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"Tax Breaks Approved for InfoCision, Youngstown Pipe"
"YOUNGSTOWN, Ohio -- City Council approved tax inducements for a teleservices company planning to move into offices downtown and a new steel service center that has started operations in the former United Foundry building.At last night's meeting, council approved a 75% tax abatement on real and personal property over 10 years for InfoCision, allowing the teleservices company to go forward with plans to renovate offices on the fourth floor of Phar-Mor Centre.The company is doing some aesthetic renovations in the building, reported Jeffrey Chagnot, the city's economic development director. InfoCision, based in Akron, reported several weeks ago it intends to invest $1 million to start up operations in Phar-Mor and initially hire about 150. That number could double within a year, executives said.InfoCision's downtown offices are expected to be operating by Feb.1, Chagnot said.Another company, Youngstown Pipe & Supply LLC, is also receiving tax incentives to expand operations -- a 75% tax break over 10 years to cover new investment in personal property.The company has been slowly ramping up operations at the former United Foundry building, located along the Mahoning River just west of the Market Street Bridge. Youngstown Pipe plans to purchase new equipment to enhance its operations there, Chagnot said. The firm expects to invest between $610,000 and $1.1 million in new machinery. In return, the company has pledged to add 18 new jobs within two and-a-half years, he said.Don Caiazza, vice president of Youngstown Pipe, said the company has been slowly moving in over the last six months. "We expected to have about 10 employees and now we're up to about 14 or 15," he said.Caiazza was president of CSC Ltd., a steelmaker in Champion that was liquidated in 2001. Youngstown Pipe is a steel service center that processes plate and structural steel. With the new equipment, the company plans to expand its value-added operations, such as saw cutting, Caiazza stated. "We like the location and there's a talented labor pool available in this area. We're really pleased," he said.Council also approved a plan last night that would raise energy rates for customers of Youngstown Thermal II by 20% over a four-year period. Youngstown Thermal supplies central steam service to numerous commercial and industrial customers located downtown. Initially, the company requested a 15% rate increase for this year.But Fourth Ward Councilwoman Carol Rimedio-Righetti, chairwomen of council's public utilities committee, led an effort to block the immediate rate increase. Instead, city officials met with representatives of Youngstown Thermal throughout the summer and arrived at a compromise plan.The new plan calls for a gradual rate increase of 5% a year starting in January 2005 through December 31, 2008. There was no rate increase through 2004."