BETHLEHEM, Pa. — Standing before long-abandoned ruins on the Bethlehem Steel campus, Gov. Josh Shapiro signed a $500 million economic development program into law Tuesday.
Shapiro hailed the legislation as a historic step that will rev up Pennsylvania's economic engine.
For decades, the state has failed to invest in economic development as its neighbors had, he said, making it difficult for communities to attract growing businesses and the jobs they provide.
Before his administration introduced a 10-year economic development plan, the state had failed to adopt one for 20 years, he said.
"Pennsylvania wasn't losing the game when it came to economic development — we never even made it out on the field."Pennsylvania Gov. Josh Shapiro
"Pennsylvania wasn't losing the game when it came to economic development — we never even made it out on the field," Shapiro said.
He and state lawmakers hope that will change with the new funding, which passed as part of last week's $47.6 billion budget.
While much of the debate and attention focused on how to fund the state's basic education, Shapiro's economic development proposal drew bipartisan support.
About $400 million of the funding will go into the Pennsylvania Strategic Investments to Enhance Sites, or PA SITES, program. The funding allows local officials to address needed remediation work at former industrial sites.
The goal is to transform the properties into shovel-ready sites that will more easily attract private sector businesses looking to expand or relocate.
Local example of the program
The Lehigh Valley already is host for one of the first projects for the PA SITES' pilot program.
The Allentown Economic Development Corp. got a $1.1 million grant to improve a 6.5-acre property on American Parkway in May.
But local officials said they believe the expanded program could benefit other Lehigh Valley facilities, including some high-profile ones.
The signing took place in an overgrown dirt lot alongside the annex of the Bethlehem Steel General Office Building. The annex once housed room-sized IBM computers for Steel but has fallen into disrepair after being abandoned for decades.
"This is a great example of a site that is just not shovel-ready. It's got a lot of issues with it. It's going to take some public investment at the front end to prime the pump for the private sector to go forward."John Callahan, director of business development for owner Peron Development and former Bethlehem mayor
Even though trees are sprouting through the walls and roof, the building is in unusually good shape, said John Callahan, the director of business development for owner Peron Development.
Peron has proposed turning the main 13-floor building into residential units while the annex could be used for office space, commercial businesses or residential, Callahan said.
But that work is far off for now; Peron is slowly gutting the building of asbestos, aged materials, mold and decades of filth, he said.
"This is a great example of a site that is just not shovel-ready," said Callahan, a former mayor of Bethlehem. "It's got a lot of issues with it.
"It's going to take some public investment at the front end to prime the pump for the private sector to go forward."
Lehigh Valley's past success
Don Cunningham, president of the Lehigh Valley Economic Development Corp. and another former Bethlehem mayor, said the region has done a good job of revitalizing many of its former industrial sites, but plenty remain that could benefit from the SITES program.
"The advantage the Lehigh Valley brings is we've got a good strong coalition — public and private — and our projects get done."Don Cunningham, president of the Lehigh Valley Economic Development Corp.
Cunningham rattled off examples: The former Champion sparks plug site in Hellertown, the IronWorks property in Catasauqua and the Lehigh Valley Dairy property in Whitehall Township.
While many other regions in Pennsylvania may need the investment more, Cunningham said state and federal investments tend to go to projects that are ready to move forward.
The Lehigh Valley's past success in this type of work should breed more of the same, he said.
"The advantage the Lehigh Valley brings is we've got a good strong coalition — public and private — and our projects get done," Cunningham said.
Coming full circle
Shapiro's signing in Bethlehem brought his economic development plan full circle. He first announced the funding proposal in Bethlehem Township during a January trip to OraSure Technologies.
On Tuesday, he said he returned to the Lehigh Valley to sign it into law because of the shining example the region has provided to the rest of the state.
"We're here because this is obviously a critically important part of our commonwealth, but we're also here because this is an area that's got its act together."Pennsylvania Gov. Josh Shapiro
Along with being Pennsylvania's fastest growing region, it has earned a reputation for getting business leaders, organized labor and elected officials pulling together in the same direction.
"We're here because this is obviously a critically important part of our commonwealth, but we're also here because this is an area that's got its act together," Shapiro said.
As part of the signing ceremony, Shapiro presented state Sens. Lisa Boscola, D-Northampton, and Nick Miller, D-Lehigh/Northampton; and state Rep. Steve Samuelson, D-Northampton, with pens used to finalize the law.
He then presented Cunningham, a former state secretary of general services, with the hard copy of the law he signed.
