New Investments Helping to Develop Communities in Erie County, Governor Rendell Says
HARRISBURG, PA – July 16, 2009 – (RealEstateRama) — Several real estate projects in Erie County will receive new state investments to support job-creating economic development projects, Governor Edward G. Rendell said today.
The Governor said Enterprise Development Fund of Erie County will provide financing through the Building PA program to invest in industrial, commercial and multi-use buildings located primarily in low-income communities in the cities of Erie and Corry and the boroughs of North East, Edinboro, Lake City, Girard, Cranesville, Union City and Albion.
“These new state investments provide crucial capital for Erie County,” said Governor Rendell. “This financing, targeted for small to mid-sized communities, will help close a crucial funding gap and ensure that these Pennsylvania communities can grow and successfully compete for new businesses and job creation.
“This investment to redevelop existing properties will encourage new private investment in Erie County, resulting in an increased community tax base and the capacity for future business growth and job creation.”
The $3 million loan has been approved by the Commonwealth Financing Authority through the state’s Building PA fund—a real estate component of Governor Rendell’s original economic stimulus program.
Building PA provides crucial gap financing for viable economic development projects. The state’s funds are matched at least dollar-for-dollar by private equity. To date, we’ve allocated over $147 million to 23 fund managers throughout the state. They have invested over $72 million in 33 projects.
One of the potential investment projects identified by Enterprise Development Fund of Erie County includes a multi-tenant flex building in Fairview Business Park. This project would meet the county’s need for clean industrial space and provide 5,000- to 10,000-square foot units for small industrial organizations to do business.
BoreFlex Industries, a manufacturer of high performance polyethylenepipe for water, sewer, oil, gas and duct markets, is searching for real estate to redevelop as a new industrial facility. The company is currently leasing facilities that are too small and needs to increase its space by as much as 25 percent with a more modern and efficient facility.
The Building PA funds could also be targeted toward the reuse and redevelopment of WSEE-TV’s former station building. The television station has merged with another station and the building is planned for use as a local seafood business that would sub-lease portions of the facility to a wine and cheese shop, produce section and coffee shop, and could become a downtown destination for specialty foods.
For more information on state investment programs available through the Department of Community and Economic Development, call 1-866-466-3972 or visit www.newpa.com.
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell’s initiatives and to sign up for his weekly newsletter, visit www.governor.state.pa.us
Michael Smith (GOV) 717-783-1116; Theresa Elliott (DCED) 717-783-1132