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City Approves Incentives for Development Projects
YOUNGSTOWN, Ohio – David Bozanich has a saying -- “Money goes where it’s welcome” -- and at meetings over the past day, the city was making sure companies large and small knew their investments would be warmly received.
Thursday morning, the city’s board of control approved funds through the Youngstown Initiative program to assist several area companies with equipment purchases and facades. That followed Wednesday’s meeting of City Council, during which members approved a 10-year, 75% tax abatement for VAM USA, the Vallourec subsidiary that is considering Youngstown for an $81.5 million pipe-threading mill at there Ohio Works Industrial Park, as well as relocation of some earth at the project site.
Bozanich, the city’s finance director, believes a decision could come in the next 90 days on the project. “We think it could be sooner. We’re hoping it’s sooner,” he said.
A local spokesman for Vallourec, Vince Bevacqua of ShaleComm, said the company had no comment regarding the project.
Last year, the French steel company celebrated the opening of its $1 billion pipe mill, on which it collaborated with the cities of Youngstown and Girard. At least two other sites are under consideration for the threading mill.
“We have to make sure from the city of Youngstown’s perspective that that we are doing what we can to welcome these people into our community in recognizing that they can do this in a bunch of different places globally,” Bozanich remarked. “From our side of it, we’re going to do everything we can to get it here.”
The tax abatement will go before the board of control if Vallourec selects Youngstown for VAM's threading operation, which is expected to create 84 jobs within the first year. “Once VAM makes the decision to go forward with the investment it’ll probably be in front of the board of control within 10 days,” Bozanich said.
Bozanich, Mayor John McNally and Martin Hume, the city’s law director, comprise the board of control
At the board of control meeting his morning, the city approved a development agreement with Kiraly Tool & Die Inc. to provide a Youngstown Initiative performance grant of $8,042 to assist with the company’s expansion and the purchase of additional equipment at its Crescent Street location, allowing it to add two employees and train another 12.
The new CNC machine will enable Kiraly to expand its capabilities by allowing it to manufacture smaller parts “more aggressively and more precisely,” said Steven Kiraly. The equipment should cost $80,427, according to city documents.
“They has established a good reputation here. I don’t think there’s one particular industry that’s driving” the company's need to expand, said the city’s economic development director, T. Sharon Woodberry. “They’ve just built that reputation and the quality of their work is becoming more known.”
Another performance grant, for $2,731, was awarded to One Hot Cookie LLC in the Erie Terminal Place building. The funding will assist the business with the purchase of equipment it needs to expand capacity, resulting in four jobs over three years. The total project cost is $13,655. The cookie shop “has taken off really well,” Woodberry said.
Last week, owner Bergen Giordani announced she is opening a second location in the Austintown branch of the Public Library of Youngstown and Mahoning County. That project is separate from the Youngstown expansion, Woodberry said.
A performance grant of $23,408 was also approved for Meals on Wheels of Mahoning County, to assist with costs associated with the expansion of the business and purchase of equipment and machinery at its offices at 1840 Market St. The total investment is estimated to be $119,021.
The board also approved a façade renovation agreement with Rhys the Bar LLC to provide a grant of $14,500 for renovations consisting of new front and rear signage, installation of a balcony and fire escape, and a new door and entrance. The new business, which will offer craft beers and be on the second floor of the building at 124 W. Federal St., will be operated by the owners of Imbibe, the martini bar located on the ground floor.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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