Governor Shapiro Makes Major Investments in Erie’s Economy and Infrastructure to Support Local Businesses and Create Jobs

October 17, 2025

Governor Shapiro’s Administration is improving the Bayfront Parkway to enhance access and safety, supporting the Market House development to create a vibrant downtown marketplace, and developing the McKean Business Park to provide shovel-ready sites for new employers and expanded economic opportunity.

In Erie today, the Governor announced a plan to award $9.5 million in Redevelopment Assistance Capital Program (RACP) funding to complete construction of the 27,000-square-foot Market House.

The $121,740 PA SITES planning grant will help transform 160 acres into the McKean Business Park, creating shovel-ready industrial and commercial sites to attract new employers and expand economic opportunity in Erie — part of the Governor’s $39 million investment in 11 strategic projects across the Commonwealth through the second round of PA SITES funding.

 

Governor Josh Shapiro speaks at a podium outdoors in front of a large American flag
DCED Secretary Rick Siger speaks at a podium outdoors with construction equipment in the background. Governor Josh Shapiro stands next to him.

 

Erie, PA – Today, Governor Josh Shapiro visited Erie’s Bayfront to highlight the Commonwealth’s ongoing investments in infrastructure, economic development, and community projects that are driving Erie’s revitalization and helping the region to grow and thrive. During the visit, the Governor announced that he plans to award $9.5 million in Redevelopment Assistance Capital Program (RACP) funding to support the Market House, a vibrant 27,000-square-foot marketplace for local businesses and artisans.

The Governor, joined by Pennsylvania’s Department of Transportation (PennDOT) Secretary Mike Carroll and Department of Community and Economic Development (DCED) Secretary Rick Siger, as well as local leaders and officials, provided an update on the continued progress on the Bayfront Parkway Improvement Project, a more than $162 million infrastructure overhaul reconnecting Erie’s downtown with its waterfront and improving safety and mobility for residents and visitors. The Governor also highlighted a $121,740 PA SITES planning grant to develop the 160-acre McKean Business Park into shovel-ready industrial and commercial sites to attract new employers and expand economic opportunity.

In addition, Governor Shapiro underscored his Administration’s commitment to the City Revitalization Improvement Zone (CRIZ) designation approved for Erie last year, which enables targeted state support for economic development projects across the city.

“My Administration is all in on Erie,” said Governor Shapiro. “We’re investing in the roads, the sites, and the communities that make this region strong — because when Erie grows, Pennsylvania grows. By connecting downtown to the Bayfront, supporting local businesses, and preparing new sites for development, we’re ensuring this community’s success every step of the way. I believe in the people of Erie and the future of this great city – and these investments will revitalize downtown, attract visitors, and keep Erie growing stronger for years to come.”

Market House Development: A Premier Destination for Residents and Visitors

The Market House, led by Roger Richards and the Erie County Convention Center Authority, will be a 27,000-square-foot marketplace featuring:

  • 22,000 square feet for two year-round tenants, including a grocery store and a second anchor tenant
  • Space for up to 20 seasonal and permanent vendors
  • An open terrace for farmers markets, performances, and seasonal events
  • A 125-space surface parking area

The project has already received $5.5 million in state support through RACP, and Governor Shapiro announced his Administration’s plans to award additional $9.5 million in RACP funding to complete construction.

As a result of the Shapiro Administration’s new commitment, construction on the Market House will begin in February 2026.

“Governor Shapiro has been instrumental in bringing critical projects to Erie across the finish line,” said Roger Richards, Governor’s Appointee, Erie County Convention Center Authority Board. “We’ve been working on the Market House for over six years, and thanks to the Governor’s leadership and the support of his Administration, we are ready to go out for bids in December and begin construction in February. We couldn’t ask for better cooperation, and I’m proud to see these investments benefiting our community.”

Bayfront Parkway: Reconnecting Downtown to the Waterfront

In September 2023, Governor Shapiro announced the start of a multi-year Bayfront Parkway Improvement Project to strengthen connections between downtown Erie and the waterfront, improving accessibility and safety for all users.

The project includes:

  • Dual-lane roundabouts at Sassafras Street Extension and Holland Street
  • A grade-separated intersection at State Street with an at-grade signalized intersection and a path for through traffic to travel below the intersection
  • Sidewalk and crosswalk upgrades throughout the corridor
  • A multi-use trail connecting downtown, existing trail networks, and the waterfront
  • An overhead pedestrian bridge on Holland Street

Preliminary construction began in October 2023 and is expected to conclude in 2027, with work staged to maintain access to all businesses along the corridor. The current total investment stands at $162 million — including $105 million in federal funds and $57.6 million in state funds through the Multimodal Transportation and Motor License Funds.

The Sassafras Street roundabout is now substantially complete and open, additional lanes are set to open soon, and former railroad tunnels have been demolished to make way for the new State Street intersection.

