February 3rd, 2017
CREDC Provides $2.6 Million in Financing for Two Local Projects This Week
The Harrisburg Regional Chamber & Capital Region Economic Development Corporation (Chamber & CREDC) received approval and closed on projects totaling more than $2.6 M this week. The projects include a $2,045,123 PIDA approval and closing a $633,000 Small Business Administration (SBA) loan.
The PIDA loan project, being undertaken by Sunset Key Investors, involves the purchase and renovation of industrial space located at 1400 N Cameron Street, City of Harrisburg, Dauphin County, PA. The site may be most remembered as the former site of Turban Airfoil Design, which vacated the property approximately 8 years ago. The project will invest over $3.6 million in renovations to the 18.6 acre site, which contains roughly 290,000 square feet of industrial space including space with over 27 feet ceiling heights.
Sunset Key Investors, owned by Jack Shepley and Jim Novinger, recognized a regional shortfall of industrial space inventory for lease. CREDC supports this project as support of growing momentum in redeveloping and renewing the aging industrial corridor of Cameron Street. Novinger is also owner of Novinger’s, Inc., which will be the lead tenant in the building, taking 80,000 square feet for occupancy.
Out of the $5.1 million project, $2,045,123 was approved by PIDA, $2,556,404 by FNB Bank and the remainder is equity injection. This project is expected to employ 100-150 full time positions when fully renovated and leased.
The SBA project closing was for Greystone Public House, which closed on a $663,000 SBA 504 loan to support the purchase and renovation of the former Mount Hill Tavern, located at 2120 Colonial Road, Lower Paxton Township, Harrisburg, Dauphin County, PA. The property is a historic brownstone on 4.75 acres. The restyled restaurant and menu offers reasonably priced quality food and spirits with a creative flair.
While Greystone Public House has been open since July 1, 2016, CREDC has been involved with the borrowers and operators, John Frisch and chef Jason Viscount since the middle of 2015 supporting the financing of their project.
A bulk of the renovations were put into repositioning the former restaurant’s bar while expanding bar seating, expanding outdoor patio space while including an outdoor fireplace, and completely renovating meeting room and banquet space to an updated style. While the renovations updated the style, the reminiscent historic influence remains in exposed wood beams, older industrial style light fixtures and stone exterior.
The SBA loan was part of a package that provided 85% total financing and a first mortgage to our valued banking partner, Centric Bank.
The Chamber & CREDC has formed a strategic partnership with the South Eastern Economic Development Company of PA to provide SBA 504 loans to our region. As a result of this arrangement, the Chamber & CREDC provides borrowers local representation, as well as a local legal counsel familiar with the region to handle the closing.
David Black, President & CEO of the Chamber & CREDC added, “Economic development takes place one project, one deal at a time through a series of collaborative partnerships. Our clients, Sunset Key Investors and Greystone Public House, the local banks First National and Centric Banks, our strategic partners PA DCED, SBA, SEEDCO, Dauphin County and our economic development team lead by Melissa Stone, VP for Economic Development, have all invested and worked hard to make these projects become reality. We sincerely thank Jack Shepley, Jim Novinger, John Frisch and Jason Viscount for their belief in their business ventures and their investment in our region that create jobs and contribute to our quality of life.”