New funding could benefit Ashley Development projects including Pomeroy building in Easton, Dixie Cup plant in Wilson Borough

By COLIN MCEVOY

The Express-Times

Major local redevelopment projects that have been in limbo may get a boost from a new partnership between Ashley Development Corp. and a union-supported real estate fund. The former Dixie Cup plant in Wilson Borough and the Pomeroy project in Downtown Easton are two such projects expected to receive funding through the partnership. The Delaware Valley Real Estate Investment Fund has agreed to assist Ashley with financing developments in exchange for Ashley committing to using union labor.

John Decker, a partner with the fund, said at least tens of millions of dollars will be invested in the projects, which will result in hundreds of new jobs over a period of more than a year. "We're in this to create a critical mass of union jobs," Decker said. "And we don't create jobs if we don't fund projects." Decker said redeveloping the Dixie Cup plant, which is now expected to be about 300 rental apartments instead of the originally planned condominiums, could last at least 36 months. Construction could begin as early as this spring, Decker said.

Other potential projects include three 40,000-square feet medical buildings in the Easton, Bethlehem and Wind Gap areas, Decker said, although he did not know exact locations. The buildings would house physician practices and satellite health care with hospital system tenants, he said. The projects are still formally under consideration and an official announcement is expected next month, Decker said. Although Ashley has previously employed union workers for developments partially funded with government money, this will be the first time Ashley has constructed its projects on a 100 percent union basis, fund spokesman Joe Barilotti said. Ashley President Lou Pektor said the investment fund will decide which projects are financed.

Pektor said obtaining financing for development projects has been difficult lately, so the partnership with the fund provides an important opportunity for his Bethlehem-based company. "Obviously the capital market has changed significantly and obviously their labor market has changed," Pektor said, adding there are benefits to working together. Decker said the move will employ contractors, electricians, plumbers, carpenters, roofers and other professions. Officials also hope it will infuse life into projects that have been stalled for years.

The $110 million Dixie Lofts plan was approved by Wilson Borough in 2006, but has not progressed since, leading to rumors that it was dead altogether. About 30 rental apartments are expected to be built at Pomeroy project in the 300 block of Northampton Street. Pektor said he is also in talks with two pub companies to replace a first-floor brewpub that pulled out of the project last year. Like the Dixie Plant, the project originally called for condominiums, but has since been changed to rental apartments due to changes in the housing market. Pektor said the Dixie apartments could be converted to condominiums when the market improves.

Wilson Borough Council President Leonard Feinberg said he hasn't heard of any progress on the Dixie redevelopment but said a partnership with unions could benefit the project. "It makes sense because that's a large enough project in itself. The size of the project is one that would require a lot of labor," Feinberg said. Based in Plymouth Meeting, Pa., the Delaware Valley Real Estate Investment Fund is backed by the pension funds of the Philadelphia Building and Construction Trades Council. It is also supported by the Lehigh Valley Building and Construction Trades Council.