MAHANOY CITY - More than $1 million awarded to the Schuylkill County Municipal Authority will pay for infrastructure upgrades in a business park in Mahanoy and Ryan townships.
The work will allow the construction of the largest building along Interstate 81 in the state and could lead to more than 2,000 new jobs.
The $1,147,928 grant approved by the state's Commonwealth Financing Authority through its Water Supply and Wastewater Infrastructure Program, PennWorks, which ensures safe water supply and proper wastewater infrastructure in Pennsylvania, was announced last week.
It will allow the SCMA to install water lines and a new 500,000 gallon water storage tank to service businesses at the Mahanoy Business Park along the Morea Road between the villages of Morea and New Boston and Route 54.
"SCMA is excited about the news of the recent grant," SCMA Executive Director Patrick M. Caulfield said in a media release. "This project will provide public water service to one of the few remaining prime economic developable areas along the I-81 corridor in the northern portion of Schuylkill County."
He credited the cooperative efforts of state reps. Neal P. Goodman, D-123, Mike Tobash, R-125, and Jerry Knowles, R-124, and state Sen. David Argall, R-29, along with the county commissioners and Mahanoy Township, for securing the money, the loan project being one of 38 applicants awarded PennWorks funding.
"The Mahanoy Business Park project is a major economic development priority for northern Schuylkill County and represents a collective effort between local, county, state and private sectors leaders to add jobs and tax base to this part of the county," Schuylkill Economic Development Corporation President Frank J. Zukas said.
SCMA estimated the park could support the creation of more than 2,000 new local jobs.
"Municipal water and sewer services are an essential ingredient in making that happen, with this SCMA project representing the first big step in the financial investment needed to get the project started and moving in the right direction," Zukas said.
In a telephone interview Tuesday, Zukas said the park land is on both sides of the interstate.
"The industrial area that was zoned in that part of Mahanoy Township straddles the interstate, with the north side along the Morea Road, where Fabcon and Corsicana, which is the IBC Bedding, is located, Skytop Coal and the hotel (MainStay Suites) are located," Zukas said.
MainStay Suites opened its doors in August.
"When the interstate went in, it cut off about a 400-acre tract of property that was called the 'Yudacot Airport,' and that's on the south side of I-81 and is in portions of Mahanoy and Ryan townships and more immediately adjacent to the (Mountain Valley) golf course, and that's off the Burma Road. When we talk about the park, it is actually both pieces of that parcel that was one piece before the interstate went in," Zukas said.
Zukas said the infrastructure upgrade will extend the SCMA water main from the area of Morea/New Boston to Route 54, providing water service to the companies along the way. Currently, water is obtained from private wells.
"It will also put us in a position where we can put in a water tank to balance out the system, and the tank was to be located directly across the interstate from the 400 acres," Zukas said. "All we have to do is come under the interstate. Actually, boring underneath roads has become pretty simplistic, so when we get it under the interstate, the other side will have municipal water, as well."
Zukas said plans must be made for the water service upgrade and more.
"SEDCO will begin developing a long-term plan for permitting it as a building site," he said. "We're not going to do multiple lots in it, but probably for a single user. The uniqueness of it is that it's going to be able to accommodate up to a two million square-foot building, and that doesn't exist anywhere along the Interstate 81 corridor from New York to Maryland. We're going to have something unique in there. It was laid out for a building that big back in the late '90s when Kmart was looking at the area, but they obviously didn't build it. With water on the other side, it gets us halfway there."
A future step could be providing sewer service, though there are several options.
"We're looking at the options for municipal sewage treatment, anything from going to Mahanoy City with it to building a free-standing plant to building something totally dedicated to whatever the one building would be," said Zukas, who is aware that Mahanoy Township is in the basic stages of getting its Act 537 plan ready. Under Act 537, municipalities are required to develop and implement comprehensive, official plans that provide for the resolution of existing sewage disposal problems, provide for the future sewage disposal needs of new land development; and provide for future sewage disposal needs of the municipality.
"The section of the township that we're talking about is probably as isolated in the corner as you can get," Zukas said. "While we respect what the township is doing, our project may have a bit different take on it, due to the nature of the sewage, than trying to connect into the system because it's so far removed. However, if they (Mahanoy Township) progress further and quicker than we do, we'll absolutely consider it."
"Our experience at Highridge and elsewhere with large box operations is that they typically don't generate a lot of municipal sewage, so maybe doing a package plant is something that we're in the process of investigating, including the distances and topographic changes," he said.
As for a timeline for the water main extension, Zukas said the permitting is in process.
"So for the water line extension, I suspect we'll see shovels in the ground in 2014. The water tank will probably take longer," he said.
Argall said the improvements will help current businesses and attract new employers to the park.
"Investing in our future is vital if we want to bring jobs to our area now," Argall said. "This was a team effort to secure this grant and we are pleased to see the much-needed progress occur here in Mahanoy Township. I applaud the good work of Schuylkill Municipal Authority and Schuylkill Economic Development Corporation for their vested interest in seeing Schuylkill County create new jobs and opportunities."
"Securing this funding has been one of my top priorities because we need to have this vital infrastructure in place to attract employers to the Mahanoy Business Park, which will lead to many new jobs for the area," Goodman said. "This shows that business leaders and elected officials can work together to improve Schuylkill County. It was my pleasure to work with Senator Argall, Schuylkill Municipal Authority, and SEDCO on securing this grant. I also appreciate the support Representatives Jerry Knowles and Mike Tobash provided, even though the project is outside of their legislative district."
Knowles said the project will serve as a boon to the region's economic progress.
"I am pleased this worthwhile project will be receiving grant funding to provide a core and essential service of government while benefiting the entire region," Knowles said.
"These projects that are being funded through gas industry impact fees are important for the communities that they serve," Tobash said. "When I voted in support of an impact fee during the previous legislative session, this is the kind of project that I hoped to see benefit as a result. I'm glad to have had a hand in making sure this and other projects in our area get the funding they need to operate at optimal capacity."