Westmoreland approves $12 million finance package for New Kensington-Arnold development

The Westmoreland County commissioners on Thursday approved a $12 million financial package to support construction of a manufacturing development that straddles New Kensington and Arnold.

The commissioners will allocate $1 million from the county’s covid-relief funds and another $3 million from the Westmoreland County Industrial Development Corp.

The money will help pay for construction of a 175,000-square-foot complex at the New Kensington Advanced Manufacturing Park that, when completed, is expected to create as many as 300 jobs in the region. The site is the former Schreiber Industrial Park, along the Allegheny River, which originally was built as the Aluminum Company of America’s (Alcoa) first production plant.

The county economic development arm also will guarantee an $8 million loan from the Pennsylvania Industrial Development Authority (PennVEST) for the project that will convert five existing buildings once used by Siemens and Alcoa into new industrial and office space.

“It’s about the importance of bringing jobs and, as we’ve seen manufacturing to be the third largest job sector in Westmoreland County and growing, we have seen a lot more interest. So we want to provide jobs and opportunities throughout Westmoreland County and, obviously, this gives ability for New Kensington, Arnold and the surrounding area to have a resurgence,” commissioners Chairman Sean Kertes said.

Pennsylvania Gov. Josh Shapiro last week announced the deal with Massachusetts-based Re:Build Manufacturing for the $81 million project to refurbish and construct large-scale industrial headquarters and factories at the 70-acre site in New Kensington and Arnold. Company officials said Re:Build will invest $50 million into the project.

“This was the right company at the right time, and they believe in American exceptionalism, and I am very excited about what they brought to the table in terms of the ideology, their morals and their professional code of conduct,” Commissioner Doug Chew said. “There’s two ways to raise property tax revenue. One is to tax the heck of out people, and the other to help businesses come into the county, and we’re choosing the second.”

Westmoreland’s initial $1 million contribution will come from the county’s $105.3 million American Rescue Plan (federal covid-relief) allocation.

Finance director Meghan McCandless said the commissioners now have directed for use more than $54.7 million in covid relief funds, which is about 52% the county’s allocation. The commissioners have until the end of next year to allocate all of those funds, and through 2026 to spend the money.

The county grant used for the Re:Build project will serve as a portion of the overall financial package for the project, which also includes state funding and private money.

Jason Rigone, executive director of the county’s Industrial Development Corp., said $3 million from his agency will be directed to the project and falls in line with Westmoreland’s ongoing efforts to prepare industrial space for future development.

“The county’s investment through the corporation has always been about preparing sites and having sites ready to go. Without capital, it’s hard to create those job-creating companies,” Rigone said. “It’s not just for the Re:Build deal, it is to be able to reposition that former industrial site to be able to attract more companies.”