Quick Facts
Repositioning of an abandoned 217-acre former strip and subsurface coal mine into a 2.4M square foot Class A warehouse park
Deep and surface mining operations created geotechnical and methane venting concerns
Major new development in a rural and blighted area creating over 1,000 new jobs and $2M in annual incremental tax revenue
Transaction
Land (acres)
217
Project Outcome
2.4 msf Class A warehouse park
Seller/Responsible Party
Rausch Creek Industrial
Historical Use
Surface and subsurface coal mining
Capital Partner
Real Capital Solutions
Buyer
Panattoni
Tenant(s)
TBD - Under Construction
The 217-acre Rausch Creek Logistics Center (RCLC) property was utilized for both subsurface and strip coal mining from the 1880s to the late 1950s. Since then, this hilly and topographically challenged site laid mostly dormant with the exception of some temporary surface uses and remedial activities. Further geotechnical studies completed during due diligence showed that former deep and surface mining operations did not pose material problems for future development of the site. However, precautions were taken for methane created by the mining operations.
The site is located at Interstate 81, Exit 107 and Route 209, Tremont, Frailey Township, Schuylkill County, Pennsylvania. The site is part of the emerging Central PA distribution area, offering logistics providers a network of interstate alternatives to serve the entire east coast, with direct I-81 connectivity to the Harrisburg PA market and Lehigh Valley as well as the Ports of NY/NJ, Philadelphia, and Baltimore. The development plan included assemblage of the property and obtaining entitlements to reposition the former mine into a Class A, 2.4M square foot warehouse distribution park. All approvals of the development plan were received in 2021 and the property was immediately sold to Panattoni for vertical development. The first phase of the development is scheduled to be complete in 2023.
Sub-surface coal veins are located under approximately 40% of the property. In certain places, the distance from the surface to the vein is less than 200 feet. The site plan was configured to ensure the building footprints avoided the shallow mine veins at the southern end of the property, and instead utilized the area for parking lots, detention areas and on-site wetlands mitigation. In addition, the significant hilly topography and shallow rock on the site resulted in the need to rip and grade over 2 million cubic yards of material to flatten the site. A dynamic compaction program was needed in certain areas to maintain geotechnical specifications.
