Community Lending Program Success Stories
The Dime Bank Uses CLP to Support Hampton Inn Construction in Tunkhannock
Many years ago, tanning was the chief industry in the small borough of Tunkhannock, PA, tucked along the Susquehanna River a little more than 30 miles north of Wilkes-Barre. More recently, many residents have been employed by the Procter & Gamble plant nearby. Today, drilling for natural gas in the Marcellus Shale is the region’s booming industry, and with that boom has come a significant shortage of hotel rooms. A new 67-room Hampton Inn on East Tioga Street, however, will soon help to ease that shortage.
The Dime Bank of Honesdale, PA, secured a $2.5 million loan from FHLBank Pittsburgh’s Community Lending Program (CLP) to support this development project. The six-year, fixed-rate non-amortizing loan closed in July, and the hotel is expected to open by the end of this year. The Dime Bank provided additional loan financing to the project as well.
"The Hampton Inn project will contribute substantially to the business and economic health of Tunkhannock and the region as a whole,” said William Boyle, vice president and commercial loan officer. “The Dime Bank is gratified to assist Millett Real Estate in the financing of this project, including the use of a much-needed CLP funding to help close the deal."
Millett Real Estate of nearby Clarks Summit is the developer. Milnes Construction, which broke ground April 12, is using only local contractors to perform work on the four-story building, which will include retail space on the ground floor. In addition to boosting employment during the construction phase, the project is expected to create approximately 25 permanent jobs for local residents while enhancing the local tax base.
A wide variety of community and economic development projects like Tunkhannock’s Hampton Inn can take advantage of CLP loans to create housing, improve business districts and strengthen neighborhoods. CLP is designed to help member financial institutions meet their community investment goals while maintaining and enhancing their own profitability.
CLP Funds Available for Flood Relief
Tunkhannock’s name is based on an Indian term, which has been variously translated as “meeting of the waters.” That name took on more ominous significance recently when the Susquehanna River flooded a major part of downtown in the wake of the one-two punch of Hurricane Irene and Tropical Storm Lee. The Hampton Inn construction site was itself affected by the flooding.
In the wake of storms such as these, damage to business districts and community buildings and spaces can be great. In addition to assistance provided by the federal government through FEMA, FHLBank’s CLP can be an excellent source of financing for many kinds of revitalization projects necessitated by natural disasters.
FHLBank Pittsburgh is proud to support CLP projects such as the Tunkhannock Hampton Inn throughout Delaware, Pennsylvania, West Virginia and other areas served by member banks.