The first buildings of the Carlisle Urban Redevelopment Plan are under construction at the site of the former Carlisle Tire & Wheel.

Groundbreaking for the townhomes was held in October.

Cleveland-based developer PIRHL partnered with the Cumberland County Housing and Redevelopment Authorities to develop the plan that will bring 40 townhomes, 12 flat apartments, a 2,000-square-foot community building and a two-acre park to the site. The plan also will extend B and C streets through the site as well as address stormwater issues.

A roundabout will be constructed at B and College streets as well as at B Street and Fairground Avenue as part of the related Carlisle Connectivity project, which will make improvements to roads in the area.

Construction is expected to be completed in the fall of 2018.

Also in October, Carlisle Borough Council narrowly approved a letter of support for the proposed development of Phase 2 at the site. PIRHL had requested the letter as part of its application to the Pennsylvania Housing Finance Agency for tax credits that the company then sells to investors in exchange for cash equity.

In Phase 2, PIRHL proposes 42 rental units at the property that will include 11 one-bedroom units, 20 two-bedroom units and 11 three-bedroom units. Rent will range from about $590 to $950 plus utilities. Twenty-five percent of the units will be dedicated to veterans housing.

As with Phase 1, the housing in Phase 2 is considered workforce housing, and is designed for people making about $50,000 a year.

Email Tammie at Follow her on Twitter @TammieGitt.