Ford City Grant Repayment Proposals Unveiled

A four-member ad-hoc action committee proposed eight ideas at the end of August to repay a $580,000 grant to the Economic Development Administration. Those proposals included approaching several local and national companies to build on the vacant brownfield property near the Ford City Veterans Bridge. (KP File Photo)
By Jonathan Weaver
At the end of August, a Ford City ad-hoc action committee submitted eight proposals to the federal Economic Development Administration to satisfy a $580,000 defaulted grant on the former PPG property.
A copy of the eight proposals submitted to U.S. Department of Commerce – Economic Development Administration (EDA) Regional Director Willie Taylor and released yesterday revealed several different ideas to satisfy the grant requirement.
The ad-hoc committee, made up of Borough Council Members Vickie Schaub and Gene Banks, Planning Commission Member Tyson Klukan and Parks and Recreation Member Stacy Klukan, committed to approaching several regional and national companies about leasing or selling portions of the vacant 40-acre brown field property to create jobs, including Colt’s Manufacturing Company, LLC of Hartford, Conn., Glory on High Fireworks, LLC in Templeton, and Concordia, ACMH and the University of Pittsburgh Medical Center.
A pair of ideas was also proposed to capitalize on the local tourism industry – by way of either creating jobs through a bike, kayak and boat rental program that would become a co-op with local bicycle shops, or even building an indoor Hawaiian Falls Water Park on the property through Ramaker and Associates – headquartered in Sauk City, Wisc.
Tyson and Stacy, a Parks and Recreation member for more than 10 years, both collaborated on the idea to utilize local tourism growth.
The pair combined their proposal with statistics from the State’s December 2013 edition of the “Economic Impact on Travel and Travel” – including that Armstrong County saw $89.8 million in tourism spending in 2012.
“There were multiple meetings because we had a deadline to meet – we had to act very quickly, and try to come up with the best proposals/ solutions that we could” Tyson said.
He is not nervous about the current situation, but hopes it can be resolved in a proper matter.
“There is a solution to this problem, and I think Ford City can deal with the matter,” Tyson said.
Ad-hoc committee members were also willing to sell or lease 300 acres of natural gas rights to EQT, valued at a one-time rate of $150,000 and listen to business leaders that moved into the community with help from the Middle Armstrong County Area Development Organization to help develop the remaining land.
Another idea involved enticing new employees to move into the area by way of a nearly-40 acre annual job fair/festival in town, in cooperation with Lenape Technical School in Manor Township.
The event is proposed to be held at BelleFlex Technologies (where PPG Foundary Building #2 used to be located) and invite upcoming graduates or employment seeking individuals.
Committee members are even open to negotiating other proposals.
“We entertain hope of luring another type of ‘worker’ to our community – the commuter, lured by the prospect of accessibility to Routes 28, 66 and 422,” the history portion concluded.
Borough officials continue helping Lenape Tech students train by utilizing Borough vehicles or shadowing with police officers.
Now-Borough Manager Eden Ratliff oversaw the ad-hoc committee’s several meetings during the summer before the proposals were due at the end of August, and said the defaulted grant repayment is one of the largest hurdles the community has to overcome.
“Willie Taylor and the EDA communicated to Ford City Borough about the grant default, and they asked that we come up with some proposals to send to them as a potential remedy to the previous council’s giving away of the property that was subject to the grant, Ratliff said.
“I’m confident (the proposals) could rectify the issue in the mind of Ford City Borough. We have to come to an agreement with the EDA.”
Council Vice-President Jerry Miklos has become involved with the negotiations since the ad-hoc committee dissolved in October. A community resident when the decision was initially made, he said it is a shame the Borough is still in this financial predicament, a problem he associated with poor decision making by former Borough leaders.
“I think it’s safe to say that we are working very closely with the EDA and hope to come to some resolution in the near term,” Miklos said. “We hope to be able to discuss this publicly as soon as possible.
“Hopefully, we can bring this to a palatable solution for the taxpayers. We need to bring this to a resolution – that’s what we’re working toward.”
In September 2000, the grant was utilized to rehabilitate the former PPG foundry along 2nd Avenue by the Greater Ford City Community Development Corporation and leased to Caracal manufacturing, but, bankruptcies by both the CDC and Caracal and Borough Council allowed for the building to be repossessed by F&M Bank.
It is now home to OEM Shades and BelleFlex Technologies after about $10 million in federal and state grant funding was invested into the revitalization of that building.
The bank foreclosed on the aforementioned property in December 2010 and was acquired by F&M Bank.
PPG Ford City Works employed as many as 4,000 workers at its peak before closing in 1992
By Patzu, March 25, 2015 @ 7:03 PM
Wow.
How can those former council members even show their face in the town?
One of the worst, if not the worst, decision to come from the Ford City local government.
It was a matter of arrogance that fueled the decision to default on that loan.
If you see one of those former council members around town, thank them kindly for their decision to almost ruining the town of Ford City.
Shame! Shame!
And shame on anybody who tries to speak the nonsense of trying to defend them.
