East Whiteland, Jul 21 -  Congressman Jim Gerlach (PA-06) and Housing and Urban Development Regional Director Guy L. Ciarrocchi today awarded Chester County a $5 million Section 108 loan guarantee to stimulate economic development and job growth at the site of the former Worthington Steel site. The funding is provided through HUD’s Section 108 program and will be used to redevelop 10 acres and build 120,000 square feet of retail space and create 200 permanent full time jobs.

“This is an excellent opportunity for Chester County to take an unused, former industrial property and turn it into something the community can both use and be proud of,” Rep. Gerlach said. “This significant investment in our community will ensure that East Whiteland Township and Chester County continue to prosper and grow.

Through this low-interest guaranteed-loan program, HUD helps communities like the East Whiteland Township to convert abandoned or underutilized sites into useful commercial and industrial developments, thereby increasing the area’s tax base and creating new job opportunities where none existed.

“Today, we celebrate the private-public partnership to redevelop the site of the former Worthington Steel factory,” said Ciarrocchi. “HUD’s investment, with Congressman Gerlach’s support, will breathe new life into this abandoned site, restore economic vitality to the surrounding community and create 200 new jobs for those who live in the area.”

Often perceived as unproductive eyesores in their communities, these brownfields hold tremendous potential as sites for community revitalization. Many of these brownfield sites are strategically located in or around key areas and were, in many cases, the economic centers of their communities. Redevelopment of these sites is both a challenge and an opportunity and returning them to productive use can serve as a catalyst for local economic recovery. Complex financial, legal and environmental risks and uncertainties are some of the biggest barriers to owners and developers.

“The support we’ve received from the Federal Government and Chester County for the Worthington redevelopment project is unprecedented,” said Brian O’Neill, Chairman and Founder of O'Neill Properties Group. “We’re grateful for the opportunity to transform this site into a vital part of the community, and this HUD grant will go a long way in helping us realize the full potential of this neglected eyesore.”

The former Worthington Steel plant site has been a vacant eyesore and economically unproductive for over three years. O’Neill Properties’ revitalization plans will transform the 77-acre site into a new work, live and play community. Worthington will feature in excess of 1.5 million square feet of residential, retail and office space.

“The new retail center will result in an influx of jobs into Chester,” said Senator Rick Santorum. “This combination of public and private investment allows federal dollars to go further and provides stability and incentive for private partners. I am pleased with HUD’s commitment to continued economic development in Pennsylvania’s communities.”

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

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