The City of Warren is not planning to finish what it started with the anchor building project.
Completing the Allegheny Center for the Arts at 225-227 and 229 Liberty St. would require "substantial additional taxpayer dollars," according to the Comprehensive Response Plan drafted to satisfy the state Department of Community and Economic Development concerns over $500,000 in grant-to-loan money.
Instead, City Council has proposed paying $727,176 over 20 years - $3,029.90 every month.
"The city is proposing to pay back the city's revolving loan fund according to the agreement between the city and GRO-Warren," Acting City Manager Mary Ann Nau said.
That agreement called for GRO-Warren to pay back the $500,000 loan monthly over 20 years at 4 percent interest.
"We are stepping into GRO-Warren's shoes and making good on their commitment to DCED," Nau said. "In this way, the funds will then be available again as a revolving loan to other entities in the downtown at the same four percent rate to do renovations."
According to Nau, city officials do not anticipate raising taxes to cover the debt. "We are hoping to recoup these funds through successful legal action or settlement."
The city has retained special counsel to move forward with recouping funds "under the insurance policy covering the GRO-Warren organization," according to the plan.
The Comprehensive Response Plan was approved Monday night for submission to DCED.