MILLENNIUM PARK Funding loss slows project

Officials are seeking state funding from another program.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- The loss of $11 million in state funding is going to slow down the development of Millennium Park in Neshannock Township, but it won't stop the project, officials say.
Linda Nitch, executive director of the Lawrence County Economic Development Corporation, the agency handling the park's development, said the agency learned last week that the state has reduced its contribution to the project from $15 million to $4 million.
The money from the state's Redevelopment Capital Assistance Program was promised last year by the Gov. Ed Rendell and Dennis Yablonsky, secretary of the Department of Community and Economic Development.
Yablonsky cited "programmatic problems with using the RCAP grant for the entire $15 million," says a LCEDC press release.
State Rep. Frank LaGrotta of Ellwood City, D-10th, said there was not a legitimate local match for the funding. RCAP requires a one-to-one match.
"They [state officials] were as creative as they possibly could be without breaking the law in accepting the $4 million," LaGrotta said today. "But there is just no money that the county or LCEDC or the private businesses are spending on site that goes over the $4 million," he said.
Nitch said much of the $15 million match was coming from improvements made to current businesses in the 1,200 acres identified as Millennium Park, which stretches through Neshannock and Union townships.
Proposal rejected
She said state officials were aware that the improvements was being used for the local share, and LCEDC told local officials that funding application was being processed. Then, at the last hour, the state rejected the proposal.
Nitch said state officials have now said the matching funding can only be used for improvements made on the undeveloped 500 acres in the proposed high technology business park.
She said the $4 million identified as OK by the state came from costs already incurred through things such as environmental and archeological studies at the park site.
Nitch said state officials have urged LCEDC to seek funding through other programs for the project, including a new economic development program called Business In Our Sites. BIOS could provide up to $5 million in grants.
The rest could come from a "patient loan," which means the corporation isn't responsible for any principal repayment and interest will not accrue until lots within the park begin to sell.
Nitch said they must apply for those dollars by Oct. 31, and it's unclear when a decision could be made on that funding.
Trying again
LaGrotta said the group could go back to the state for additional RCAP grants if they come up with more matching funds such as a developer willing to invest money in the site.
"This is not something the governor wanted to do," LaGrotta said of pulling the funding. "As a matter of fact, his policy people and experts had to convince him this was the right thing to do. This is not political. It's just about the [local] money not being here at this time."
Nitch said the project will be slowed down until they learn if more state funding will be provided through the BIOS program.
"It's not dead. It absolutely is going to take more time than we had anticipated. Would things be much better if we had a user? No doubt," she added.