Developers behind the Kingsbridge National Ice Center (KNIC) have been approved for a multi-million dollar loan by the state to begin construction on its $348 million ice skating center at the Kingsbridge Armory. The news signals a major hurdle crossed by developers, whose progress at the vacant Armory waned in 2015.

Developers for KNIC Properties LP have spent the better part of 2015 scouting for philanthropists and private donors to help fund the massive project, purported to become the world’s largest ice skating center.

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The Board of Directors for the Empire State Development (ESD), an economic development agency that seeks to boost economic growth in New York State, met Dec. 17 to approve a $30 million capital construction loan to KNIC. ESD offers funds or financial assistance to projects it believes can produce a healthy rate of return.

The ESD had first met with developers of the project last August, categorizing the impending venue as an Economic Growth Investment Project. The move represents the state’s overwhelming confidence in the project, described as “transformative” by the ESD.

“This $30 million loan is the first tranche of up to $138 million in ESD construction loan financing for the project,” said Joe Tazewell, New York City Regional Director for ESD, during the meeting. “The $108 million balance of the loan financing will be brought to the directors for consideration at a later date.”

The two-year loan with a seven percent annual interest rate totals at least one year’s worth of construction. Under the deal, the state would provide incremental funds to KNIC to help build Phase 1 of the colossal project. KNIC agreed to pay back the funds through an EB5 program, which uses money from wealthy foreign investors in exchange for visas. Developers of the project will rely on $250 million, roughly 70 percent of the project’s total cost, on EB5 funds, according to financial materials submitted to the ESD.

The KNIC project, headed by former Wall Streeter Kevin Parker, will house nine ice rinks, in-house parking, and 50,000 square feet of community space promised to community stakeholders. Roughly 400 new jobs and 1300 construction jobs will be created, with 51 percent of those jobs secured for Bronx residents. This project is set to be built in two parts: Phase I and Phase II. Phase 1 of the project consists of the construction of five NHL-size rinks, in-house parking and 50,000 square feet of community space.

KNIC will also agree to hire an ESD-approved construction monitor to oversee progress of the ice project, where Phase 1 is expected to be completed by April 2018.

KNIC now is in possession of $158 million in construction funds, a figure required by the New York City Economic Development Corporation (NYCEDC), the city’s real estate arm, to release the lease to KNIC. But the city organization has still kept the lease in escrow.

“We remain excited about the plan to reactivate the Kingsbridge Armory, and once all conditions are met, we will release the lease from escrow,” said Ian Friedman, a spokesman for the NYCEDC.

The lease has remained in escrow for more than a year while developers sought monies to jumpstart the project. It received $30 million in other funds from various philanthropic groups. Among them are funds from the Kresge Foundation, where monies from that organization were used as seed payment towards the ESD loan.

But while the lease remains in escrow, KNIC has done what it could to get the project off the ground. It hired the Gilbane Building Company, a multi-national construction firm that built the Prudential Center, home to the New Jersey Devils, an NHL ice skating team.

A representative from KNIC could not be reached.

For now, a public hearing on the project is set for Jan. 14 from 3 to 4 p.m., at the Bronx Library Center, 310 E. Kingsbridge Rd., to discuss details of the approved loan. The public is invited.

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