Wednesday, October 29, 2014

LG Health, F&M enter fourth phase of Northwest Gateway project


The fourth phase of the Northwest Gateway’s rail yard reclamation project is underway. The 28-acre lot, which starts here adjacent to Harrisburg Pike, will eventually be developed. - (Photo / Submitted)

For years, work on the Northwest Gateway project in Lancaster had been mostly out of the public eye.

But that changed recently, as project partners jumped into the fourth phase: Reclaiming the former Norfolk Southern rail yard, which is visible from parts of Harrisburg Avenue.

The narrow tract measures about 28 acres, starting between the Clipper Magazine Stadium complex and Lancaster Arts Hotel and extending behind College Row to Dillerville Road.

“For anyone driving by right now, you can get the sense of the mass really for the first time since this project has been contemplated,” says Lisa Riggs, president of Economic Development Co. of Lancaster County and EDC Finance Corp.

The site turned out to be pretty clean environmentally, according to Kevin Burke, Franklin & Marshall College associate vice president for communications, so “site preparation” is a good description of the work D.H. Funk & Sons LLC is doing.

“Good weather over the summer and fall has been a huge advantage,” Burke says, but completion of the phase is still expected to take about a year.

Structures have been demolished, vegetation removed and grading begun, the parties say. Eventually, public infrastructure will be installed: natural-gas lines extended; water, sewer and stormwater management added; electrical lines buried (once the Barnstormers conclude the 2015 season, so as not to risk disruptions at the nearby stadium, Burke says); and Liberty Street extended to College Avenue.

Then grass will be planted and ownership of the property officially transferred from EDC Finance Corp., which has been facilitating the project, to F&M and Lancaster General Health. That will likely be sometime next fall.

“There are certain types of funds that cannot go directly to the private partners that can be handled by us,” Riggs says of EDC's role.

Next steps

Exactly what will happen after that remains to be seen. The partners' general plans for the Northwest Gateway have long been described as “meds and eds,” but both say development discussions continue, and details are yet to be released.

The land will be divided between F&M and LG Health, but “the exact dimensions of ownership have yet to be finalized,” LG Health spokesman John Lines says.

For F&M, Burke says, the Shadek Stadium sports complex is expected to be the cornerstone of the development. It is named in honor of the $5 million gift from Laurence Shadek and the Shadek Family Foundation that was announced in 2012. According to F&M's website, it was “the leading investment in a drive to raise $17.5 million for a multipurpose facility that will offer spaces for training and competition, sports medicine, and leadership programs for students and coaches.”

As for LG Health, Lines says, “Our plan has been to look at that property for long-term potential uses” that could include administration, medical residential research or educational buildings. But, “we have not defined any specific uses.”

Generally speaking, though, Lines expects great things from the project.

“There are cities that have brownfields that are significant drains on their economy and quality of life. With investment and foresight, we've been able to turn this as an opportunity for growth in the city,” he says. “The Northwest Gateway project in total is a significant urban redevelopment story and positions the city as well as F&M and LG Health for tremendous opportunities in the future.”

Great cooperation between the private partners, city and state throughout the project underscores the larger community impact he expects the project to have.

“This is a generational development,” says Riggs, noting that the site preparation does not mean buildings will immediately follow. “You're talking about two major employers within the county that are going to be facilitating their own growth for decades. That's hugely important to the overall economic well-being not just of the city but also a much larger footprint.”

“Nothing,” Lines says, “builds momentum like momentum.”

Project has long history

The Northwest Gateway project has two main components — the former Armstrong property and the former Norfolk Southern property, which adjoin each other.

Demolition of the former Armstrong flooring plant began in 2006 and is now complete. Armstrong World Industries Inc. consolidated its operations on part of the site, but most of the cleaned-up tract is now being used as athletic fields for Franklin & Marshall.

The Norfolk Southern work has a more complicated history. It involved cleaning out a former municipal dump behind the U.S. Post Office on Harrisburg Pike in Manheim Township, so some of the rail yard operations could be moved there, then remodeling the portion of the existing rail yard behind businesses west of Dillersville Road. Norfolk Southern dedicated that expanded yard in October 2013.

Eventually both the Armstrong property and the Norfolk Southern tract being worked on will be used for Lancaster General Health and F&M development. All told, the reclamation part of the project is about 75 acres, will cost $75 million in public and private funds, and has taken more than a decade so far, according to LG Health spokesman John Lines.

John Biemiller, executive vice president and COO of both the Economic Development Co. of Lancaster County and the EDC Finance Corp., noted that the northwest part of Lancaster has also seen a number of other significant redevelopment projects in the past 15 years, including the Clipper Magazine Stadium on what used to be Armstrong land; the first Lancaster Barnstormers season there was in 2005.

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