Gov. Ed Rendell has approved Farrell's $1 million redevelopment contract to proceed with plans to expand the Hillside Industrial Park and demolish buildings on Idaho Street, city officials announced Monday.

$500,000 will come from the state's Redevelopment Capital Assistance program, also known as the "stadium fund" because it was created to fund construction of professional sports stadiums in Philadelphia and Pittsburgh.

Mayor William Morocco said the project was on hold after Rendell froze the funds. City officials met with Rendell in May, calling the situation to his attention. In return, the governor said the funds would be freed up and sent the city a contact to sign. On Friday, the state sent the city a copy of the contract and notification the project could proceed.

For its matching share, the city has set aside $200,000 in Community Development Block Grant money; the other $300,000 will come from a low-interest revolving loan, Morocco said.

The project consists of redeveloping a section of Idaho Street and the Florida Street area. The bulk of the project is at the Hillside extension where most of the land will be readied for light industrial and heavy commercial use. Six buildings will first have to be razed and several families will have to move. Lee Avenue to Crago Street will be connected and Maryland and Florida streets will be taken up between Broadway and Lee. Blight will also be removed along the Broadway corridor.

The Idaho area of the plan runs on the south side from Spearman to near Fruit, and on the north side from Spearman to Wallis. Four commercial buildings would be demolished and the lots replotted into seven parcels.

Morocco said a time line is being worked out, but work could begin in two to three weeks. "We have to advertise for bids for certain aspects of the work, relocate families, households," Morocco said.

Morocco said he wanted to thank former Gov. Tom Ridge for advising the program and putting it forth, and former Farrell Mayor Eugene C. Pacsi who worked on and supported the request. The plan for the northwestern portion of the community should tie in well with the Hope VI development on the south side, Morocco added.

The project consultants are Graney, Grossman, Ray, Colosimo and Associates, Grove City, who compiled the redevelopment plan. The consulting engineer is Winslow Engineering Inc. of Hermitage.