With a deadline looming, Ford City plans to appeal a federal agency's decision to levy a $581,000 debt against the borough.
Council voted 4-0 Monday to file a request for reconsideration from the Economic Development Administration. In April the agency told borough officials it would establish a debt with the U.S. Treasury because the borough defaulted on a federal grant. The borough must submit the request by June 22, according to the agency.
“We will ask them to reconsider this entire situation and where it currently stands,” said Borough Manager Eden Ratliff.
Ratliff said he will be creating a document to send to the EDA. It will highlight officials' interpretation of the grant from the time it was awarded to the present.
“We have a lot of facts to gather together to put together for EDA's reconsideration,” he said. “I'm still in the brainstorming phase of what this is going to look like and what we are going to say.”
The borough defaulted on the $581,000 federal grant about five years ago. The grant was used to redevelop PPG's old foundry building on Third Avenue. When the borough let the property be sold at sheriff's sale in 2009, it violated the grant's requirement that Ford City maintain ownership of the property until 2017.
The agency in October told Ford City it would accept a settlement of about $116,000, payable over three years. Ford City did not take the offer.
Borough officials did not make news of the EDA proposal public but Mayor Marc Mantini learned in March of the offer and, subsequently, EDA's decision to turn the default over to the Treasury.
Mantini said the decision to appeal came “a little late in the game.”
“They better get on this, because there could be serious repercussions,” Mantini said. “I hope they don't neglect it again. This should have been worked on when it first came up.”
Don Mains, a borough resident who once worked for the federal government, is assisting officials with the appeal. He said his focus is ensuring the proper process is followed.
“The request for reconsideration gives you more time to state your case, to argue your position,” Mains said.
Borough officials hope to meet with the EDA at some point to discuss the matter. EDA may respond to the appeal with a “new and final” decision, Mains said. Though officials were still working out details of the request, Mains said getting the grant default eliminated may be the goal.
“Ultimately, you want to get it to zero, so this is part of the process to make that attempt,” he said. “When something like this comes along, it certainly tarnishes the story and, what's more, it's an injustice for taxpayers. Hopefully, the resolution will be positive for Ford City and its citizens.”
EDA officials did not respond to requests for comment Tuesday.
Julie E. Martin is a staff writer for Trib Total Media. She can be reached at 724-543-1303, ext. 1315 or jmartin@tribweb.com.
