HARRISBURG (PRNewswire-USNewswire) – Gov. Edward G. Rendell announced that a strategic investment from the commonwealth will help the Rite Aid Corporation create 350 corporate jobs over the next three years by expanding its operations in south central 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 Governor called the company’s growth an example of how a homegrown business willing to invest and grow in the commonwealth can compete successfully in markets across the country.
“From its start as a neighborhood pharmacy in Scranton in 1962, Rite Aid has grown to be one of the nation’s pharmacy leaders,” said Rendell. “This expansion shows how Pennsylvania’s companies can grow and compete in any market.
“This is a reputation we’re building on each and every day through our work to advance the state’s business climate. Over the last four years, we’ve successfully cut business taxes by more than $1 billion, while making vital new investments in our companies, communities and people. These investments have turned around the state’s economy and attracted new employers who are injecting billions of dollars of fresh capital into our economy.”
Rendell added that today’s announcement illustrates how the state’s resources are being leveraged to attract new private investment. The state is offering Rite Aid an investment package totaling $1.45 million, which was leveraged to secure the $11.2 million 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 in Cumberland County; and its Finance Group operations in Newberry Township, York County. The company will also make new investments in associate training programs as part of its Brooks/Eckerd acquisition.
Department of Community and Economic Development Secretary Dennis Yablonsky participated in a news conference announcing the plans today during the company’s job fair in Camp Hill, Cumberland County. The funding offer provided to Rite Aid Corporation by DCED 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.
“For more than four years, Rendell has worked to create a more competitive business environment for our companies,” said Yablonsky. “The fact that Rite Aid, the third-largest drugstore chain, is expanding its operations in Pennsylvania and creating new family sustaining jobs here is proof that this aggressive approach is working.”
The expansion project, which will also retain 1,400 existing Rite Aid headquarters employees, was coordinated by the Governor’s Action Team. The GAT is comprised of economic development professionals who report directly to Rendell and serve 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.
“We greatly appreciate the support of Governor Rendell, Secretary Yablonsky and the commonwealth to help Rite Aid grow to approximately 5,000 stores, strengthen our position as the third largest national drugstore chain and become the largest drugstore chain on the East Coast,” said Mary Sammons, Rite Aid president and CEO. “They are 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.”