Resolution allows grant to move ahead

YEAGERTOWN - A $2 million state grant awarded to the developers of the Derry Heights project is one step closer to the bank after a resolution was passed on Monday by the Derry Township Supervisors.

The supervisors passed resolution No. 2009-21 during their regular meeting, which acknowledges that the township accepts responsibility for financial reimbursement to the state if the grant money is misused by the developers.

The developers were awarded the grant through the state's Redevelopment Assistance Program with the help of the Mifflin County Industrial Development Corporation, which will administer the grant. The grant will help offset costs associated with roads and curbing on the property as well as storm water maintenance.

Currently, $425,000 of the grant is slated to reimburse the project developer, Nick Moraitis, for costs associated with the purchase of the property along Ferguson Valley Road where his company, Burnham Properties, plans to build several hotels, a restaurant, movie theater, water park and family sports center. The remainder of the grant would reimburse the developers for various infrastructure on the property.

However, a stipulation of the grant required Derry Township also to become involved before money is distributed. At a Derry Township meeting earlier this month, MCIDC President Rob Postal said he didn't foresee any potential problems for the township, but, as an example, if any of the money was used to reimburse the developers for construction costs in which the prevailing wage stipulated by the state Department of Labor and Industry was not paid, that could be deemed an ineligible cost and grounds for the state to demand a repayment of the grant money.

Supervisor John McCullough previously acknowledged the developers' need for the reimbursement funds, but he said the board should act cautiously.

"We are not trying to make a buck on this, we just don't want to lose money. We have to protect our citizens," McCullough previously said.

The supervisors were able to reach a financial agreement with the developers, so as to minimize risk to the township in the event the state required repayment of the grant money.

On Monday, McCullough said the supervisors were content with their level of involvement with the grant process.

"After extensive meetings, we feel Derry Township's interests are protected," McCullough said. "We are comfortable with the relationship going forward."

Postal expressed his appreciation to the supervisors for passing the resolution, which will allow for MCIDC and the developers to move forward in the grant process.

"There are checks and balances - not to say they can't be omitted, but certainly we all have enough protection here," Postal said, referring to the financial agreement between the developers and the township.

Also during the meeting, the supervisors announced that the Pennsylvania Department of Transportation will be installing three preemption signal lights along Electric Avenue leading to Lewistown Hospital. The signal lights enable emergency responders to change the signal to allow ambulances quicker access to the hospital. The signals will be installed at the Ort Valley, Third and Sixth streets intersections with Electric Avenue.

PennDOT also will be completing minor repairs to two bridges in Derry Township located along Back Maitland and Jacks Creek roads.