GreenWorks Development Archives - Central Penn Business Journal

More than two dozen projects in Central Pennsylvania were awarded millions of dollars in matching grants from the Redevelopment Assistance Capital Program (RACP), supporting both public and private construction and renovation projects across the state.

The local grants are part of a broader package of grant awards $275 million for 214 projects statewide, according to a report released by the Office of the Budget.

Administered by the Pennsylvania Office of the Budget, the RACP is designed to help acquire and construct improvement projects deemed to be of regional economic, cultural, civic, recreational and/or historical importance and can generate new increases or maintain current levels of employment, tax revenues and other economic benefits.

In state Rep. Carol Hill-Evans’ York County district alone, three projects received nearly $10 million in matching grants, including $2 million for renovation at York County Libraries and $1.8 million for Royal Square Development and Construction as part of York’s

York College of Pennsylvania will get $6 million to convert three buildings that formerly housed the Smurfit-Stone containerboard factory at South Penn Street and Kings Mill Road into the Knowledge Park at York College of Pennsylvania, part of the school’s J.D. Brown Center for Entrepreneurship business incubator program.

The King House, a historic manor house on the property, will be converted into an administrative support center for the complex, while the two large warehouses will be renovated for large meeting space, assembly and office areas.

“This new venture would allow us to grow our partnerships with companies, agencies, nonprofits or organizations that will provide programmatic connections to York College through student experiential-learning opportunities and collaboration with our faculty,” said York College President Pamela Gunter-Smith. “Joining forces with Knowledge Park partners gives us the opportunity to create a project-based learning laboratory on our campus.”

The $6 million grant to York College was the third-highest award among this year’s recipients, coming in behind an $8.5 million grant to Aramark Services to help relocate its corporate headquarters to the Schuylkill River corridor in Philadelphia and an $8 million grant to AmerisourceBergen Corp. to consolidate its drug wholesale business into a new building in Conshohocken, Montgomery County.

Other Central Pennsylvania projects include:

Cumberland County

Central Pennsylvania Youth Ballet redevelopment project: The Cumberland County Industrial Development Authority received $1 million to add a 5,500-square-foot addition and renovate 24,345 square feet of the existing building in Carlisle, reconfiguring studio and performance space to accommodate growth.
Former Lemoyne Middle School redevelopment project: REC LMS LLC, the developer of the former Lemoyne Middle School site at 701 Market St., collected $1 million for pre-development, demolition, abatement and site work costs to create a mixed-use development of about 17,500 square feet of commercial space and 30 townhomes.

Dauphin County

320 Reily mixed-use development project: GreenWorks Development LLC received $2 million of an original $4 million request to install a 135,000-square-foot, five-story building with 135 apartments and 10,000 square feet of retail on an existing parking lot at 320 Reily St. in Harrisburg.
Hershey Community Center construction: $2 million was awarded to the Township of Derry to construct a new community center on the site of the existing recreation center at 605 Cocoa Ave. The center will include thee different pools, including a competitive swimming pool, an indoor leisure pool and outdoor summer pool, along with a basketball gym.
Hummel Street redevelopment project: Tri-County Housing Development Corp. Ltd. received $500,000 toward the acquisition of 11 parcels on Hummel Street in Harrisburg and demolition costs, construction of new homes and the rehabilitation of existing homes.
Insulators Local Union 23 business unit expansion: The union purchased the former VFW Post 9639 location at 8926 Jonestown Rd., East Hanover Township, receiving $700,000 to renovate and add to the existing structure. Plans call for offices, an apprentice training center, and a new catering and banquet facility.
National Civil War Museum at Reservoir Park: The longstanding National Civil War Museum in Harrisburg received $2 million to acquire artifacts owned by the city and to conduct capital improvements at the museum, including exhibition upgrades, HVAC energy efficiency and walkway safety.
Shireman Tract park project: Lower Swatara Township received $300,000 to build two softball fields and stormwater management basins and to create a final land development plan on a 32-acre farm along Ebenezer and Longview Roads the township bought in 2017.
Steel Works redevelopment project: Integrated Development Partners LLC received $1.5 million to develop the Steel Works project along a six-block area of North Front Street in Steelton. The development comprises 65,000 square feet of commercial, retail and office space and multi-level senior housing units.

