Friday, April 18, 2014

Columbia developer proposes $7M facility to land 300-job state call cente


The developer who wants to bring a 300-employee state call center to East Hempfield Township has competition.

Another developer wants to put the state Department of Public Welfare facility in Columbia Borough.

Bill Roberts of IBS Development is proposing to expand and renovate a firestation at 137 S. Front St. for the DPW offices.

The project would cost more than $7 million, he said.

“It’s more of an urban renewal project than just building space for the state,” said Roberts.

“I’m sure nobody else would have to do what we’d have to do to create space.”

The fire company there, Columbia No. 1, has agreed to merge with Susquehanna Fire & Rescue.

They would consolidate at Susquehanna’s fire station at Tenth and Manor streets.

“The borough is very excited about (the DPW proposal)...,” said Borough Manager Sam Sulkosky.

“It would be the biggest thing to happen economically as a single project in at least 50 years. It would be a game-changer for Columbia.”

The IBS proposal joins a bid from Falling Creek Investments, a Monroe County firm.

As was previously reported, Falling Creek has agreed to buy a 31,300-square-foot county office building at 2270 Erin Court for $2.895 million.

Falling Creek then would outfit the building for DPW and lease it to the state.

The IBS and Falling Creek proposals are among eight submitted to the Department of General Services for the call center.

DGS spokesman Troy Thompson declined to identify the bidders or the sites they proposed before the state’s April 7 deadline.

DGS, which handles real estate used by the state, has not set a timetable for its selection.

Whoever wins would lease the building to DGS for 10 years. The lease would come with a pair of five-year renewal options.

Eligible were sites in a horizontal swath of Lancaster County, reaching from Columbia through nearly all of East Lampeter Township.

A decision will need to come soon, though, as DGS wants the first wave of 100 workers in the new DPW facility by Oct. 1.

The location of the IBS property could have an advantage.

The DGS solicitation for proposals said the agency will give “preference” to “downtown building sites.”

To assemble a site big enough for the DPW facility, IBS would buy the firestation property (owned by the borough) and the firestation building.

It also would buy six adjoining sites (five vacant lots and one house).

Roberts, founder and president of IBS, said his firm has sales agreements on all of them.

IBS would finalize the acquisitions if it wins the job.

The 18,000-square-foot fire station consists of an older section, which Sulkosky believes dates to the 1950s, and a newer section built in 2001.

IBS would raze the older 6,000-square-foot section and remodel the newer 12,000-square-foot section.

The firm also would construct 24,000 square feet, according to Roberts, giving the facility a total of 36,000 square feet.

After subtracting staircases, heating and air conditioning rooms and other areas, the building would have 32,900 “usable” square feet.

That’s the amount sought by DGS.

The building plan was designed by Ganflec Architects and Engineers of Camp Hill.

IBS would keep the firestation’s 24 parking spaces and use the six adjoining sites to provide 232 more, for a total of 256.

The need to create parking would trigger the demolition of a Front Street house built in 1808, noted Christopher Vera.

Vera, president of the Columbia Historic Preservation Societ, expressed “concern” over the potential loss of the house.

But he said it’s acceptable because the state project would be so positive for the borough and the region.

“This would be a great thing for Columbia,” he said. “You have to go forward.”

 Vera said there’s been no discussion of moving the two-story house to preserve it.

He explained that its stone base would make a move extremely challenging and expensive, costing perhaps $100,000.

Sulkosky said the call center would have a profound benefit for the borough and Columbia School District, especially by boosting property-tax revenue.

The firestation site, owned by the borough, is tax exempt. The borough is leasing the land to the fire company for $1 a year. IBS would pay property taxes.

The arrival of DPW employees would be good news too, since they would pay earned income tax, buy houses and patronize local businesses, observed Sulkosky.

Roberts, of Newport, Perry County, has been a developer in Lancaster County for years.

His projects include creating the Turkey Hill Experience in a vacant Columbia silk mill, renovating the former fire and police station in downtown Lancaster into office and retail space, and creating a headquarters for Eastern Insurance out of a former Hamilton Watch warehouse on Race Avenue.

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