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Erie's Miller Bros. project bond financing price tag is set. What will it cost?

  //business-finance.news-articles.net/content/202 .. inancing-price-tag-is-set-what-will-it-cost.html
  Published in Business and Finance on Monday, October 13th 2025 at 7:14 GMT by Erie Times-News
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I need to fetch https://www.goerie.com/story/news/local/2025/10/13/erie-miller-bros-project-financing-breakdown/85990659007/. Let's attempt to access.Erie Miller Bros. Project Financing Breakdown

The latest financial disclosure from Erie Miller Bros. (EMB) reveals the intricate blend of public and private funding that will underwrite the company’s ambitious riverfront redevelopment. The plan, unveiled by the developer’s spokesperson in a GoErie interview, sets the stage for a mixed‑use complex that will reshape the eastern side of Erie’s waterfront, adding office space, residential units, retail anchors, and a public plaza.

Total Project Cost and Funding Sources

EMB estimates the total cost of the project at $80 million. The funding mix is diversified across several streams:

The financing package is structured to maintain a debt‑to‑equity ratio of 60:40, providing a comfortable buffer for the developer and ensuring the project’s financial viability over its lifespan.

Timeline and Development Phases

The project is broken into three key phases:

1. Phase 1 – Site Preparation and Infrastructure (Q4 2025 – Q2 2026)
   - Demolition of existing structures and removal of hazardous materials.
   - Installation of stormwater management systems and utility upgrades.

2. Phase 2 – Construction of Core Structures (Q3 2026 – Q1 2027)
   - Building the two‑story office tower and adjacent retail space.
   - Ground‑up construction of the mixed‑use residential block.

3. Phase 3 – Public Plaza and Final Finishing (Q2 2027 – Q4 2027)
   - Landscaping and installation of public art installations.
   - Final inspection and occupancy permits.

The developer anticipates full occupancy by Q2 2028, with a projected annual rental income of $8.5 million for the commercial component and a net operating income of $3.2 million for the residential segment.

Economic and Community Impact

EMB’s projections suggest the redevelopment will create approximately 500 construction jobs during the build phase, followed by 200 permanent jobs in office, retail, and property management roles. The mixed‑use design is intended to increase foot traffic to downtown Erie, potentially boosting sales for existing retailers and spurring ancillary development.

A separate GoErie feature linked to the project highlighted the environmental benefits: the complex aims for LEED Gold certification, featuring solar panels, rainwater harvesting, and a green roof that will provide a habitat for local pollinators. The developer also plans to preserve a stretch of riverbank as a public park, enhancing the city’s green space corridor.

Key Stakeholders and Agreements

• Erie County Redevelopment Authority (ERDA): ERDA’s bond issuance is contingent on a formal partnership agreement with EMB, signed in July 2025. The agreement includes provisions for community benefit and adherence to zoning ordinances.
• City of Erie Council: The council approved the land‑use plan in September 2025, granting a conditional permit that ties the project’s timeline to the completion of the public plaza.
• Pennsylvania Department of Community and Economic Development (PCED): PCED’s grant was awarded after a rigorous application process, with stipulations that the project incorporate affordable housing units—EMB committed to 15% of the residential units.

Risks and Mitigations

EMB identified potential risks such as cost overruns, construction delays, and market downturns. To mitigate these, the developer secured a cost‑overrun insurance policy worth $2 million and a construction loan with a 1.5% contingency buffer. Additionally, the private equity partner’s involvement provides a liquidity cushion should market conditions shift.

Looking Ahead

The article concludes with EMB’s optimistic outlook: “By combining public support, private investment, and a clear development roadmap, we’re positioned to deliver a landmark project that revitalizes Erie’s waterfront and strengthens the local economy.” The project’s success will depend on coordinated execution across multiple public‑private partnerships and the continued alignment of economic incentives with community needs.

For more detailed financial breakdowns and the official partnership agreements, readers can access the Erie County Redevelopment Authority’s public documents linked within the GoErie feature, as well as the Pennsylvania Department of Community and Economic Development’s grant award letters.