State awards millions in grants to Project Resolve, Erie Zoo, Millcreek gateway district

Three Erie County projects — the Project Resolve manufacturing initiative at Penn State Behrend, a veterinary clinic at the Erie Zoo and Millcreek Township's Presque Isle Gateway District — are getting millions of dollars in state grants.

The state awarded the money through the Redevelopment Assistance Capital Program, known as RACP, which is run through the governor's Office of the Budget. Groups apply for grants.

Wednesday's announcement represented the awards made in the first round of RACP funding for 2022. The state is expected announce more awards soon.

The current Erie County award recipients, according to a list RACP released on Wednesday:

● $1.5 million for Project Resolve. According to the RACP summary, the money will go toward the construction of the eighth building at the Knowledge Park research facility at Behrend.

"The new building will be called the Center for Manufacturing Competitiveness, and host a plastics laboratory, a metal-casting laboratory and free space available to local manufacturers," according to the summary. "Additionally, the facility will be home to the country's only fully serviced heavy haul battery test facility for locomotive, marine and mining."

● $3 million for the Erie Zoo. The money, according to the RACP summary, will go toward constructing "a new veterinary center at the Erie Zoo. The center will have animal treatment, quarantine, isolation spaces and surgical and imaging suites. The area will also include veterinary offices, drug and medication storage and limited public viewing spaces."

Changes at the zoo:Will the Erie Zoo replace its big cats? How the nonprofit acquires endangered species

● $3 million to Millcreek for its Presque Isle Gateway District to improve West Eighth Street near Peninsula Drive, just south of the entrance to Presque Isle State Park.

According to the RACP summary: "Underground conduit will be installed for existing overhead utility service. Curbs, sidewalks and accessible ramps will be installed along both sides of the roadway. Decorative lighting will be installed. The roadway will be milled and repaved and drainage improved. Additional stormwater management measures will be implemented.

"Most of the work will proceed in the public right-of-way, with limited work being performed on private property where necessary. Property acquisition will include all or portions of strategically located properties for the necessary right-of-way expansions and other infrastructure improvements such as stormwater management."

Improving West Eighth Street:Millcreek supervisors adopt zoning rules that include 'village' concept near Presque Isle

County Executive Davis, County Council at odds over Resolve

The award for Project Resolve comes as the initiative has turned into an intense subject of debate between Erie County Executive Brenton Davis and County Council.

Earlier this month, Erie County Council voted down a measure to use $5 million in American Rescue Plan funds toward the project, as part of a local match to the RACP grant.

The 4-3 rejection was largely the result of lingering legal questions, namely whether a proposed capital project was eligible for Rescue Plan dollars under U.S. Treasury guidelines, and whether the money should instead go to communities most negatively impacted by the COVID-19 pandemic.

The Davis administration sought approval to take the $5 million from the Rescue Plan's Transformative Grants budget line intended for the Erie County Gaming Revenue Authority.

ECGRA Executive Director Perry Wood said his agency has been anticipating the full $5 million allotment for its grants program, which has been providing funds toward community projects.

Speaking at a recent council meeting during the public comment period, former council Chairman Carl Anderson — who helped spearhead the budgeting of the 2022 Rescue Plan budget — read aloud an excerpt from the U.S. Treasury guidelines that stated "large capital projects intended for general economic development or to aid impacted industries" were ineligible for Rescue Plan funds.

He said the Behrend center should be funded through eligible means, like revenue replacement, as opposed to ECGRA.

Funding dispute:Facing legal questions, County Council votes down Rescue Plan funding for Project Resolve

County Council Solicitor Tom Talarico also pushed back on the use of Rescue Plan funds for the project.

"ARPA monies are not supposed to be used for this purpose — it's completely inappropriate," he said during an Oct. 4 council meeting. "There's nothing wrong with using any kind of county money if it's available to satisfy this. But it's a complete violation of the ARPA law to use ARPA money for this particular project."

More on Project Resolve:Erie County Council to re-address updated Project Resolve measure, consider possible vote

The Davis administration has relied on two county-hired firms for consultation on the Rescue Plan — ArentFox Schiff LLP, a Washington, D.C.-based law firm, and Witt O'Brien's, an international crisis and emergency management company. Both firms have provided documentation to council indicating the project will be beneficial to COVID-impacted industries and are therefore eligible for Rescue Plan funds.

Council is to reconsider the fate of the $5 million funding transfer at its finance committee meeting Thursday afternoon.

Staff writer A.J. Rao contributed to this report.

Contact Jim Martin at jmartin@timesnews.com.

Contact Ed Palattella at epalattella@timesnews.com. Follow him on Twitter @ETNpalattella.

This article originally appeared on Erie Times-News: Project Resolve, Erie Zoo, Millcreek district get state grants