The Problem: RIDC’s Westmoreland Innovation Center is a case study in community engagement and partnership, bringing together an array of stakeholders to turn a 2.8M square foot, 350-acre site – originally built out as a single user industrial facility – into a multi-tenant, job creating success story.
Originally owned – but never used by – Chrysler, Volkswagen took over the site in 1976, with nearly $100M in government assistance, highway and rail improvements, and a property-tax exemption for the nation’s first foreign-owned auto assembly plant. Volkswagen invested over $250M into the building and, in 1990, with Volkswagen having vacated the property, Sony began leasing the plant for its cathode ray tube manufacturing operations for television and display terminals. By the late 1990s, Sony employed more than 3,000 at the manufacturing facility. That ended when Sony closed the facility in 2010 and it was acquired by the Pennsylvania Industrial Development Authority (PIDA).
The Coalition: Eventually, PIDA turned the property over to the RIDC, through a long-term lease with a purchase option. The site required significant new infrastructure, having previously utilized a central utility plant as a single user facility, and a reconfiguration to become a multi-purpose, multi-tenant property. RIDC partnered with Westmoreland County, so it would have community representation at the table. The County’s participation ensured the vision for redevelopment would meet the community’s needs, as well as show tenants they have supportive local leaders with whom they can deal directly. And, when development issues (e.g., permitting, zoning, etc.) arise, there is always a local voice at the table in a leadership position.
The Process & Outcome: The upfront costs of infrastructure and reconfiguration were significant and, while it will benefit the entire property over time, much of it needed to be incurred at the outset to allow for occupancy by the first tenants. Today, the property (which has approximately 1M square feet leased) offers large utility capacity, direct railroad access and superb connections to the state highway system. The site’s tenants include Siemens, Intervala, City Brewing and Westmoreland County Community College – all told, approximately 1,000 people are now employed at the property. Plus, a public-private partnership (including RIDC, PennDOT and the Turnpike Commission) is now in the process of developing PennSTART, a state-of-the-art research facility and test track for use by first responders and autonomous technology companies.
The property is back on the tax rolls and is gradually filling up with businesses and jobs. It's once again becoming an asset for the community. But, it has required collaborative thinking, partnerships with public and private entities, and a multi-faceted development plan that balanced profitability with community needs.
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