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Cranberry welcomes Westinghouse move
Thursday, March 22, 2007

It's expected to be clear sailing for Westinghouse Electric Co. in lining up municipal approvals and putting in place the special tax-free zone to relocate its headquarters to Cranberry.

Leaders of the three taxing bodies for the would-be Strategic Development Area must agree to forgo all property taxes for 15 years on the new nuclear energy campus at Cranberry Woods office park-- per the request of Gov. Ed Rendell and the Pennsylvania Legislature that last year put in place enabling legislation for such a tax abatement program.

No one sees any trouble on the horizon. Butler County Commissioners Chairman Scott Lowe said he expected a unanimous vote in favor of the Strategic Development Area; Seneca Valley Superintendent Don Tylinski said he sees spin-off benefits, despite the loss in potential revenue; and Cranberry Manager Jerry Andree said each of his board's supervisors have informally indicated support of the program.

Westinghouse announced Tuesday it would pull up stakes in Monroeville and set up shop at Interstate 79 and Route 228 in Cranberry, transferring its existing jobs and bringing new positions that are linked to the company's contract with China for a series of nuclear power plants.

The 15-year Strategic Development Area plan would translate into forgone revenue in annual property tax receipts of about $224,000 for Butler County, about $135,000 for Cranberry and about $1 million for the Seneca Valley School District.

The figures represent money that none of those entities ever received, though, and officials said they see ancillary benefits that outstrip the potential loss.

Mr. Tylinski noted Seneca Valley's recent $9 million expenditure for science labs at the district's main campus. "To have this kind of high-tech enterprise in our own back yards could actually enhance our curriculum,'' he said.

Mr. Andree said his phone has been "ringing off the hook" from other companies interested in locating in Cranberry because Westinghouse is giving it a nod.

"This is good for Cranberry because it validates a 10-year planning process for a world-class community capable of attracting world-class companies,'' Mr. Andree said.

The news was delivered to political officials at noon Tuesday during a teleconference hosted by Diane Mintus Sheets, of the Butler County Community Development Corporation. She had been notified of the selection by the Allegheny Conference.

Mr. Andree called the site selection process grueling and secretive. "We were not supposed to say anything to anyone, not even that we were having a conference call. We were told to be in a room where no one could hear us,'' he said. Participating in the call were Ms. Sheets, Mr. Tylinski, Mr. Andree, and Mr. Lowe.

Ms. Sheets said she began working with Westinghouse representatives a year ago.

"The announcement really came as no surprise to us. We knew in our hearts they would select Cranberry, but we heard nothing official until noon today,'' Mr. Andree said Tuesday.

"We had been sworn to secrecy about all things Westinghouse but, as of today, transparency descends,'' he said, referring to a slew of public meetings that are anticipated. And he's planning on Westinghouse representatives being on hand to answer the public's questions.

John Trant, chief strategic planner for Cranberry, will be the point person as the process proceeds with Westinghouse.

He said some of the groundwork already has been laid.

According to information he has been given by the company, Westinghouse's preliminary plans are for three office buildings with a fourth waiting in the wings. The sizes would be about 406,000 square feet for the first building, then 182,000 square feet for the next two. The fourth building would come later, if growth goes as expected. Detailed site plans are expected to be submitted to the township in May. Mr. Trant said it likely will take three or four months to complete the approval process.

The company has indicated it hopes to begin construction within three months. Mr. Trant said it will be tight, but that grading permits probably could be issued within three months of plan submission. "There's a lot of work that needs to be done,'' he said.

Meanwhile, work will begin immediately on setting up the structure for the Strategic Development Area. Mr. Trant estimated that each of the taxing bodies will be able to get the correct legal ordinances in place by May. Mr. Andree is coordinating the effort on behalf of the township, county and school district.

John Milius, chairman of the Cranberry board of supervisors and a retired employee of Mine Safety Appliances, which owns the Cranberry Woods office complex, said Cranberry is focusing on making the transition as smooth as possible for the township's new workers. He said the township Web site -- www.cranberrytownship.org -- has been updated and expanded to provide more detailed practical information about Cranberry for those who will be coming to Butler County. The company hopes to be in Cranberry in 2009.

Mr. Milius was a research chemist with MSA for 38 years, retiring a year ago. He now works for a third-party agent as a tour guide for MSA's properties. He said he will follow the advice of the Cranberry solicitor on matters that require votes, but he sees no conflict of interest.

The Cranberry Woods complex has 326 acres and lies on the south side of Route 228. It is home to nine buildings, the Regional Learning Alliance, three occupied office buildings, two MSA buildings, one office building under construction, a hotel and a restaurant.

Dennis Zeitler, chief financial officer for MSA, said his company is awaiting Westinghouse's arrival with open arms. "We welcome them,'' he said. He said Westinghouse plans initially to buy about 80 acres for construction of three buildings and then would hold an option for an addition 25 acres for the fourth building, if it is constructed.

Cranberry officials have calculated the annual property tax revenue that would be forgone per building based on current millage rates:

For the first building, assuming the size at about 370,000 square feet, the figure was estimated at $68,750 for the county, $35,500 for the township, and $313,500 for the school district.

For the second building, assuming about 200,000 square feet, the figure was estimated at $49,500 for the county, $25,560 for the township, and $225,720 for the school district.

For the third building, assuming about 200,000 square feet, the figures would be the same as above.

For the fourth building, assuming about 300,000 square feet, the figure was estimated at $55,000 for the county, $28,400 for the township, and $250,800 for the school district.

First published on March 22, 2007 at 12:00 am
Karen Kane can be reached at kkane@post-gazette.com or 724-772-9180.
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