SHARON – Another Sharon business that received American Rescue Plan Act funding has closed its doors.
Croaker’s, 74 N. Sharpsville Ave., just could not sustain itself, said owner Mara Palipchak.
“We just weren’t able to sustain enough steady business for it to make sense to continue to stay open,” Palipchak said.
The Palipchaks will not reopen the business in New Castle.
Croaker’s will have to pay back 80% of the $70,000 it received in a grant from the city under the American Rescue Plan Act.
“In any agreement for anyone that got money, the requirement is to pay is back on a schedule,” said Sharon City Manager Bob Fiscus. “Every person that received funding signed an agreement.”
Palipchak said Croakers has had an open communication line with the city and it is working closely toward a resolution.
The Palipchaks’ problems started last year when authorities accused a New Castle business owner of taking money for a project but never began the work.
Garrett Thomas Libby, 35, was charged in May 2023 with theft by deception based on allegations that he agreed to install an outdoor patio and privacy wall.
Libby received a check from the city’s Local Fiscal Recovery Fund for more than $5,000 to cover half the cost, with the balance to be paid upon completion.
Police said Libby failed to complete any work and did not return the money.
The cost of the project was to be $10,005, and the city was involved because the project was funded through the city’s share of ARPA funds. The city received almost $15 million in ARPA funds and has used a portion of the funds to assist local businesses with start-up and improvement projects.
The charges had been waived to the Court of Common Pleas but a formal arraignment has yet to be scheduled.
Croaker’s closure echoes the story of Julian’s, formerly at 234 E. State St., which also received ARPA funding but closed because of staffing difficulties.
Julian’s also has to pay back a portion of the $100,000 it received from ARPA funding. The city distributed the $100,000 grants as an incentive for new businesses to settle in Sharon.
Fiscus said there is a potential for litigation between the city and Julian’s.
“We’re doing everything in our ability to make sure the funds provided to businesses are secured or paid back or the assets are remaining in Sharon,” Fiscus said. “The businesses closing have been forthcoming. Their situations are not ideal, but they understand that we have to protect the investment put into Sharon.”
Fiscus said he expects to see the former Julian’s developed soon with another business in Sharon as a replacement.
