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"ISG Gets Tax Exemption, Will Upgrade Coke Plant"
"WARREN, Ohio -- The International Steel Group, Richfield, Ohio, will begin a 10-year, $13 million capital improvement project to upgrade and modernize its coke-making facility in Warren Township as a result of a new agreement with the Warren City Schools Board of Education, officials announced recently. The agreement provides for a 100% exemption of new real and personal property taxes arising from the capital improvements made at the plant.In return, ISG will make payments in lieu of tax to the school district equal to 25% of the tax that would have been due if there was no exemption. Additionally, ISG has agreed to make contributions totaling $117,000 for school district capital improvements and college scholarships.The improvement project is expected to improve competitiveness of the plant, thus helping to secure future stability and preserve approximately 140 jobs. Under the plan, ISG would receive a 100-percent exemption of new real and personal property taxes arising from the capital improvements made to the coke plant, according to Jeff Foster, general manager of ISG Warren.The use of the payment-in-lieu-of-tax actually increases the overall benefit to the school district by preserving funding from the state of Ohio that ordinarily would have been lost as the new assets were installed and became taxable, according to Linda Metzendorf, president of the board of education. "This is a real win-win situation for the school district and ISG," she said. "Our community benefits financially, we help preserve good jobs and future tax revenue, and the company gets to make needed improvements to make it more competitive."Bill Prejsnar, of United Steelworkers of America Local 1375, agrees. "The steel business today is very competitive and we must make continuous improvements to succeed over the long term," he said. "This agreement is a good deal for everyone in Warren."With this agreement having been reached, the Enterprise Zone tax exemption arrangement will need to be approved by the Warren Township Trustees, the Trumbull County Commissioners, and the state of Ohio.International Steel Group Inc. is one of the largest steel producers in North America. It produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets.Visit International Steel Group Inc.: www.intlsteel.com"