Hazleton, PA -
In one of the biggest developments for downtown Hazleton since its heyday in the early 1900s, plans were revealed today for the revitalization of two of the city's tallest buildings into professional office space that is expected to eventually bring hundreds of jobs and expanded commerce to center city.
Developer George F. Hayden, who successfully rescued the former Markle Building from being razed in 2001, and the owners of DBi Services in Hazleton, brothers who began their business locally and successfully expanded worldwide, have formed a partnership to commit to the renovation of two historic bank buildings downtown, the former Traders Bank and the former Hazleton National Bank. The partnership will continue developing the Hayden Tower and will renovate the two other bank buildings with an investment of more than $20 million over the next few years.
DBi plans on relocating its world headquarters and 120 employees to the downtown when the first phase is completed in about a year and a half.
Hayden, who is the developer of Hayden Tower at the Markle, said he is excited about the partnership and the prospects it will provide to Hazleton's center city. “We are looking forward to continuing the development of Hayden Tower and the planning and construction of the first phase of the former Traders Bank Building,” he said. “We chose these buildings because of their solid construction and their architectural and historical significance, which is not easily duplicated today.”
Neal DeAngelo, chief executive officer of DBi, said, “This was a once-in-a-lifetime chance to have three buildings such as these within a block of each other. It provides us with an excellent opportunity in the long term as we continue to grow our business while providing prime office space to other companies in Hazleton that will also create jobs.”
DBi Services currently employs nearly 120 corporate employees in Hazleton. The corporation is outgrowing its existing offices and had a choice of building a new office complex outside of Hazleton or finding a solution that would allow it to remain in the city. “It is the work ethic and commitment of the people of Hazleton that has truly been a vital part of our success,” DeAngelo said.
“These are high-paying jobs that create tax revenue for the city that we stood to lose if this project didn't become a reality,” said Hazleton Mayor Joe Yannuzzi. “We cannot overstate how happy we are that the owners of DBi have made a commitment to downtown Hazleton. We realize that they could have easily built an office building anywhere. And we are also pleased that George Hayden is part of this project. His track record with Hayden Tower during these difficult economic times is evidence of his ability to make projects like this one a success.”
In total, DBi has an annual payroll of $14 million in just the Commonwealth of Pennsylvania, with $9 million alone for corporate employees working here in Hazleton with an average of more than $75,000 per year. DBi's corporate employees alone generate more than $150,000 in employee taxes for the city.
Recently, Luzerne County, the Hazleton Area School District and the Hazleton City Council approved the two bank buildings for Keystone Opportunity Zone tax status. This will allow for tax relief for 10 years at the buildings. The partners are awaiting approval from the Commonwealth and hope to have this approval in the next month or so.
“This is what the KOZs were designed for,” said state Rep. Tarah Toohil. “They are helping to take buildings that are deteriorating and convert them into beautiful buildings that will attract new professional offices to downtown Hazleton and create jobs. It's a win-win proposition,” she said.
Congressman Lou Barletta, who was mayor in 2001 when George Hayden purchased the former Markle Building and began its remodeling, praised Hayden for his success and said this new partnership with the Hayden and DeAngelo families will have an effect beyond just downtown Hazleton. “Because of this development, the Hazleton story will be one that will be modeled by other communities as to how a city that once was on the decline could see this rebirth of its downtown. Downtowns are very hard to revitalize. Hazleton is seeing a new downtown, and it will be a model for other cities and communities,” Barletta said.
Senator John Yudichak said, “Companies in the 21st-century economy can go anywhere in the world, but the DeAngelo and Hayden families are making a commitment to the City of Hazleton because their heart, their passion and their reputation are here. I believe this investment will be a turning point for Hazleton. One day, people will look back and say, ‘This is where Hazleton turned the corner.'”
Greater Hazleton Chamber of Commerce President Donna Palermo said, “When the three renovated office complexes and Citiscape are combined with PennDOT's Downtown Corridor project, which involves widening Broad Street and adding new sidewalks and lighting, the revitalization of center city will bring more people to the downtown and thereby open new opportunities for retail stores and restaurants.”
