Governor Rendell: State Investments Help to Bring Kitchen Remodeling Company Headquarters, Nearly 200 Jobs Back to Lehigh Valley

Says Preserving Funding for Proven Job-Creation Efforts Critical to PA's Economy

HARRISBURG, Pa., May 6 /PRNewswire-USNewswire/ -- A leading kitchen and bath remodeling company that left Pennsylvania nearly 30 years ago is returning to the state and establishing operations in the Lehigh Valley that will bring nearly 200 jobs, Governor Edward G. Rendell announced today.

Kitchen Magic will move its corporate headquarters and manufacturing facilities to a 62,000-square-foot, state-of-the-art facility in Nazareth that will include a walk-in showroom for the company's latest products and designs. The $5.6 million project will create at least 189 jobs within three years.  

"Pennsylvania's economic development efforts played a significant role in bringing Kitchen Magic's corporate headquarters back to the Lehigh Valley, which will mean hundreds of jobs for the region's workforce," said Governor Rendell. "The state's support for this project is proof that we can leverage our funds to spur even greater levels of private investment and create jobs.

"Now is the time for us to build upon this support; not back away. With the economy gaining steam and businesses beginning to invest again in their growth, we want to be sure we're positioned to take full advantage of those opportunities. That's why we must increase funding for the programs that employers have told us they need in order to expand."

The Governor said his budget proposes continued investments in job creation and economic development programs that have helped to keep Pennsylvania's unemployment rate better than the national average for 84 of the past 87 months.  The proposed spending plan increases funding for the Opportunity Grant and Customized Job Training Assistance programs, both of which were part of the Kitchen Magic funding offer, as well as infrastructure development and infrastructure facilities and improvement grants.

Founded in Allentown in 1979, Kitchen Magic specializes in custom kitchen and bath solutions including cabinet re-facing, new cabinetry and luxury countertops. The company employs approximately 200 workers in nine states.

"After 28 years in New Jersey, we are excited to return to our roots in the Lehigh Valley," said Kitchen Magic President Brett Bacho. "The support we have received from Governor Rendell and the Governor's Action Team has made it possible for us to realize our vision for this beautiful property. It's the perfect setting for us to continue to grow our business."

The project was coordinated by the Governor's Action Team, economic development professionals who work directly with businesses that are considering locating or expanding in the state.

The Lehigh Valley Economic Development Corp. worked with the company and the Governor's Action Team to secure a $1.48 million funding offer for the project from the Department of Community and Economic Development. The offer includes a $400,000 opportunity grant, a $650,000 loan from the Machinery and Equipment Loan Fund, $48,150 in job training assistance, and $378,000 in job creation tax credits.  

"We are pleased to have been able to work with the Governor's Action Team to help Kitchen Magic acquire financing to relocate its corporate headquarters to the Lehigh Valley," said LVEDC President and CEO Philip Mitman. "Kitchen Magic is emblematic of the companies LVEDC wants to grow and expand in the Lehigh Valley."

Since Governor Rendell took office in 2003, GAT has successfully completed 1,224 projects, resulting in commitments to create 131,169 new jobs and retain 308,496 existing positions. The commonwealth has offered more than $2.3 billion in assistance for these projects, which will leverage more than $16.8 billion in additional investment.

For more information on Kitchen Magic, visit www.kitchenmagic.com.

For more information on the Governor's Action Team and other Department of Community and Economic Development programs, visit www.NewPA.com or call 1-866-466-3972.

SOURCE Pennsylvania Office of the Governor