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Sewer project to be split into 2 phases
By MARY grzebieniak
HILLSVILLE, Pa.
Mahoning Township supervisors have decided to break the Hillsville- Edinburg sanitary-sewer project into two phases while they wait to see if a proposed racetrack proceeds with plans to locate in the northern part of the township.
Supervisor Vito Yeropoli said when supervisors met Tuesday that work on the $19.5 million sewer project will start in Hillsville and Edinburg south of U.S. Route 224, and the north Edinburg section will be done later. The original plan was to do all the construction at once.
But breaking the project into two phases buys some time for the township while officials wait for the racetrack’s parent company to emerge from bankruptcy and find financing for the development.
Indianapolis-based Centaur LLC is the parent company of Valley View Downs, a proposed racetrack and casino to be located on U.S. Route 224 near Pa. Route 551.
Lenders pulled out of the racetrack project before the bankruptcy, leaving Centaur seeking new financing. Centaur has insisted it remains committed to the township but has not been able to find a lender.
As long as construction of the racetrack is not certain, the township cannot access $8 million in Act 108 grant money tied to the jobs the racetrack would create. The township is $3.5 million short for the project and is seeking loans to make up the difference. But the township has commitments for a $10 million Pennvest loan, a $1 million Pennvest grant and a $5 million state grant.
Pennvest, established as a revolving loan fund, finances local clean water infrastructure. It is funded by nearly $2 billion from state general-fund appropriations and state general- obligation bond sales. It is an independent agency managed by a 13-member board of directors, according to its Web site.