AlliedNews.com - Grove City, Pennsylvania

Local News

July 11, 2012

GC lines up funds for plant, station

GROVE CITY — Grove City Borough is lining up financing for continued upgrades of its wastewater treatment plant - as well as a new fire station on Pine Street.

Council held a special meeting on Monday to approve financial notes for the projects: the wastewater treatment plant for $4.1 million and the fire station for $1.7 million.

Anthony Ditka, representing Dinsmore & Shohl LLP, Pittsburgh, which handles municipal loans and bond issues, spoke about four banks that offered tax-exempt loans for the borough's projects.

Council approved S & T for its seven-year fixed 2.84 percent interest rate, which would not go higher than 5 percent after that period for the duration of the loan - up to 20 years - that acts like a line of credit, said borough manager Vance Oakes.

The borough only has to use the money it needs for the projects.

It's in the process of looking for federal and state grants for the construction of the fire station, but wanted to secure the $1.7 million just in case that financing didn't come through, Oakes noted. The new fire station is not in this year's budget, but council will have to discuss that option in the fall for the 2013 budget if public money doesn't come through, he added.

The firefighters' main station is on North Broad Street.

The new station will include three bays and a storage, office, meeting room and kitchen space off of the current two-bay garage at Grove City Police Department, where firefighters store additional equipment and trucks. At the back of the police station will be a tall structure built to dry out fire hoses, and parking will be increased at the site, Oakes said.

This time last year, the borough made a land swap with Grove City College to get the .43 acres next to the police department for the addition. GCC got a .4 acre piece of property that once kept a water tank on Madison Avenue that was dismantled.

The wastewater treatment plant at Greenwood Drive will see a second phase of improvements to rehabilitate equipment. Ugrades will include replacing pumps, values and plumbing and upgrading the electrical control system.

The upgrade is a continuation of the first phase, which cost $12.1 million and took 18 months and was completed last year, Oakes said.

Phase two was supposed to involve expanding the plant, but Springfield Township backed out of that agreement, and unfinished upgrades will replace that nixed expansion. Springfield, Liberty and Pine townships, as well as the borough and Harrisville, will share the costs of the upgrades based on usage rates.

Grove City is expected to take up nearly 68 percent of the costs of the project; Pine, nearly 21 percent; Harrisville, almost 6 percent; Liberty, .54 percent; and Springfield, over 5 percent.

Most of the other municipalities were approving their wastewater treatment financing Monday evening as well.

Construction was tentatively awarded at last month's council meeting to Chivers Construction Co. for $2,058,600; and Penn Ohio Electric for $181,000. Both had worked on the first phase of the wastewater treatment plant.

The paperwork for the loans for the projects will be forwarded to the state Department of Community and Economic Development, which will have to approve them.

The borough wants to start the second phase of the wastewater treatment plant upgrades in August.

Published July 4, 2012 in Allied News. Pick up a copy at 201A Erie St., Grove City.

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