2005 Section 108 Project Summary - Pennsylvania

Economic Development

Allentown Brew Works
BORROWER: ALLENTOWN
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,400,000

Allentown will use the Section 108 guaranteed loan to fund the renovation of the former Harold�s Furniture Store into a 350-seat brew-pub/restaurant and commercial office space in the City�s central business district. The space is currently owned by the Redevelopment Authority of the City of Allentown and will be conveyed to Fegley Real Estate, LLC for one dollar.

The Allentown Brew Works is expected to create 71 new jobs, of which at least 51% will be held or made available to low and moderate-income persons.

Reading Regional Airport Industrial Park
BORROWER: BERKS COUNTY
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,500,000

Berks County will use the Section 108 guaranteed loan to develop a 150-acre site known as �Section III� of the Reading Regional Airport Industrial Park. This section of the industrial park will be sub-divided into at least 10 sites and sold to business for commercial development. This phase of the industrial park development includes acquisition of the site, demolition of existing buildings, relocation of residential and business tenants, and installation of public improvements such as water and sewer lines, and roads.

The 10 development sites will cause the creation of an estimated 100 new jobs, of which 51% of the new jobs will be held or made available to low- and moderate-income persons.

Pennsylvania Small Cities Consortium
BORROWER: CONSORTIUM OF 31 SMALL CITIES
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $43,650,000

A consortium of 31 Community Development Block Grant (CDBG) non-entitlement communities, assisted by the Commonwealth of Pennsylvania, was approved for Section 108 Loan Guarantee commitments to assist in financing 38 eligible activities including housing development, economic development, and public facilities improvements.

Approximately $15,800,000 of Section 108 Loan Guarantee funds will finance housing rehabilitations activities of which, low and moderate-income households will occupy at least 51% of the housing structures. An estimated $43,650,000 of the funds will finance economic development projects that will create new an estimated 873 new jobs of which 51% be made available to or held by low and moderate income persons. The remaining $33,550,000 will be used to develop community facilities, which will provide benefits to neighborhood areas of which 51% of the persons residing in the neighborhood are persons of low and moderate incomes.

North Cameron Street Redevelopment
BORROWER: DAUPHIN COUNTY
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,000,000

BORROWER: HARRISBURG
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,795,000

Dauphin County and the City of Harrisburg will use their Section 108 Guaranteed Loans to make a single loan to Cameron Real Estates, Limited Partnership to redevelop 1000 North Cameron Street, a 10.42-acre site in the City of Harrisburg�s Federally designated Enterprise Community and state Enterprise Zone. A former steel manufacturing facility on the site was heavily damaged by Hurricane Agnes in 1972 and subsequently demolished.

The developer will construct a 500,000 square foot building with 400,000 square feet of offices and manufacturing space, which will be leased to Advanced Communications Agency, Inc. (ACA). The remaining 100,000 square feet will be leased to other small businesses. This new commercial space will cause the creation of an estimated 265 new full-time jobs for ACA and an additional 150 new full-time jobs by other commercial tenants of leased space. At least 51% of the estimated new jobs will be held by or made available to low and moderate-income persons.

Nicolet Property Project
BORROWER: MONTGOMERY COUNTY
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $1,000,000

Montgomery County will use its Section 108 Guaranteed Loan to fund the redevelopment of the Nicolet Property, a 7.65-acre site, which is a former asbestos manufacturing facility in the Norristown Redevelopment area along the Schuylkill River. The facility has been abandoned since 1988 and has deteriorated into a hazardous and dilapidated structure. The site is also within a Pennsylvania Enterprise Zone and Keystone Opportunity Zone. The County�s Guaranteed Loan will assist in financing a for-profit developer to clean the site and develop 120,000 square feet of light industrial/commercial space. The project will create an estimated 130 new full-time jobs of which at least 51% of jobs will be held by or made available to low- and moderate-income persons.

Google-Works
BORROWER: READING
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $4,300,000

Reading will use its Section 108 Guaranteed Loan proceeds to make a loan to Our City, Reading, Inc., a non-profit developer. The Developer will use the loan funds to assist in financing the acquisition of a 2.5 acre site on which exists the 165,000 square foot Dalloz Eyeglass factory. The former factory will be renovated into a multi-purpose arts center, which will contain classroom space for Reading Area Community College, an arts theater, over 21,000 square feet of artist work space, over 39,000 square feet of space for glassworks/ceramics and other art work, approximately five artist live/work spaces, and another 45,000 square feet of space for offices, retail, and storage. The city expects the Project to create 143 new jobs of which at least 51% will be available to or held by low and moderate-income persons.

Sovereign Bank Office Building
BORROWER: READING
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,500,000

Reading will use its Section 108 Guaranteed Loan proceeds to make a loan to Reading�s Future, LLC, the for-profit subsidiary of Our City Reading, a non-profit corporation, which will use the loan funds to finance the construction of a 120,157 square foot office building in Reading�s Central Business District (CBD) for Sovereign Bank�s back office operations. The city will use a HUD approved $1,100 Brownfields Economic Development Initiative grant to carry out extensive environmental remediation and assist in demolishing older, under utilized buildings adjacent to the site for parking. l.

The City of Reading owns the land that is the site of the project and will sell it to Our City Reading. The project�s Developer, Reading�s Future, LLC, will lease the land from Our City Reading and will construct the office building and lease it to Sovereign Bank. This project is located in an area, which has a poverty rate of 47.2%. The Bank�s new office building is estimated to create 150 new jobs of which at least 51% will be available to or held by low and moderate-income persons.


Public Facilities/Improvements

Redevelopment Project in Greensburg
BORROWER: WESTMORELAND COUNTY
STATE: PA
SECTION 108 LOAN GUARANTEE AMOUNT: $1,700,000

Westmoreland County will use its Section 108 Guaranteed Loan proceeds to provide funding to the Redevelopment Authority of Westmoreland County (RAWC). The RAWC will use these monies to pay the cost of land and buildings acquisition, relocation of site occupants, and demolition and site preparation of a site in the City of Greensburg, which it will transfer to Seton Hill University for redevelopment. The site is located within a HUD approved Neighborhood Revitalization Strategy Area (NRSA).

Seton Hill University will develop the site into office space, an auditorium for the performing arts, and academic space. Since the County and Seton Hill University are carry out redevelopment activities in a HUD approved NRSA, the activities financed with Section 108 Loan Guarantee funding will meet the Community Development Block Grant national objective of area benefit.

 
May 19, 2011