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Penn-Northwest Ready to Build Stateline Industrial Park
By Hal Johnson When spring breaks, work is expected to begin on transforming 82 vacant acres in Hermitage, Pa., into an industrial park where 300 too 400 could be employed.With a package of state loans and grants in place, Penn-Northwest Development Corp., Mercer County's lead economic development agency, can market what will be called Stateline Industrial Park, says Larry D. Reichard, Penn-Northwest executive director.On Dec. 15, the state Business In Our Sites Program, part of the governor's Growth Stimulus Program, approved some $1.5 million in aid to prepare the site at the corner of Ohio Street and Stateline Road. Half of the aid is a grant, the other half a loan, Reichard says.With another $300,000 in local funds and equity, the moneys will be used to development the infrastructure needed to turn the site into an industrial park for light to heavy manufacturing and warehouse and distribution companies, Reichard says.Penn-Northwest Dec. 29 completed the purchase of the site in Hermitage from the city of Farrell for $630,000. "Now we have all the resources in place to develop and market this valuable piece of real estate," Reichard commented.The development will be one of the initial efforts in Penn-Northwest's Strategies 1000, a program to acquire and development up to 1,000 acres that could become commercial and industrial sites in Mercer County."We have acquired the property we need to expand our county site inventory, and have the funding in place to develop it," added William Perrine, Penn-Northwest president. Reichard admits that having a site in Hermitage that the city of Farrell owned 20 years is "an odd situation." The 82 acres was once a part of the former Sharon Steel Corp. and is located south of Duferco Steel. Retired U.S. Bankruptcy Judge Warren Bentz approved the land transfer to Farrell to compensate that city for taxes Sharon Steel owed. "When Sharon Steel settled its bankruptcy, Judge Bentz, in lieu of cash owed to Farrell, deeded over the 82 acres to the city of Farrell in 1984," Reichard explains.Hermitage participated by lending the project $150,000 from its revolving loan fund, created to aid economic development projects in the city, says City Manager Gary Hinkson. Penn-Northwest also contributed $150,000 in equity."A portion of the funding will be used for development ofinfrastructure -- access roads, sewers, water, electrical components, and that sort of things," Reichard said. "We hope to authorize engineering by January, bidding in February or March, and we anticipate construction when the weather breaks."Marketing will begin almost immediately, the Penn-Northwest executive director says. When the park is filled, 300 to 400 jobs would be created, he says.Two or three companies have expressed interest in locating in the site, but Reichard declines to identify them. The park offers advantages in its location and tax breaks though it's being in a Keystone Opportunity Zone. Companies that operate in such a zone are exempt from state and local taxes until 2011. The site also is near Interstate 80.Over the years, Penn-Northwest received inquiries from companies interested in locating there, Reichard said, but site control and the expense of installing the infrastructure needed proved insurmountable obstacles.Visit Penn Northwest Development Corp.: www.penn-northwest.com"