Done Deal

Washington PA Observer-Reporter
18 March 10
By Bob Niedbala, Staff writer
niedbala@observer-reporter.com

WAYNESBURG - The sale of 62 acres at Meadow Ridge Business Park in Mt. Morris to Royal Crown Development has been concluded, Robbie Matesic, acting director of the Greene County Industrial Authority, told the authority board Wednesday.

A Royal Crown affiliate, Shaft Drillers International, also received approval from the county planning commission to begin building its new four-story headquarters at the site, she said.

The company purchased the property from the Regional Industrial Development Corp. for $875,000.

GCIDA approved an agreement in January dividing proceeds of the sale with RIDC. Meadow Ridge was developed in the late 1980s by RIDC and GCIDA.

GCIDA issued $850,000 in bonds to pay for infrastructure development at the site.

The authority will receive about $180,000 from the sale and RIDC will receive the remainder, Matesic said.

GCIDA agreed last month to transfer its share to the county, which guaranteed the GCIDA bonds. About $450,000 in principal is owed on the bonds and the county will have to come up with the difference to retire the debt.

The bonds were expected to be repaid with money from the sale of park properties. With the sale of the 62 acres to Royal, however, no properties remain to generate money to repay the debt.

Though the county will take a loss, plans being developed for the site were viewed as too important to pass up because of the opportunity for jobs and growth, Matesic said.

She said the county still has to determine whether it will pay off the debt in one lump sum or through payments.

Shaft Drillers International, which is involved in drilling for the coal and natural gas industries, will employ 98 people at its new headquarters. It received a $2.1 million funding package from the state to persuade it to move to Meadow Ridge.

The board also agreed to solicit proposals for the authority's audit and for security guards at the Mather reclamation site.