Consol Energy Inc. moved to its corporate headquarters from Upper St. Clair to a $50 million campus built on 35 acres in the new Southpointe II development in Cecil, Washington County.
Consol CEO Brett Harvey said the move was needed because of expected growth in its energy business. "Consol is the energy of Pennsylvania. This moves us closer to our people. ... Pennsylvania is our state, and we're glad to be here," Harvey said.
Consol bought the property from the Washington County Development Authority. The purchase price was not disclosed.
Consol Energy could have located anywhere, but it chose Pennsylvania, spurning an offer to relocate to West Virginia, Gov. Ed Rendell said at a news conference at the Southpointe Golf Club in Cecil.
Consol got $1.67 million in state assistance to move forward with the project.
Last year, Consol sold its Upper St. Clair building and signed a long-term lease. Southpointe II is a mixed-use development planned on the former Western Center property, which sits next to the Southpointe business park. Southpointe is home to more than 140 companies and 6,000 workers.
Consol employs about 7,200 workers, including about 2,700 statewide. A second support company, Fairmont Supply moved next door.
Rendell said the state's $1.67 million package is "not corporate welfare" and was part of the state's efforts to invest in businesses, communities and people.
"This project could very easily have ended up in West Virginia. Gov. Joe Manchin pushed very hard," Rendell said. "This shows what good investment in growth can bring. When we invest in our economy, it's the soundest investment we can make."
Construction began last summer and be finished by 2008. Consol spent more than $50 million to develop the property. The new, four-story building accommodates 475 people.
A second, smaller, 50,000-square-foot building is expected to house one or more of Consol's subsidiaries.
"It's our general belief that projects like this are just moving jobs around, there isn't real job creation, plus the state is giving money to boot," said Eric Montarti, a policy analyst with conservative think tank Allegheny Institute for Public Policy.
Consol's exodus from Upper St. Clair would have "minimal" tax impact on the municipality, said Manager Douglas Watkins. He said Upper St. Clair charges workers in the municipality an annual $52 municipal service tax, which generates about $275,000 annually. Consol's 450 workers would generate $23,400, he said.
Watkins said when the company moves out, other companies and workers would likely move in and pay the same tax.
The state's offer included a $500,000 opportunity grant, $214,200 in job training funds and $952,000 in job creation tax credit
