Mayor Bill Peduto and others joined Thomas Boyd Sr. at 2178 Centre Ave., where Mr. Boyd plans to relocate his Big Tom’s Barbershop at the site, once home to Hamm’s Barbershop, which was a community fixture but has sat vacant for several years.

In addition to housing Big Tom’s, the 4,200-square-foot, three-story brick building, which sits at Centre Avenue and Kirkpatrick Street, will be home to housing and community space, the city said.

In April, Mr. Boyd was awarded a $500,000 grant to move his business from a small rental space on Centre Avenue to the site. The Pennsylvania Housing Finance Agency grant will help Mr. Boyd fund planning and construction costs. Additional funding, according to the city, has come from First National Bank, the Lower Hill Group, Neighborhood Allies, Pennsylvania Department of Community and Economic Development and the Urban Redevelopment Authority. A total of $1.94 million has been allocated to fund the project.

Mr. Boyd, under his new development company TomTom24, plans to build four affordable apartments, a second commercial space in addition to his barbershop and an outdoor community area.