Franklin County

Former Summit Health Campus expansion: Chambersburg Health Services was awarded $500,000 to expand its health campus on St. Paul Drive, adding a cancer treatment center. The grant will be used for site preparation costs, including soil erosion and stormwater management.

Lancaster County

Columbia Economic Development Initiative – Columbia Borough received $1.75 million to help re-establish a public farmer’s market at the Columbia Market House on South Third Street. The plan calls for adding a new restaurant, installation of a new HVAC system and parking improvements.
Ephrata Crossing development: Property Investing and Management Inc. acquired $500,000 to help with construction costs of the proposed Ephrata Crossing development at the intersection of East Main Street (Route 322) and Pleasant Valley Road in Ephrata Township. Grant money for the mixed-use development is slated for curbing, sidewalks and excavation.
Lancaster City Fire Stations renovations: Lancaster City received $500,000 for renovations at two different fire stations, modernizing on-duty staff’s living quarters and new hose towers to facilitate equipment drying and training.
Lancaster Cleft Palate Clinic modernization: Located on North Lime Street, the headquarters of the Lancaster Cleft Palate Clinic will undergo extensive renovations with the help of a $1.2 million grant. Renovation plans call for room reconfiguration, moving the main entrance and new plumbing, electrical and HVAC systems.
Spartan Motors Lancaster County manufacturing plant expansion: Spartan Motors USA Inc., which makes specialty truck bodies and chassis at its West Earl Township plant, received $500,000 to upgrade the plant with building renovations and machinery upgrades.
Treasures Markets community revitalization plan: Treasures of Hope Foundation based in Lancaster was awarded $500,000 to help renovate properties on Queen and Franklin streets to open up a combination discount grocery store and thrift store.

Lebanon County

Market Square Transit Intermodal Center project: The City of Lebanon received $2 million to construct the Market Square Transit Intermodal Center on an existing parking lot near the intersection of Ninth and Cumberland streets that will consist of a three-story, 30,000-square-foot mixed-use building housing City Hall and lease space for businesses. The plan also includes adding a parking garage with 300 spaces.
WellSpan Health and Surgery Center project: WellSpan Health was awarded $500,000 to help in the construction of a new 80,000 square-foot surgery center at the intersection of Rocherty and Cornwall roads in North Cornwall Township. The new center is anticipated to include primary care, specialty care, surgical and ambulatory services similar to WellSpan’s recently opened facilities in York County.

Perry County

Perry Innovation Park Cogeneration Power Project: The Perry County Economic Development Corp. received $1 million to construct a new cogeneration power unit at the Penn Township complex. The unit consists of a combined heat and power system of approximately 2,500 kilowatts.

York County

Lidl Grocery Store construction: Lidl US Operations LLC was awarded $500,000 to help in the construction costs of a new store in the 3000 block of Carlisle Road in Dover Township. The location will mark the second Lidl to be constructed in York County.
York County Libraries capital project: A $2 million grant was given for capital improvement projects at libraries in York, Hellam Township and Red Lion, including building expansions, weatherization and layout reconfiguration.
York Jewish Community Center Early Childhood Education Southern Branch project: The York Jewish Community Center received $1 million to renovate the former TLC Montessori school in Springfield Township to serve as an early childhood education center, improving classrooms and adding a playground.
York’s Northern Gateway Station House project: Royal Square Development & Construction was given $1.8 million to renovate three properties within York’s northern entrance to the city on North George Street, providing mixed-use space for retail, restaurants and apartments.

Solar Renewable Energy LLC in Lower Allen Township and Harrisburg-based GreenWorks Development partnered on a solar project for Commonwealth Charter Academy’s Harrisburg campus. (Photo: Submitted)

Many business owners looking to reduce energy costs view solar projects as worthy of conversation but ultimately too costly.

