The Erie City Revitalization and Improvement Zone — better known as the CRIZ — has won approval for its first three projects.
That funding will provide $20.6 million — part of it to be distributed as loans — to boost three construction projects, valued together at $105 million.
State Sen. Dan Laughlin and the CRIZ Authority took a victory lap near the Bayfront Marriott parking garage on July 9 to celebrate the Commonwealth’s recent approval of three projects that already had been vetted and approved locally.
These are renderings of a proposed new $37 million, 140-room Marriott AC hotel adjacent to and just east of the Hampton Inn, near the Blasco Library.
The parking ramp, which is in the middle of a $10 million expansion, will receive $8 million in CRIZ funding.
The state also has signed off on $7.6 million in funding for the $37 million AC Marriott hotel that Scott Enterprises has proposed for the bayfront. State officials also OK’d $5 million in CRIZ funding as part of the $58 million needed to transform the Renaissance Centre into the Trust Hotel.
CRIZ is funded by redirecting increases in tax revenue
What’s the source of this funding?
The CRIZ, approved locally at the end of 2024, allows Erie to divert increases in certain taxes, collected within designated areas of the city, and use that money to make loans or grants to fund capital investments.
Erie’s CRIZ is expected to directly generate $15 million a year for the next 30 years, possibly spurring tens of millions more in private investment. Much of that money will flow from increased state taxes that Erie Insurance pays on insurance premiums.
Pennsylvania has approved funding to help transform Erie’s tallest building into the Trust Hotel.
Laughlin, who thanked Gov. Josh Shapiro for lifting the moratorium on CRIZ designations, spoke in a prepared statement about the value of the initiative.
“For more than 10 years, I’ve worked to make CRIZ a reality for Erie because I knew it hadthe potential to transform our downtown and bayfront,” Laughlin said. “We kept pushing, built bipartisan support, and never gave up. Today, we’re seeing the results of that persistence.”
More projects are on the way
Brian Polito, executive director of the CRIZ Authority, said he was very excited when that state team approved all three projects earlier this week.
More are on the way.
Polito said he’s waiting on approval to provide a $4.8 million loan to help fund a $17 million renovation of Modern Tool Square. Also awaiting approval is $10 million to help fund the $34 million Flagship Commons Building being built by the Erie Downtown Development Corp.
Polito said he expects future decisions on funding might come more quickly.
“We have a great relationship with the Harrisburg team,” he said. “I have a good understanding of what they are looking for. They have actually committed to turn future requests around in 60 to 90 days. Moving forward, it will be a pretty seamless process.”
Contact Jim Martin at jmartin@timesnews.com.
This article originally appeared on Erie Times-News: Erie parking ramp and 2 hotel projects receive OK for CRIZ funding