Millcreek Common's next phases: $22.1 million budgeted for East Common and North

Millcreek's fiscal 2027 budget splits the next stages of Millcreek Common between two funds. Fund 452 covers East Common and the Millcreek North property, and Fund 451 covers Millcreek Common Phase II. ^[1]

East Common and Millcreek North

Fund 452 budgets $22,061,000 in fiscal 2027: $16,500,000 for East Common construction, which the budget notes split into $11.0 million for a parking structure and $5.5 million for retail; $3,100,000 to acquire the Millcreek North property; $1,000,000 for design; $154,000 for tenant relocation; $25,000 for a tenant incentive; $50,000 for legal services; and a $1,232,000 transfer for interest on the 2025 bonds. ^[1]

Its budgeted sources are $2,900,000 from land sales, noted as $1.4 million for condo air rights and $1.5 million for a hotel; $500,000 in interest; $1,500,000 from the agency's housing fund; and $17,161,000 drawn from fund balance. The budget projects the fund starting the year with $18,226,500 and ending it with $1,065,500. ^[1]

Phase II

Fund 451 budgets $6,050,000: $5,000,000 for Phase II design and construction, $1,000,000 for Chambers Avenue and Woodland Avenue, and $50,000 for other amenities. ^[1]

Its sources are $2.5 million in grants, $3,110,000 in transfers and $440,000 from fund balance. The transfers are $1,000,000 from the General Fund, $2,000,000 from the general capital fund, $50,000 in park impact fees and $60,000 from the Woodland Avenue redevelopment area. ^[1]

The Highland Drive rezone

On July 13, 2026, the council approved Ordinance 26-49, rezoning about half an acre at 3232 South Highland Drive subject to a development agreement and removing its previous zone conditions. The vote was 4-0, with Council Member Silvia Catten excused. ^[2][3]

The minutes describe about 25 condominiums facing Millcreek Common, about 14,000 square feet of ground-floor retail, a hotel and a garage of about 204 to 207 stalls. They say the agreement covers ownership, parking access, utilities, off-site road work and design, and that City Attorney John Brems was finalizing the exhibits. ^[2]

The July 13 packet includes a draft master development agreement among the city, PEG Capital Partners, LLC and Rowan Capital Partners, LLC. Its date and the city's and developers' signature and notary blocks are blank. Its Exhibit B calls for a shared public and private parking structure of at least 200 stalls, a 25-unit ownership condominium, a hotel of 100 to 110 units and at least 12,000 square feet of ground-floor commercial space abutting Millcreek Common. ^[6]

The draft says the parties would complete street improvements along Highland Drive and Chambers Avenue before building occupancy, and would "equally share" in completing the reconstruction of Chambers Avenue and Highland Drive and of the upper east woonerf. It gives no dollar allocation or construction price. Those figures differ from the minutes' approximate 14,000 square feet of retail and 204 to 207 garage stalls, and the Ledger does not reconcile them. The packet copy is a draft, and the Ledger has not seen the final signed agreement or its final exhibits. ^[6]

The parking structure

The September budget amendment, Ordinance 26-67, was adopted Sept. 28. ^[4] The proposed amendment in the packet added $920,000 from the general capital fund's balance to its parking structure line, for completion and retainage payout. ^[5]