Keystone Redevelopment Group Receives $6 million from the State of Pennsylvania Building PA Program

June 26, 2007

HARRISBURG – Governor Edward G. Rendell today said the state will help build new businesses, create additional new jobs and construct affordable housing with a $24 million investment from its “Building PA” program.

The money will be dispersed through seven new regional fund managers, which were approved today by the Commonwealth Financing Authority.

“Over the past four years, Pennsylvania has become a top-tier site for businesses of all sizes and industries due to targeted investments in every region of the commonwealth,” Governor Rendell said. “We created Building PA to help the state’s communities attract and support adequate real estate projects to meet the needs of a fast-changing economy.

The Building PA program provides $150 million that must be matched by private investors and foundations. The resulting $300 million then serves as much-needed “mezzanine” capital for real estate developers committed to revitalizing existing buildings and infrastructure, particularly in small to mid-sized Pennsylvania communities. The program is one of the 19 programs created under the Governor’s innovative $2.8 billion economic stimulus package.

The Keystone Redevelopment Group will receive $6 million for targeted investments in the older boroughs, central business districts and manufacturing corridors of Bucks & Montgomery Counties. The group’s primary goal is to develop components of the fast-growing life sciences industry – including the bio-medical, healthcare, advanced materials and diversified manufacturing sectors –by creating lab and research facilities that will encourage first-stage and second-stage businesses in the industry to start or relocate their operations in southeast Pennsylvania.

Keystone Redevelopment Group was the only recipient from Bucks County to receive funding from this round of the Building PA Program.

“Building PA brings community stakeholders and private investors together to develop practical and progressive projects that will benefit both the residents and the economic base of the region,” Governor Rendell said.

“Mezzanine capital is crucial because hundreds of possible projects fail to get off the ground every year in our state when the final financial support on which the deal depends falls through, stranding Pennsylvania investors, developers and the communities their projects would revitalize,” the Governor said. “Building PA was created to be the final piece of funding that turns a potential project into a developing project.”

For more information on the Building PA Program or other economic stimulus programs, visit www.newpa.com or call 1-866-466-3972.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: www.governor.state.pa.us.



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