Development group hoping to repay city

The corporation has paid 100,000 toward its debt.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- With just a few days left in 2006, the executive director of the Lawrence County Economic Development Corp. said she's still hopeful the corporation will be able to pay the balance of a 1.2 million debt owed to the city by the end of the year for sewer line work done at Millennium Park, a proposed 1,200-acre high-technology industrial park.
Linda Nitch said she has continued asking the state to release money from its Redevelopment Capital Assistance Program.
Once that happens, the corporation can obtain money with credit lines available through various area banks to match the state money, she said.
That money would be used to reimburse the city.
"We're trying," Nitch said. "It can still happen, and we've been working with the state hoping that it will happen by the end of the year."
Meanwhile, city residents continue asking lawmakers about the matter, specifically inquiring as to when the debt will be paid in full.
Basically, in 2003, the corporation decided the proposed industrial park would need 42-inch sewer lines and asked the city to alter a sewer project to be compatible.
The city agreed to have its engineer redesign the project, which had been planned with 36-inch lines. The total project cost for the city was 1,445,265, which included 313,258 in engineering fees.
What happened
Late last year, council threatened to sue the corporation for reimbursement for the work that was done at the industrial park, which is in Neshannock Township near Pa. Route 60.
The city later withdrew the lawsuit when the corporation promised to pay the debt by the end of the year.
Then, under a compromise reached over the summer, the corporation agreed to give the city at least 100,000 by the end of the year as part of the reimbursement.
The corporation paid the first 50,000 installment several months ago and earlier this month gave the city another 50,000.
Both payments were used to pay engineering fees for the project, with a portion of the money also going toward construction costs.
The corporation also has been paying quarterly interest on the construction costs of nearly 10,000.