A plan to demolish a former hotel in Hanover Township, Northampton County, and build an industrial building in its place has received a boost from the state.

Eastupland Associates will receive $875,000 from the Pennsylvania Strategic Investments to Enhance Sites program to tear down the SureStay Hotel at 300 Gateway Drive, near the intersection of Routes 22 and 512. The developer plans to erect a 250,000-square-foot structure.

In 2024, the Monocacy Creek Watershed Association raised concerns about the project, and the possibility stormwater runoff from the site could affect the waterway.

The SITES program is designed to prepare shovel-ready industrial sites across the state, helping attract and expand businesses, drive investment and create good-paying jobs in Pennsylvania, according to a news release from state Sen. Nick Miller’s office.

The state Department of Community and Economic Development administers the program, accepting applications and award grants and loans for eligible projects on a rolling quarterly basis. Since the program’s inception in 2025, PA SITES has awarded more than $146.4 million to 37 projects.