Did we pay it back or not???

In the July 28, 2006 New Haven Register, there was an editorial entitled State tried to collect an old debt. This commentary was about the news item that:

The state Department of Economic and Community Development sent City Hall a letter July 10 saying that if the city did not pay back $93,500 in unspent money from grants dating to the 1960s for development of Savin Rock, it would cut off all future economic aid.

The editorial makes a good case that this deadline was extremely short, considering that the last time that the state tried to collect these funds was in 1994. It also stated that the grant records from the 1960's are no longer on file, and that the city is uncertain as to whether or not it owes this money.

My question -- did we pay it back, get an extension, or otherwise resolved this issue? Or are we cut off from future economic aid?

According to the July 25, 2006 New Haven Register article entitled Decades-old debts may lead to cuts in W. Haven grants,

Picard said the city won’t, and isn’t, in a position to pay a bill neither city records nor the state validates.

The article also states:

If the city loses state money, city Planning and Development Commissioner Eileen Buckheit said the planned West River Crossing development will be put at risk because the city needs "millions" to clean up the site before turning it over to a developer. The city is trying to land the United Illuminating Co. for the site.

Great. We have a project that could actually put some new business into the city of West Haven, and it's in jeopardy... or did we resolve the matter? WHY is the Mayor's office silent!??!!