A project to renovate the former St. Joseph’s Hospital in Lancaster has received $1.5 million through the state’s Redevelopment Capital Assistance Program, also known as RACP.

It was one of three development projects in Lancaster County that received about $6 million and were expected to create 662 jobs.

Projects include a mixed-use development near the new Pennsylvania State Hospital in East Hamfield Township and a trail project at Little Conestoga Creek. All the projects, they are all on the way, have the appropriate funds.

The City of Lancaster has been awarded $1.5 million to redevelop 250 College Ave., the site of the former St. Joseph’s Hospital, by College Avenue Property Holdings LLC, which is listed as a sub-grantee. The site most recently housed UPMC Lancaster, which closed in 2019 when UPMC moved to a facility in Lititz.

The $12 million College Avenue redevelopment project is mixed-use and includes residential townhouses.

“The completion of the proposed redevelopment of this section of College Avenue will provide significant public benefit not only to the neighborhood, but also to the broader urban community,” the city said in a statement.

The city’s filing said the project has about $7.3 million in matching funds with $2.061 million in permanent bank financing and $5.2 million in property value.

The cost of construction was estimated at $6.7 million. The city was seeking a $5 million grant. The project provides for the creation of 12 jobs.