DeAngelo and Hayden both praised federal, state and local officials who worked many, many hours over the past several months to help make this announcement possible. The officials have met with the developers over several months attempting to secure financial assistance, seeking future approval of Keystone Opportunity Zone designation for the building and working with the city to provide future parking.
The city and the developers are working on an agreement to provide ample parking for employees and tenants at the city's parking garage along Mine Street.
Yannuzzi said the city will use gaming money it received to repair the parking garage behind Hayden Tower at the Markle, bringing it up to 230 parking spaces. The funds will also be used to build another garage that will accommodate 100 cars at Laurel and Broad streets.
Architects and engineers will begin planning renovations and office fit-out on the Traders Bank building, which is expected to begin by early to mid 2013 and last about a year and a half. DBi's corporate headquarters will then be moved to downtown. Upon completion of the Traders Bank building, the renovations to the Hazleton National Bank building will begin.
Improvements on the downtown buildings will include a theater room equipped with the latest technologies, such as videoconferencing. This facility will be available for rental by other companies.
“We are committed to improving the Hazleton area for the benefit of other companies and residents as well. We want to put money back into Hazleton because we believe in this area. We want our children and grandchildren to enjoy Hazleton just as we did growing up,” said Neal DeAngelo.
DBi also has about 200 employees in other divisions in Hazleton who will continue to work from the company's current offices on the south side of Hazleton.
HISTORY OF THE HAZLETON NATIONAL BANK AND TRADERS BUILDING
Hazleton National Bank occupies a historic site. It sits on part of what once was Pardee Square, a full block that included the mansion of Ario Pardee, who was recognized as the founder of Hazleton.
Hazleton National Bank was chartered in 1890. Its first president was Augustus S. Van Wickle, an anthracite coal producer. His wife, the former Bessie Pardee, was Ario Pardee's daughter. HNB's first vice president was Elliott P. Kisner, a philanthropist who helped establish an industrial school for boys in Drums - hence the name Kis-Lyn.
HNB's original site was next to the old P. Deisroth Sons store on Broad Street.
In May 1922, Hazleton National Bank purchased the southeast corner of Pardee Square and in August 1924, it moved into its new building. The building was home to HNB for decades, with acquisitions and mergers leading to several name changes. Over the years, the building was home to First Valley, Summit and finally, Bank of America, which closed its office there in August 2005.
The Traders (or Citizens) building also housed many banks over the years. It was built in 1923. Over the years, the building was home to the Traders, Citizens, First Valley and Summit banks. In 1965, Wybro Inc., which was made up of the senior partners in Laputka, Bayless, Ecker & Cohn (which have offices in the building), took over ownership.
In January 1984, First Valley Bank and Hazleton National Bank merged and the two banks continued to operate in the two Hazleton buildings under their separate names.
Northeast Properties Inc., a group of northeastern Pennsylvania investors, purchased the Traders building from Wybro and in 1986 completed an extensive renovation. “After a thorough cleaning with marble poultice, the color of the marble changed completely from a yellow-tan to a grey-blue,” said Louis Danzico, president of Management Enterprises, the firm that handled the sale.
Hayden said, “We are looking forward to revitalizing these two historical buildings to continue Hazleton economic growth. I would like future generations to enjoy the thriving downtown that I experienced growing up in Hazleton. By partnering with Neal and Paul, I have been blessed with an opportunity to help make that a reality.”
Developer George F. Hayden announces a partnership with Neal and Paul DeAngelo of DBi Services that will revitalize the former Traders Bank and the former Hazleton National Bank and continue renovation of Hayden Tower at the Markle. The project is expected to bring hundreds of jobs and expanded commerce to center city.
DeAngelo said, “This is just the beginning of what we plan to do in downtown Hazleton and with our continued commitment, as well as the commitment of other businesses and professionals, downtown Hazleton can be a place we are all proud of again.”
