New Castle City Council approved submission of an application for state funding for downtown projects.

However, prior to Thursday night’s vote, some members expressed reservations as to where part of the money is targeted.

Four council members voted in favor of submitting the application for the $5 million in Redevelopment Assistance Capital Grant funds. Councilman John Russo Jr. abstained. Gov. Ed Rendell has committed the funds to the city.

Most of the money is designated for the Cascade Center at the Riverplex. The proposal includes $1,450,000 for acquisition of the space formerly occupied by the original Warner Theater, $2.3 million for construction and programming at the site, $150,000 for enclosing the Basin at the Riverplex, $100,000 for additional downtown parking and $1 million for renovations to the city’s parking garage on Mercer Street.

Under current plans, Warner Film Center will raise funds and develop programs at the theater and Cascade Theater Preservation Group will manage the facility.

Both Russo and Councilman William M. Panella raised questions at council’s work session Tuesday and again Thursday night.

Russo said he was advised by assistant solicitor Jason Medure to abstain because his son owns Lanigan’s Irish Pub on East Washington Street.

Despite some of his objections as to how the money will be spent, Russo said he isn’t going to turn down the state funds.

His main problem is the Basin restaurant construction, he said, noting the $150,000 gives the restaurant “an unfair advantage” over others.

“But I think the playing field has to be level,” he said, adding he believes other businesses should have a chance to apply for state funds. Most of the money, he said, is going to one developer.

Russo said he wants to see accountability on how the money is spent and a time frame for completing the work.

Panella said his biggest problem is $2.3 million planned for 6,000 square feet for the theater. The plans include a gift shop to sell theater and movie memorabilia.

He also questioned the reference to an estimated economic impact and job creation with the project.

“Are we going to see any jobs created?”

Business administrator Tammi Gibson answered, “We’re hoping that it has a positive economic impact.”