Montco OKs first step of $105 million stimulus

Montgomery County commissioners yesterday approved spending $20 million over the next year on the first step of a county economic-stimulus plan.

"We are really putting ourselves in a position to control our destiny," said Commissioner Joseph M. Hoeffel III, who had pushed the plan since taking office last year.

If it runs its full course, the plan will authorize spending $105 million in county-issued grants and loans over the next seven years to boost private- and public-sector construction projects as well as job training, mainly in the county's most downtrodden areas.

In an era of depleted government resources across the board, the money is coming from county borrowing. So are two other large-scale spending projects in the county: a $39 million extension of the county's program for buying open space that was approved yesterday, and a $150 million road-construction plan that is the subject of a referendum planned for November.

Hoeffel said the economic-development program was the "most stimulative" of all the borrowing for its potential to create jobs.

Of the $20 million in economic-development money approved yesterday, $14 million is to be spent to help pay for building projects in Norristown and Pottstown. Which projects it will go toward has not been determined, however. Hoeffel said he hoped yesterday's spending approval would gain the notice of developers with stalled projects ready for a kick-start.

"A bunch of projects are on hold or seem to be moving slowly," Hoeffel said, "but the whole point of this program is to offer additional resources."

Hoeffel said the planned, and delayed, Studio Centre at Norristown movie-production facility had been discussed as a possible recipient. He would not name others, and said a timeline would follow the county's planned hiring of an economic-development director in coming weeks.

The rest of the first year of the economic-development spending includes $3 million for downtown-development efforts in needy communities other than Norristown and Pottstown, $2 million for upgrading facilities to attract businesses, and $1 million toward development-planning and job-training programs.

The economic-development spending and the guidelines for each of its spending items were approved by Hoeffel and Commissioner James R. Matthews over the objections of Commissioner Bruce L. Castor Jr.

Castor, who voted for the open-space borrowing, said he had campaigned for office against spending millions in borrowed money on economic development, and yesterday compared it to the federal attempt at economic stimulus.

"This is a fundamental philosophy split between me and the other two," Castor said. "The county government here is being run like the national government."

Norristown Council President Mila Hayes said she was glad commissioners had approved so much money targeted for her municipality, which has been undergoing "revitalization" efforts for decades.

"I think they're putting their money where their mouths are this time," Hayes said.