
The long-delayed project stalled in April when lender Fifth Third Bank pulled a $3.16 million loan for the $5.9 million project created by the Central Northside Neighborhood Council and partner S&A Homes.
Loans from the Urban Redevelopment Authority and Pennsylvania Housing and Finance Agency finally have filled the financing gap, and will allow construction on the three-bedroom townhomes to begin, said Michael Barber, the council's executive director.
The Federal Hill project's success is crucial to cleaning up the corner of Federal Street and North Avenue. The depressed commercial district was home to an X-rated theater that scared off would-be developers for decades. The theater closed last year.
"Even though it's only one block, it's the front doorstep of the neighborhood," said Bill Buettin, president of the Central Northside Neighborhood Council.
Interest in purchasing the townhomes -- priced between $130,000 and $230,000 -- has been strong, said Robert Iseman, new homes manager for S&A Homes.
"I already have 13 of the first 23 sold," he said.
The townhomes range in size from 1,430 to 2,350 square feet. The Federal Hill project eventually could include 56 three-bedroom townhomes.
The Urban Redevelopment Authority is providing a $750,000 grant and $670,000 loan to the Federal Hill project. The Pennsylvania Housing Finance Agency is providing a $3.4 million loan and $1 million grant.
On Thursday, the URA's board of directors will vote on a proposal to open exclusive negotiations with Lawrenceville-based Aiello Development to develop six URA-owned parcels into homes and businesses on West North Avenue and Federal Street.
