The Herald, Sharon, PA Published Saturday, April 20, 2002

HARRISBURG

Gruitza still wants grant to come to valley

By Robert B. Swift
Ottaway News Service

HARRISBURG -- A state lawmaker is making an effort to win legislative authorization for new redevelopment projects in the Shenango Valley in hopes of tapping part of an unused $7 million state grant.

State Rep. Michael Gruitza, D-Hermitage, Shenango Valley District, said he is meeting with local officials and developers to determine what projects could quality for redevelopment assistance funds as part of a capital budget bill that could be considered later this year.

Gruitza said he would like to see the $7 million grant recycled to help other development projects in Mercer County, rather than go to projects elsewhere in Pennsylvania. The first step is getting legislative authorization for projects through a capital budget bill.

"At least that way they would be eligible for funding that might still be available," said Gruitza this week.

The future of the money -- tied to a sports stadium deal -- is up in the air since international businessman James E. Winner Jr. announced in February that he wouldn't be using $7 million pledged in 2000 to renovate the Westinghouse Electric Corp. Sharon Transformer Division site on Sharpsville Avenue.

Two announced aspirants for the state aid are Kyle Klaric, owner of Premier Hydraulics Inc., Farrell, and Detroit-based WestBank Holdings Inc.

But Gruitza noted there are other area redevelopment projects that could be eligible, including projects authorized earlier under a capital budget passed in 2000.

Two shell bills recently introduced in the House and Senate establish a $260 million category for redevelopment assistance projects. But that doesn't mean there is $260 million actually available.

Capital budgets typically authorize more projects than can possibly be funded. The governor decides which projects are funded as money become available through state bond sales; in the case of redevelopment assistance projects a substantial local match is required.

The well is running dry for the pot of stadium money -- known formally as the Redevelopment Assistance Capital Program -- that was authorized by lawmakers in 1999. All told, the Ridge-Schweiker administration has released more than $700 million from the fund for redevelopment across the state.

Only about $100 million is left in the fund.

Lt. Gov./Sen. Robert Jubelirer, R-Blair, sponsored a bill last year to pump more money into the stadium fund by increasing the amount of authorized funding by $550 million. But there's been no action on the bill. The state has since hit rough fiscal times since Jubelirer's bill surfaced.



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