As a guy who commutes to work on two wheels, not four, Chip Cargas encourages co-workers to do the same.

He's found a few colleagues who would consider bicycling to work, if showers were available there.

Late next year, Cargas hopes that feature will be a reality, after his firm moves to a new building proposed at the former Lancaster Stockyards.

Employee showers and bike racks are among many "green" features to be included in the future home of Cargas Systems.

At the same time, the $1.5 million building would position the firm for long-term growth, Cargas said on Tuesday.

"There's something to be said for starting with a blank sheet of paper and designing a building for our needs," he said.

Cargas Systems, a business software and consulting firm now on Granite Run Drive, would be the third firm to open at the city site.

CoreSource, an insurance claims processor on West King Street, and Benten BioServices, a vaccine research and development start-up, also will fill new buildings to be constructed there.

Groundbreaking for all three structures is set for the second half of this year, an associate of site developer Tim Harrison has said.

Plans for that third building, to measure 11,500 square feet, were unveiled at a city planning commission meeting June 17, although the occupant's name was not given at that time.

On Tuesday, though, Cargas confirmed that the firm he started in a corner of his bedroom in 1988 intends to join CoreSource and Benten, subject to city approval.

"We think it's a great idea," said Paula Jackson, the city's chief planner.

The project is compatible with the city's comprehensive plan, which calls for spurring new investment and high-quality jobs, she noted.

Businesses such as Cargas Systems, with 42 employees, fulfill that employment goal better than would retailers, as were earlier planned for the site, Jackson said.

Cargas, chairman and chief executive officer, said his firm's payroll could reach 62 in five years and 92 in 10 years.

If those estimates prove accurate, Cargas Systems could expand its new building to 20,000 square feet by constructing a second floor.

Cargas Systems would lease the building, with an option to buy.

That capacity compares to the 8,500 square feet leased by Cargas Systems in Granite Run, where it moved in 2001.

"We're trying to set ourselves up for the long term," said Cargas, 62, a former industrial engineer and human resources executive.

While providing for his company's future, Cargas wants the new building to have a minimal environmental impact immediately.

Solar panels on the roof and on window overhangs would generate electricity for the building and for sale to PPL Electric Utilities.

Large south-facing windows, passive solar heat, high-efficiency lights, "green" building materials and geothermal heating and cooling also are planned or under consideration.

Handling the lease negotiations for the new building were Rich Wolman of RE/MAX Associates of Lancaster and Jeff Herr of High Associates Ltd.

Cargas Systems sells business software developed in-house and also resells software created by other firms, particularly Microsoft.

In addition, Cargas Systems consults on software, business processes and human resource issues.

The company has been employee-owned for 11 years, with the employees' portion increasing over that time. They now hold 41 percent, with Cargas holding the remainder.

Nearly every year — 20 of 21, to be precise — the company has been on the upswing.

But after Cargas Systems posted a 6 percent increase in revenues to $7.2 million in 2008, Cargas was unsure whether revenues would rise again this year, because of the recession.

Either way, he said, Cargas Systems intends to go forward with the stockyards project because of "the confidence level that we have in the fundamentals of our business and that the economy will improve. It won't be in the doldrums forever."

E-mail: tmekeel@lnpnews.com