Monday, June 30, 2014

Manufacturer looking to expand, connect to Lower Macungie corridor



The former Day-Timer building in East Texas, a village of Lower Macungie Township, soon will be home to Smooth-On Inc., a liquid rubber and plastic manufacturer that will add 200 employees to the site later this year.

The move signals a potential transformation not just of an abandoned facility but an entire corridor as the company plans to bring fresh business and residential opportunities.

At a Commercial Real Estate Women Lehigh Valley chapter event Thursday at the former Day-Timer building, representatives from Smooth-On and Lower Macungie Township shared details about the potential future of the township’s growth and the construction project underway.

Smooth-On’s construction and renovation project is expected to connect the township’s goal of expanding the “community feel” of the East Texas corridor, which includes the intersection of Brookside Road and Lower Macungie Road and extends to the intersection with East Texas Road, Willow Lane and Lower Macungie Road.

In March, Smooth-On bought three parcels of the former Day-Timer site at 5501, 5690 and 5670 Lower Macungie Road for $3.5 million each, according to Lehigh County assessment records.

Smooth-On, which has been in Williams Township near the border with Southside Easton off Interstate 78 since 1997, will move operations to Lower Macungie Road and be operational by the end of the year, according to Trey Bianco, president of Smooth-On Inc.

Smooth-On creates rubbers, plastics, foams and other products used for special effects in films, architectural restorations, amusement parks, sculptures and other uses. The company produces the materials and sells the products to the artists who do the creative work.

“We go on site, all over the world, to help our customers use the products,” Bianco said. “We sell thousands of products; we are fully diversified.”

The company plans to build new and renovate existing nearby residential properties for employees, in addition to building retail/commercial facilities that would enhance the corridor, extending the company’s connection to the community. Since April, the company has been doing demolition, in addition to renovation and new construction. The project was designed internally.

The facility includes multiple buildings that will be used for manufacturing, offices, warehousing, a retail store and shipping, Bianco said.

Reynolds Advanced Materials, Smooth-On’s retail store, will build a space in the former Day-Timer building for customers to buy products. A seminar room will be added to train customers from all over the world.

AREA OF SIGNIFICANT GROWTH

The company will relocate to a community that according to officials is the fastest growing community in Pennsylvania since 2000.

“We have had tremendous growth and tremendous change,” said Sara Pandl, director of planning and commercial development for Lower Macungie Township.

Lehigh Valley Economic Development Corp. had been heavily marketing this site, and a number of businesses came through that were interested, Pandl said.

The building has been vacant since November.

The site comes with an existing warehouse, and many companies thought it wouldn’t work for their needs and was too costly to tear down, according to Pandl.

However, the warehouse storage system would fit perfectly for Smooth-On’s needs and offers room for growth, according to Bianco.

LABOR POOL

Employment is a challenge at its existing site in Williams Township and one of the reasons it decided upon relocating in Lower Macungie.

“What drew me to this area was the labor pool … the opportunity to hire a higher quality co-worker,” Bianco said.

Bianco said the company outgrew its space and was looking for a larger facility it can grow into.

The former Day-Timer site will serve as a 360,000-square-foot facility for Smooth-On on a 30-acre parcel. A 20-acre parking lot, essentially a vacant industrial site, is up for grabs, though Bianco said he does not want to sell it. He would like to create a commercial/retail and/or residential component that would enhance the community.

“This project is going to be changing over the next decade,” Bianco said. “We are struggling to find out what that vision will be. This is a clean palate; we are looking for that spark of imagination.”

BRIGHT ENVIRONMENT

At the Day-Timer site, Smooth-On will dedicate one 35,000-square-foot area for production, with colorful beams, mixing tanks and other highlights to bring a lively, creative atmosphere to the production floor.

“We want it to be a nice, bright environment,” Bianco said.

With 55,000 square feet of office space on the fourth floor, the company is looking to add windows and skylights to add natural light. The office area will include glass conference rooms and light-emitting diode lighting throughout.

In another building, the company will construct a locker room for employees.

Smooth-On’s goal is to have every production employee earning $100,000, while some at the existing site already do, Bianco said. A nurse practitioner will also be on site, Bianco added.

HOUSING FOR EMPLOYEES

One way the company would like to extend its connection to the community is by acquiring existing housing near the new facility, similar to what it has already done at the Williams Township site to enable employees to walk to work. The rent is paid for out of the employee’s paycheck, Bianco said.

“We’ve never built any but we are intrigued by building our own new housing,” he said.

He would like to possibly develop portions of a parking area near the new facility into twin houses for employees.

OTHER AMENITIES

Other proposed improvements include updating the façade of the office building, adding a new retail space and adding and improving sidewalks around the facility.

Possibilities include adding a Retro Fitness and/or a Jamba Juice. However, Bianco said it is difficult to determine the right type of gym model that would fit with Smooth-On’s new facility.

He suggested adding a CVS pharmacy at the intersection of Brookdale Road and Lower Macungie Road.

During the presentation, Bianco emphasized the need to have input from the audience, which included many professionals in engineering, architecture, banking, construction and commercial real estate.

The company, founded in 1895, had Bethlehem Steel as its first customer and now earns about $10 million to $20 million in revenue.

Source: LVB.com

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