Development group pays 1.5M debt to New Castle
The city had installed a 42-inch sewer line to accommodate Millennium Park.
By VIRGINIA ROSS
NEW CASTLE, Pa. -- The Lawrence County Economic Development Corp. has paid off its debt to the city.
Tuesday, Robert DelSignore, the corporation's president, presented a 1,128,204 check to city officials. The payment represents the balance of a 1.5 million debt owed to the city for sewer work done at Millennium Park.
"You folks have been very patient with us," DelSignore told city officials.
"We really appreciate it. We're only sorry it took this long and drug on as long as it did."
In late December, Linda Nitch, executive director of the corporation, said she was hopeful the bill would be paid by the end of 2006.
She said she and other corporation representatives worked diligently with state officials to ensure money would be released from the state's Redevelopment Capital Assistance Program to enable the corporation to reimburse the city for the sewer work done.
Basically, in 2003, the corporation decided Millennium Park would need 42-inch sewer lines and asked the city to alter a sewer project to be compatible.
The city agreed to have its engineer redesign the project, which had been planned with 36-inch lines. The total project cost for the city was 1,445,265, which included 313,258 in engineering fees.
Late last year, council threatened to sue the corporation for reimbursement for the work that was done at the at the 1,200-acre industrial park in Neshannock Township near Pa. Route 60.
The corporation also paid quarterly interest on the construction costs of nearly 10,000.