Tuesday, July 21, 2015

The York-based startup was granted an additional $2 million in RACP for property redevelopment: The York-based startup was granted an additional $2 million in RACP for property redevelopment


This artist's rendering shows how the second-floor offices of United Fiber & Data will look after renovations are completed. The former Bi-Comp building in York has undergone extensive renovations to accommodate office space for United Fiber and Data, YRK Magazine and Think Loud Development, as well as living quarters and studios for Live band members and visiting recording artists. ( (File - Daily Record/Sunday News))

It's been more than two years since members of the band Live revealed an ambitious plan to launch a York-based fiber optics company. Now, the company — United Fiber & Data — said construction of its York data center is slated to begin in 2016.


The data center is part of a plan to build a 367-mile fiber-optic network that the company has said would bring 400 jobs to Pennsylvania and generate $2 billion in tax revenue over the next 30 years.

York data center

Selena Sparks, United Fiber & Data spokeswoman, said that in 2016 the company will begin construction on a new building near 210 York St. which will house the data center.

Sparks said United Fiber & Data will continue to have an office at 210 York St. That building — the former Bi-Comp building — also houses Think Loud Development's office, a music recording studio called Think Loud Studios and the YRK Magazine office.

The multi-platinum-selling rock band Live has been a driving force behind all 210 York St. projects, Sparks said. Live members Chad Taylor, Chad Gracey and Patrick Dahlheimer are listed as partners on the website for Think Loud Holdings LLC, a website that includes United Fiber & Data among its affiliated companies.
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$2 million more granted

In January, then-Gov. Corbett granted United Fiber & Data an additional $2 million in Redevelopment Assistance Capital Program funds.

That brings the total to $7 million in RACP money available for the project.

Sparks said the first $5 million Corbett granted the company is for building renovations at 210 York St. The additional $2 million, Sparks said, is to prepare surrounding properties for the data center building.

No state funds received yet

United Fiber & Data hasn't actually received a penny of that $7 million yet, as it works through the lengthy grant process.

The Redevelopment Authority of the County of York acts as the conduit through which the company gets the funds, according to Kenetha Hansen, assistant secretary at the Redevelopment Authority. Hansen said it often takes more than a year for a company to actually receive any of the money, which is paid out as needed for project expenses.

"It's just the nature of the beast, I think," Hansen said. "The RACP program has so many guidelines and compliance elements to it."

For the first $5 million, Hansen said, United Fiber & Data has "accepted" the grant by filing a grant application. However, Hansen said, it hasn't yet received the subsequent paperwork from the state.

For the additional $2 million, Sparks said, the company needed to first secure a few properties in the area and is preparing the application.

Sparks declined to specify what properties the company needed to acquire.

Change in project scope

Part of the back-and-forth with the first $5 million grant was because of revisions to United Fiber & Data's original business plan.

Jeffrey Sheridan, Gov. Tom Wolf's press secretary, said United Fiber & Data first submitted a grant application to accept the $5 million in the fall of 2014, but has since filed amendments because of changes in project scope.

Sparks said those changes, which were modifications to the site work plan, led to more paperwork.

"Whenever there are minor changes, there are steps that need to be taken to make sure we're compliant with the overall RACP process," Sparks said.

Sparks declined to comment on United Fiber & Data's overall progress on building the fiber-optic line, but said the company would have an update for the public within a few weeks.

Source: YDR.com

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