A bitter dispute between local agencies and the developer of the former Westinghouse Electric Corp. site surfaced on Wednesday with each side accusing the other of snarling state funds for the project.

State funds to develop the closed transformer plant in Sharon are in peril due to a lack of cooperation from the developer -- Winner Development LLC, the head of the Mercer County Industrial Development Authority said Wednesday.

"This is in jeopardy,’’ said Charles Bestwick, MCIDA chairman. "It’s very frustrating.’’

In a meeting with The Herald’s editorial board Wednesday, Bestwick and representatives from Penn-Northwest Development Corp. and other local officials spoke about development projects of abandoned industrial sites in Mercer County.

MCIDA approved a plan earlier this month to use $8.25 million in state grants for the former Westinghouse site on Sharpsville Avenue.

Of that amount, $7 million is for the state Redevelopment Assistance Capital program. Awarded in May for the Sharon site, it was conditioned, among other things, on the state receiving a completed and acceptable application. Another condition was that Winner Development provide a dollar-for-dollar match.

But Bestwick complained that despite repeated requests, information from Winner Development for the application hasn’t been forthcoming. Also, Winner Development’s matching funds aren’t on the table.

MCIDA is the actual recipient of the grant funds because state law requires they be given to a public authority.

Winner has contacted state officials against the advice and request of MCIDA and others, Bestwick said.

"They’re (state officials) not going to accept him going directly to them,’’ he said. "Everything has to be done directly through us.’’

Bestwick squarely placed the blame of Winner Development decisions on its chairman, James E. Winner Jr.

MCIDA has a good reputation with the state, Bestwick said.

"We have no desire for Jim Winner to make us look like asses,’’ Bestwick said.

He acknowledged relations between MCIDA and Winner Development have soured.

"It’s turned into almost an adversarial situation,’’ Bestwick said.

Bestwick said things began simmering when Winner took exception to a story that appeared in The Herald last week in which Bestwick said Winner disputed an MCIDA requirement that prevailing wages be paid to construction workers at the site.

Originally approving the requirement on Dec. 1, MCIDA rescinded the demand at a Monday board meeting.

So far, the state has granted two application extensions and another may have to be sought, Bestwick said.

MCIDA and Penn-Northwest, which is overseeing the application, have been working with Winner Development to meet the current Dec. 31 deadline.

There’s no thought of MCIDA backing out of the project, Bestwick said.

"We have the desire to be in control of the entire process once again,’’ he said.

But he insisted Winner Development must furnish the local agency with the required application information and not go behind its back to Harrisburg.

After a meeting between Winner Development representatives, Bestwick and Penn-Northwest officials after the Herald meeting Wednesday, the Sharon company’s chairman wasn’t bashful in placing blame for the application delays on local agencies.

"Excuses come cheap,’’ remarked Winner. "If the application doesn’t get filed by December it will be in no way the fault of Winner Development. Perhaps the problem is they’ve never done one of these applications before and it’s too much of a learning curve as you go."

If local agencies can’t help the company in the application process, Winner said there are alternatives.

"We’ll go elsewhere to get somebody else to do it,’’ Winner said. "We’ll try to find somebody with more experience in doing these applications.’’

Information on what’s required for matching funds has been hard to come by locally, Winner complained, and said that’s one reason he’s been calling state officials.

None of the application delays were due to Winner Development, he added.

There has been a breakdown in communication between the company and the two agencies, he said. But he held out an olive branch, saying he would do what he could to restore communications.

But Winner said Penn-Northwest and MCIDA officials need a better attitude.

"Please try cooperation and try to get things done and not look for problems,’’ Winner said of the two agencies. "We beg for the attitude: Let us show you how it can be done rather than let us caution you why it can’t be done.’’

During Wednesday’s meeting with local representatives, Winner said the air was cleared on a number of issues.

Winner readily acknowledged calling state officials about the application and asserted at the meeting that was his right.

"It was clearly understood I will always maintain the privilege of calling whoever I want, whenever I want in Harrisburg,’’ he said. "My position is I’m not going to see this project fail because of some local interpretation as opposed to some other interpretation mandated by Harrisburg."

Should the application not be ready by Dec. 31, Winner said another extension would be sought and likely granted.

"I don’t think the state funds are in jeopardy -- I feel very comfortable they are not,’’ he said.

And what of the heated emotions with local officials?

"I think we can get along just fine,’’ Winner said.