A team of 13 movers from Berger Allied Moving Co. of Fort Worth, Texas, loaded more than 21,000 pounds of office equipment and furniture from the Southern Union Corp. building Monday.
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When the movers had finished, they had emptied two of the three floors occupied by the company once expected to bring more than 100 high-paying, corporate-level jobs to Scranton.<\/p>\n
Although a company spokesman said a dozen employees will remain indefinitely in offices on the fifth floor of the $16 million Lackawanna Avenue building, the scene of movers hauling out furniture and office equipment was a stark contrast to the image of a vibrant corporate headquarters in the heart of the downtown.<\/p>\n
While the mayor said taxpayers should focus on the new building\u00e2\u20ac\u2122s potential, critics called the news evidence of a flawed deal with little visible upside.<\/p>\n
\u00e2\u20ac\u0153We need to be careful in the future on whom we can award a KOZ,\u00e2\u20ac\u009d said Councilwoman Janet Evans, an outspoken critic of Mayor Chris Doherty\u00e2\u20ac\u2122s administration and the Keystone Opportunity Zone program, which, when it was expanded, included Southern Union.<\/p>\n
\u00e2\u20ac\u0153The Southern Union situation is an example of why we should support existing businesses and not carpetbaggers,\u00e2\u20ac\u009d Ms. Evans said.<\/p>\n
The parent company of PG Energy, Southern Union announced to much fanfare in August 2003 that it was constructing a new building and moving its headquarters to Scranton. Occupying a key spot on Lackawanna Avenue, the new building was heralded by the company, Mr. Doherty and others as a powerful selling point for the city. Back then the project was viewed as leverage for other development despite its controversial tax-free KOZ status.<\/p>\n
The state created the Keystone Opportunity Zone pro-<\/p>\n
gram in 1999, giving business and residential properties in designated areas tax-free status. The commonwealth added the Keystone Opportunity Expansion Zone in 2001, extending the tax free status through 2013.<\/p>\n
Southern Union initially projected more than 100 employees would occupy the building, but that number topped out at about 30. Earlier this year, no more than 25 mid-level managers occupied the space.<\/p>\n
Construction of the building has been slow going. Large cranes have blocked portions of Lackawanna Avenue and the sidewalk for over two years. In fact, work continued Monday.<\/p>\n
\u00e2\u20ac\u0153Our focus has been on other aspects of our business,\u00e2\u20ac\u009d said Southern Union spokesman John P. Barnett from Houston. \u00e2\u20ac\u0153We\u00e2\u20ac\u2122ve been busy and haven\u00e2\u20ac\u2122t had time to look into that type of thing.\u00e2\u20ac\u009d<\/p>\n
Mr. Barnett wouldn\u00e2\u20ac\u2122t say whether the company is actively marketing the building. However, in the past the company said it was looking to lease unused floors.<\/p>\n
\u00e2\u20ac\u0153If we get an offer to lease, we will consider it,\u00e2\u20ac\u009d Mr. Barnett said. He would not speculate whether Southern Union would sell the building, but officials at one local company, Compression Polymers Holdings Inc., said they were shown the property last year.<\/p>\n
Today, however, the building doesn\u00e2\u20ac\u2122t appear to be in \u00e2\u20ac\u0153show condition.\u00e2\u20ac\u009d Although Mr. Barnett claimed the interior work is completed, the first floor is covered in construction dust, wires hang out of walls, and a water fountain splashes onto the floor when used.<\/p>\n
One room is filled with construction debris and windows are coated with dust. As for the unfinished facade, Mr. Barnett said about \u00e2\u20ac\u0153one month\u00e2\u20ac\u009d of work remains.<\/p>\n
\u00e2\u20ac\u0153That doesn\u00e2\u20ac\u2122t mean it will be done in a month,\u00e2\u20ac\u009d he said. \u00e2\u20ac\u0153That depends on the weather.\u00e2\u20ac\u009d<\/p>\n
Of the dozen Southern Union employees who continue to work there, Mr. Barnett said they are in government relations, investor relations, legal and treasury and that they take up one floor.<\/p>\n
This was the second time Southern Union has had moving vans parked in front of the building this summer. Filing cabinets were shipped to Houston last month. Furniture that was moved out this week is headed to Southern Union Gas Services in Fort Worth, Texas.<\/p>\n
Despite this most recent development, Mayor Doherty remains optimistic.<\/p>\n
\u00e2\u20ac\u0153With Southern Union moving out, it\u00e2\u20ac\u2122s not necessarily a bad thing,\u00e2\u20ac\u009d the vacationing mayor said in a telephone interview. \u00e2\u20ac\u0153It\u00e2\u20ac\u2122s an attractive building that didn\u00e2\u20ac\u2122t cost the city one cent to build.<\/p>\n
\u00e2\u20ac\u0153The next logical step is for Southern Union to sell the building because it is still a KOEZ.\u00e2\u20ac\u009d<\/p>\n
Contact the writer: sbrown@timesshamrock.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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