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SOUTH OAKLAND-The Building PA funds of the Pennsylvania state government will provide $7.3-million in mezzanine financing to the Cleveland-based Ferchill Group for construction of a 165,000-sf high-tech facility in the Pittsburgh Technology Center here. The facility cost is $46 million.
"This new biotechnology facility will be a great addition to southwestern Pennsylvania and the Pittsburgh Technology Center," says Gov. Ed Rendell. "We're investing key resources to create new opportunities all across the commonwealth."
The Urban Redevelopment Authority of Pittsburgh sold the proposed building's 1.6-acre site to Ferchill for about $510,000, according to published reports. The Pittsburgh Technology Center is in the Greater Oakland Keystone Innovation Zone, and is close to the University of Pittsburgh, the Pittsburgh Medical Center and Carnegie Mellon.
The mezz financing is the latest in the state government's attempts to spark redevelopment in a state that was formerly an industrial powerhouse. The Building PA program has $150 million in funding to be matched equally against that of private investors and foundations, creating a $300-million pool of mezz capital. The money is ideally used to revitalize existing assets in small to mid-sized Pennsylvania towns.
Previous recipients of "Building PA" funds, as reported by GlobeSt.com, have been everywhere from Bucks County and Philadelphia to Harrisburg to Pittsburgh and Erie. "Building PA" is one of 19 programs created as part of a $2.8-billion economic stimulus package. Last month the Pennsylvania legislature included $880 million to expand the Pennsylvania Convention Center in Philadelphia.
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