A strategic investment by Pennsylvania will allow Rite Aid Corp. to create 350 corporate jobs during the next three years by expanding its operations in Pennsylvania.

The company’s expansion plans coincide with its planned acquisition of the Brooks and Eckerd pharmacy chains, making Rite Aid the largest pharmacy chain on the East Coast.

The state is offering Rite Aid an investment package totaling $1.45 million, which was leveraged to secure the project.

The project calls for expanding Rite Aid’s data storage and other centralized functions at locations in East Pennsboro, Hampden and Lower Allen townships, and its Finance Group operations in Newberry Township.

The company will also make new investments in associate training programs as part of its Brooks/Eckerd acquisition.

The funding offer provided to Rite Aid includes a grant of up to $500,000 through the Opportunity Grant Program, up to $250,000 in Customized Job Training funds and up to $700,000 in Job Creation Tax Credits.

The company is also eligible to apply for a $6 million loan through the Citizens Job Bank program, which offers low-interest-rate loans to companies that commit to creating or expanding jobs in Pennsylvania.

The company will spend more than $11 million to expand its corporate facilities.

“We appreciate the support the commonwealth to help Rite Aid grow [and] strengthen our position,” said Mary Sammons, president and CEO of Rite Aid. “The [commonwealth] is investing in the future of our company and the future of our associates, as well as the economic future of our state. These grants are continued evidence of their commitment to Pennsylvania business, providing local jobs and improving our communities.”

Rite Aid currently employs more than 1,400 employees at its seven facilities in the Harrisburg area and regional offices, primarily in the Philadelphia and Pittsburgh metro areas.

GAT Projects Lead to Job Creation, Retention

Johnson & Johnson Sales and Logistics Co. is strengthening its presence in Pennsylvania by entering into a long-term lease agreement that will bring more than 260 jobs to Monroe County in the eastern portion of the commonwealth.

A new distribution facility will be used by Johnson & Johnson's Sales and Logistics, which provides sales, marketing and logistical services to U.S. retail customers on behalf of Johnson & Johnson's U.S. consumer companies. However, the building will be staffed and operated by one or more third-party logistics providers which will, in turn, create 268 jobs within four years and retain more than 430 existing jobs..

The new warehouse distribution center is being built on 100 acres in the Arcadia North Business Park. The project represents the first development project in the park, which received $9.7 million in funding through the state’s Business in Our Sites program in 2005.

The Pocono Mountains Economic Development Corp. (PMEDC) worked with the Governor’s Action Team (GAT) to secure a $1.6 million funding package offer for the project from the Department of Community and Economic Development (DCED). The package consists of an $800,000 opportunity grant and $804,000 in job creation tax credits.

The project was coordinated by GAT, which serves as a single point-of-contact for businesses considering locating or expanding in Pennsylvania. The team works with domestic and international businesses, and professional site consultants on projects possessing significant investment and job creation opportunities.

Another GAT-coordinated project prompted Visions Marketing Services to expand its operations to Uniontown, creating at least 168 jobs within three years.

Visions Marketing Services is creating its third division in a 6,000 square-foot space in Uniontown. The direct marketing company, which creates loan origination programs for financial services industries, will establish a 72-seat, multiple-shift outbound call center to meet customer demand. The new division is expected to be operational by the end of June.

The Fay-Penn Economic Development Corporation worked with GAT and Visions Marketing Services to help the company secure a $343,600 investment package from DCED, which includes a $100,000 grant through the Opportunity Grant Program, $75,600 in Customized Job Training funds, and $168,000 in Job Creation Tax Credits.

The $620,000 expansion project means the company will also retain 305 existing employees at Pennsylvania locations in Johnstown and Lancaster.

Statewide, since January 2003, GAT has successfully completed nearly 800 projects resulting in commitments for the creation of 85,219 new jobs and the retention of more than 205,739 existing positions. The commonwealth has offered more than $1.4 billion in assistance for these projects, which will leverage more than $9.3 billion in additional investment.

An investment by the commonwealth of $1.5 million will help The Hersha Group, a hotel real estate company, expand and move its corporate headquarters to Harrisburg.

The Hersha Group will renovate a vacant, four-story building that once was a nursing home. The $4.94 million project includes the complete reconstruction of the 52,000 square foot building. The move means the creation and retention of more than 100 jobs by the company.

The Capital Region Economic Development Corporation (CREDC) supported The Hersha Group’s efforts to obtain a $1.5 million financial package from DCED, which includes a $1.3 million loan through the Pennsylvania Industrial Development Authority (PIDA), a $50,000 grant through the Opportunity Grant Program (OGP) and $100,000 in Job Creation Tax Credits.