Exhale!

A collective sigh of relief was breathed by City of Warren officials and the developer of "Impact Warren" on Friday morning when the bankruptcy judge on Pittsburgh approved the one and only bid to purchase the former Loranger Manufacturing property.

Without the block-long riverfront property formerly owned by Loranger Manufacturing, "Impact Warren" would not have had nearly as much impact.

As envisioned by the project team, the Loranger property will become the site of a 100-room riverfront motel, a small convention center, and local transit center.

Susquehanna Development Group, developer of the $40 million project to rejuvenate downtown Warren and the riverfront, entered the only bid and the $ 900,000 offer was accepted by the bankruptcy court, pending some standard reviews.

Warren Mayor Mark Phillips, who attended the bankruptcy court session, said the sale of the building, which is perched only feet from the northern banks of the Allegheny River, was "bittersweet."

The riverfront property became available because of the bankruptcy of Loranger Manufacturing and Phillips acknowledged that the company had for decades been "contributing member of the economic fiber of the community"

But the acquisition of the property on Friday, said the mayor, "is a bright ray of sunshine in our transition, allowing Warren to move into the future.

While the Loranger bankruptcy and resulting job losses was a "terrible situation", said Phillips, acquisition of the property will perhaps be a spark that will allow Warren to be able to look and say 'Some good things are happening here, too,'"

Phillips said the closing date for the sale has been scheduled for April 30, with some environmental testing and other standard sale procedures required in the interim.

The mayor admitted that he was relieved that no other parties appeared in the bankruptcy court hearing to bid on the property, but said, "Now, a very key piece of the 'Impact Warren' project has been secured."

"Without a doubt, securing this parcel strengthens the cause for 'Impact Warren,'" which will rely heavily on state funding, said Phillips. "The project team can now got the funding sources and not say 'We're hoping to buy the property' but 'They have been secured.'"

For funding consultant Larry Segal and others seeking funding for "Impact Warren," said Phillips, "That adds strength. We are in a ready state. Rather than hoping to secure all the property needed, this allows the project to speak in terms of strength."

Phillips said if Pennsylvania's new governor, Ed Rendell, wants to make an immediate impact in the area of economic and community development, "There is no better project. This is a great platform to allow Governor Rendell to illustrate to northwestern Pennsylvania and to rural Pennsylvania his commitment."

The entire $ 900,000 for the Loranger property will be paid by Susquehanna Development Group and city tax dollars are not involved in the purchase.

"These are private funds, showing Susquehanna Development's commitment to 'Impact Warren,'" said Phillips. "They are showing their commitment and financial integrity and showing that they believe this is a very good and sound project. They're putting their money where there mouth is."

Warren City Council will hold a special meeting on Feb. 4 to consider signing a developer's agreement with Susquehanna Development.

The agreement, said Phillips, will "show the city's commitment to work with Susquehanna Development and show our city's commitment to continue moving forward."

In addition to the private funding Susquehanna Development has committed to "Impact Warren," Northwest Savings Bank's $ 7 million investment in the downtown will be used to help leverage state funding from multiple sources.

Phillips noted that Northwest previously purchased three houses and a landlocked parking lot along the north side of Clark St., and with the purchase of the Loranger building, almost all of the property along Clark St. envisioned as being a part of "Impact Warren" will be under the control of the project team.

The mayor conceded that "Impact Warren," which will include housing, retail, commercial, recreational, and parking components, will not replace the several hundred jobs lost when Loranger Manufacturing closed its doors last year.

While the effort to recruit new businesses and jobs to the area will continue, said Phillips, "Impact Warren" was never intended to be a job creation project, but a reclamation project as we move toward a service-based economy" in downtown Warren.