North Huntingdon nearly lost the proposed $30 million Mills Pointe commercial/retail project and its anchor Wal-Mart Superstore.

A unanimous decision by township commissioners Nov. 2 to grant developer DeBartolo Development Irwin-Prudential a level-of-service waiver for three traffic signals in a section of Route 30, between Norwin Avenue and Arona Road, appears to be crucial to the future of the project.

The Pennsylvania Department of Transportation may now issue a highway occupancy permit that would allow the developer to begin $4.5 million in improvements along Route 30, including the relocation of Barnes Lake Road.

All are essential to the construction of a 190,810-square foot Walmart Superstore, which would encourage further development of Mills Pointe adjacent to the Irwin interchange of the Pennsylvania Turnpike.

"Literally, by granting the traffic waiver, the commissioners saved a $30 million project," claimed Jay Adams, project development officer for DeBartolo. "Without it, Walmart is gone."

Wal-Mart was ready to pull out of the project that has been plagued by delays since 2002, which led to PennDOT denials of a required highway occupancy permit, Mr. Adams disclosed.

"Wal-Mart desperately wants this store to open," he said. "They're just tired of waiting for us to deliver a construction-ready pad."

Wal-Mart owns several acres of the 64-acre historical former Mills Homestead, the site for development of Mills Pointe.

Mr. Adams revealed that DeBartolo Development, which has partnered with Prudential for the project, has a "financial commitment" for an undisclosed amount from PNC Bank that was contingent upon the township granting the traffic waiver.

Attorney William R. Sittig, Jr., legal counsel for DeBartolo Development, said only, "We have a deal with PNC."

The traffic waiver from the township is needed because of the anticipated impact the development of the Mills Pointe/Wal-Mart project will have on Route 30 intersections at Norwin Avenue, Barnes Lake Road and Arona Road.

At this point, the developer needed the waiver for modifications to the Norwin Avenue intersection: two westbound turning lanes, a through lane and an eastbound acceleration lane at an estimated cost of $40,000 to $50,000.

"We don't have any money to pay for the improvements," Mr. Adams told the board Nov. 2. "As of today, this venture [Mills Pointe project] is going to lose $4.5 million."

The township's policy is to have a developer pay for modifications of an intersection, but North Huntingdon will pick up the Norwin Avenue costs.

Assistant Manager Michael Turley informed the board that township administrators are trying to develop a proposal geared to substantially reducing congestion at the intersection.

"Now that the board has granted your request for a traffic waiver, are you ready to commit to a date for starting construction of the Wal-Mart? Or are we going to see this project drag out again?" Commissioner Rich Gray asked.

"Immediately," said Mr. Adams.

Following the meeting, he said the relocation of Barnes Lake Road along Route 30 to an area in front of Teddy's Restaurant "could begin by Dec. 1."

"Construction of the Wal-Mart could begin as early as April or May," he added.

DeBartolo's failure over the past four years to acquire a critical easement for relocation of Barnes Lake Road stalled development of Mills Pointe for nearly two years. Site preparation resumed early this year.

Delays resulted in the loss of a $1.2 million federal highway grant that would have helped fund modifications to Route 30 in the area of the Mills Pointe project.

Updated PennDOT requirements to acquire a highway occupancy permit further delayed the project.

The complications nearly led to DeBartolo abandoning the project, in which it already has invested $13 million, Mr. Adams told commissioners.

Meanwhile, North Huntingdon residents will not see a property tax increase in 2010.

Manager John Shepherd presented a proposed $12,528,793 balanced budget to township commissioners last Thursday night. The spending plan does not include a millage increase for the fourth consecutive year.

The 12.55-mill levy includes 10.23 mills for the general fund, a fire tax of 1.32 mills and 1 mill for capital reserve.

About $200,000 was transferred from a projected year-end balance of $4 million to $4.5 million to balance the spending plan.

Among projected expenditures are: general fund, $10,313,483; capital reserve fund, $564,250; liquid fuels fund, $753,500, fire service fund, $436,500; sinking fund, $183,610; and light fund, $143,300.

Commissioners will consider approval of the budget during a meeting next Wednesday.

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