CRESSON -- Plans to redevelop the former State Correctional Institution's property into a power plant fell through this week after the company that agreed to build it backed out due to the area's economy.
The Cambria County Redevelopment Authority had an agreement with Boston-based Energy Management Inc. to build a gas-fired electric generation plant where SCI Cresson once operated.
According to Redevelopment Authority Chairman Sam Piccioni, county leaders received a letter from Energy Management with the news Thursday night.
Piccioni described the property as "not a done deal," saying other parties are interested.
The power plant was expected to bring hundreds of jobs, but Piccioni said those would have been construction jobs. He said the plant itself would have only required a skeleton crew to operate. He said once something else is built there, those construction jobs will still come.
"The news was a disappointment, but the fact remains that this is still a valuable piece of property. Everyone will continue to work together to maximize the value of the property and find opportunities," said Cambria County Commissioner Tom Chernisky.
State Rep. Frank Burns also called the loss disappointing.
Burns said, "We've learned three things from the SCI Cresson property that I feel need to happen in order to protect the interest of the taxpayers and target economic development:
"1. Change the law to allow the DGS (Department of General Services) to hire a marketing firm/realtor, to ensure the taxpayers get the highest price possible for the sale of state property.
"2. Mandated valuation of any mineral/timber rights before any sale or lease of any state property.
"3. Create a KOZ (Keystone Opportunity Zone) status for this site."
According to state documents, KOZ status provides certain state and local tax abatement to businesses and residents located in designated zones.
The property itself was split into two parts after the prison's closing.
The county owns 93 acres, and the other 300-plus acres were sold last month to an Indiana County man named Carl Weaver, according to the state Department of General Services.
According to the department, it is unclear what Weaver will do with the property, and his plan for its future was not required with a bid.
Weaver made one of four bids offered to the Commonwealth, and was awarded the property for $600,000.
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