Multi-use office could go medical

LANCASTER COUNTY

Building once housed Keystone Custom Homes

The former site of Keystone Custom Homes Inc. could house a medical office building in 2007, said Rick Poillon, executive vice president for property management and development with Willow Valley Associates Inc.

Willow Valley owns the site at 214 Willow Valley Lakes Drive in West Lampeter Township, Lancaster County. The company, which also owns and operates resorts in Central Pennsylvania, plans to tear down the old multi-use building to construct a 72,000-square-foot medical office building, Poillon said. Willow Valley intends to lease out the building.

"It's looking pretty good," he said. "We hope to put our submittal into the county in mid- to late January."

Lancaster County's planning commission could review the plans and offer suggestions, but West LampeterTownship officials would conduct most of the technical planning and approvals.

The new office building could cost upward of $10 million, Poillon said. That figure is an estimate because Willow Valley is still compiling building costs, he said.

Keystone Custom Homes had been at the site since 1995, according to incorporation documents filed with the state. Keystone moved to a larger building northwest of Lancaster in November, said Jeff Rutt, company president.

The West Lampeter building had only 8,000 square feet. Keystone's new home at 227 Granite Run Drive in the Granite Run Corporate Center in Manheim Township is 20,000 square feet, Rutt said. The move gives Keystone enough office space for its homebuilding business, a new homedesign gallery and its nonprofit charity group, Hope International.

All that room was a necessity, Rutt said. Keystone increased its total revenue by 24 percent, from $79.7 million in 2004 to $99.1 million in 2005, according to Business Journal research.

Keystone is still moving some of its materials to the new site, Rutt said. The company is planning an open house at the new location Jan. 21.

The possibility of Keystone building a new facility was discussed, Rutt said. However, a longterm lease in Manheim Township better suited the company. Keystone and two other businesses leased the former West Lampeter Township location: a satellite office of the law firm Russell, Kraffi & Gruber, based in East Hempfield Township, and American Heritage Property Management.

Both have since relocated. Russell, Kraffi & Gruber moved in September to 2421 Willow Street Pike, less than a mile from its former location, said Rose Krause, RKG's legal administrator. American Heritage moved to 131 Centerville Road in East Hempfield Township Dec. 15, said Richard Gottashall, president and chief executive officer.

The leases at the old site were expiring, so it made sense to plan for the medical offices, Poillon said.

The current building was originally designed as a car museum by Willow Valley founder John Thomas, an automobile enthusiast, Poillon said.

"Today, with real estate, there's a need to maximize the use of space," Poillon said, which is why Willow Valley wants to construct a new building along with a parking lot.

The Willow Valley Lakes Drive location is already zoned for upscale office space, such as would be used by medical and technology firms, said Craig Underwood, West Lampeter Township's zoning and planning officer. Although he is aware that Willow Valley wants to construct the office building, no plans have been filed at the township, he said.

"We really encourage developers to meet with staff ahead of time to work out the engineering and technical details before (the plan) gets to the elected officials," Underwood said.

Such a building would diversify commerce in the township and provide much-needed medical services to residents.

"It's good for that part of the township because it's located directly next to the retirement communities," Underwood said.

Location was something Willow Valley considered as well, Poillon said. North of the proposed medical offices is Willow Valley Resort & Conference Center as well as two retirement communities operated by Willow Valley Retirement Communities, the sister company of Willow Valley Associates. South of the building site are two more retirement communities, as well as Willow Valley's corporate offices.

The company hopes to break ground on the medical offices this spring, Poillon said.

Underwood estimated it could take six months before final reviews were conducted and earth moving could begin on the site. The company also needs to demolish the old building.

[Author Affiliation]

BY JIM T. RYAN

jimr@journalpub.com