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Mahoning Cuts Scope of Chamber Development Contract
By George NelsonYOUNGSTOWN -- Economic development efforts have taken one of the early hits in Mahoning County's financial crisis.Yesterday Mahoning County Commissioners approved a one-year agreement with the Youngstown/Warren Regional Chamber to provide a sharply reduced level of service. Last year commissioners paid the chamber $30,000 to promote economic development across the county. "This year the county will pay the chamber nothing."Under the terms of the new agreement, the chamber will continue to administer the county's enterprise zone program, which covers four zones -- Austintown, Jackson Township, Sebring and the zone covering Struthers, Lowellville and Campbell -- as well as the community reinvestment area in Jackson. The chamber will be paid from the administrative fees paid by companies receiving the abatements. However, the new deal cuts national marketing services, customized research, and retention, expansion and attraction visits that were covered under the prior deal."Right now, that's just the tradeoff that we can afford," Commissioner John McNally said following the meeting. The prior economic development contract with the chamber was paid for with money from the county's general fund. With the expiration of the half-percent sales tax in 2004, county officials are looking at belt-tightening across the board. The sales tax generated about $13 million a year for the county. Voters in November narrowly rejected an ongoing half-percent replacement sales tax. "It's a difficult time for all concerned and we need to make the best decisions we can on how to spend the resources that do still exist," acknowledged Reid Dulberger, executive vice president of the Regional Chamber. Dulberger said the county would continue to benefit from some of the Chamber's economic development efforts in the county, though he declined to say what impact the new contract might have on the chamber's internal operations. "We will all do the best we can to support development in the region. It's harder to do when we don't have the resources we might believe to be necessary," he said. While the agreement could be changed at a later date if the county's financial situation changes, Dulberger says the chamber is operating under the assumption that the sales tax " will remain off the books for at least some period of time, if not permanently." Tom Presby manager of business assistance projects for the regional chamber, said under the new agreement the chamber would continue to assist companies "seeking to invest and retain jobs in Mahoning County," and would provide site, demographic and community data; information on local, state and federal assistance programs; and any planning and coordination assistance requested."Primarily it was the retention expansion and attraction visits [that were] not reflected in the new contact," Presby said. By early next week, Presby told commissioners, they should have a year-end report on economic activity from the chamber for 2004.Contact George Nelson at [email protected]"