That includes purchase price, architect fees, structural and MEP plans, permitting, construction and a $40,000 reimbursement from the city for developing downtown. 

@Mario Rosado and @Jeff Burdick , you will have to talk to your architect to understand your option.

I could be off but I just met with an architect who is familiar with SS construction and he relayed these sentiments.  

This would be my first ever real estate deal so any help you can give me would be much appreciated.Note* I forgot to mention that I already have a contractor and architect lined up, as well as the exact lot, the only thing I need to proceed is the capital and to figure out what I am going to build.

I am not quite sure where I should start but here are the parts I have.I am a designer of both residential and commercial properties- I am not licensed architect  but have over 20 years experience working with both architectural firms and design-build firms.  

But every planner we've ever worked with is a wanna-be architect who thinks they know more about design and urban planning than the actual architects and urban planners.

GET THE ARCHITECT AND BUILD AS MUCH AS THE SITE WILL ALLOW!

He is an Architect. 

Well,the interior looks lovely but,the exterior paint is wrong and it sticks out like a sore thumb.Something darker that goes with the two much taller buildings you're sandwiched between would have been better.You made some mistakes that are going to cost you like they did me too.First,you decorated the interior to please yourself as if you were going to live there,not good.Way ,way,too expensive for the neighborhood.No one is going to pay you tens of thousands extra for having nice taste in fixtures and finishes.You are also surrounded by multi family rental properties instead of lovely single family homes which is where your place belongs if you could magically move it.Honestly,you missed a golden opportunity to make some good money by not just gutting but hiring an architect and redesigning it into a triplex or quad.A good landlord business would have paid you a handsome profit for a modern designed quad with affordable and nice fixtures.Your initial asking price was way too high and the real estate agent should have talked you out of it.Now you have 161 shoppers on Zillow with only a few of them real buyers waiting you out to see how low will you go.Their buyer's agents are sensing the desperation and waiting to drop the hammer on you.I went through this same terrible thing just recently and lost 85k when the bloodbath finally was over.I am afraid you need to prepare yourself for the same thing.If I am wrong about the address,pay me no mind and good luck to you.

I am a licensed architect living and working in Philly.