Lebanon city was awarded $1 million Friday towards construction of a downtown Lebanon parking garage in the 2025 round of Redevelopment Assistance Capital Program grants.
According to its website, RACP is a state program that partially funds “regional economic, cultural, civic, recreational, and historical improvement” projects that have “a regional or multi-jurisdictional impact, and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity.”
Lebanon mayor Sherry Capello said in a press release that developers and business leaders have been consistent in their message that additional long-term parking is needed before they are willing to make significant private investments in downtown Lebanon.
“By providing dedicated long-term parking for employees and residents, the garage will free up valuable on-street spaces for customers and visitors, making our downtown more accessible while encouraging new businesses, housing and economic development,” said Capello in the release.
Construction of the garage is not imminent. Previously pitched as a five-story, 294-space structure, the project is estimated to cost $9.5 million. Earlier this year, the city received $1 million towards the project through the Transportation, Housing and Urban Development Appropriations Act.
The parking garage project was the only Lebanon County application to receive funding in the 2025 round. According to the state’s listing of submissions, the city had requested $4.5 million towards the garage. The project description included with the application reads:
The City will convert an existing surface lot into a five-level municipal parking garage. The structure will provide spaces, including ADA and van-accessible stalls, and feature both an elevator and stair towers for convenient access. The garage design will be consistent with the historic character of downtown. The site will continue to host the public bus transfer station, ensuring multimodal access.
The city was one of three county applicants this year. In its application, Lebanon Valley College requested $3 million for completion of a community wellness center while Springwood Development Partners requested $3,375,792 for North Cornwall Commons roadways and other construction in its application. Neither received funding in this round.
“I am pleased to see these state dollars invested in Lebanon and Berks counties,” said state Senator Chris Gebhard in a press release. “By supporting these projects, we are strengthening local policing and improving public spaces for thousands of local residents.”
State Rep. John Schlegel, whose district includes Lebanon city, said the grant was fantastic news for the city.
“A new parking garage will provide expanded parking options right in the heart of downtown Lebanon, providing spaces for more visitors to our community,” said Rep. Schlegel.
“The design of this garage will also be consistent with the historic character of downtown Lebanon, which will ensure the garage fits perfectly with the surrounding area.”
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