Jeannette officials debate how to spend $900K allocation from American Rescue Plan

A measure that would create a process for Jeannette businesses to apply for a portion of the city’s American Rescue Plan funding could be voted on during council’s Thursday meeting.

Councilwoman Robin Mozley requested the item be placed on the agenda after officials heard from a business owner inquiring about the city’s plan for the $900,000 it was allocated. The move would not commit any funds, but rather get the ball rolling to create the process, she said.

“I feel that our businesses are very important,” Mozley said.

She read a letter during a council session Tuesday from Ernie DiMartino, owner of DiMartino Ice Company, that requested details about how the city intends to spend the money and a plea to help businesses. Jeannette officials have not released a plan for the funding while waiting on the final regulations. The American Rescue Plan is a $1.9 trillion stimulus package approved in March that includes funding for counties and local municipalities. The money must be spent by the end of 2024.

Council last month approved $500 bonuses for all full-time employees, pending the final rules about how the funding can be spent. Solicitor Tim Witt said those guidelines have not been released.

Expenses related to the coronavirus pandemic would qualify for the funds, under interim rules, as would grants to help small businesses, nonprofits and industries that have suffered during the last 21 months. It can be spent on water, sewer and broadband projects but it cannot be used to lower taxes, demolish buildings or bolster municipal pension funds.

Mozley said the city’s businesses have struggled during the pandemic and anything could help.

“Even if it’s not a large amount … I would like to see a small amount set aside where they could apply,” she said. “We won’t be able to help all of them but it’s at least an effort on the city’s part.”

Other council members were hesitant.

Many cited other potential needs for the money, including matching funds for infrastructure projects, if they are ultimately allowed under the final rules. Council also is set to vote on radios and other equipment for the fire department to be purchased through the funding.

“My heart goes out to the businesses,” said Mayor Curtis Antoniak. “If we don’t have an infrastructure in the city, we don’t have businesses.”

Councilwoman Nancy Peters said she agreed with both sides, “but I’m looking … at all of the things that we need to do also … for us to stay afloat.”

Councilman Ron Smith said he would rather wait for the final rules to make a decision. If some infrastructure projects don’t ultimately qualify for the funding, that might leave a pot of funding, said Councilman Chuck Highlands.

“I think we’re putting the cart before the horse,” Highlands said.

If the application process is approved, council will have to come up with eligibility requirements for businesses, allowed uses, documentation and a total amount for the plan, Witt said.

“There’s a lot more factors that you would all have to discuss before an application would be finalized,” he said.