CAN DO recently broke ground in the CAN DO Corporate Center in Drums for a 43,500 square-foot facility that will become the first U.S. manufacturing location for German nutraceutical company, Amapharm, LLC. The nutraceutical company launched the world’s first vitamin gummy for children in 1996 and later created the world’s first vitaminized jellybeans, toffees, and fruit bites.
The project, which will create between 50 and 100 jobs over the next three years, was made possible in part because CAN DO had the site with approvals in place that would allow for the organization to deliver a turnkey project that met Amapharm’s timeline. Additionally, because of the access CAN DO has to the Pennsylvania Industrial Development Authority (PIDA) for funding, CAN DO was able to capitalize on a low-interest loan for the project.
The Pennsylvania Department of Community and Economic Development recently announced that it had approved a $2 million PIDA loan for CAN DO to use toward the costs of the project. Once the building is completed, CAN DO will add it to the roster of buildings it owns and leases in the Greater Hazleton area, which total more than 600,000 square feet of industrial, office, and commercial space.
CAN DO President & CEO Joseph Lettiere said, “Having an international pharmaceutical manufacturer locating to the CAN DO Corporate Center is a significant project for the community and an important tenant to add to our world-class business park.” In addition to recognizing the assistance of PIDA, Lettiere also thanked Butler Township for its support in helping to bring Amapharm to Greater Hazleton.
Lettiere continued, “Since its inception, CAN DO has fostered economic activity in our community and has evolved into a one-stop shop for business and industry. CAN DO understands that financial assistance plays an integral role in the success of a project. We have decades of experience in providing tailored, comprehensive funding packages that leverage federal, state, regional, and local money.”
Specifically, CAN DO utilized PIDA financing for this project to help make the CAN DO Corporate Center an attractive real estate option and bring a highly desired company to the community. In this instance, the PIDA financing was used to supplement construction financing, however, the low-interest loans can be used toward the cost of land and/or building acquisitions, construction and/or renovation costs, machinery and equipment purchases, as well as working capital and accounts receivable lines of credit.
PIDA financing is available to for-profit companies and facilitated by CAN DO, which is a Pennsyvania Certified Economic Development Organization. Businesses can receive loans with terms of up to 15 years for real estate projects and up to 10 years for machinery and equipment purchases. Working capital and accounts receivable lines of credit have one-year terms and can be renewed. Interest rates are based on current market conditions, but are traditionally more attractive than traditional financing. For example, current rates for a PIDA loan are between 1.50 percent (adjustable) to 2.50 percent (fixed) for the term of the loan. That said, the interest rates on PIDA loans do change at the end of each fiscal quarter, with increases or decreases based on market conditions.
