The Herald, Sharon, PA Published Saturday, April 6, 2002

FARRELL

Business owners seek part of grant

By Michael Roknick
Herald Business Editor

Two businessmen are attempting to buck what political insiders consider long odds in going after state grant money.

Kyle Klaric, owner of Premier Hydraulics Inc. in Farrell, and Lorenzo Williams, a Detroit business owner, said Friday they're each going after $1 million of an unused $7 million grant to expand their respective businesses.

"I'm doing this as a private businessman, not a politician,'' said Klaric, the unopposed Democratic candidate for the state Senate's 50th District. "I want to attract business to the area.''

Winner Development LLC didn't meet terms for the grant, which was earmarked to develop the former Westinghouse Electric Corp. site in Sharon.

The funds are part of the state's Redevelopment Assistance Capital program, better known as the stadium fund because the biggest chunk of the money is going to fund stadiums in Pittsburgh and Philadelphia.

However, since the state has already approved other developments throughout the state for the funds, the only way a new project can get part of the loot is approval from the state Legislature. A measure to do that is working its way through the Legislature, and Klaric said he and Williams are preparing documents to be included in the bill by Tuesday. They said they are working with state Rep. Michael C. Gruitza, D-7th District, Hermitage.

Both men said they have financing in place for the required dollar-for-dollar match to get the grant. They said they got to know each other through mutual friends.

Employing 85, Premier Hydraulics produces fittings and valve parts, mainly used in commercial and military engines. The company has run out of room and must have a bigger building, Klaric said. He also wants to move his Klaric Forge & Machine Inc. operation from Atlantic to the new building which he wants to put up in Farrell.

"I want to stay loyal to people who have been loyal to me,'' Klaric said.

Premier Hydraulics' $2 million expansion would create 25 to 30 new jobs, he said. Once the business is moved, plans call for Williams' company, WestBank Holdings LLC, to settle a new business at the vacated structure. A minority-owned company, WestBank would house a brazing and assembly plant at the building and would be a Premier Hydraulics customer. Brazing is a chemical process which keeps metal from rusting. It was estimated the venture would create 35 to 40 new jobs.

"I thought it was a good fit,'' Williams said.

WestBank produces electrical wire and cables in Detroit, with a separate company that manufactures electronic systems.

The 10th of a dozen children in his family, Williams said he previously was an executive with Domino's Pizza, which established stores worldwide.

He added his Farrell project is contingent on getting the state grant, while Klaric said he must find a bigger building regardless.

Farrell Mayor Bill Morocco voiced his support for the endeavor and to keeping as much of the grant in local hands as possible.

"I think the people who represent the county, on whatever level they're on, should stand with a pitchfork and work to make sure the $7 million stays here locally,'' Morocco said.

Getting the ball rolling led to an embarrassing moment last week when Morocco called news organizations about Friday's event. Klaric told Morocco he lined up representatives of Wheatland Tube Co. and Duferco Farrell Corp. to attend the news conference to say they wanted a piece of the grant for their own projects. But officials of the companies said they had no plans to seek part of the grant and were unaware of the news conference.

Klaric blamed the episode on politics.

Still, he said, businesses should seek the grant.

"They'll come after the money -- you watch,'' Klaric said.



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