Rick Peltz hadn't been back to Warren for a year or so.

The former top aide to Congressman William Clinger and former PennDOT undersecretary was stunned by what he saw going on in downtown Warren, where construction cranes and scaffolding loom in every direction.

"I'm impressed and pleased," said Peltz, who two years ago was nominated by President Bush and appointed by the U.S. Senate to the second highest post with the Appalachian Regional Commission.

"It's a phenominal face-lift," said Peltz. "It could become an example across the country. ŒImpact Warren" is doing the right things. People asked, ŒWhat do we have to build on?¹ and here in Warren it's the riverfront."

Neil Fowler, Assistant to the Deputy Secretary for Pennsylvania Community Affairs and Devleopment, agreed.

"I think you will see more ARC dollars going into projects like this," said Fowler. "Warren will be an excellent model."

So far, ARC has not been asked to provide any funding directly for "Impact Warren," but Fowler sees how the agency could play a role as the project unfolds.

New buildings in downtown Warren will provide more commercial space and more potential for entrepreurship, said Fowler.

"There are entrepreneurs who will want to take advantage of the activity downtown," said Fowler. "We can provide the technical assistance to help them start." We have done some antique coops, for example."

Peltz said, "If they've got a business idea, we are the people they've got to get to." said Peltz. "We do assist economic dedvelopment and if we hear of an opportunity, we'll see how we can help out."

ARC can assist fledgling businesses and entrepreneurs with everything from a rotating loan fund to preparing business plans. But Fowler stressed, "We don't go out and say, 'Here's some money."

The entrepreneurs have to contact the Appalachian Regional Commission.

Indirectly, ARC may have a role in "Impact Warren."

The commission has already provided funding for a study of the possible improved Rt. 62 connector link to Interstate 86 in New York. Fowler said the commission is currently reviewing an application for an additional $300,000 to help with construction of the connector.

"We are committed to helping," said Fowler.

The connector was assigned a top priority rating by the Northwest Regional Planning and Development Commision and Pletz pointed out that the ARC seldom rejects those recommendations.

"Anyone who understands economic development understands how important transportation is," Peltz said.

The outmigration of people, particularly young people, from Warren County and northwestern Pennsylvania is the problem at the top of ARC's agenda.

The reason people are leaving, said Peltz, comes down to opportunities - employment and higher education opportunities.

"It's tough to keep kids in a more rural setting," said Peltz. "Opportunities are few and far between. Certainly Warren is trying to do what it can. We have a wonderful quality of life here, but we need more opportunities if we want to stem the out migration."

Peltz said it's up to local "economic development people" to identify the community's needs. From that point, ARC can help leverage the state and federal money needed to address the needs.

The Appalachian Regional Commission was created in 1965 to deal with a stretch of the nation stretching from Mississippi to the southern tier of New York which had traditionally lagged behind the rest of the country in economic development, personal income, job development and education.

"President Kennedy said, 'This area's hurting,'" said Peltz, "and we're still saying it today."

Since creation of the Appalachian Regional Commission, more than half the counties once on the "distressed" list have been removed from the list.

Peltz said he and Fowler are frequently asked, "When are you (ARC) going out of business?"

The answer, said Peltz, is "When every county in the region gets close to parity with the rest of the nation. We're still not there."