Thursday, May 20, 2004
The development group is trying to rejoin the state enterprise zone program.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- The boundaries of the Shenango Valley Enterprise Zone Corp. have been expanded to pick up parts of three new municipalities.
James Cardamon, coordinator of the nonprofit economic development agency, said Wednesday that all current member municipalities, as well as the board of directors, have voted to approve the expansion into parts of Shenango Township, West Middlesex and Hempfield Township.
The expansion also includes the LindenPointe Planned Technical Park in Hermitage. Hermitage is a current member municipality.
Other member municipalities include Greenville, Sharon, Farrell, Wheatland and Sharpsville.
The expansion into Hempfield Township covers the area around the Hodge Foundry.
Getting industrial property into the enterprise zone makes developers of that property eligible for low-interest loan funds the zone has available. That pool of money now stands at about $1.6 million.
State program
In another matter, efforts by the enterprise zone to re-enter the state's enterprise zone program, from which it exited four years ago, is looking positive, Cardamon said.
The state forced the Shenango Valley Enterprise Zone and a number of others to leave the state program to make way for new enterprise units in the state.
The Shenango Valley group was part of the state program for 16 years.
It decided to seek re-admission to the state program to become eligible for state challenge grants where a developer puts up matching money to secure large state loans that the enterprise zone itself can't provide.
Getting the state designation also entitles developers in a zone to be eligible for tax credit financing and low-cost Pennsylvania Industrial Development Authority loans.
The state provides annual basic grants to its member enterprise zones that provide them with money to lend to developers. But Gary Gulla, chairman of the Shenango Valley zone's finance committee, said the local group won't be eligible for those annual funds if it gets back into the state program.
However, it would likely be eligible for a $25,000 state planning grant to help make the transition, he said.