The cost to Zelienople borough for Phase 3 of its Main Street project continues to drop.

Gov. Tom Wolf announced Monday that the third phase of Zelienople's Revitalization and Economic Development project is one of 34 community projects funded via a Keystone Communities Program grant, with the borough receiving more than $223,000 for the project.

Phase 3 covers upgrades and infrastructure updates along Main Street between West New Castle Street and Grandview Avenue, essentially bringing the project to Four Corners Park.

Borough manager Don Pepe said the $223,605 grant may decrease the amount Zelienople owes on its Butler County Infrastructure Bank loan, for which repayments begin in 2022.

The borough in November was also awarded a $400,000 state grant via the Commonwealth Financing Authority program, also for Phase 3 of the streetscape project. The two grants combine to a total of $623,605, which is a hefty dent in the more than $1 million estimated cost for the project.

Pepe said the work on Phase 3 is similar to work performed earlier in the project. In this phase, workers will put utility lines underground, replace streetlights and light poles, and update curbs, among other work.

“It's really the same project, just a different part of town,” Pepe said.

The manager said Monday he was unsure if the funds could be used to offset the $3.5 million loan from the county infrastructure bank Zelienople procured to fund the streetscape improvement and other projects. With repayments beginning in 2022, Zelienople will have to pay $377,000 in loan principal, according to a budget passed by borough council last week.

Pepe said, however, that the dollar amount wasn't set in stone as the borough could return unused funds if grants or other money came through to offset the costs.