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$1 billion development planned near Southpointe
Thursday, May 20, 2010

When developers Jason Zadeh and Ron Sabatino were reviewing an old map of property they were acquiring in Cecil, Washington County, they noted that the area had been referred to as "Cool Valley" because tree cover was so dense that in the summer the area was several degrees cooler than the surrounding territory.

"It was an epiphany moment for us," Mr. Zadeh said.

Now Mr. Zadeh with his business partner, Mr. Sabatino, is hoping the "Cool Valley" name evolves into a household one for the planned $1 billion, 911-acre commercial and residential development that is adjacent to Interstate 79 and the county's very successful Southpointe mixed-use park.

The men, partners in R&J Properties of Dublin, Ohio, have been acquiring property for the Cool Valley project for the past 10 years and expect their site to complement Southpointe and its sister site, Southpointe II, a 225-acre development that is home to several large gas, coal and energy companies, including Consol Energy.

If it pans out as expected over the next 10 years, Cool Valley will dwarf the 600-acre Southpointe, and with plans for the Southern Beltway to be located just minutes away, Cool Valley could cement the area's growing reputation as the "new energy capital of the East," Mr. Zadeh said.

"It's an exciting, novel idea," said county commission Chairman Larry Maggi. "I think it's the real deal."

With the local natural gas exploration and drilling upsurge in recent years, Southpointe and Southpointe II are nearly fully developed with gas drilling companies, such as Range Resources, Chesapeake Energy and others absorbing available parcels.

"Pretty soon, we're going to be out of space," Mr. Maggi said.

Mr. Zadeh anticipates as much as 3 million square feet of office and flex building space in Cool Valley, creating 13,000 jobs.

He isn't concerned about the economy, saying the local "renaissance" in energy, health care and education makes the area an ideal choice, even in a tough national economy.

"The economic drivers of southwestern Pennsylvania are very different than the other seven states where we have done projects," including commercial and residential developments in Florida, Ohio, Indiana and others, Mr. Zadeh said.

"It's really exceptional. We think the time is now."

Commercial development is just one facet of Cool Valley.

The site plan also includes 1,800 residential units for upscale carriage houses, condominiums, along with single- and multi-family homes. Eventually, it may include a retirement village and assisted living facility.

Mr. Zadeh said the concept is to create a "lifelong housing plan," for families and individuals.

Mr. Zadeh praised local government officials as "forward thinking" and "unlike anything we've worked with before."

The love fest is mutual, according to county officials, who said R&J Properties has kept them up to date as the project progresses.

Mr. Zadeh said he has been working with Cecil officials for more than a year on zoning and building issues, and for a designation as an Interstate Highway Planned District, a zoning covenant that allows for more flexible development. Southpointe was also granted such a designation when it was being built in the 1980s.

Mr. Zadeh said R&J has either purchased or reached purchase agreements with all of the local property owners affected.

County redevelopment chief William McGowen and Mr. Maggi said that although the vast majority of investment will be from private sources, the county and state will have to kick in several million dollars for road and infrastructure improvements, as they have for other large developments.

The site isn't considered as much of a risk as other new business ventures in the county.

"It's almost guaranteed to be a success because of its location," Mr. Maggi said.

Mr. Zadeh said a strategic marketing plan is under way, allowing R&J to begin securing agreements with tenants, some of whom could include retailers. Individual project phases will be dictated as the project advances.

"We've had a lot of nibbles," he said.

How does he envision Cool Valley in 10 years?

"I think people are going to see a thoughtful, well-planned project that will truly create a sense of destination, a sense of place," Mr. Zadeh said.

Janice Crompton: jcrompton@post-gazette.com or 724-223-0156.
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First published on May 20, 2010 at 12:00 am