YOUNGSTOWN Federal funds may be pulled, officials realize

Nobody doubts that Congress could pull the arena money to pay for the high cost of terrorism.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Officials always knew federal funding for the proposed downtown arena project could be one national disaster away from coming apart.
Tuesday's attacks redefine the term disaster.
"The word catastrophe probably pales," said the Rev. Edward P. Noga, an arena board member.
Local officials said Thursday there is good reason to fear that the project could be in jeopardy when numbers like $20 billion for security and recovery costs are bandied.
Terrorism costs, combined with a slowing economy and a treasury gutted by tax cuts, makes the project's $26.8 million ripe for recall, said board member Gil Peterson.
"I think there's a real chance it could happen. I really do," he said.
Congress: The money is safer than a routine federal grant because Congress made the appropriation, board Chairman Leonard Schiavone. Pulling the money would take an act of Congress.
But no arena board member doubts that could happen in a heartbeat.
Other federal funding for the area, such as $2.5 million set aside for re-opening Federal Plaza, is in jeopardy, too, said Claire Maluso, an board member and aide to U.S. Rep. James A. Traficant Jr. of Poland, D-17th.
The city hasn't drawn yet on the first $1.8 million of the arena grant, said Jay Williams, director the city Community Development Agency, which handles federal money. The city has been fronting the money and expecting reimbursement and that first transaction should happen in a week or two, he said.
Land: Buying land between the Market Street and South Avenue bridges for the arena could happen soon, too.
Nonetheless, even spending a fair portion of the money doesn't keep the money safe with needs of this magnitude, board members agreed.
Until something changes, however, the project will press ahead.
Also Thursday, the board:
*Approved a conflict of interest policy.
The policy says the board will not do business with other members or employees, their spouses, children or nonprofit businesses where any member has an ownership interest or is an officer. The prohibition extends to subcontractors.
*Decided that picking a project director will be done by the entire board rather than a committee because the choice is important. Applications are being accepted through the end of the week.
*Took a moment of silence to remember victims of the terrorist attacks.
rgsmith@vindy.com