Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
LCEDC, New Castle Break Off Talks on Cascade Riverplex
NEW CASTLE, Pa. – The Lawrence County Economic Development Corp. announced Friday that it has suspended negotiations with city of New Castle regarding the “Cooperation Agreement” to acquire and redevelop the Cascade Riverplex.
LCEDC and city representatives had been in negotiations for the last two weeks regarding the terms and conditions necessary for the LCEDC to acquire the former Cascade Riverplex property by using $1.5 million of grant funds awarded to the city of New Castle for various economic development projects. The LCEDC had intended to acquire the property for the purpose of providing space to for-profit, employment generating businesses.
“A fundamental difference has arisen between the LCEDC and the city regarding the use of income generated from the project,” said Linda Nitch, executive director of LCEDC. “Because it is the LCEDC’s mission to assist with the creation and retention of employment opportunities, was originally discussed that a reinvestment program fund would be established for economic development projects. The project would be mutually approved by the LCEDC and the city and would benefit the downtown central business district. In the end, however, city officials expanded the use of the funds to include any noneconomic development activity. Under these terms, the project’s income use does not align itself with the mission of the LCEDC.
Additionally, the LCEDC has informed S&T Bank, the owner of the building, that the corporation is no longer interested in purchasing the Cascade Riverplex and is seeking the return of its $10,000 good-faith deposit, Nitch said. The sales agreement with S&T had been extended until April 16 to give the LCEDC and the city sufficient time to execute the cooperation agreement.
Refresh Dental, the Ohio based dental practice association, that is seeking space in the building, will
negotiate with the city for incentives to locate in downtown New Castle. LCEDC has coordinated meetings between Refresh Dental and the state of Pennsylvania and will continue to assist the company in locating within Lawrence County, Nitch said.
Meantime, a nonprofit entity, the New Castle Center for Arts and Technology has also expressed interest in acquiring the Cascade Riverplex, and wants the city to earmark $1.5 million in grant funds to fund the acquisition.
Published by The Business Journal, Youngstown, Ohio.