"Our investments in the Erie Bayfront exemplify the Administration’s commitment to connecting Pennsylvanians to their communities and to opportunity,” said Secretary Carroll. “The City of Erie is on the move, and enhancing transportation in the region — both for those who live here and the many folks who travel to Erie each year — will help the region grow.”

McKean Business Park: Building Shovel-Ready Sites for Economic Growth

The Commonwealth also awarded a $121,740 PA SITES planning grant to the Enterprise Development Center of Erie County to advance development of the 160-acre McKean Business Parkin McKean Township. PA SITES funds will cover professional engineering services through the design and permitting phases of the project, which will create new industrial and commercial space for employers and boost regional competitiveness.

“Pennsylvania offers many key advantages that companies need to grow — from a skilled workforce and abundant natural resources to a strategic location. But for far too long, we lacked the kind of ready-to-build sites that businesses need to get to market quickly,” said Secretary Siger. “No industrial or business parks have been built in Erie County for more than 25 years, and the existing parks are full. Thanks to Governor Shapiro’s PA SITES program, we’re fixing that with funding that will help create new opportunities for businesses and Pennsylvania workers.”

Pre-design engineering for McKean Business Park has already been completed, with the first phase focusing on field data collection, preliminary schematics, budgeting, and concept refinement. The second phase will focus on utility and stormwater planning, permit acquisition, and final project design.

“Since 2023, Governor Shapiro has secured over $25 billion in private-sector investments across Pennsylvania, creating thousands of jobs for local workers,” said T.J. Sandell, President, Great Lakes Building and Construction Trades Council. “The Bayfront Parkway project alone has put dozens of local building tradespeople to work every day, keeping these dollars in our community. The Market House announcement is another example of how the Governor and his administration, in partnership with the Erie County Convention Center Authority, are creating real economic opportunity and good-paying jobs right here in Erie.”

Additionally, Erie’s CRIZ designation, approved in December 2024, allows the Commonwealth to provide targeted state support for economic development projects. “These projects demonstrate the Governor’s ongoing commitment to economic development initiatives in Erie,” said Erie Mayor Joe Schember. “For that, I want to express my gratitude to Governor Shapiro and his team for their continued support.”

“This truly is a transformational day for the Erie Bayfront,” said Representative Patrick Harkins. “Thank you to Governor Shapiro for helping us add another important piece of the puzzle, to build a beautiful waterfront like no other. Our waterfront has changed dramatically over the years and has quickly become the meeting point for tourism and recreation. What we are putting in place today will positively impact generations to come.”

Driving Growth and Economic Development Across Pennsylvania

Since taking office, Governor Shapiro has:

  • Secured over $25.6 billion in private-sector investment, creating more than 12,500 jobs. That includes the largest private-sector investment in Pennsylvania history — Amazon’s initial $20 billion investment to build new AI and cloud computing campuses, creating thousands of high-tech and construction jobs.
  • Launched the PA SITES program, investing $113.6 million to date across 29 projects that turn underused land into shovel-ready sites. The Governor worked with the General Assembly to secure $500 million for site development in the bipartisan 2024–25 bipartisan budget, including $400 million for PA SITES.
  • Positioned Pennsylvania as the top state in the Northeast for Regional Economic Competitiveness, according to Site Selection Magazine

Pennsylvania’s economy continues to grow stronger under Governor Shapiro’s leadership — the Commonwealth is the only state in the Northeast with a growing economy, according to Moody’s Analytics. Erie will continue to benefit from this growth as it prepares for America250 celebrations, the return of the Brig Niagara, and the 2027 Great Lakes St. Lawrence Governors and Premiers Leadership Summit, which Governor Shapiro will host in Erie as Chair of the organization

From day one, Governor Shapiro has worked to spur economic development through historic investments in site development, main streets, small businesses, and workforce development, while speeding up the Commonwealth’s permitting, licensing, and certification processes.

The Shapiro Administration is delivering real results — and building on that momentum. Governor Shapiro’s 2025-26 budget proposal calls for new and expanded investments to advance the Commonwealth’s Ten-Year Economic Development Strategy and boost Pennsylvania’s competitiveness, including:

  • $12.5 million dedicated to WEDnetPA to expand our workforce and close critical workforce gaps
  • $2 million for the creation of Career Connect to build internships at Pennsylvania companies
  • $10 million for AdvancePA tax credits to create high quality jobs across PA
  • $3 million to the Marketing to Attract Business program, which supports programs targeting business attraction, retention, and marketing initiatives
  • Expediting the Corporate Net Income Tax (CNIT) cuts by two years, reducing the current tax rate each year by 0.75 percent

Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy in the Governor’s 2025–26 budget proposal at shapirobudget.pa.gov and discover how the Administration is creating economic opportunity to build a stronger, more competitive economy for all Pennsylvanians.

Media Contacts

Justin Backover

Press Secretary
Department of Community and Economic Development Media