The Herald, Sharon, PA Published Tuesday, April 15, 2003

Far less aid came here than
letter said


Sen. Robbins' aide
apologizes for error

§   §   §
By Michael Roknick
Herald Business Editor

State Sen. Robert D. "Bob" Robbins' chief of staff took the blame Monday for overstating the amount of state and local financial assistance given to local projects in a letter to the editor which appeared Monday in The Herald.

The letter, which was signed by the area's four state lawmakers, identified local development projects between 1999 and 2002 that lawmakers said totaled more than $65 million in state and local assistance. The actual dollar amount for those projects was less than $7 million -- and it came mostly in the form of low-interest loans. The letter was a response to a March 30 Herald editorial that criticized development efforts in the area.

"I have to apologize,'' said Michael Hengst, Robbins' chief of staff.

The mistake was discovered when Herald staff checked past stories about the projects and double-checked with each business.

The letter was signed by: Robbins, Salem Township, R-50th District; and reps. Michael C. Gruitza, Hermitage, D-7th District; Rod Wilt, Sugar Grove Township, R-17th District; and Dick Stevenson, Grove City, R-8th District.

Hengst said he asked for the financial information from Penn-Northwest Development Corp., Mercer County's lead economic development agency, and he misread the figures.

But the correct figures still represent a lot of money, he added.

"It still shows a considerable investment in these companies in Mercer County,'' Hengst said. "I can say this delegation works tirelessly in that respect.''

The letter stated $54 million in state and local development money was invested in Duferco Farrell Corp. in 1999. That was the year Duferco bought much of the former Caparo Group plant in Farrell.

"We got no money,'' said Bob Miller, treasurer for the Farrell steelmaker.

In the next year, Hengst said, Duferco received three low-interest loans: $150,000 from Mercer County, $140,000 from the Shenango Valley Enterprise Development Zone and $325,000 from the city of Farrell.

The letter listed Solar Atmosphere as getting $5.4 million in state and local assistance in 2000 to attract the company to Hermitage. But company officials said Solar actually received $2.75 million in low-interest loans to erect its plant that year.

Hengst said, in 2001 Solar received a $460,000 state low-interest loan plus $4 million in tax-exempt financing from the Mercer County Industrial Development Authority.

In 2001, the letter said, Colonial Metal Products in Hermitage got $3.1 million to move to a larger building. But the company said it got a total of $870,000 in loans from the state, Penn-Northwest and Hermitage for that project.

Hengst said the company got a $450,000 state loan, a $150,000 Mercer County Industrial Growth Fund loan and $150,000 in Enterprise Zone loans that year, with $10,000 in credits the following year.

The letter gave correct numbers for Hodge Foundry in Hempfield Township -- $1.2 million in state loans -- and a $2 million state grant to Slippery Rock for revitalizing its downtown. Both were 2002 projects.

Government assistance for the specific projects named in the letter totaled less than $7 million; assistance for those projects and others at the businesses and Slippery Rock totaled less than $12 million.

The Herald contacted all the legislators to find out how the mistake occurred and Hengst responded for Robbins. Stevenson was the only lawmaker to respond directly; Gruitza and Wilt didn't return phone messages left at their offices on Monday. Likewise, Penn-Northwest didn't return a phone message.

Stevenson deferred to Robbins' office staff, who he said drafted much of the letter. Stevenson said since he's been in office, he only worked on one project listed in the letter -- the $2 million Slippery Rock grant.

Regardless, Pennsylvania and local legislators have worked to fund local projects, Stevenson said.

"The state was a partner in all of these projects,'' Stevenson said. "There's no question of the state's commitment in all of these projects. To say the state has done nothing paints an entirely wrong picture.''



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