New Castle News

Closer Look

September 27, 2013

City to create new development corporation

NEW CASTLE — The city of New Castle is creating a new corporation as a vehicle for economic development and neighborhood stabilization.

Council adopted a resolution Thursday night to begin the process of creating the Citywide Development Corp. of New Castle.

Matthew Staniszewski, city economic development director, is recommending the non-profit organization.

The organization will cover a wider scope of activities than the Greater New Castle Community Development Corp., which is in the process of dissolving itself. That corporation essentially was devoted to economic development.

In addition to promoting commercial and industrial development, the new corporation will serve as the umbrella organization for a city land bank and programs created by state law to address abandoned and blighted properties.

The first step for the city will be to file articles of incorporation with the state and file with the Internal Revenue Service and the state for tax exemption.

Council created the Greater New Castle Community Development Corp. in 2000. It was later discovered that paperwork sent to the IRS for tax-exempt status was never received by the IRS.

In June 2012, council adopted a resolution to have a local accounting firm prepare the proper form for tax-exempt status. The fee for completion and submission of the form was not to exceed $3,000.

However, a month later, on the advice of solicitor Jason Medure, council rescinded the resolution. He recommended the corporation be dissolved and reorganized.

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