NEW CASTLE City council to forgive loan, will buy a building

Plans were devised last year, when an architect was hired for downtown revitalization.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- City officials say a loan given to a building owner will be forgiven for the sake of downtown revitalization.
City council agreed during last week's council meeting to buy the former Hill, Barth and King building on East Washington Street for $274,500 from owners Nick DeRosa and Patricia Moosally.
City Solicitor James Manolis said the building will be demolished to make room for a city river walk park. The area is adjacent to Neshannock Creek.
The building, however, recently underwent exterior renovation as part of the city's facade improvement program. City officials gave DeRosa and Moosally $40,000 as part of the matching grant/loan program.
The program: The facade program provides for 10 percent of the loan to be forgiven each year the building remains occupied. The grant was issued and work was done in 2000.
John DiMuccio, city business administrator, said the city won't go after the loan money because it is buying the building.
"The money was spent when we had no plans for the river park. If we had known then what we know now, we never would have issued the grant to fix up the facade," DiMuccio said. "It's [the park] going to be a long-term benefit to the city and worth admitting that we will probably lose $40,000."
Plans for the city river park were devised by architect Larry Hecky, who was hired by the city last year to help coordinate the downtown revitalization. Hecky is also working with private developers on a Warner Bros. theme park downtown.
Downtown revitalization was made possible because of the private development. State officials agreed to give the city $5 million for parking, utilities, new sidewalk, curbs and lighting and other improvements as long as an additional $5 million was spent by a private entity to improve buildings in the city.
Proposed park: DiMuccio said Hecky proposed the river park, which will include closing the street behind the former Hill, Barth and King building from East Washington to Mill streets. It will be the central focus area of the river park, which city officials hope will attract summer festivals and other events.
"We are trying to create an area around the waterways where special events can take place. I hope somebody has something every weekend because it will give people a reason to come downtown and frequent other businesses," DiMuccio said.