NEW CASTLE, PA. Officials rethink zone's borders

The low-interest loans are given to companies wanting to expand or locate in Enterprise Zones.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- The city's Enterprise Zone designation is about to expire, but officials think they have a plan to keep it alive.
City Administrator John DiMuccio said they want to create a new Enterprise Zone that will add industrial areas in four nearby townships.
The current zone includes downtown, some outlying industrial spots in the city and a small portion of Taylor Township. That designation ends June 31.
The city's proposal for a new zone was sent to Harrisburg a few weeks ago. Officials should know if it's approved sometime later this year.
Decisions: "The townships will have a choice. We've let them know we are applying, but they will get to decide if they want to participate" DiMuccio said.
Union, North Beaver, Neshannock and Shenango townships all have industrial spots that were included in the proposed Enterprise Zone.
None of the officials in those communities has committed to participate, DiMuccio said. All must individually agree to it if the state approves the zone.
If they do participate, each community will control who receives loans in that community, DiMuccio said.
City officials want to create a board of directors with officials from each community to oversee the revolving-loan program.
The city community development department would continue to be the administrative arm of the zone, he said.
The zones benefit communities by providing low-interest loans to potential developers and companies wanting to expand. All must create new jobs to receive the state money. Tax credits are also offered through the program.
Requirements: There are some loan restrictions. The money can only be used to acquire land or buildings, for construction or renovation costs or machinery or engineering.
The companies must make a $45,000 minimum investment. The maximum loan amount is $250,000 and one job must be created for every $15,000 borrowed.
In the last 12 years, New Castle's zone has loaned out nearly $3 million to 17 companies. City records show that 431 jobs were created and 789 were retained.
The AT & amp;T Telecommunication Relay Center, New Castle Rolling Mills and D'Vron Ceramics were just a few of the companies to take part in the program.
Donald Cooper, chief executive officer of Faddis Concrete Products, said the low-interest Enterprise Zone loan was one of the main reasons his company is locating in New Castle. The eastern Pennsylvania company makes precast concrete products for bridges, soundproof walls and buildings.
Help for company: City officials agreed Thursday to give his company a $200,000, five-year loan to enable it to buy about $600,000 worth of equipment.
Faddis expects to initially create 15 jobs and could eventually have up to 35 workers in its West Washington Street plant.
The zones were created by state officials to help financially distressed communities find new businesses and create new jobs, said Jason Kirsch, spokesman for the Pennsylvania Department of Community and Economic Development.
The DCED administers the nearly $65 million in state and federal funding to the state's 50 Enterprise Zones each year, he said.
DiMuccio said the city decided to include other municipalities in its new zone application because officials realize any new development is beneficial to everyone.
"People who live here will go and work in those places" if jobs are created, he said.