Review Panel OKs InfoCision, Simon Abatements
YOUNGSTOWN, Ohio -- The Mahoning Tax Incentive Review Committee recommended continuing abatements for InfoCision Management Corp. in Austintown and Valley Sports/Simon Roofing in Struthers, following recent meetings with representatives of both companies.
The committee, which monitors companies’ compliance with the terms of the tax abatement agreements they enter into with the county, had held off at its March 24 annual meeting on recommending to the Mahoning County Board of Commissioners that they continue the abatements for the two companies, which they were found fell short on reaching job creation or investment targets.
Simon, which entered into an agreement in 2008 for a 10-year, 60% property tax abatement, has exceeded its projected investment of up to $3.45 million, spending more than $3.73 million, but had fallen short on hiring, so far only adding 13 of the projected 25 new positions.
InfoCision, conversely, exceeded its hiring projection of 200 new positions by nearly half, with 295 positions added in the sixth year of its abatement, but fell short on its investment projections. As of the March 24 meeting, the company reported it had invested $4.47 million, below the $5.25 million to $6.14 million projected.
Representatives of the committee, which is chaired by Mahoning County Auditor Michael Sciortino, visited both companies three weeks ago, Sciortino reported. “The precedent we are setting is no that matter how large or small the amount, we maintain due diligence,” he said.
During the meeting with Simon officials, the company’s fiscal officer said economic conditions in 2008 and 2009 impacted its ability to hire additional personnel, reported Struthers Mayor Terry Stocker.
“That said, they poured a lot of money into capital investments to move their company forward and put it in a better position,” he said. Company officials also said they anticipate putting on an additional shift in 2015 if not at the end of this year, which would bring the job creation total to 75% of what had been projected, as required in the abatement agreement. They also said if the company is unable to reach the job creation quota, it would voluntarily withdraw from the tax abatement program, according to Stocker.
“It was a very good meeting. We understood the concerns that they had,” Sciortino said. Many small businesses had difficulties staying afloat while coping with the Great Recession while committee members acknowledged the company’s investment has been good. “Sometimes the equipment is so highly efficient that it eliminates the positions,” he said.
At the meeting with InfoCision, which was attended by the company’s CEO, Craig Taylor, Sciortino noted, the issue was a matter of paperwork being improperly filled out to reflect the company's full investment. The revised investment figure for the company was $5.9 million.
“We’re going to have to be more careful in talking to these companies that do this,” said Austintown Township Trustee Ken Carano.
After the votes to recommend the two abatement packages for an additional year, the committee reaffirmed its support for the abatements approved at the March 24 annual meeting. The recommendations now go to the Mahoning County Commissioners, who will consider whether to ratify the recommendations.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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