DANVILLE -- Funding to create 122 parking spaces for the soon-to-be built Geisinger office building is set after Danville officials finalized an agreement Tuesday night to borrow $1.4 million from FNB Bank.

The 20-year loan comes with a 3.78 percent fixed interest rate for the first five years with a $27,000 semi-annual payment for the first two years and a $45,000 semi-annual payment thereafter, according to the agreement.

Shannon Berkey, borough finance director, said a new interest rate will be negotiated once the initial term is up.

There will be no impact on the borough's current tax rate due to the loan because borough officials plan to use Community Development Block Grant funds to make annual payments. Future grant possibilities should take care of the remaining payments, according to officials, since the parking lot's business district qualifies for economic development funding through the jobs created by the Geisinger building.

The borough also cleared more room for parking by purchasing the old Miller's Coal Yard office building, located along Ferry Street, from the Iron Heritage Festival organization for $33,000. The 100-year-old building will be raised and a historical sign will be installed in its place, according to Tom Graham, borough secretary.

The parking spaces are planned for two areas along Ferry Street, specifically portions of the Voelcker's beer distributor property and on the site of the former Dollar Discount store and Miller's Coal Yard building.

Larson Design Group was hired by the borough last month for $77,000 to design the project and oversee the 10-week construction at an estimated cost of $530,000. The parking stalls, although dedicated to Geisinger employees, will be available to the public after hours and on weekends.

According to Larson's design proposal, construction is anticipated to begin this fall and be completed by next spring.

Building a new parking lot was key to Danville's ability to attract Geisinger to build a new three-story, 32,000 square-foot building next to BJ's Steak & Rib House, 291 Mill St. The lot has been vacant since Scott's Floral & Gift Center was destroyed by fire in April 2003.

Geisinger plans to invest $500,000 for equipment and furnishings for the new building. Construction is scheduled to take approximately 18 months, according to Geisinger officials, who say they hope to have the building occupied by the summer of 2009.

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