Council to Consider Ohio Works Lease for Vallourec
YOUNGSTOWN, Ohio – City Council this evening will consider an ordinance to lease 35 acres of property in the city’s Ohio Works Business Park to Vallourec Star, which just last week unveiled its new $1.05 billion pipe mill.
The company wants to lease the land from the city for “future economic development purposes” which it has not identified, said David Bozanich, city finance director. “They’re going to end up using it for whatever they end up deciding. They’re going back and forth down there as to how to optimize the use of that property,” he remarked.
Vallourec already has a license for the site which the ordinance would convert to a lease, Bozanich said. The city would receive $5,000 annually under terms of the lease, which would dovetail with the term of Vallourec’s existing lease with the city for the site of the new mill.
“We just want to keep them in Youngstown so we made that property available to them,” Bozanich said.
In addition, council members will consider Wick Properties LLC’s application to the Ohio Development Services Agency for its application to the state’s brownfield revolving loan fund for $770,000 to assist with its proposed redevelopment of the Wick Building, 34 W. Federal St.
The project, by area developer Dominic Marchionda, will convert the property for use as extended stay and traditional apartments, said T. Sharon Woodberry, city economic development director. Marchionda is also the developer of Erie Terminal Place, which his company converted into apartments targeted to students and Youngstown State University and young professionals.
A related item on the council agenda that would have authorized the city’s Board of Control to enter into a development agreement with Wick Properties for the $16.5 million project, was pulled as Marchionda finalizes financing for the project. Woodberry said she hopes that will be able to be reintroduced at the special City Council meeting in July.
The agreement would include a water/wastewater treatment plant of up to $500,000 and a 12-month float loan of up to $2 million.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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