STEUBENVILLE - The Community Improvement Corp. on Monday requested $35,000 in Community Development Block Grant funds to help provide loans for new businesses in the city.

Ruth Casey, the revolving loan fund plan administrator for the CIC, made the monetary request to the city's Planning and Zoning Commission during a public hearing on how to spend the $809,394 the city will receive in CDBG funding for 2010.

"The funds requested will be a 25 percent match from the city and would allow us to leverage for more than $100,000. And these funds will be used solely for loans within the city. Economic Development Administration funds are available for loan requests but can't be disbursed without the city's matching funds," explained Casey.

She noted the loan fund returned CDBG funds to the city in January 2008 under a mandate from the Ohio Department of Development and that money was used to buy anti-crime surveillance cameras.

"We have one very good loan project pending and the possibility of a second loan proposal," noted Casey.

"Progress Alliance has no matching funds from Steubenville and is unable to make (revolving loan fund) loans within the city," Casey told the planning commission.

Urban Projects Director Chris Petrossi said he will prepare a draft proposal on spending the city's CDBG funds for the June 7 meeting.

"In addition to the CIC project I would also like to consider several activities that we have funded in the past including the rehabilitation of owner occupied single family dwelling units, park improvements, street resurfacing, historic preservation and clearance and demolition projects," said Petrossi.

"In order to obtain the CDBG funding, our goals for the next five years include retaining and expanding safe and affordable housing to extremely low, very low and low- and moderate-income households. We will also work to establish healthy neighborhoods through balanced, diverse development of public facilities, infrastructure, housing, commercial, recreational and safety activities," Petrossi told the planning commission members.

In other business, the planning commission approved a request for legislation to advertise for bids for the environmental cleanup and demolition of the former Cool's Hoagie Building at 152-154 N. Fourth St.

The city has received $297,318 from the Ohio Department of Development through the Clean Ohio Revitalization Fund program.

"This will be used in conjunction with the $100,000 in CDBG funds allocated for the clearance of the former Cool's Hoagie building," said Petrossi.

Petrossi also reported the city expects to receive $363,566 from the Neighborhood Stabilization Program for demolition projects.

"The demolition of the two garages near North Seventh and Ross streets have been completed and we are now waiting for asbestos reports for 1327 and 1329 Pennsylvania Ave., 243, 236 and 238 N. Eighth St., 503,505, 507, 509, 511, 513, 515, 517 and 521 N. Sixth St. and 912 and 918 Main St.," said Petrossi.

(Gossett can be contacted at dgossett@heraldstaronline.com.)