Despite sour economy, Fay-Penn brings in new jobs
While higher unemployment is aggravating the local economic situation, Fay-Penn Economic Development Council continues to work to bring in new business and expand the county’s economic base. At its quarterly board meeting Friday, Fay-Penn reviewed some of its efforts over the past year.
Barry Seneri, Fay-Penn economic development manager, said the organization fielded more than 160 business inquiries, despite a flagging economy.
“The economic situation in Fayette County has gotten much worse,” he said, adding that the jobless rate in October reached more than 10 percent, the highest since June 1992.
“It is a very tough economy that we are working in. It’s a very difficult situation because we are also seeing cuts in state and federal budgets. It will put much more pressure on our local officials,” he said.
However, during 2009, Fay-Penn supported more than $2.5 million in new business-development projects that created or retained more than 340 jobs, Seneri said.
One such project, announced Friday, is assistance to PPC Real Estate LP, which purchased and renovated an existing facility at 126 Development Drive in the Greater Uniontown Business Park on Route 119 north.
The company purchased a 23,000-square-foot structure on a two-acre plot and an additional half-acre of land, which will be leased to Power Piping Co., a privately held mechanical contractor and industrial services provider.
Power Piping operates three facilities: Donora, Etna and Pittsburgh. It is moving its Donora fabrication and warehouse to the Uniontown site, bringing nine jobs to the county. The total project cost is $1.2 million. Fay-Penn provided a $270,000 low-interest loan to the company from its revolving loan fund. The company received a loan for $315,000 from the Pennsylvania Industrial Development Authority and financed the balance through banks.
“Of those business inquiries, we received 52 related to site selection. Some were related to the Marcellus shale gas-well drilling. We also received 29 requests for financial assistance and closed on loans valued at about $1.5 million on nine projects,” Seneri said.
Robert Junk, Fay-Penn local economy manager, said the first round of public meetings has been held to gain support and input into the new Fayette Forward strategic plan.
Junk said more than 500 people participated in town meetings held throughout the county. “We want to have at least 2,000 people participate throughout the whole process,” he said, adding that beginning in January, plan organizers will meet with various community groups to get their input for potential initiatives in the new strategic plan. Comments, goals and suggestions from the public meetings are being posted on the plan’s Web site at www.fayetteforward.com.
Comments may also be posted on that site, Junk said.
He added that a $20,000 grant received from the Tourism Bureau will be used to support farmers-markets next year in Ohiopyle, Connellsville, Uniontown and Masontown.
Tina Wargo, Fay-Penn asset and contract department manager, said the agency will administer a $900,000 federal Economic Development Administration grant that will be used to improve infrastructure at the Fayette Business Park in Georges Township.
Wargo said the joint application includes Fayette Industrial Fund, Fairchance-Georges Joint Sewage Authority and Georges Township.
Fay-Penn also approved a 2010 operating budget that has a cash shortfall of about $147,000. Total anticipated receipts are $321,000 and total disbursements are estimated at $1.4 million, leaving a $1.1 million deficit that will be covered in part by transfers of nearly $1 million from interest from Fay-Penn’s revolving loan and building funds.
Recent high winds caused more than $125,000 damage to two Fay-Penn properties: The Fay-Penn Business Center roof along Route 119 north and the Tedesco building roof near Connellsville. Wargo said insurance will cover most of the cost.
Ron Cole, Fay-Penn construction project coordinator, said leases have been entered with Atlas Energy and Patterson Coal to remove natural gas and coal from Fay-Penn-owned land, which should provide new income in 2010.
The organization also named new officers for 2010: Steve Neubauer is board chairman, Bill Blaney, first vice chairman; George Rattay, second vice chairman; Mike Krajovic, president; Ben Wright, secretary; James Foutz, treasurer; and Leo Krantz, past chairman and assistant secretary.
Fay-Penn recognized Krantz for his work for the past seven years as chairman. He was presented with a trophy and gift certificates.
“Leo’s support has been incredible,” Krajovic said. “He is respected by everyone and spends more time in our office than I do sometimes,” he joked.
Krantz, a retired banker, thanked the group for its support.
“I’m not going anywhere,” he said, adding he will continue to serve on the Fay-Penn board.