SalesKatz, DNV Energy Get Last Initiative Grants
YOUNGSTOWN, Ohio -- The Youngstown Initiative Program is a victim of its own success.
Although the city is still encouraging companies to apply to the much-lauded economic development program, it reached the limit of the funding allocated for the fiscal year with the two applications approved Thursday, David Bozanich, city finance director, told members of the committee that oversees the program.
The committee recommended grants of $50,000 apiece for DNV Energy LLC and SalesKatz Inc., reaching the limit of the $200,000 the city appropriated for the program this year. In fact, SalesKatz’ grant was half of the $100,000 the company had requested.
“As we’ve done in the past with the program, we will still accept applications,” Bozanich said. “We don’t want to discourage people from making applications because some of the projects are very good and if somebody comes in with the right type of application we still want to fund it. We’ll have to figure out a way to put more funds in there.”
SalesKatz, a Cleveland company that moved into the Youngstown Business Incubator last year, requested $100,000 to assist with sales lead generation software it is developing, a $577,500 project. The company, profiled in March by The Business Journal as part of our Trending: TechBelt series (CLICK TO READ), released an earlier generation of the customer relationship management software and is working on Rev2.
Every company uses customer resource management software to keep track of its customers but “unfortunately what it’s become over the years is nothing more than a glorified Rolodex,” remarked Ken Zebracki, CEO. “We’ve taken CRM and combined it with business intelligence,” he said.
The company, which projects sales of $2.4 million in 2015, anticipates adding 40 jobs over three years, bringing employment to about 50, Zebracki said. “Most of these jobs are of the high-tech variety,” he said. The SalesKatz CEO assured the committee members that its project would move forward even with the reduced grant amount.
The committee then took up an application it deferred at its March 26 meeting from DNV Energy LLC, an offshoot of Youngstown Pipe and Supply Co. (READ STORY) The company had sought $100,000 from the city to purchase machinery and equipment and for computer networking expenses related to its $1.15 million expansion project.
DNV Energy produces and sells products to the oil and gas industry including standard valves and fittings as well as custom fabrications. The expansion project would create 11 jobs over a three-year period, six full-time and five part-time positions.
Spun off from Youngstown Pipe and Supply, DNV Energy operates in the former Cold Metal Products building, which straddles land in Youngstown and Campbell. In 2008, the Initiative program approved a $100,000 grant for Youngstown Pipe and Supply to move into the building, with Youngstown and Campbell sharing the cost of the incentive and the tax revenues. The project is expected to create 11 jobs over a three-year period.
The Initiative committee had deferred action at the March meeting to determine whether Campbell would similarly be interested in participating in DNV’s project. T. Sharon Woodberry, the city’s economic development director, requested, and the committee approved, a grant to match Campbell’s contribution, up to $50,000. The two cities will equally share the income taxes generated by the new positions.
Regarding the Initiative program reaching its funding limit, Bozanich said he’s to go back to City Council to request more funds for the program “knowing what the needs are out there. He anticipates the program would be funded in 2015 at this year’s levels.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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