By mad-2010, March 25, 2015 @ 11:01 PM
Agree Patzu… There maybe one running for commissioner…
By suzkin33, March 26, 2015 @ 7:00 AM
I’very beend saying for years that the group who misused the grant money needs to be held accountable. No one seems to know where that money went and instead of bringing in an investigative auditing team, the this financially destitute town is “taking one for the team?” I can’t be the only one wondering who did what with that grant, because let’s face it we know the town didn’t see anything good come from it.
By Ryan Bloser, March 26, 2015 @ 10:20 AM
I give credit to the current council that they are trying to put ideas forward, however I would encourage more transparency and more shared decision making. I think that everybody is pointing fingers on who did what, what was inherited, who has personal agendas, ect. I believe the people are Ford City are not easily fooled and should be presented with all the facts - they are not dumb. Unseal the CDC records that you have. Publish all the minutes of council. Let’s see who sold the town down river because I’m sure many of them are still in politics and probably still attend council meetings.
However, the town isn’t a victim. I don’t encourage a witch hunt of past councils. It happened and unless they broke the law, its time to more forward. However, do not forget who was responsible just in case they come back. Let’s look forward to the primary in May and the general election in Fall and vote accordingly.
By Rat_Smeller, March 26, 2015 @ 12:16 PM
This wasnt the first time large amounts of money went missing from Ford City coffers. I seem to recall several hundred thousand dollars disappearing without a trace back in the 1990’s and no one seems to know anything about it.
By Rat_Smeller, March 26, 2015 @ 12:40 PM
The following link takes you to an Article in the Post-Gazette from April, 2000. You think you would want to know what happened to approx. $600,000.00
https://news.google.com/newspapers?nid=1129&dat=20000403&id=a8haAAAAIBAJ&sjid=LHADAAAAIBAJ&pg=4743,3176920&hl=en
By jorn jensen, March 26, 2015 @ 12:48 PM
It is obviously a good goal to resolve this issue while putting the land to good use, especially to use that can bring private sector jobs.
Further, it is a good goal to try to lure a company such as Colt firearms into the area - that would utilize the real estate, bring in local private sector jobs and bring in a tax-paying industry. After all, we’re supposedly the 4th heaviest-registered gun county in the United States. We’d surely be gun-manufacturing friendly.
One little flaw here. If Colt firearms leaves their present ‘anti-gun’ location, they’ll surely seek a right-to-work state to set up shop in. Newsflash - Pennsylvania is not a right-to-work state.
So, it is up to people like Jeff Pyle, Don White and Donna Oberlander to ‘take on’ that task in Harrisburg and get this state into modern times and make us competitive with right-to-work states by becoming a right-to-work state.
Anyone listening?
By blutoblutarsky, March 26, 2015 @ 3:28 PM
jorn- Colt isn’t doing very well at this moment either. It may just not be a good fit on both sides. We need secure companies that plan to stay.
By blutoblutarsky, March 26, 2015 @ 3:29 PM
Ratsmeller- good find. I wonder what ever came of that.
By Patzu, March 26, 2015 @ 5:51 PM
No, I do not believe this issue should be gently swept into the past. Unlike any stolen money from the borough or even the CDC (that witch hunt has grown old and stale), this action with defaulting on the loan was an calculated act of local government. I hope this action is investigated fully, because it seems way too convenient how things ended up. That council during this vote should not be forgiven or forgotten, because there was never even a hint of an apology to the Ford City citizens.
Yes, it is time to move on and attempt to correct the mistakes from the past.
No, it is not a time to forget. We have done that too much in the past and members of that same clique still pop up at election. Remember who was running the finances. Remember who cast the cast the votes. And remember the results we are living in today.
By forward, March 26, 2015 @ 7:59 PM
Sounding very much like a candidate there jorn …lol
What ? No lectures about the libs and the dems ??
Nancy Pelosi ??
Trying to be mild I see.
Oh well, some people might buy it.
By bob, March 27, 2015 @ 6:30 AM
On the other local news site I just read an interesting article concerning the borough’s debt to the EDA. I understand the borough thinks they can get more money from the mineral rights than the $150,00 that was offered from the local energy co., but that $150,000 would clear the $580,000(?) debt owed by F.C. Borough to EDA. The article also says that borough never responded to this local company’s offer, nor did the borough respond to the EDA’s proposal back in October to set up a payment plan at a reduced fee of $116,200 (to be paid@ 38,733/year for 3 yrs). Just shaking my head over all of this. Does council think this is all just going to go away? I don’t understand why there wasn’t even a written response from the borough to the EDA or to the energy co that made the offer of $150,000. Unbelievable at best.
By jorn jensen, March 27, 2015 @ 8:36 AM
Denny, Rather than attacking me, why don’t you attack my comment, above? Man-up!
By blutoblutarsky, March 27, 2015 @ 3:25 PM
Wow. I didn’t realize the mismanagement was to this level. Maybe FC would be better off letting the state take over, geez.
I do think they could get a better deal for the mineral rights, but given the time frame they had to reduce the debt and make the deal they should have done it and come out with a clean slate.
