Friday, March 23, 2012YOUNGSTOWN, Ohio – Consideration of a proposed increase in Mahoning County’s bed tax to fund the Western Reserve Port Authority is on hold until mid-April, says county Commissioner Carol Rimedio-Righetti. That’s when she is trying to put together a meeting of commissioners of both counties, representatives of local economic development entities and the two counties’ convention bureaus to explore other options for funding the port authority as well as combining the tourism agencies.
The proposed 2% addition to the tax on lodging drew a sharp response from county hotel operators that Rimedio-Righetti acknowledged was unexpected. The hotel operators announced their opposition Feb. 28 at a press event, one day before the increase was to be approved by the Mahoning County Board of Commissioners. “I was very, very surprised they took that approach,” she said.
The addition would bring the tax charged on a hotel stay in the county, including state, local and township bed taxes, to 14.75%, which hotel operators said would discourage travelers from staying in the Mahoning County.
Additional funding is needed to support the port authority, operator of the Youngstown/Warren Regional Airport – which itself supports the adjacent Youngstown Air Reserve Station. The port authority has assumed additional responsibilities for economic development in Mahoning and Trumbull counties, proponents argue.
The two counties and area municipalities provided three years of funding for the port authority’s economic development operation; they made their final contributions under the agreement last year. Following Wednesday’s meeting of the port authority’s board of directors, board member Jim Floyd said the Valley faced a different economic environment than when the cities and counties agreed to provide the funding.
“The port authority is probably one of the best economic development tools Mahoning County and Trumbull County have. They bring a lot to the table,” Rimedio-Righetti said. Among its unique powers are the authority to issue bonds and its administration of a Foreign Trade Zone. The port authority could play and even greater economic development role because of exploration of the Marcellus and Utica shale plays in the region. She wants the port authority to help put together “shovel-ready properties” for projects that could come to the area.
Rimedio-Righetti also stressed the importance of supporting the port authority and airport to help preserve jobs at the Youngstown Air Reserve Station. The base already is due to lose about 130 positions due to downsizing by the U.S. Defense Department.
She also said she wants to explore the possibility of combining the operations of the Mahoning County Convention & Visitors Bureau and the Trumbull County Tourism Bureau, or at least for them to work collaboratively. Each entity is funded by county bed taxes as well.
“Maybe it’s time to start a regional effort,” Rimedio-Righetti said. If combining the two isn’t possible “we need to discuss” how the two agencies can work together across county lines.
“I don’t know that something like that could be done but let’s sit down and discuss things,” she added.
As far as funding alternatives for the port authority, the commissioner suggested looking into grants and working with the office of U.S. Rep. Tim Ryan, D-17 Ohio, who brought the coalition of counties and municipalities together to provide the initial three years of funds for the port authority’s economic development operation, as well as state development funds.
“We really need to change the way we do business in the Valley. We have to get on a more regional approach,” Rimedio-Righetti remarked.
Copyright 2012 The Business Journal, Youngstown, Ohio.