The State College Borough Council recently handed over responsibility for the new Fraser Street mixed-use facility to the Downtown Improvement District (DID) and postponed creating a Redevelopment Authority (RDA).

The Borough Council unanimously voted Monday night to award responsibility for the project to the DID because they are already familiar with the town and the project, Borough Council member Elizabeth Goreham said.

The mixed-use facility would include a new movie theater, retail space and professional housing, DID Director Teresa Sparacino said.

"What we are is the facilitator in getting a developer in the project," she said.

Borough Council considered creating an RDA to take over the project after a recent state law amendment permitted more flexibility regarding downtown development.

However, Mayor Bill Welch said he believes most members of Borough Council agree the RDA should eventually be formed.

"I think the council determined for this project it would be better with the DID because it will take less time," he said.

Welch said some Borough Council members seemed uneasy with the idea of forming an RDA because the mayor appoints the members.

However, the RDA could not act without Borough Council consent, he said.

Goreham said Borough Council likes to be involved with downtown projects and the RDA would be able to act independently.

"The borough just wants to think about [the RDA] more," she said.

"The DID has been working on this project for over a year."

The DID posted requests for developers on Web sites and in local newspapers, Sparacino said. The proposals are due by June 1.

Sparacino said the goal is to have construction on the project, which is estimated to cost between $17 and $20 million, to be started by next spring.

"There's a lot of work that needs to be done," she said.

Tom Daubert, Borough Council president, said the cinema was originally considered for the Hiester Street parking lot, but the borough found the Fraser Street area worked better.

"It is certainly more convenient than any other theaters," he said.

The new cinema will have 10 to 12 theaters so they could get a better deal from movie distributors, Goreham said.

"We want a really upscale movie theater," she said.

Goreham said the apartments in the complex would also be upscale.

"We want to entice more wage-earners to live downtown," she said, describing the new professional housing as long-term and comfortable with storage and amenities.

Janet Knauer, Borough Council member, said the apartments would be in a more expensive price range than others in the area.

"We have a lot of students living downtown," she said. "We need more of a mix."

The DID already has some developers in mind for the apartments and the cinema.

"So far it looks promising," Knauer said. "But we've got a ways to go."

She said that she hopes the cinema will attract people to the area who will spend money at the stores and restaurants in State College.

"I'm looking forward to this being one of the most successful and attractive projects in the downtown," Knauer added.

Collegian staff writer Rebecca Short contributed to this report.