Tuesday, November 22, 2005
The development corporation intends to pay the debt, its director said.
NEW CASTLE, PA. -- Linda Nitch, the executive director of the Lawrence County Economic Development Corp., said she is hoping to have the funds to pay the city for the construction of the sewer line for Millennium Park before the issue gets into to court.
"Of course we would like to have this resolved as soon as possible," Nitch said. "I'm hoping we can work with the city. It's not as if we don't want to pay this."
City council has announced plans to sue the corporation for $1.3 million owed the city for the construction of the sewer line at Millennium Park, a proposed industrial site in Neshannock Township. At a recent meeting, city officials said a summons informing the corporation that a civil suit is being brought against it was filed in court last week.
On Monday, Nitch said she has received notification from the city on its impending civil action against the corporation, but nothing has yet been formalized.
Project change
Two years ago the city agreed to accommodate the corporation by altering its West Bank Super Sewer project by using 42-inch sewer lines. The project had been designed with 36-inch lines. Last year the corporation agreed to reimburse the city nearly $1.3 million for the increase, including $1,132,007 for construction and engineering costs. The city paid the contractor for the sewer line construction.
Christine Sands, city council president, said the corporation had agreed to reimburse the city in full by the end of last November, but hasn't.
Nitch explained the corporation has not yet received enough money from the state to pay the debt. Early on, the state earmarked $15 million for the Millennium Park project, but the amount was cut to $4 million. Nitch said the $4 million has to be matched with local funding sources. She said so far $2 million of that has been matched.
Earlier this year the corporation received approval of $7.5 million in funding from the state for the park, but the state won't borrow the money to provide that funding until next year, Nitch said.
"But the corporation's intention is to pay the city as soon as we can, as soon the money comes in. We've tried to determine ways to pay this. We're really hoping we can work it all out as quickly as possible." she said.