Fay Penn hoping to continue, expand their loan program
Fay-Penn Economic Development Council will be looking to continue their loan program as a way to generate income.
At their quarterly business meeting, Loan Program Coordinator Jessica Firmstone reported that they currently carry a balance of $2.2 million they’ve loaned out.
Since January, the council has received 14 applications. Out of those 14, they’ve closed on five for a total of $374,500, have one loan pending, are reviewing two applications, declined four applications and had two that were withdrawn.
“Our interest income from the loans we give was about $196,000 in 2017,” Firmstone said. “But, if we didn’t make another loan from here on out, our interest income would be depleted by 2030.”
Speculating into the future, Firmstone said if Fay-Penn gave just eight loans at an average of $75,000 at 5.5 percent interest for seven years, the books would show an interest income of just over $124,000 by 2024. That coupled with the calculated $29,000 left over from the current interest, would still be over $42,000 less than where that income stands today.
If they were to make 10 new loans annually from here on out, their interest income by the year 2014 would sit at just over $155,000. That number coupled with the calculated $29,000 left over from the current interest is still nearly $11,000 less than where their interest income is today.
From there, Firmstone said if they were to make 15 new loans annually, their interest income for the year 2024 would sit at nearly $233,000. Combined with the calculated $29,000 left over from the current interest, that would put the total at approximately $45,000 more than where the total interest income currently sits.
“We want to evaluate our loan applications so that we’re choosing ones that fit our mission and are credit worthy, but also so that we can support Fay-Penn’s projects with the interest money,” she said.
Firmstone added that they have been close to giving eight new loans annually, but “if we stick with that, we’re going to be creating a shortage down the line. We need to be around 15 new loans to continue to have a surplus.”
Fay-Penn has about 40 active loans since they began the loan program in 2000.
Construction Coordinator Earl Miller also gave an update on several projects, including updates to the NiSource property at 100 Laurel View Drive in Smithfield.
At this point, a new monument sign was installed and landscaping will soon follow. A break room was added and a new entry way is part of the expansion project.
Bob Shark, executive director of Fay-Penn, said the purpose of the re-design project of the 25,000-square-foot space was to add another 100 employees into the facility over the next two to three years, bringing the total projected number of employees to 300 jobs.
“The average starting wage here is about $16 an hour, so there are good jobs available here,” he said.
While they didn’t name the company, Shark said another existing client that expanded their business last year is looking to move forward with an additional expansion this year, with the purchase of building and the erection of a new building.
“Their corporate office gave the go ahead, so this will be happening soon,” Shark said. “The average job here is $55,000 a year. The expansion will help retain the 139 jobs currently held and add 40 to 50 additional jobs.”
One concern that was talked about at the meeting was the fact that a Pennsylvania Superior Court has reversed the decision of the Fayette County Zoning Board that denied the request for a methadone clinic in North Union Township, on property across Route 119 from the Speedway gas station.
Shark said the proposed clinic is near one of Fay-Penn’s business parks and they will keep an eye out on that to determine if any morning traffic for the clinic affects traffic for employees of businesses on their property.
Shark said they are also looking at getting all the deeds of Fay-Penn’s real estate holdings to reflect the council as the sole owner.
“We own 78 parcels of land that comprise over 1,600 acres and 16 buildings,” he said. “Over the years, when we merged with some sister organizations, those names came along with the property and it’s caused issues with some of the properties that we own.”
“Some of the deeds don’t reflect as being owned or operated by us, so we’re working to get the deed names adjusted so at some point in the near future, everything we own will be under Fay-Penn Economic Development Council,” Shark said.
Finally, Dunbar Township Supervisor John Tabaj asked Fay-Penn representatives if it’s possible for them to cut the grass in the Dunbar Township Industrial Park and put up some kind of fence to keep out individuals who want to dump garbage there.