There are other, cheaper steps they can take first, said Jesse Pellman of Longview Structures, a custom builder and remodeler in Lancaster that focuses on environmentally friendly design and sustainable materials.

“The low-hanging fruit is often lighting controls and a conversion to LED lighting,” Pellman said. “It’s simple, straightforward, and has some decent return to it.”

For small companies in older buildings, going “green” to conserve energy might also mean replacing windows, adding insulation or upgrading mechanical equipment.

“It’s not as glamorous as solar, but it’s more accessible,” Pellman said. “The first push always is conservation before active measures.”

But if businesses want to make a push into solar, 2019 may be optimal, according to commercial solar developers and local government officials.

Absent any legislative action, this year is the last year that the federal government is expected to offer a 30 percent tax credit to homeowners and businesses for installing a solar system. In 2020, the tax credit will step down to 26 percent. The credit will then fall to 22 percent in 2021 and drop permanently to 10 percent, and be restricted to businesses, in 2022.

Solar-system costs also have dropped dramatically over the last decade. And, after Pennsylvania closed its borders last year and barred power companies from buying renewable energy credits from out-of-state solar projects, credit prices have been rising.

The credits, known as solar renewable energy credits, or SRECs, can be earned that individuals and businesses that generate solar power. Electric utilities buy the credits to meet the state’s mandates for using renewable energy.

Higher SREC prices can reduce the payback period on the investment in a system.

“The planets have all lined up with the sun,” said Doug Neidich, CEO of Harrisburg-based GreenWorks Development, a commercial real estate developer.

Neidich is plugging in to take advantage of the solar conditions by expanding the solar array on his Campus Square office building in Midtown this year.

“I don’t think businesses and not-for-profits in the commonwealth understand how attractive solar is as a financial proposition at this point,” Neidich said.

When he put a 42-kilowatt solar system on Campus Square in 2008, Neidich said he paid nearly $7 per watt to install the system, or about $300,000. More than a decade later, he expects to spend about $1.50 per watt, or $60,000, to add another 40 kilowatts on the roof.

“The cost of conventional solar has come down practically about as much as it can come down, while the 30 percent federal tax credit is still in place this year and while the renewable energy certificate market in Pennsylvania has gone up 10 times in the last 12 months,” he said.

SRECs were trading for about $300 per credit at the beginning of this decade and eventually fell below $5 before Pennsylvania closed its borders. Neidich said he believes SRECs could get back above $100 over the coming year.

Credit prices were around $35 per credit in mid-April, according to San Francisco-based SRECTrade Inc.

Neidich also partners with commercial solar developer Solar Renewable Energy LLC, based in Lower Allen Township, to help finance and develop other solar projects in the Harrisburg area. One of the partnership’s recent projects was a solar array on the roof of Commonwealth Charter Academy in Harrisburg, which took over the former PSECU headquarters off Cameron Street.

GreenWorks and Solar Renewable Energy are currently working with other businesses and nonprofits, including local governments like Susquehanna Township. Many of those clients are tax-exempt, he said, but they can still take advantage of the federal tax incentive through third-party ownership.

Under that arrangement, a solar developer or investment partnership would purchase, install, own and maintain a solar array on behalf of the nonprofit.

That partnership can use the tax credit to install the system because they are paying federal taxes, but they can pass on energy savings to the organization through discounted electricity rates under a power purchase agreement.

After at least five years, the partnership can sell the solar system at a depreciated value to the tax-exempt entity, allowing the organization to save more money.

Susquehanna Township Manager Dave Kratzer said the township is currently working on such a plan with Neidich and Solar Renewable Energy. But before the size of a solar project can be finalized, he said the township is considering about $500,000 in renovations, including roof and LED lighting upgrades, to make its facilities more energy efficient.

Kratzer said the township hopes to finalize its plan over the next few months.

“One of the things we’re trying to do is demonstrate feasibility of implementation of these improvements and do it in a way that has advantages from an economic perspective,” Kratzer said. “It’s an opportunity to lead by example.”

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Central Pa. projects receive millions in state grants