Sep. 18--BLAIRSVILLE -- Borough Council formed the new Blairsville Community Development Authority three months ago to administer ongoing and planned revitalization programs in town.

To see the new entity through the current drought of funding from a state capital that has been paralyzed by a budget impasse, council Tuesday agreed to guarantee a temporary bridge loan the BCDA is seeking from local banks.

Joseph Serwinski, chairman of the authority, said it intends to take out a $50,000 loan that would mostly cover operational expenses. Of that amount, $15,000 would be set aside to pay for an appraisal of properties at the west end of Market Street that are being targeted for a government-initiated housing development.

"We're caught in the state budget squeeze," Serwinski said. "We are owed money, but we're not getting any checks. Still, We're moving on with our programs and incurring debt."

On behalf of the borough, BCDA administers the ongoing Main Street program -- an effort to boost the downtown business district through infrastructure and facade improvements and other projects -- and the proposed Elm Street program, which would do the same thing for designated residential areas.

Borough Manager Tim Evans reported it is expected to be another three weeks before Blairsville receives $95,000 from the state Department of Community and Economic Development to help cover costs for the fifth and final year of the Main Street program. That pending payment, which would be passed along to the BCDA, includes $35,000 for operational costs and $60,000 for facade improvement grants to downtown property owners.

The borough also is awaiting anticipated approval of its Elm Street program, which all told would be eligible for up to $400,000 in DCED funding.

In the meantime, Serwinski told council that BCDA has $3,569.89 in its checking account. But, after meeting payroll for its two staff, paying utility, insurance and computer bills and reimbursing Executive Director James Carmo for state-mandated training, "we will have a negative $3,690.04," Serwinski reported.

Thus, the need for the bridge loan. For collateral, Serwinski said, BCDA will rely on the borough's contract for DCED funding and council's agreement to pass along that money to the authority.

Serwinski said the $35,000 portion of the loan would be paid back from the expected $50,000 operational allotment BCDA would receive under the first year of the Elm Street program. The remaining $15,000 is to be reimbursed when the targeted properties at the west end of Market Street -- consisting primarily of the former Vale Tech campus -- are sold to a private developer as part of a DCED-coordinated Infill Housing project, Serwinski indicated.