New Castle OKs mortgage lien to ensure Millenium Park pays up

NEW CASTLE, Pa. -- City council, seeking a guarantee that it will get paid for money it spent on a sewer project for the Millenium Park hi-tech business development, has approved filing a mortgage lien against the park property.
The lien should be filed in common pleas court today, said Tammi Gibson, city business administrator.
Council was presented with the lien proposal during a caucus session Tuesday and approved it at Thursday's council meeting.
The city spent more than $1.2 million installing the West Bank Relief Sewer Project to extend city sanitary lines to the 500-acre park in Neshannock Township and is to be reimbursed for that expense by Nov. 30.
Park developer
The park is being developed by the Lawrence County Economic Development Corp., which has assured the city that it will get its money on time.
Atty. Paula Cialella, representing the city, told council the mortgage lien would show that the city has a legal right to take part of Millenium Park property if the money isn't paid.
New Castle would take ownership of 300 acres in the park, valued at about $20,000 an acre, under terms of the lien.
Hits a snag
The park development hit a snag recently when LCEDC officials learned they would get only $4 million in state assistance instead of the $15 million they were expecting.
State officials said the project didn't have the required dollar-for-dollar match needed to secure the $15 million.