By John K. Manna
June 13, 2009 12:05 am
—
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.”
But she said nobody has given her any figures on the number of jobs to be created.
Panella also expressed reservations about designating $100,000 for demolition of the former Rite Aid building, then using the property for parking. Gibson said the application will specify parking and make no reference to the building. The building is owned by Thomas George’s firm, which also owns the Cascade Center at the Riverplex.
Councilwoman Christine Sands cautioned council about doing anything hastily with the Rite Aid building, noting the city had encountered a lawsuit regarding reinforcement of the wall next to Zambelli Park.
As for the state grant, she said there should be council oversight to make sure the money is spent properly.
Councilman Will Quimby said he believes council was rushed into approving submitting the application, and asked the administration to “keep us appraised” of the projects.
The state funds must be matched locally. George said half of the $5 million will be matched by construction Cascade Development performed in the Riverplex. The city will provide the other half.
Gibson said the city doesn’t have to provide the match immediately. For its match, the city expects to use funds already allocated, such as money spent by the New Castle Area Transit Authority in the downtown.
At Tuesday’s work session, George said if the state approves the application, the parking garage and theater will be completed by next June.
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