It’s bad form to sell low on an asset like that but I don’t see where they had a better option.
By mad-2010, March 28, 2015 @ 12:08 AM
After reading that article Bob talked about some people need to step-down. Unreal!
By Larry, March 29, 2015 @ 10:58 AM
Well, Whose fault was it that you never contact EDA. I can tell you that Jerry had something to do with it. He wants the town to go down, he has said it to me when I was there. If 8 proposals was ready to go out, why didn’t they receive it?
Just ask some people around town and you will find out, the way Jerry will try to get people to listen to the bs he puts out. I never did nor would I let this guy try to run me.
He didn’t pay bills when they were due and past at Council meetings to pay the bills. He would put sticky notes on the checks and say not to send them out until he could review them. We had cable and gas shut off because of him when he was President of council. And it cost the town more money to have the services turned back on. That is really a person who is concerned over the tax payers.
Who would want to be on council when he can make a decision for something that isn’t right and convince others on council to go with him. Get rid of these losers.
He has been the towns problem for years, just read the paper. Ask other council people, ask the Mayor they all know. He didn’t want a business to come in Ford City before, so why would he say he is working on it. Just ask Capt. Bill, he knows what was said. So does Kim Bish! Gene Banks knows stuff, but he didn’t have the back bone to do anything, so now he has high blood pressure. If you can’t stand the heat why would you pretend to be doing anything for the town. Get real. If the people of Ford City are looking for a witch hunt, you don’t have far to go. Jerry
By bob, March 29, 2015 @ 6:40 PM
@Bluto,
Exactly my thought on the $150,000 offer. IMO, the timing on that offer actually made that $150,00 worth $580,000 to F.C. Borough. Quite pathetic that nobody wanted to make the smart decision on this. I only wonder if the council could have a redo on this whole matter. Unlikely, since they didn’t even bother to give the company an answer.
By tiredoftheBS, March 29, 2015 @ 8:01 PM
I read the article in the “other” paper. All I can do is shake my head and wonder why. How and why would someone, I believe the borough manager and council president were specifically named, blow off the offer from the EDA?? I am pretty bad at math but even I can figure out $116,000 vs paying $580,000 is a pretty good deal. Unreal!! I agree with the previous post that said maybe it would be better for the state to take over managing Ford City Boro.
By mad-2010, March 30, 2015 @ 5:27 AM
They didn’t have to take the Snyder 150k deal. However, they should have made the arrangements to take the payment deal offered by the EDA….
By jorn jensen, March 30, 2015 @ 8:26 AM
Have them contact Penn Energy for a current offer. It may have been Penn Energy that made the $150,000 offer - I don’t know. Natural gas will go back up in price as production is liquified and hauled into international trade - more wells will be drilled - pricing will go up.
By mad-2010, March 30, 2015 @ 9:05 AM
Bluto.. A better Checks and Balance system needs to be put in place so this kind of thing can’t happen. Still, the people involved with the mess-up need to Go!
By mad-2010, March 30, 2015 @ 9:14 AM
Just because you are hurting financially does not mean you make a bad deal on the land & mineral rights! I’m sure the town would have been glad to take the 38k per year EDA deal and find a way to come up with the money…
By Rat_Smeller, March 30, 2015 @ 12:35 PM
They could have got upwards of $800,000 in 2010.
http://www.thekittanningpaper.info/2010/12/28/ford-city-listens-to-residents-but-money-speaks-louder/13162
By jorn jensen, March 30, 2015 @ 9:50 PM
Thanks for posting that Rat_Smeller. Five people, one of whom was Delores Shaffer, stopped the million dollar deal (plus 18% which would have netted more than the million dollars)? These 5 people represented the town of Ford City, for all of the people of Ford City, and this is what council caved to? Absolute foolishness! That council should have done the job of leadership that they were hired to do.
We’re being drilled under out in Worthington - EQT has posted 20 MPH speed limits for all of their contractors and I, for one, can verify that the contractors are obeying the speed limits imposed by EQT. And there’s no noise. The drilling operation is going smoothly. Everyone’s water was tested before they started.
Needless fear-mongering, and a gutless council, is what shut down the million-dollar deal in Ford City. Such foolishness!
By bob, March 31, 2015 @ 5:41 AM
@ Mad,
The article (in the other paper) states that F.C.Borough sent a letter to the EDA last August asking for a reduced payback of $150,000. The 150,000 is the number they proposed because that is the number offered by two other oil and gas companies. 150,00 was fair market value @ the time of the proposal in August. The article also states the deals fell through with the first two companies and a third company offered the same 150,000 in December. If this was fair market value, then how can you say this was a bad deal? And once again I say this money was worth 580,000 to F.C. if it was going to clear that debt.
By blutoblutarsky, April 2, 2015 @ 12:45 PM
jorn- You’re assuming that all of the council members were either in favor of or had no opinion on the drilling themselves.
What if they simply agreed with the residents that showed up or thought they could get a better deal later?
Hindsight is 20/20.
Bob- I agree on your valuation of the deal at $580,000 to FC due to the debt it would eliminate.