Mahoning Commissioners Propose TIF Plan for Racino
YOUNGSTOWN, Ohio -- Mahoning County commissioners will vote this week on a proposed a tax increment financing, or TIF, plan that could generate as much as $8 million over the next 10 years for infrastructure projects at or in the vicinity of the new Hollywood Gaming at Mahoning Valley Race Course in Austintown.
Commissioner David Ditzler said the plan would allow the county to take 50% of the tax revenue generated by project owner Penn National Gaming Inc. and place it into a fund that could be used to pay for roadway and sewer improvements along thoroughfares near the racetrack.
"Corridors leading in -- like Meridian, Mahoning and Silica roads in that general district -- can be improved by resurfacing, restructuring, and sanitary projects," Ditzler said after commissioners met Friday morning.
About $8 million in TIF revenue would be generated over 10 years, Ditzler projected. Of that money, $1.5 million would be earmarked for infrastructure improvements at the site of Penn National's project.
The remaining $6.5 million would be used as matching funds for the surrounding infrastructure initiatives on the roadways Ditzler referenced. "There are so many different projects we have on the table for which we don't have matching funds," he said. "Some of the main concerns of this Valley are the roads and the infrastructure."
Mahoning County Engineer Patrick Ginnetti told commissioners that on average, the county would have to come up with a 20% match in order to fund major infrastructure improvements. Thus, $6.5 million could leverage $30 million worth of work, he said.
Under the plan, the county would collect the revenue during the racino's first full year of operation, which is likely to be 2015, Ditzler said. Any new projects funded under a TIF would begin in 2016.
He noted that commissioners would vote on the TIF measure at the board's next meeting Sept. 26.
As for talk about establishing a Joint Economic Development District, or JEDD, with the city of Youngstown, Ditzler said that he hasn't heard of any substantial discussions underway.
"The JEDD is a relationship with Austintown Township and the city of Youngstown," he said. "From what I understand, it takes a unanimous vote from the township trustees and they don't have that. I don't believe there's a JEDD going forward, but things can change."
Youngstown officials have proposed a JEDD that would collect money from a casino profit tax and an income tax on employees there and split the revenue between the township and city.
A JEDD would permit the city to extend infrastructure such as water and sewer lines to the project. Under state law, the city is permitted to levy taxes in exchange for providing these services.
The city imposes a 2.75% income tax on city residents, plus a 2.75% profit tax on businesses. Officials have suggested a 2.5% rate for the Austintown JEDD.
"We're continuing to look at all our options," said Alex Stolyar, vice president of corporate development at Penn National, in reference to the creation of a JEDD. "We haven't made any final determinations on that yet."
Meanwhile, contstruction work on the $125 million thoroughbred horse track and casino continues, and the new venue should be finished and open for business by the end of 2014.
"We've got a crew out there and working hard, and we expect a year from now we'll be open," Stolyar said after delivering a short presentation on the status of the project.
About 1,000 new construction jobs are to be created during the facility's building phase, he reported, while another 1,000 direct and indirect jobs would result once the racino is open. The new track would employ 500 full and part-time workers, while the multiplier effect would spur another 500 positions in the region, Stolyar said.
The new racino encompasses 187 acres on land just south of the Interstate 80 interchange in Austintown, and bordered by state Route 46 to the west and state Route 11 to the east.
When finished, the venue will hold 1,001 enclosed seats in view of the mile-long thoroughbred racetrack and up to 1,500 video lottery terminals, or VLTs. There will also be televised races from other tracks across the country that will enable patrons to place wagers on those races.
Stolyar affirmed his company believes the Mahoning Valley provides an excellent market for the venue, despite a growing number of casino and VLT projects across Ohio and possibly in nearby Pennsylvania.
"We're confident that this project will be very successful," Stolyar said. "Obviously, there's more and more gaming coming to Ohio, but this area being unique and our facility here, we have full confidence in it."