Good morning. First came the Envy of the East, a business-relief plan put forward by state House Republicans. Then Gov. Tom Wolf proposed Back to Work PA, a $3 billion plan for economic and workforce development. Now, some of Pennsylvania's Senate Republicans are weighing in with a relief plan of their own, Prioritize PA: Small Businesses.
  • They are all converging on the June 30 deadline for passing a state budget for the next fiscal year.
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$15M mixed-use project secures zoning approvals


A roughly $15 million mixed-use project in southern Lancaster city cleared key zoning hurdles this week.
  • The city's zoning board on Monday night unanimously approved a raft of variances for the project, shown above, which is designed to create affordable housing.
  • "It's critically in short supply," said the developer, Lancaster businessman Jeremy P. Feakins, who said he has owned the site -- at 800 S. Queen St. -- since 2006.
  • Feakins has long sought to redevelop the tract, formerly home of a store called Rebmans.
  • But his plans gained momentum when the site was included in a tax-incentive area known as an Opportunity Zone, a program established by the Trump administration's signature tax law, the Tax Cuts and Jobs Act of 2017.
  • "It encourages developers to invest in distressed neighborhoods and turn buildings which are like ours into something nice for the benefit of the community," said Feakins, a serial entrepreneur who was born and raised in England. He first came to Lancaster in the 1980s.

What's the project: A new four-story building at the southwest corner of South Queen and Furnace streets, at the southern edge of Lancaster. The project manager is Professional Design & Construction Inc. based in Landisville.
  • The building is slated to include 72 affordable apartments with rents that would be within reach of people earning less than 80% of the area's median income. Affordable housing is typically defined as costing no more than 30% of income.
  • The project could also bring a cafe, a small grocery and a medical/health care tenant to a section of the city where commerce is sparse, said Feakins, who works out of an office in a corner of the site.
  • His office would be converted into a day care, while an existing small warehouse would be demolished.
  • The zoning variances granted this week cover building height, setbacks, tenant mix, tree spacing and parking spaces. Officials agreed to allow fewer than the required number of spaces.
  • The extra height -- about 10 feet -- is needed to accommodate stairs leading to a planned roof garden that tenants can use to grow vegetables, flowers and other plants.

What's next: More development work is needed before construction begins, which may not be until 2022, Feakins said. But the zoning approvals could help spur interest from investors.
  • Feakins said he is hoping to raise about $4 million from private investors, including himself, and borrow the remainder. 
  • Some investors may wait for other milestones, like the issuance of building permit, he said. "But zoning is the big one, in my experience anyway," he added.
  • Feakins is chairman of Lancaster-based Ocean Thermal Energy Corp., which is developing technology to produce renewable energy and clean water. His development company is called OZ Fund Inc.
 
The bottom line: The South Queen Street project is one of only a handful of Central Pennsylvania projects taking advantage of the Opportunity Zone program. People with capital gains can lower their taxes by plowing their gains into Opportunity Zone projects.
  • Feakins said he is hoping to undertake other projects in Lancaster, as well as in York.
  • "There's another city that needs affordable housing. Harrisburg does, too," he said.
  
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Quick takes



WHO'S STEPPING IN: Angela Leopold of Novak Strategic Advisors, a Harrisburg-based lobbying firm. Leopold will be handling advocacy work for the Pennsylvania chapter of NFIB while the small-business group searches for a new state director, according to a press release. Its previous director, former Lancaster lawmaker Gordon Denlinger, took a job this month in the office of Pennsylvania auditor general Timothy DeFoor.
  • Leopold has been at Novak since 2005. Before that, she worked as finance director for the Republican State Committee of Pennsylvania.
  • A graduate of Dickinson College, she also is past board chair of the Central Pennsylvania Chapter of the American Red Cross.

What's on the agenda: Small-business owners are staring at a proposed tax hike from Gov. Tom Wolf, a potential increase in the minimum wage and the work of bouncing back from the Covid-19 pandemic.
  • "Working with NFIB, together we will ensure the interests of small businesses are advanced in Harrisburg so they can focus on driving our economic recovery,” Leopold said in a statement.
 


WHO'S HIRING: Providence Engineering. The firm in East Hempfield Township, Lancaster County, has hired industry veteran Vaughn Silar as a senior consultant on a part-time basis, effective March 1. Silar said he will be focusing on operations and workflow at Providence.
  • Silar founded Paragon Engineering Services in 2002 in Spring Garden Township, York County.
  • He sold Paragon in January 2019 and stayed on for nine months during the ownership transition.
 


WHERE IS THERE A CROWD: Stony Battery Road off 283 in East Hempfield Township, Lancaster County. A developer is planning a pair of warehouses next to a newly built warehouse that just sold for $23.725 million. The proposed warehouses at 701 and 791 Stony Battery Road have been approved by the township. 
  • But the developer, Catalyst Commercial Development, is weighing the market before deciding how and when to proceed with construction, according to Lee Fittipaldi, a principal at brokerage firm Lee & Associates of Eastern Pennsylvania.
  • Each warehouse is slated to span 251,200 square feet.

What about the neighbor: A 252,800-square-foot warehouse at 601 Stony Battery Road, the one that sold for $23.725 million. The buyer was Boston-based investment firm TA Realty.
  • The initial developer of 601 Stony Battery was Catalyst, which sold the project to Massachusetts-based High Street Logistics Properties, Fittipaldi said. High Street sold it to TA.
 


WHAT'S MOVING: Legislation that would give bars and restaurants a bigger discount when they buy liquor from Pennsylvania. The businesses would get a 15% discount, up from the current 10%, under legislation that was passed unanimously yesterday by the state House Liquor Control Committee. The discount applies to all orders of $50 or more.
What's next: The committee votes were just a first step. The bills still must pass through more legislative hoops before making it to the desk of Gov. Tom Wolf.

 
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