Two housing projects in Lancaster took steps forward at City Council's Oct. 13 work session, one brand new and one at a building that has sat empty for years.
Council gave first-reading approval to rezone a Dixon Road parcel for a 12-unit affordable apartment building, and heard an update on the long-vacant Ellen Dean Hotel downtown, WRHI reported. Every vote at the work session was unanimous.
Dixon Road apartments
Ordinance O26-18 would rezone 1.032 acres at 273 Dixon Road, owned by the Mace Green Trust, to MF Multi-Family. Owner Mace Green Jr. plans a two-story building with 12 three-bedroom, two-bath apartments of about 1,200 square feet each, at an estimated cost of $3 million.
According to the agenda packet, rents won't exceed the HUD fiscal 2026 fair market rent, which is $1,382 a month for a three-bedroom in Lancaster County. Green told council the units will be income based and that he has started applying for federal assistance.
City staff estimate the finished building would generate about $40,000 a year in property taxes.
Building, Planning, Zoning and Licensing Director Louis Streater said the parcel was recently annexed and still carries interim zoning. The Planning Commission recommended approval after a June 2 public hearing at which nobody spoke against it. When a council member asked about parking, Streater said the site plan's 24 spaces meet the requirement.
Mayor Alston DeVenny said affordable options are shrinking as rents follow market rates, and that any assisted housing the city can add is a positive.
The ordinance comes back for second reading at council's Oct. 27 meeting.
Do the math and the $3 million estimate works out to about $250,000 per apartment, or a little over $200 per square foot for the roughly 14,400 square feet of living space, before land.
Ellen Dean Hotel
The bigger downtown project is further along. A representative of Ellen Dean Development told council that crews are midway through demolition, environmental abatement and structural shoring at the old hotel, with that phase set to wrap up in December.
The $11.5 million project will create 18 market-rate one-, two- and three-bedroom apartments with ground-floor office and retail space. The developer expects to close on financing and break ground in early spring, with construction taking about 12 to 14 months.
About $3.4 million in federal and state historic tax credits supports the project. The state is also chipping in: state Rep. Brandon Newton told council this year's state budget includes $991,000 for the hotel's revitalization.
That money is part of nearly $2.8 million in state appropriations headed to Lancaster. Newton outlined $650,000 to replace police vehicles and $1.138 million for the Lindsay Pettus Greenway, which now has about three miles on the ground and will be extended to the county-managed recreation center on city-owned property.
Newton said the appropriations are one-time money and encouraged the city to start lining up capital requests for next year, especially for public safety, downtown revitalization and green space.
In other business, council also approved first readings of two small annexations. One, at 1004 Roberts Drive, came after water service to a rental property was cut off in June 2025; city code requires an annexation petition before service can be restored to a structure disconnected for more than six months. The other, at 1147 6th Street, involves a new single-family home that Mango Builders LLC built under county permits without the city sewer availability letter the county normally requires. The city required the annexation petition once the owner sought sewer service.
Why it matters for Contractors
Lancaster has two very different jobs taking shape. The Dixon Road building is a straightforward two-story, 12-unit project, the right size for a local builder, with site work, a parking lot for 24 cars, framing, roofing, MEP and finishes for a dozen three-bedroom apartments. The Ellen Dean Hotel is historic rehab, which is a different kind of work: demolition, abatement and shoring now, then a 12- to 14-month build that has to satisfy historic tax credit rules. Contractors with preservation experience should pay attention to the spring groundbreaking. And the 6th Street case is a reminder for builders working near city limits: check sewer availability with the city before you build, or you may end up annexing to get service.