It was confirmed last night that, under the guidance of Borough Solicitor Anthony Vigilante, Ford City Borough did respond to the Economic Development Administration’s August 13 letter regarding the $581,000 grant. (as seen during the last regular council meeting)
by Jonathan Weaver
Ford City Borough Council President Kathy Bartuccio confirmed a reply has been issued to the Economic Development Administration (EDA) addressing the $581,000 grant repayment.
Bartuccio confirmed the letter from Borough Manager Eden Ratliff was sent before the end of the 10-day deadline issued by Interim Regional Director Tonya Williams in a letter dated August 13.
However, the local response to settle the $581,000 debt was not disclosed during last night’s work session.
“At this point, there’s not much to say about it – a timely response was sent back, and by our next (regular) meeting, we hope to have a response from the EDA regarding the correspondence,” Bartuccio said.
She said the subject would be discussed more at the September 14 regular council meeting.
Bartuccio said the letter was written by Ratliff with Solicitor Vigilante’s guidance prior to him going on vacation
Contentious conversation on the issue began between council members after Second Ward Councilwoman Beth Bowser wanted to speak on “communication issues” as part of last night’s agenda.
“There needs to be communication as to what’s going on,” Bowser said.
Ford City Borough Councilman Gene Banks was not aware a response was sent, and was upset he was not given the opportunity to read it or have a copy. Council President Kathy Bartuccio referred Banks to Solicitor Vigilante or to wait until the September 14 regular council meeting.
Councilman Gene Banks agreed that communication is important, but was also surprised the letter to the EDA was sent without his review.
“I might’ve wanted to add something in there – is that right?” Banks asked.
When Banks asked Bartuccio to read the letter, Council Vice-President Jerry Miklos responded by asking if Banks “whose side (was he) on.”
Bartuccio also refused to give Banks – and later Mayor Marc Mantini – a copy of the response sent.
“You can see it, but not until our next meeting,” Bartuccio told Banks. “Ask (Solicitor Anthony Vigilante.)”
The contentious discussion eventually led to Banks leaving the work session.
“I can’t ask my questions, I can’t see (any) letter – why am I here?!”
Bowser understood why she was not aware at first.
“I felt as a council(woman), I should’ve been aware that this letter was received – doesn’t mean that I would have the opportunity to read it. We weren’t given the opportunity unless I requested it,” Bowser said. “Which is OK because technically, it wasn’t addressed to the Borough in general – it was addressed to Mr. Mantini, (Bartuccio) and Eden Ratliff.”
Bowser asked if Mayor Mantini issued any response to the EDA, to which he said he attempted a phone call but also assumed Bartuccio received a letter.
“There’s a crisis of information and confidence here,” Mayor Mantini said.
Schaub clarified for Bowser that she or other Council members might indeed by “left in the dark” on certain issues or conversations if they are discussed in committee or where no quorum is present to take a vote.
On August 13, Williams wrote a letter to Ford City that said, in part, “…no compromise offer has been made to facilitate a resolution nor, as we had hoped, to renew the $116,000 offer previously discussed. Therefore, the EDA has not alternative but to disallow all EDA project costs and establish a debt with the United State Treasury against the Borough for the full amount owed (of) $581,000.”
Williams then instructed Ford City to reply within ten days with a plan that would repay the $581,000 over a three-year period.
The EDA gave a Financial Assistance Award of $581,000 in September 2000 for the planned Heritage and Technology Park. By the end of 2009, the project went defunct and the property was seized by then-F&M Bank for repayment of additional loans of $1.3 million that was secured by the property.
In 2014, the EDA offered Ford City Borough the opportunity to settle the matter for $116,000, but the Borough never acted on the offer.
Miklos said during the weekend that taxpayers will be informed “at the appropriate time.”
