Youngstown OKs 99-Year Lease for V&M Star
YOUNGSTOWN, Ohio – The Board of Control formally entered into a lease agreement Thursday with V&M Star for the property where it has built its new pipe mill.
Under the terms of the 99-year lease agreement, V&M will pay the city $2.85 million annually for the first three years and $100,000 annually for the remaining years of the lease, said David Bozanich, city finance director. The board approved the lease and a memorandum of understanding related to the lease, and a 30-year tax increment financing agreement to pay for public improvements to the property such as roads, water and utility lines, and other infrastructure. The 30-year TIF will be based on the assessed valuation of the improvements made to the property as determined by the Trumbull County Auditor’s office. Land for the project was annexed into Youngstown but remains part of Girard for school taxation purposes.
V&M Star produces pipe for the oil and gas industry. VAM USA, a sister company, also is developing a mill adjacent to the new tube mill.
Additionally, the board approved an environmental services agreement worth $171,031 with Brownfield Restoration Group LLC for cleanup and remediation services at the former Wean United building, 219 S. Phelps St. The city received a $2.367 million Clean Ohio grant for the project.
How much of the building will be demolished is yet to be determined, said T. Sharon Woodberry, economic development director.
“We have to work with whatever the end plan is. There may be an end user there, there may not. Until we get that resolved with the owner we don’t know the scope of work that’s going to be done there,” she said.
The board also approved a development agreement between the city and the Mahoning Valley Historical Society to support its $3 million renovation of the Harry Burt/Ross Radio Building on West Federal Street into the Tyler Mahoning Valley History Center. Under the agreement, the city will provide a water/wastewater utility grant not to exceed the lesser of all water and wastewater expenses related to the project or $200,000. Funds will assist with installation, improvements, enhancements and/or upgrades to the plumbing, water or wastewater related infrastructure at the 325 W. Federal St. building.
Copyright 2012 The Business Journal, Youngstown, Ohio.