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Ferlo: State Loan Will Breathe Life Back Into the Area

HARRISBURG, June 9, 2009 - - Today, State Sen. Jim Ferlo (D-Pittsburgh) announced that a $6 million low interest state loan will help revitalize communities in Southwestern Pennsylvania, by spurring job growth and economic development.

The regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) will provide funding to address the economic development needs of brownfield communities through the construction of single-tenant or multi-tenant building projects for industrial, flex research and development based companies in Allegheny County.

“For years, we have worked diligently to bring businesses back to these brownfield communities,” Ferlo said.  “These much needed funds will help us continue to breathe new life into this area by redeveloping existing underutilized properties.”

One of the projects this funding will help complete is the Lawrenceville Technology Center.  The center is located within the City Center of Pittsburgh, an Act 47 distressed community and an Enterprise Zone.  L3 Communications, a Fortune 200 company, has discussed the possibility of expanding their current facility, potentially bringing new jobs, economic development and more residents to the community.

The City of Pittsburgh and Senator Ferlo have been working on a master plan for the Lawrenceville neighborhood, focusing on separating the industrial and residential land uses in the community.   Currently conflicting zoning along the river front and within the residential core create excess traffic and public safety hazards. 

Senator Ferlo said, “I look forward to working with all the stakeholders to come to an amicable solution to resolve the conflicting land uses in Lawrenceville, particularly below Butler Street.  I hope that RIDC will work in good faith toward that end.”

“This project will help grow and diversify our regional economy and most importantly create much needed employment during this economic downturn,” Ferlo said. 

The loan was provided by the Commonwealth Financing Authority (CFA) through their Building PA program. Building PA provides real estate fund managers with crucial “gap financing” that can make the difference in the success or failure of a viable development. The commonwealth’s funds are matched at least dollar-for-dollar by private equity.

The CFA’s board approved the loan today at its meeting in Harrisburg.

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PITTSBURGH OFFICE
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