Pennsylvania Looks to Redevelop Former Brownfield

The Luzerne County Redevelopment Authority hopes to use nearly $800,000 in low-interest state loans to pave the way for development of a 60-acre former rail yard in Ashley, Pa., according to a report by the Times Leader.

The funding, approved by PENNVEST, the Pennsylvania Infrastructure Investment Authority, will be used to install storm and sanitation sewer systems on the site, said Richard Fox, executive director of the state Senate Environmental Resources and Energy Committee.

About 15 acres of the 60-acre brownfields site are to be prepared for development by Medley Investments, Fox said.

The investment group plans to build a recycling facility, Fox said. "Once that project is complete it will be a catalyst for the development of the remaining 45 acres of the site."

According to a spokesman for the LCRA, the prospective client says that the investor has purchased 14 acres and has an option to purchase an additional 12 acres of the facility.

PENNVEST, in existence since 1988, provides low-cost financial assistance to communities for improvements to water and sewer infrastructure. The loan granted the Luzerne County Redevelopment Authority is for a 20-year term.

The LCRA spokesman said the agency hopes to have the state Department of Environmental Protection pass the Act II phase of the cleanup by next month, with the possible groundbreaking of its first tenant by the end of this year.

While not stating that the first project would be a recycling-based yard, the spokesman did say that the facility would make active use of the short line railroad that will be located at the site, and would be involved in shipping material to and from its location.