UGI Utilities said Wednesday it has started construction of a new $35 million corporate headquarters in East Cocalico Township.

The new facility of 93,000 square feet, to replace its Reading facility, will bring 350 jobs to the township when it opens in late 2018.

On 32 acres at Route 222 and the Pennsylvania Turnpike, the headquarters will be near the Pepperidge Farm bakery.

The UGI Utilities facility, close to Denver, will be accessible from Pepperidge Drive.

Plans also call for a traffic light to be installed at Colonel Howard Boulevard and Pepperidge Drive, plus walking trails and ample green space.

LNP first reported on UGI Utilities’ interest in the site in October 2016.

Sign up for our newsletter Success! An email has been sent with a link to confirm list signup. Error! There was an error processing your request.

At that time, UGI Utilities said the relocation was necessary because the company had outgrown its current headquarters, which is leased.

UGI Utilities bought the East Cocalico site last month for $3.93 million from MC Realty, according to courthouse records.

MC Realty, a Reading Hospital affiliate, bought the tract in 2004 as a possible expansion location for $2.56 million, courthouse records show.

As was previously reported, UGI Utilities asked the township, Cocalico School District and the county for a substantial break in the real estate taxes it would owe on the improvements to the site, saying the relief was needed to offset the cost of coping with engineering and environmental obstacles.

The three entities agreed to a 10-year, graduated tax schedule under the Local Economic Revitalization Tax Assistance Act (LERTA), saving the company a total of $4.0 million. UGI Utilities would pay $3.5 million over that period.

East Petersburg-based Warfel Construction is the project's general contractor.